Saving/Applying for a mortgage 2020-22 Edition

Just had a good call with EBS, I explained that I might be looking for AIP come July/August depending on my house selling by that time. They asked for salary etc. I explained to him that all going well with the house sale that I’d be clearing any loan we have (except my car loan) and obviously our current mortgage. Told him we’d have a decent cash balance once the sale went through. Plenty for a deposit in our price range 300-345k with a nice bit leftover after all expenses.

so by paying our current mortgage, the loan and savings add up too roughly €1900 a month, more then enough to afford the new mortgage. They’d be happy with that once I can prove all of the above are paid on time etc.. so what it means for us is hopefully little time spent living at the in laws.

I was of the full assumption that we’d need to save €1200-€1500 a month once we sold up but it’s not.

has anyone had experience with this recently??

Had BOI AIP months ago, put a holding deposit on a house in November, BOI have continuously dragged their heels with the final loan offer, and now we're to be hit with a rate rise that will add five figures onto the total cost of the house. I'm this close to dropping out and revisiting later in the year to see where things stand, if not for the fact I don't know when another house as suitable as this one might become available.

You just gotta bite your tongue and see if you can afford it. In the process of applying myself, probably be looking at 4% by the time I drawdown :(

There seems to be an appetite from central banks to bring rates down again once inflation is controlled so I'm wondering what length are people fixing for? I was thinking I'd go 3 years max, maybe even 2.

You are best to lock it for 5 Years!

We're the same. We can afford it, but we're not sure we want to at this stage. If they had delayed the increase by a week we might have had a chance to get the lower rate and we could have moved forward. This is adding €200 pm to our repayments which isn't a small increase. We're also told that the underwriting process will have to start again which will add a week or two if we were to move forward.

They were always going to raise rates, but I thought it might be half a point with a week or two lead time to allow those who were well advanced in the process to close that stage. The fact that it's a three quarter point increase with immediate effect is the stinger. Now that this is a no-go, I think we're better off shopping with other banks and seeing if the hikes suppress demand in the second hand market or waiting a little longer for inflation to drop to a point where the ECB reverse course. That won't be for another 9+ months at the earliest.

We've recently drawn down and we're lucky to get in at 3% with BOI, just before the increase.

We bought the house knowing it would need some work doing to it and we are considering topping up our mortgage by 10-20k after Year 1.

If successful, would the rate of this 'top up' draw down be the new increased rates? Or would all our mortgage be readjusted?

Really appreciate any clarity on this.

It’s sickening…

we have a new development which won’t be ready until April /May so I’ve no doubt there will be further increases

It's going to be quite a while before inflation is at 2%

Just got my new AIP through from BOI. Took far longer than same time last year. It’s dated yesterday so I imagine they were waiting to include the updated rate rise. Hadn’t really noticed them before but this one really stings. Which I know is the point.

Trying to factor in that I’m probably going to be paying even more by the time it gets to drawdown.

Yeesh.

It'll be the most expensive thing you ever buy, I wouldn't skimp on it

I'd imagine so. In general they ask for your last six months bank statements so you'd still have three months activity there within the 6 month time period.

Evening everyone, wondering if anyone can offer any advice for my situation, single applicant looking to get a mortgage but banks not willing to give an exception/cannot borrow enough to allow me to buy a property. A sibling who took out a mortgage themselves a number of years ago has offered to go on the application jointly with me (salary has risen significantly in the intervening period) I was wondering if the banks would take part of the salary into account in calculating the multiple for lending? Anyone any previous experience of this? Any potential issues if so? Any advice greatly appreciated!

Do banks look for more than 6 months bank statements? Or is that just the general rule and the majority expect for your own bank just ask for 6 months?

Wondering if there is any point in me applying for a mortgage at the moment? My savings record is very good over the last 1.5 years overall but Sept,Oct Nov last year wern't great at all as went travelling etc so didn't save much. Saving a grand a month overall apart from those few months and paying rent of 650e pm but does it damage my changes say if I got rejected now and reapplied on 3 months time when I have 6 months of perfect bank statements? A bit confused! Thanks

Did you pull from the savings for holidays IN addition to not saving to it?

If you only didn't save to it, and you have a sizeable savings balance it is worth trying and they'll let you know if you need to reapply in 'x' more months