Saving/Applying for a mortgage 2020-22 Edition

thunderdog · 07-05-2020 7:33pm

chillywilly wrote: »

Does anyone know the banks stance on Coinbase payments coming I n to my bank account (bitcoin etc)?

I’ve heard they can be unfavourable.....

They will definitely ask you what they are. I had something similar with a different exchange and I just showed the sum of transactions leaving that exchange account (matching what went into my bank account) and they were fine with it.

(Boi application)

raze_them_all_ · 08-05-2020 12:08am

Can I use a building site and savings in part of my application?? Ie 30k savings and a site worth 50k?

bigpink · 08-05-2020 6:01am

chillywilly wrote: »

Does anyone know the banks stance on Coinbase payments coming I n to my bank account (bitcoin etc)?

I’ve heard they can be unfavourable.....

Is it income?

Atlas_IRL · 08-05-2020 11:45am

Exceptions are gone now due to covid. I had applied for one last year and was told it would be fine as long as i had 6 months savings without touching it. Done that went back just before people were told to work from home and he said i'd have a very good chance of the excception then got the letter of 3.5X.
I enquired and they told me exceptions are done for the time being. Ask Paul guy was saying it on instagram as well.

Cant afford anything on that so need to just wait till its lifted again

Pivot Eoin · 08-05-2020 3:42pm

So I had a very interesting back and forth with EBS. So they are still currently doing exemptions. I showed them my April Payslip, which has the COVID-19 Subsidy included in it and they withdrew the option for me, even though my take home is the same and I had a letter from my employer stating my income would be as normal once the subsidy scheme expires.

So if you haven't dropped in wage and aren't getting the Subsidy then they are still giving exemptions.

Here's the email from EBS:

TomTanks · 08-05-2020 4:37pm

Pivot Eoin wrote: »

So I had a very interesting back and forth with EBS. So they are still currently doing exemptions. I showed them my April Payslip, which has the COVID-19 Subsidy included in it and they withdrew the option for me, even though my take home is the same and I had a letter from my employer stating my income would be as normal once the subsidy scheme expires.

So if you haven't dropped in wage and aren't getting the Subsidy then they are still giving exemptions.

Are they still willing to give you a mortgage at x3.5 salary with the covid

Pivot Eoin · 08-05-2020 4:46pm

TomTanks wrote: »

Pivot Eoin wrote: »

So I had a very interesting back and forth with EBS. So they are still currently doing exemptions. I showed them my April Payslip, which has the COVID-19 Subsidy included in it and they withdrew the option for me, even though my take home is the same and I had a letter from my employer stating my income would be as normal once the subsidy scheme expires.

So if you haven't dropped in wage and aren't getting the Subsidy then they are still giving exemptions.

Are they still willing to give you a mortgage at x3.5 salary with the covid

No but KBC are. EBS want me to call them as soon as The Subsidy scheme ends.

Bargain_Hound · 08-05-2020 9:28pm

Has anybody experienced a few days delay between drawdown and closing sale? Our solicitor drew down our funds yesterday but we can’t complete until Tuesday as she is waiting on a final document to close from the vendor solicitor?

chillywilly · 08-05-2020 10:32pm

bigpink wrote: »

Is it income?

Yes

Creamy Goodness · 08-05-2020 10:45pm

chillywilly wrote: »

Yes

Can be used to form your deposit but won’t be considered income for max loan amount as it wouldn’t be considered guaranteed income.

Dylan94 · 09-05-2020 2:43pm

We are saving at the moment to buy sometime this year, we are looking at new builds or houses in great condition. However, I also just seen on the application form for BOI that asks about renovation costs.

Would that mean that it might be possible to get a mortgage on a house that needs to be renovated and have the costs of the renovation in the mortgage? That would open up a lot more houses for us.

guyfawkes5 · 09-05-2020 4:11pm

Dylan94 wrote: »

We are saving at the moment to buy sometime this year, we are looking at new builds or houses in great condition. However, I also just seen on the application form for BOI that asks about renovation costs.

Would that mean that it might be possible to get a mortgage on a house that needs to be renovated and have the costs of the renovation in the mortgage? That would open up a lot more houses for us.

I spoke to BoI briefly about this a few months ago but did not pursue it myself.

They said it's possible, although the bank would proceed on the assumption that the funds you use to renovate would have an immediate return in the value of the finished house. This means that you could get straight up fixes and upgrades like wiring done, but not more decorative things like a new kitchen or painting. They'd also need a valuer to agree to your plan, someone certified to examine and verify each part of the work is done correctly, and for you to have up front cash to handle both potential overruns of budget and the fact that the bank will only release the money bit by bit on confirmation of each phase of the work.

It's attractive to do as mortgages are obviously very low interest loans for big expenses like this, but it's also a lot to take on and a big risk, especially if you're a FTB and have no experience in construction.

bigslick · 12-05-2020 7:20pm

Pivot Eoin wrote: »

So I had a very interesting back and forth with EBS. So they are still currently doing exemptions. I showed them my April Payslip, which has the COVID-19 Subsidy included in it and they withdrew the option for me, even though my take home is the same and I had a letter from my employer stating my income would be as normal once the subsidy scheme expires.

So if you haven't dropped in wage and aren't getting the Subsidy then they are still giving exemptions.

Here's the email from EBS:

Received same response to our application with EBS as my partner is on the subsidy scheme currently. I outlined that her company could provide a letter stating the timelines she will be on it, that her take home pay will not change and that after this period her income will remain as currently, but they werent having any of it. Said the underwriters considered individuals in receipt of wage subsidy similar to receiving social welfare. Not sure I follow that logic......but anyway. Was not due to purchase for another approx 6 months so can just reapply once all sorted.

fago · 13-05-2020 10:29am

Did folks with a recent approval from AIB get this in the post.

You must imagine the projections inside AIB look pretty dire, for them to be trying to get ahead and warn customers who have already passed the more stringent criteria (no exceptions/exemptions etc).

Maz2016 · 13-05-2020 10:42am

fago wrote: »

Did folks with a recent approval from AIB get this in the post.

You must imagine the projections inside AIB look pretty dire, for them to be trying to get ahead and warn customers who have already passed the more stringent criteria (no exceptions/exemptions etc).

I really was hoping to buy my first home within the next few months. This is scary stuff. Looks like they really will be making it difficult and I suppose rightly so in a way but as a single first time buyer i think it’s tough

rsl1976 · 13-05-2020 11:46am

Tilikum17 wrote: »

Our mortgage runs out on the 20th. We can get a 1 month extension after that. It’s crazy they haven’t given people more time with pretty much everything on hold.

Ours runs out at the end of May,(i had to pass probation) the sellers solicitor is taking forever to draw up the contracts and basically the bank have said if it's not completed we will need to apply again. Do you mind me asking which bank gave you an extension?

fago · 13-05-2020 11:57am

Maz2016 wrote: »

I really was hoping to buy my first home within the next few months. This is scary stuff. Looks like they really will be making it difficult and I suppose rightly so in a way but as a single first time buyer i think it’s tough

Assuming you're not looking for an exception, have a good savings history and aren't impacted by covid the process of getting approvals hasn't necessarily got any more difficult (it does take longer).

I was posting just to reflect the fact that the banks, even when they think you are a safe bet, are recommending independent advice and a full view of the responsibilities that come with a mortgage commitment.

Maz2016 · 13-05-2020 4:30pm

fago wrote: »

Assuming you're not looking for an exception, have a good savings history and aren't impacted by covid the process of getting approvals hasn't necessarily got any more difficult (it does take longer).

I was posting just to reflect the fact that the banks, even when they think you are a safe bet, are recommending independent advice and a full view of the responsibilities that come with a mortgage commitment.

Thanks, guess just feeling deflated by the whole thing. I do have a good savings history thankfully but I’ll be looking for about 3.8 times my salary.

fago · 13-05-2020 6:12pm

Maz2016 wrote: »

Thanks, guess just feeling deflated by the whole thing. I do have a good savings history thankfully but I’ll be looking for about 3.8 times my salary.

Hopefully you won't need 3.8 times. Have you been over in the Property 2020 thread, there is a series of economists and statisticians projecting for 2020/2021.

Maz2016 · 13-05-2020 7:13pm

fago wrote: »

Hopefully you won't need 3.8 times. Have you been over in the Property 2020 thread, there is a series of economists and statisticians projecting for 2020/2021.

I dip in and out of it but there is so many posts I haven’t been following it much

Maz2016 · 13-05-2020 7:25pm

fago wrote: »

Hopefully you won't need 3.8 times. Have you been over in the Property 2020 thread, there is a series of economists and statisticians projecting for 2020/2021.

I dip in and out of it but there is so many posts I haven’t been following it much

lir6777 · 13-05-2020 10:02pm

Maz2016 wrote: »

I dip in and out of it but there is so many posts I haven’t been following it much

Same boat Maz2016, unless prices drop a lot it's going to be very difficult to buy near any of the major cities on 3.5 times most salaries ðŸ˜£

Tilikum17 · 14-05-2020 7:16am

rsl1976 wrote: »

Ours runs out at the end of May,(i had to pass probation) the sellers solicitor is taking forever to draw up the contracts and basically the bank have said if it's not completed we will need to apply again. Do you mind me asking which bank gave you an extension?

AIB.

Just a quick question for anyone really. Just out of a meeting in work where they’ve told us they are now going to start claiming for the covid wage subsidy even for people like me that are actually in work.

Could that prevent the bank from giving us a mortgage?

Pivot Eoin · 14-05-2020 7:50am

Tilikum17 wrote: »

AIB.

Just a quick question for anyone really. Just out of a meeting in work where they’ve told us they are now going to start claiming for the covid wage subsidy even for people like me that are actually in work.

Could that prevent the bank from giving us a mortgage?

Yes it will unfortunately. Good thing is if you are only starting now, reality is by the time it comes to drawdown or even maybe offer stage for you, that scheme could be over.

Tilikum17 · 14-05-2020 8:36am

Pivot Eoin wrote: »

Yes it will unfortunately. Good thing is if you are only starting now, reality is by the time it comes to drawdown or even maybe offer stage for you, that scheme could be over.

Drawn down is next week.

Pivot Eoin · 14-05-2020 8:55am

Tilikum17 wrote: »

Drawn down is next week.

You may be lucky then pal, and I hope so.

If you get to drawdown over the next 10 days or so, then your most recent payslip will still be the April Payslip, which presumably has no COVID-19 Wage Subsidy on it. So in that scenario I reckon you'll be golden. My advice would be to do everything in your power to get this all sewn up in the next 2 weeks. Hassle the **** out of solicitors and any other 3rd parties.

Hope it works out for you.

Bargain_Hound · 14-05-2020 9:12am

Pivot Eoin wrote: »

You may be lucky then pal, and I hope so.

If you get to drawdown over the next 10 days or so, then your most recent payslip will still be the April Payslip, which presumably has no COVID-19 Wage Subsidy on it. So in that scenario I reckon you'll be golden. My advice would be to do everything in your power to get this all sewn up in the next 2 weeks. Hassle the **** out of solicitors and any other 3rd parties.

Hope it works out for you.

That would be my advice also if you are still going ahead with your purchase.. We just got ours over the line this week and it was very stressful but so delighted now. We did everything we could to push the purchase through as quickly as possible as my partners employer was availing of the scheme.

Markitron · 14-05-2020 9:52am

Quick question for you guys, if you don't mind. I am at the start of the saving process, I have put 2 months of savings away and am about 7-10 months away from having a deposit. My problem is that I have an overdraft on my account, I could clear it if I didn't save for a month.

My question is it worse to have this overdraft on my account or to have a gap in my savings record? The plan was to clear it as soon as I had the deposit, so it wouldn't be there when I actually go to apply for a mortgage.

Any advice would be much appreciated!

Tilikum17 · 14-05-2020 10:05am

Pivot Eoin wrote: »

You may be lucky then pal, and I hope so.

If you get to drawdown over the next 10 days or so, then your most recent payslip will still be the April Payslip, which presumably has no COVID-19 Wage Subsidy on it. So in that scenario I reckon you'll be golden. My advice would be to do everything in your power to get this all sewn up in the next 2 weeks. Hassle the **** out of solicitors and any other 3rd parties.

Hope it works out for you.

We have no choice but to. Our last day to drawn down is next Friday.

My mate in the bank thinks it shouldn’t affect us at all?? I don’t understand.

Duke of Url · 14-05-2020 10:07am

Markitron wrote: »

Quick question for you guys, if you don't mind. I am at the start of the saving process, I have put 2 months of savings away and am about 7-10 months away from having a deposit. My problem is that I have an overdraft on my account, I could clear it if I didn't save for a month.

My question is it worse to have this overdraft on my account or to have a gap in my savings record? The plan was to clear it as soon as I had the deposit, so it wouldn't be there when I actually go to apply for a mortgage.

Any advice would be much appreciated!

I think an overdraft is more of a risk then a gap in savings.

I closed my overdraft on my main account. but I havent need it for years.

ladystardust · 14-05-2020 10:11am

Tilikum17 wrote: »

We have no choice but to. Our last day to drawn down is next Friday.

My mate in the bank thinks it shouldn’t affect us at all?? I don’t understand.

Because the covid19 pay subsidy will not be on your pay slip by then.

Markitron · 14-05-2020 10:12am

Duke of Url wrote: »

I think an overdraft is more of a risk then a gap in savings.

I closed my overdraft on my main account. but I havent need it for years.

OK thanks, again the overdraft will be gone the month after I have the deposit, that is what is confusing me.

Duke of Url · 14-05-2020 10:13am

Markitron wrote: »

OK thanks, again the overdraft will be gone the month after I have the deposit, that is what is confusing me.

Which bank are you with?

Markitron · 14-05-2020 10:15am

Duke of Url wrote: »

Which bank are you with?

AIB

Duke of Url · 14-05-2020 10:25am

Markitron wrote: »

AIB

Would you be paying fees monthly being overdrawn?

Markitron · 14-05-2020 10:29am

Duke of Url wrote: »

Would you be paying fees monthly being overdrawn?

Not that I have noticed. The overdraft is cleared every month when I am paid if if that makes a difference.

wally79 · 14-05-2020 10:34am

Markitron wrote: »

Not that I have noticed. The overdraft is cleared every month when I am paid if if that makes a difference.

Clear the overdraft now and don’t use again. Then by the time you get deposit together your records will show you haven’t been overdrawn for 10 months

Markitron · 14-05-2020 10:39am

wally79 wrote: »

Clear the overdraft now and don’t use again. Then by the time you get deposit together your records will show you haven’t been overdrawn for 10 months

OK so having had an overdraft will 100% affect my mortgage application? I wasn't sure if they just treated it as a loan that I repaid every month

Tilikum17 · 14-05-2020 11:12am

ladystardust wrote: »

Because the covid19 pay subsidy will not be on your pay slip by then.

It’s already on it. I spoke to my solicitor this morning. He says we have nothing to worry about. We have been offered a mortgage by the bank which we’ve accepted. A signed contract.

Duke of Url · 14-05-2020 11:31am

Markitron wrote: »

OK so having had an overdraft will 100% affect my mortgage application? I wasn't sure if they just treated it as a loan that I repaid every month

It will be taken into consideration that you are overdrawn on a monthly basis.

Markitron · 14-05-2020 11:32am

Duke of Url wrote: »

It will be taken into consideration that you are overdrawn on a monthly basis.

Ah right, I will get rid of it. I applied for the overdraft too if that makes any difference?

Duke of Url · 14-05-2020 11:33am

Tilikum17 wrote: »

It’s already on it. I spoke to my solicitor this morning. He says we have nothing to worry about. We have been offered a mortgage by the bank which we’ve accepted. A signed contract.

I dont think its going to matter currently. But if you go sale agreed on a house, the bank could ask for payslips before releasing funds.

Hopefully by that time Covid subsidies are no longer the case.

Duke of Url · 14-05-2020 11:36am

Markitron wrote: »

Ah right, I will get rid of it. I applied for the overdraft too if that makes any difference?

I dont believe so.

I had one for 15 years and cancelled it when starting my Mortgage application. I didnt want an overdraft as a discussion topic.

We have a Joint Account where all our wages go. We have a mortgage savers account that our deposit saving go which now only excepts direct debit monthly as we maxed what we could add in lump sums.

We each have a current account that we add 50 euros each too so we keep them alive.

Sparky85 · 14-05-2020 11:52am

Markitron wrote: »

Quick question for you guys, if you don't mind. I am at the start of the saving process, I have put 2 months of savings away and am about 7-10 months away from having a deposit. My problem is that I have an overdraft on my account, I could clear it if I didn't save for a month.

My question is it worse to have this overdraft on my account or to have a gap in my savings record? The plan was to clear it as soon as I had the deposit, so it wouldn't be there when I actually go to apply for a mortgage.

Any advice would be much appreciated!

An overdraft is seen by banks as living beyond your financial means. Clear it ASAP and do not use it again until you have the house keys in your hand.

Markitron · 14-05-2020 1:42pm

Thanks for the advice guys, I'll prioritise getting rid of it so.

Tilikum17 · 14-05-2020 4:16pm

Duke of Url wrote: »

I dont think its going to matter currently. But if you go sale agreed on a house, the bank could ask for payslips before releasing funds.

Hopefully by that time Covid subsidies are no longer the case.

They got payslips already. Suppose they could ask again.

What really sickens me is that we’re all working away full time & it’s only some people they’re claiming for. Because I earn more than Dave beside me - they claim for me. If this costs us our deposit and subsequently the house we’re trying to buy, we’ll actually be made homeless. Because we’ve just sold our own.

I won’t be a happy chappie

lomb · 15-05-2020 8:53am

Pivot Eoin wrote: »

You may be lucky then pal, and I hope so.

If you get to drawdown over the next 10 days or so, then your most recent payslip will still be the April Payslip, which presumably has no COVID-19 Wage Subsidy on it. So in that scenario I reckon you'll be golden. My advice would be to do everything in your power to get this all sewn up in the next 2 weeks. Hassle the **** out of solicitors and any other 3rd parties.

Hope it works out for you.

I would consider drawing the loan early. If the mortgage is with ptsb and there's covid on payslip they won't allow drawdown. With other banks it's all up in the air. Each bank is doing covid checks prior to releasing funds

tolow · 15-05-2020 3:59pm

What do people think are chances of exemptions being granted again this year? I was on to BOI today and they said no exemptions at the moment.

Also what lender is best for including all income from bonuses? I have some bonuses that my employer won't put down on a salary cert but I have received these bonuses the last three years. Do lost lenders want this stamped on the cert?

Pivot Eoin · 15-05-2020 4:05pm

tolow wrote: »

What do people think are chances of exemptions being granted again this year? I was on to BOI today and they said no exemptions at the moment.

Also what lender is best for including all income from bonuses? I have some bonuses that my employer won't put down on a salary cert but I have received these bonuses the last three years. Do lost lenders want this stamped on the cert?

Get them to put it down on a salary cert as Not Guaranteed. Then Show evidence of them being paid the last 3 years. In normal circumstances they would factor 50% of the average of that Bonus over last 3 years.

Captainsatnav · 15-05-2020 4:34pm

Got BoI approval in principle today, PTSB 2 weeks ago...no houses to look at though

Saving/Applying for a mortgage 2020-22 Edition

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