Saving/Applying for a mortgage 2015/16/17/18/19

hooch-85 · 19-12-2016 5:17pm

EBS just declined us as well, pretty much the same answers word for word as AIB.

Back to the drawing board for another 6 months

Monife · 19-12-2016 5:44pm

hooch-85 wrote: »

400 per month on top of rent of 550. Our application was for 164k. Repayments on that are approx 730 over 30 years so we thought we would be well covered.

Thanks for that. That's very similar to our situation. 400 pm saving but 900 on rent and would be looking for a similar mortgage but not enough saved yet for a deposit. Hoping to increase savings next year.

hooch-85 · 19-12-2016 5:49pm

Monife wrote: »

Thanks for that. That's very similar to our situation. 400 pm saving but 900 on rent and would be looking for a similar mortgage but not enough saved yet for a deposit. Hoping to increase savings next year.

Looks we will have to increase savings as well but it's not easy on fairly modest salaries. I'm paying a car loan and child maintenance too. Still thought we had proven repayment capacity and were told we passed stress tests. Seems they really look at your current accounts in detail, if you are near overdraft amount, mine was 500 per month they can decline you for this. We were told our current accounts were under too much pressure to take on the borrowings at this time. It's a bit of a vicious circle as your accounts are bound to be under pressure when you are paying rent and saving on top!

Jet Black · 19-12-2016 6:13pm

I was in a similar situation but bought by myself. I had rent, bills, car loan and maintenance to pay. If you haven't done already make a budget and stick to it. I was managing to save €1000 a month when I realised where I was wasting money, mostly on lunch, takeaways and drink. I also had to do without holidays and worked any overtime I could get. It was hard going and too me over a year but I managed to buy my own place this year.

L1011 · 19-12-2016 7:32pm

hooch-85 wrote: »

400 per month on top of rent of 550. Our application was for 164k. Repayments on that are approx 730 over 30 years so we thought we would be well covered.

With additional costs of home ownership (structural insurance, mortgage protection as required by the bank; property tax etc); 950 isn't really well covering 730 at record low interest rates. You likely failed stress testing on that before anything else came in to account (although them saying you passed is at odds, then)

Need to increase the savings amount - which will also have the the double impact of reducing the amount to borrow.

Bored Accountant · 20-12-2016 12:41pm

We got keys to our house on 2/12 and delighted to be finally in and flat out painting & getting sorted.

Working with broker, we are still having issues with the Life Protection being sorted for my OF. But, so as not to hold up the sale, we were able to take out the mortgage protection and once New Ireland are happy for the serious illness cover queries being answered, they will just add it on to the policy.

Assumption that you only need enough to cover the mortgage repayment is probably wrong.
I have the following expenses every month to cover now that we didn't have before;
Mortgage 945
House Insurance 20
Mortgage Protection 18
Serrious Illness Proctection (optional) 64

LTP 315 a year
TV Licence :eek:

And then other costs that you would be paying already;
TV, Broadband, Electricity, Gas/Heating Oil, Bins

So including all the above we are probably spending about €1,250 before we spend anything on stuff for the house.

I'm only guessing - but if you don't have evidence of payments for elec/gas/bins etc on your statements, they would include those into calculations for maintenance of the house ?

Jentle Grenade · 20-12-2016 2:12pm

We worked out that we are paying approximately €400 more per month than when we were renting. That's not taking into account the unforeseen surprises either like needing to replace a window at a cost of nearly €1k last week or having to fit out and paint the entire house at an eye-watering amount of money. We're lucky in that we both have high earning jobs but honestly we are to the pin of our collars every month since we got the keys and our mortgage is at the lower end of the monthly repayments scale. I know this will eventually even out but its still a long enough road. We don't have any kids either!

What we did do when we were saving was got rid of our car loans, credit card debt and overdrafts. Minor enough credit card debt in my OH's name meant our first application was rejected but we got multiple approvals the second time around with no debts or standing orders.

hooch-85 · 21-12-2016 11:03am

Thanks for the replies above.

My CC & Overdraft total €1k altogether, fairly minor but they are the first things we will be getting rid of. i had a 1.5k Overdraft which I reduced down by 1k over the last 6 months which I guess didn't help the application.

I have a car HP which I can't really get out of but my OH has no debt at all.

Will try harder to increase rate of savings too. Is there any point at this stage trying the other lenders or should we wait another 6 months until we are in better shape? We are meeting our landlord tonight so hopefully he will understand our situation and not want to sell out from underneath us or increase rent, which he could do as the rent is low and we will be there 2 years in May.

L1011 · 21-12-2016 11:10am

Wait - you are going to get the same answers from other lenders now. Can't remember how long a view record stays on your ICB file but a pile of them can deter a lender too.

Clear the CC and overdraft urgently but without reducing the current savings amount - don't increase then decrease basically. Overdraft is a massive red flag to a lender as it suggests you have problems managing money; credit card debt also but slightly less.

Col_30 · 21-12-2016 2:35pm

Hi, does anyone know if the banks are as fussy about savings when you are not a first time buyer?

I am hoping to trade up soon and the equity in my current property should comfortably cover the deposit of the new property.

Do I need to have an extensive savings record as well as paying my own mortgage for the last 8 years?

Thanks!

lbyrne121 · 21-12-2016 2:37pm

does anyone know what is maintenance on application form? What does that include? Thanks

masterK · 21-12-2016 3:05pm

Col_30 wrote: »

Hi, does anyone know if the banks are as fussy about savings when you are not a first time buyer?

I am hoping to trade up soon and the equity in my current property should comfortably cover the deposit of the new property.

Do I need to have an extensive savings record as well as paying my own mortgage for the last 8 years?

Thanks!

I was in a similar situation to yourself, had plenty of equity in house we are in the process of selling but not a huge amount of savings. All the bank asked for was that we prove we had 2k in savings. Our LTV on the new house was <50% so not sure if that was a factor.

One thing to be aware of is you will either have to sell your current house and move out or get a loan of the 10% needed on signing contracts for a new house, the banks won't help you there.

Col_30 · 21-12-2016 3:11pm

masterK wrote: »

I was in a similar situation to yourself, had plenty of equity in house we are in the process of selling but not a huge amount of savings. All the bank asked for was that we prove we had 2k in savings. Our LTV on the new house was <50% so not sure if that was a factor.

One thing to be aware of is you will either have to sell your current house and move out or get a loan of the 10% needed on signing contracts for a new house, the banks won't help you there.

Thanks for that. I'm moving into rented for some time once the sale completes.

My LTV will be the 80%, so may be a factor alright. But good to hear your positive outcome. Thanks a lot!

hooch-85 · 21-12-2016 3:19pm

lbyrne121 wrote: »

does anyone know what is maintenance on application form? What does that include? Thanks

Child maintenance, normally paid by the father of a child to ex partner/wife.

lbyrne121 · 21-12-2016 3:36pm

anyone know if the banks would inform revenue that I am renting? I am going for a second mortgage but pertaining my first mortgage. I forgot to cancel my TRS didn't even think of it to be honest (have since cancelled in but revenue didn't say anything about the last 6 months) therefore I didn't say anything. my mortgage statements that I have to give to the bank (different one from my first mortgage) state TRS on them even though I say in my application I am renting. So my questions will the bank get onto revenue?

Zurbaran · 22-12-2016 12:16am

I'm dealing with a mortgage broker at the moment but it's early doors so nothing to add there really. Reason I am posting is because of the comments I have read on mortgage protection. I work for a life company and can tell you right now you will get it through nearly any of them cheaper than the banks. Also if you already have mortgage protection with a bank/life company you can cancel at any time and take out a policy from an other life company (new policy has to be in place).

There is a few life company's right now matching the lowest on the market and applying a sizeable discount on top of that.

Just keep in mind that if you already have a policy but your medical condition has changed since taking it out this will affect the premium. And you would think it goes without saying but disclose every medical detail.

ThisRegard · 22-12-2016 12:35am

masterK wrote: »

One thing to be aware of is you will either have to sell your current house and move out or get a loan of the 10% needed on signing contracts for a new house, the banks won't help you there.

You don't always need the deposit in such an instance, solicitors can be happy to not demand it when they know you're using equity from the property you're selling to go towards purchasing. You can then close both on the same day.

lbyrne121 · 22-12-2016 11:03am

can someone please give me any advice..

My husband has been in employment for over 7 years but left his job for a better job 6 months ago, went from lecturer (public sector) to sales in science (private sector).. He went into get his salary certificate completed and his probation is actually 12 months! for some stupid reason he thought it was 6 months.. We have seen a house that we really want but I was wondering what are the chances of getting a mortgage if I am in permanent job for 6 years and he is on probation (they stated on the salary certificate that he will be made permanent at the end of his probation).

Can someone tell me is there any point in going to the banks or will it be a definite no?

I would really appreciate any advice

hooch-85 · 22-12-2016 11:12am

I really think you need to speak to a broker.

lbyrne121 · 22-12-2016 11:19am

But is there any point in wasting a brokers time when I read on all banks websites that they will not give a mortgage to someone on probation period?

tony1980 · 22-12-2016 11:22am

lbyrne121 wrote: »

But is there any point in wasting a brokers time when I read on all banks websites that they will not give a mortgage to someone on probation period?

A quick phone call to a broker will get you your answer. They won't mind you ringing and explaining your situation and will give you advice then on the best course of action.

Flatzie_poo · 22-12-2016 2:17pm

lbyrne121 wrote: »

can someone please give me any advice..

My husband has been in employment for over 7 years but left his job for a better job 6 months ago, went from lecturer (public sector) to sales in science (private sector).. He went into get his salary certificate completed and his probation is actually 12 months! for some stupid reason he thought it was 6 months.. We have seen a house that we really want but I was wondering what are the chances of getting a mortgage if I am in permanent job for 6 years and he is on probation (they stated on the salary certificate that he will be made permanent at the end of his probation).

Can someone tell me is there any point in going to the banks or will it be a definite no?

I would really appreciate any advice

I'm getting serious deja vu here... I know you're worried - but it has been answered previously.

lbyrne121 wrote: »

my husband is out of his probation at the start of next month and we are considering going for a mortgage. He has been in continuous employment for 8 years in the public sector (science lecturer), however he left that job for a better paid job as a Science sales Specialist (private sector)... What are the chance of getting a mortgage if you are just out of probation given these circumstances? Any advice would be greatly appreciated

listermint wrote: »

have you not asked this question before this week several times ? it looks seriously familiar...

Michael D Not Higgins wrote: »

MOD: lbyrne, I'll ask you to please not post the same question over and over again. You have had the same question repeatedly posted numerous times in this forum and others with the same advice. We will not be able to give you any more guidance than what has already been posted. You will have to talk to a bank or broker about your specific circumstances.

sadie1502 · 22-12-2016 2:27pm

Really you need to speak with a broker. Just ring one. You will get the correct information and will then be able to decide what to do.

witzky · 22-12-2016 2:54pm

lbyrne121 wrote: »

But is there any point in wasting a brokers time when I read on all banks websites that they will not give a mortgage to someone on probation period?

Hi，we got mortgage approval with my wife six months in to a 12 month probation period.

tony1980 · 22-12-2016 3:55pm

Got final confirmation of all documents received by the bank from the Solicitor. There was a small issue with the Life Protection missing the Original Policy schedule sheet in the form I handed in to our broker but that is sorted now. Broker says solicitor requested draw-down for the 30th and that won't be a problem as they have everything now. Closing date is Jan 6th

youcancallmeal · 22-12-2016 3:56pm

lbyrne121 wrote: »

But is there any point in wasting a brokers time when I read on all banks websites that they will not give a mortgage to someone on probation period?

My understanding is you can get mortgage approval from some banks like AIB while on probation on the basis that you will be out of probation by time you go to draw down. As others have said a quick call to a broker will very quickly answer your question for sure

09_09_09 · 23-12-2016 10:08am

I just received my ICB report but, I'm not sure/confused about one column, it says Scheduled Removal Date - 27 February 2020.

I closed this credit card and I paid all the outstanding balances on time, if there was any. It does say 'completed account' at the end but, why the above date? Is it a normal procedure or my report is negative?

I'm saving for deposit at the moment and I don't wish to have negative ICB report. If this is an error so I can get the bank to rectify this.

Any wise boardie might enlighten me. Thanks.

Michael D Not Higgins · 23-12-2016 10:32am

09_09_09 wrote: »

I just received my ICB report but, I'm not sure/confused about one column, it says Scheduled Removal Date - 27 February 2020.

I closed this credit card and I paid all the outstanding balances on time, if there was any. It does say 'completed account' at the end but, why the above date? Is it a normal procedure or my report is negative?

I'm saving for deposit at the moment and I don't wish to have negative ICB report. If this is an error so I can get the bank to rectify this.

Any wise boardie might enlighten me. Thanks.

It looks like the length of time it stays on your credit report. I wouldn't worry about it, it says all payments were up to date and the account is closed.

Col_30 · 23-12-2016 10:58am

09_09_09 wrote: »

I just received my ICB report but, I'm not sure/confused about one column, it says Scheduled Removal Date - 27 February 2020.

I closed this credit card and I paid all the outstanding balances on time, if there was any. It does say 'completed account' at the end but, why the above date? Is it a normal procedure or my report is negative?

I'm saving for deposit at the moment and I don't wish to have negative ICB report. If this is an error so I can get the bank to rectify this.

Any wise boardie might enlighten me. Thanks.

Once the account is completed, it stays on your ICB report for 5 years from the date of completion.

Vesper · 29-12-2016 4:53am

If I apply for a mortgage and dont get approved does that go against me?!

I earn 28k but would like to apply, just to see if I can get a small mortgage for a property abroad. If I dont get approved will that go against me at a later date?!

Saving/Applying for a mortgage 2015/16/17/18/19

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