Saving/Applying for a mortgage 2020-22 Edition

It's approval in principle, but it's not underwritten. Not really worth the paper it's written on really.

Once you send on the required documents they can send to the underwriters and check credit etc.

Yes but it's better to get the ball rolling on submitting the documents. If you bid on a place and it's accepted the bank could take weeks to months to underwrite it and sellers could move on to the next bidder, leaving you stressed and heartbroken. Make sure you got mortgage protection in place now. We almost lost out on our house due to a medical issue with me, delayed it 6 weeks

Oh yeah we have almost all docs uploaded, just waiting on help to buy from Revenue which is delayed as its saying my affairs aren't in order. Presume it's cause I'm still waiting on Statement of Liability for 2019.

PTSB won't give AIP without it which was another reason why the AIP from AIB was a very pleasant surprise.

I'm trying to decipher what the cost would be in relation to paying off a fixed rate loan early. Bank of Ireland's terms and conditions state the following:

If you repay your Mortgage early when you are on a fixed rate of interest, or change to another rate within your fixed rate period, you may have to pay an additional funding fee. This funding fee is compensation for the additional interest expense that the bank may incur as a result of a customer breaking their fixed rate contract. If there is no additional interest expense incurred by the Bank no compensation will be required. This is how the funding fee compensation is calculated - it is equal to “C” where:

C = Ax (R% - R1%) x D / 365

So they have this formula. A is the amount being repaid early and D is the number of days left on the fixed term, simple enough. However I'm struggling to understand with R and R1 are.

“R%” = the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period.

“R1%” = the annual percentage interest rate available to us for a deposit of an amount equal to “A” for a period equal to “D”.

So it sounds like R is what it cost BOI to magic up the money to loan to me and R1 is how much they'll make by leaving the amount I paid early gathering interest. But what does that mean in real terms? Is R the ECB rate at time of drawdown and R1 is the ECB rate at time of early repayment? If you were to draw down today and the ECB rates went up in the summer and stayed up, does that mean there would be no charge to pay off the loan early?

Have a read through this thread. It should shed some light on how it all works.

It depends on where they are with contracts. I put a booking deposit down, got the contract a week later and had 3 weeks to sign it.

I told them I might be 1 - 2 weeks late as I still needed an exemption approved. They were fine with that because they got a timeline from me. But they still asked me to confirm as soon as my exemption was approved because they had dozens of people on the waiting list

But I think that’s the difference. There was a deadline you met. OP already had to push out twice. Not saying I agree because there’s nothing you can do about the slowness of banks. But in todays climate with how many people on waiting lists, the builders are less patient

I got the super fast AIP from AIB and was planning on using it when viewing houses - I actually was never asked for proof of AIP in the end. I find the online portal very handy, so I have ended up staying with AIB . There is a chat function which I used to ask questions about a couple of properties I was interested in, and got good support there. I went sale agreed and uploaded the details last weekend. After a bit of follow up they called me on Thursday to finalise some details and say the mortgage would be sent for underwriting, and I should hear back within a week. Fingers crossed. Hopefully the pre-underwriting updating helps smooth the process.

You can "request" as many letter of offers as you want. However you can only sign & return one.

So if you sign tbe offer from BOI and return it, you are legally bound to thaf lender as far as I know.

You should be asking your solicitor to confirm as well.

As per above, you can request as many letters of offer as you like. It is only when you withdraw the money, you can only choose one lender!

Your broker is speaking rubbish, he maybe lazy.

Was thinking the same.

I was considering the 3 year with AIB which is the the lowest of their fixed offerings.

Anyone with any thoughts?

Was thinking the same, but then I kinda calculated affordability and set a limit for myself on how much I want to repay monthly , and results was I ended up asking to switch the 4 years to 5 years.

I mostly use switcher and their rates should be up to date. Is there a particular rate you saw that looked otherwise?

I went with Royal London and got it sorted within 3 days.

Pretty straight forward for me as I didn't need to provide any additional docs. So your answers about your health can also impact turnaround. You can't lie on this just to get a faster turnaround as it can come back to bite you if things need to be validated.

So I have a loan offer completed and contracts signed in relation to the purchase of a new build. The house is still a couple of months away from being completed and drawdown happening.

In the meantime, I've decided to put my current mortgage free home up for sale. The original plan was to rent it out and keep it as a long term investment, but the closer we get to actually doing it and the more we've looked at the details we've just come to the conclusion now is a better time to sell.

The money we get from that sale will be more than the mortgage we're getting so we'd like to use it to pay it off. I realise the smart thing would have been to sell the house in advance and not gone through the whole mortgage process but like I said our plans changed and there's near 0% chance of selling before drawdown.

Would our best option be to switch the mortgage to a 1 year fixed rate (the offer was 5 years but I've been told I can change that and it's no big deal) and then pay it off using the funds from the sale at the end of that?