Saving/Applying for a mortgage 2020-22 Edition

fin12 · 05-01-2021 11:19pm

GoldenSlumbers wrote: »

I had a lovely chat with a mortgage advisor from my bank today (Bank Of Ireland). But I found out that I would only be able to get a loan of 14 000 euro on my gross monthly income of 1900. He said that only people that earn above 2500 gross a month would get the proper loan of 3.5 times your wage towards buying a house. Are all banks like this? I assume they are?

Also I assume if there was a second income/partner that would get the income above 2500 a month than you'd be fine in getting that 3.5 times your wage loan. But as a lower income single person you're basically ****ed unless you can manage to earn that minimum of 2500 a month? Anyone any advice?

I thought 3.5 was the minimum you would get as long as you have the deposit and a record of saving/ paying rent. That’s discrimination against single people and lower income earners. 3.5 is bad enough and now they are making up this rule. The whole thing is a f*cking joke.

DubLad69 · 05-01-2021 11:34pm

fin12 wrote: »

I thought 3.5 was the minimum you would get as long as you have the deposit and a record of saving/ paying rent. That’s discrimination against single people and lower income earners. 3.5 is bad enough and now they are making up this rule. The whole thing is a f*cking joke.

No, the general rule is that you can get up to x3.5 based on what you can afford, and a very small number of people get above x3.5.

As difficult as it is to accept, its not discrimination. Single people can not afford to spend as much on a mortgage because they don't have someone to split the cost of household bills/living with.

People say yeah but I can clearly afford to pay more than that in rent, but the bank is not willing to take the risk with their money they you will be able to keep paying.

fin12 · 05-01-2021 11:38pm

DubLad69 wrote: »

No, the general rule is that you can get up to x3.5 based on what you can afford, and a very small number of people get above x3.5.

As difficult as it is to accept, its not discrimination. Single people can not afford to spend as much on a mortgage because they don't have someone to split the cost of household bills/living with.

People say yeah but I can clearly afford to pay more than that in rent, but the bank is not willing to take the risk with their money they you will be able to keep paying.

I don’t think that is true, I was told different it’s based on your gross salary, so if I earn 30 k a year, I should get 3.5 that.

DubLad69 · 06-01-2021 1:04am

fin12 wrote: »

I don’t think that is true, I was told different it’s based on your gross salary, so if I earn 30 k a year, I should get 3.5 that.

Well you were told wrong. As a general rule you can get UPTO x3.5 times your salary. But that is heavily dependent on you proving that you are able to afford the repayments and still live comfortably.

If you take EBS for example, their calculator will tell you that if you earn just under 31k you can get 107k (x3.5 times your income). But if you already have a €200 loan you can only get 100k mortgage. It's all based on what you can afford.

The same calculator will tell you that you can only get a mortgage of 55k if you earn 23k. A lot less than 3.5 times your income.

Yes x3.5 times is a good rule for most people, but is unlikely to apply to low earning single people or those who are already in debt.

https://www.ebs.ie/mortgage-affordability-calculator

fin12 · 06-01-2021 1:11am

DubLad69 wrote: »

Well you were told wrong. As a general rule you can get UPTO x3.5 times your salary. But that is heavily dependent on you proving that you are able to afford the repayments and still live comfortably.

If you take EBS for example, their calculator will tell you that if you earn just under 31k you can get 107k (x3.5 times your income). But if you already have a €200 loan you can only get 100k mortgage. It's all based on what you can afford.

The same calculator will tell you that you can only get a mortgage of 55k if you earn 23k. A lot less than 3.5 times your income.

Yes x3.5 times is a good rule for most people, but is unlikely to apply to low earning single people or those who are already in debt.

https://www.ebs.ie/mortgage-affordability-calculator

That’s why u clear all loans before going for a mortgage. Anyway banks aren’t the only institutions giving out mortgages.

MurDawg · 06-01-2021 12:07pm

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

Creamy Goodness · 06-01-2021 12:13pm

MurDawg wrote: »

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

banks will want to see at least 6 months savings where the only thing it's doing is sitting in a savings account / credit union account. they don't care where the bulk of your deposit comes from* but they want at least 6 months of savings (that covers the mortgage amount + rent you pay if any).

IMO investments are not savings and it's quite dangerous to use the two terms interchangeably.

* well as long as it's legal and you can provide a paper trail I guess.

Bitconfused · 06-01-2021 1:13pm

Bitconfused wrote: »

Hi All

I have aip and was hoping to start looking at properties however im due to get a covid test and with some symtoms i feel it will be positive.

So afaik this mwans i will have to apply for covid supplement. I will only be out of work for the period i have covid.

What impact could or is likely to have on progressing towards drawing down the loan do you think?

Hi All

Has anyone any insight on the above?

soc · 06-01-2021 5:04pm

MurDawg wrote: »

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

We have stocks and the bank included their value as being part of our saving capacity (we had to provide account statement for the shares). But we don't have a majority of our savings invested in them. So if they did drop it wouldn't take a significant hit on our deposit on-hand.

DubLad69 · 06-01-2021 7:06pm

I was talking to Permanent TSB today about a mortgage and the idea of over payment came up. I thought that it was very interesting that when you make an over payment with them it is applied to your account as a credit. Rather than being paid off the principal.

That could mean that say for example your mortgage is €1000 per month and for the next 2 years you are paying €1100 per month. You could then take a two month mortgage break.

You are also only paying interest on the principal minus the amount that you are in credit.

I love that idea. Do any other banks work the same way?

thomas 123 · 06-01-2021 7:09pm

MurDawg wrote: »

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

When you sell the shares for the purposes of applying for the mortgage you can get a shares certificate to show the bank where the money came from.

You should be fine - but do check with the banks and get it in writing(email) from them.

thomas 123 · 06-01-2021 7:10pm

Lads PUP

Can anyone advise if it would be a bad idea to have that for a few months while saving for mortgage.

Thanks in advance.

whatever76 · 06-01-2021 7:39pm

DubLad69 wrote: »

I was talking to Permanent TSB today about a mortgage and the idea of over payment came up. I thought that it was very interesting that when you make an over payment with them it is applied to your account as a credit. Rather than being paid off the principal.

That could mean that say for example your mortgage is €1000 per month and for the next 2 years you are paying €1100 per month. You could then take a two month mortgage break.

You are also only paying interest on the principal minus the amount that you are in credit.

I love that idea. Do any other banks work the same way?

As far as I know yes - I am currently over paying my mortgage by 100 euro started 6 months ago ( 10% is max I can pay ) with BOI 2 year fixed rate - being in lockdown can afford it so I said I may as well start chipping away at it

DubLad69 · 06-01-2021 7:45pm

whatever76 wrote: »

As far as I know yes - I am currently over paying my mortgage by 100 euro started 6 months ago ( 10% is max I can pay ) with BOI 2 year fixed rate - being in lockdown can afford it so I said I may as well start chipping away at it

Yes I know that you can over pay with all banks, but the question is more about the credit system. Once you've overpaid by €1000 can you then take a month off if you wish?

thomas 123 · 06-01-2021 7:48pm

DubLad69 wrote: »

Yes I know that you can over pay with all banks, but the question is more about the credit system. Once you've overpaid by €1000 can you then take a month off if you wish?

As far as I know No - you would stick to the terms of the loan.

The monthly payments might be reduced ever so slightly due to the loan total being reduced.

There is such a thing as a mortgage holiday and I think I have seen some banks advertising this.

DubLad69 · 06-01-2021 8:15pm

I've been given an exemption with PTSB. But their rates are quite high.

If in 3 years time at the end of the fixed rate I want to switch. Would I also have to apply for an exemption? Or is it different with switchers?

michael jay · 06-01-2021 9:21pm

my gf was looking to apply for a mortgage and i asked if i was allowed be on the deeds as i would pay her deposit and contribute but as i lost my work i tot i would be a liability on the application. the advisor made it sound like i couldnt be on the deeds without being a joint applicant. any one have any knowledge on this,
they gave her AIP as it is.

L1011 · 07-01-2021 12:57am

thomas 123 wrote: »

Lads PUP

Can anyone advise if it would be a bad idea to have that for a few months while saving for mortgage.

Thanks in advance.

When the other option is dole (less) or nothing (even less), definitely not

You will need to be able to prove you're back in fulltime employment for a decent period of time before anywhere will give you a mortgage regardless, no matter which way you handle it.

Benzino · 07-01-2021 1:47am

DubLad69 wrote: »

I've been given an exemption with PTSB. But their rates are quite high.

If in 3 years time at the end of the fixed rate I want to switch. Would I also have to apply for an exemption? Or is it different with switchers?

Sorry, I don't have an answer to your question, however I'm interested in when you were told about the exemption?

We were told by KBC and BoI late last year there would be no exemptions given anytime soon. Cheers!

DubLad69 · 07-01-2021 1:52am

Benzino wrote: »

Sorry, I don't have an answer to your question, however I'm interested in when you were told about the exemption?

We were told by KBC and BoI late last year there would be no exemptions given anytime soon. Cheers!

AIB offered a smaller exemption in November, EBS around the same time. PTSB this week. And BOI have said all along that I could qualify for an exemption but need a house chosen 1st.

I haven't been to KBC at all and I would rather gauge my own eyes out than deal with UlsterBank.

nurik922 · 07-01-2021 2:07am

DubLad69 wrote: »

AIB offered a smaller exemption in November, EBS around the same time. PTSB this week. And BOI have said all along that I could qualify for an exemption but need a house chosen 1st.

I haven't been to KBC at all and I would rather gauge my own eyes out than deal with UlsterBank.

Would you mind sharing details on how you qualified for exemption?

AIB was mentioned earlier here, but not sure about BOI and PTSB. Thanks

ILikeBoats · 07-01-2021 9:16am

DubLad69 wrote: »

I've been given an exemption with PTSB. But their rates are quite high.

If in 3 years time at the end of the fixed rate I want to switch. Would I also have to apply for an exemption? Or is it different with switchers?

We had an exemption with PTSB. We broke the fixed rate after 2 years as it was so high and moved to UB. We did not need to reapply for an exemption with them

Busi_Girl08 · 07-01-2021 9:47am

Mods feel free to remove if this is in the wrong place.

We're shopping around the different lenders but are wary of going near Ulster Bank because of the talks of Natwest pulling them from ROI. And I'm a Ulster Bank customer for over 10 years.

Anyone have any dealings with them over the last few weeks/months? Or any thoughts on them on general?

whatever76 · 07-01-2021 11:24am

DubLad69 wrote: »

Yes I know that you can over pay with all banks, but the question is more about the credit system. Once you've overpaid by €1000 can you then take a month off if you wish?

Oh my apologies - sorry ! I am not sure how it works in BOI but when I set it up the girl did say that the over payment will knock some years off the term - so might be something similar in that way in that it reduces the term ?

BrentMused · 07-01-2021 1:28pm

Busi_Girl08 wrote: »

Mods feel free to remove if this is in the wrong place.

We're shopping around the different lenders but are wary of going near Ulster Bank because of the talks of Natwest pulling them from ROI. And I'm a Ulster Bank customer for over 10 years.

Anyone have any dealings with them over the last few weeks/months? Or any thoughts on them on general?

I can’t speak for what may happen in the future, but they have been by far and away the best application experience for us.

The Branch Manager himself rang us a few hours after initial query, gave us his mobile number for queries and has followed up exceptionally well throughout the process.

Night and day compared to the other providers.

Busi_Girl08 · 07-01-2021 1:40pm

BrentMused wrote: »

I can’t speak for what may happen in the future, but they have been by far and away the best application experience for us.

The Branch Manager himself rang us a few hours after initial query, gave us his mobile number for queries and has followed up exceptionally well throughout the process.

Night and day compared to the other providers.

Thanks. We've only spoken to BOI so far and the advisor is great. She also said in the call she's moving to to work for a broker next month because she wasn't happy with BOI's upcoming arrangements where the entire process is all online with generic emails and 1800 numbers.

Wondering if that's the way other banks are going as well?

DubLad69 · 07-01-2021 2:17pm

nurik922 wrote: »

Would you mind sharing details on how you qualified for exemption?

AIB was mentioned earlier here, but not sure about BOI and PTSB. Thanks

Just give them a call. We went into each branch and they inputted our details into their computer and it flashed up how much we can borrow. It was very straight forward and easy.

I had been dealing with a broker before this, but going direct just seemed easier.

Busi_Girl08 · 07-01-2021 3:00pm

DubLad69 wrote: »

Just give them a call. We went into each branch and they inputted our details into their computer and it flashed up how much we can borrow. It was very straight forward and easy.

I had been dealing with a broker before this, but going direct just seemed easier.

And did you have to have an offer accepted on a house at that stage?

random_banter · 07-01-2021 4:34pm

Busi_Girl08 wrote: »

And did you have to have an offer accepted on a house at that stage?

Just to share what I know about BOI and exemptions right now.

I'd seen on this forum one or two people who mentioned in December they had gotten an exemption with BOI. We have had a 12 month approval since July with no exemption attached. We were told to check back in later in the year on exemptions. Saw a house we liked in Dec, rang in and our advisor said he would check with underwriters. No exemptions available. He said were top of the list when they release them again. Not sure on how the others on the forum got it, maybe we just aren't high enough on the list for the underwriters, or the others had the exemptions approved from early 2020.

BOI say you need a property to apply for the exemption with. This put me off too. But actually all they want is for you to give a property to get the ball rolling, you can change the property after your exemption is given (this would allow for a bid being unsuccessful and the fact that you have to shop around).

Anyway, we're still waiting on exemptions to come back with them, and as of yesterday our advisor say they are still to be released.

Edit: Should clarify that we are seeking LTV exemption, and LTI exemptions may be more readily available.

Hope that helps you. Buying is really hard at the moment without funding stress too.

Busi_Girl08 · 07-01-2021 5:05pm

random_banter wrote: »

Just to share what I know about BOI and exemptions right now.

I'd seen on this forum one or two people who mentioned in December they had gotten an exemption with BOI. We have had a 12 month approval since July with no exemption attached. We were told to check back in later in the year on exemptions. Saw a house we liked in Dec, rang in and our advisor said he would check with underwriters. No exemptions available. He said were top of the list when they release them again. Not sure on how the others on the forum got it, maybe we just aren't high enough on the list for the underwriters, or the others had the exemptions approved from early 2020.

BOI say you need a property to apply for the exemption with. This put me off too. But actually all they want is for you to give a property to get the ball rolling, you can change the property after your exemption is given (this would allow for a bid being unsuccessful and the fact that you have to shop around).

Anyway, we're still waiting on exemptions to come back with them, and as of yesterday our advisor say they are still to be released.

Edit: Should clarify that we are seeking LTV exemption, and LTI exemptions may be more readily available.

Hope that helps you. Buying is really hard at the moment without funding stress too.

Thanks a million! A day in and already a bit of a minefield already. The advisor from boi just emailed up loads of helpful info but we'll be shopping around a bit more with the different lenders before we look into AIPs

Technope87 · 07-01-2021 9:20pm

Does anyone have any experience in changing jobs during the mortgage process?

I have been offered a job in the same line of work with an increase in salary but the problem is the 6 month probation period. We have Loan offer and deposit paid on a property,

the property should be ready in around 3 months so I would still be on probation, is there anyway around this as I know you can’t normally draw down while on work probation!

07-01-2021 10:40pm

Technope87 wrote: »

Does anyone have any experience in changing jobs during the mortgage process?

I have been offered a job in the same line of work with an increase in salary but the problem is the 6 month probation period. We have AIP and deposit paid on a property,

the property should be ready in around 3 months so I would still be on probation, is there anyway around this as I know you can’t normally draw down while on work probation!

It will depend entirely on the bank, the fact that you are staying in the same field and there is no gap in employment will help. We got AIP when my partner was 1 month into a new job with a 6 month probation.

Edit: you’ll have to get a new salary cert and probably a letter to confirm the employer is not availing of covid relief schemes

Technope87 · 07-01-2021 10:42pm

cisk wrote: »

It will depend entirely on the bank, the fact that you are staying in the same field and there is no gap in employment will help. We got AIP when my partner was 1 month into a new job with a 6 month probation.

Thanks for the reply, yeah it’s a more senior position in the same field so I would hope that it would be ok, have to speak to the broker tomorrow and he will check with the bank but it’s very stressful as it’s a job I can’t really turn down!

recyclebin · 08-01-2021 8:39pm

Technope87 wrote: »

Does anyone have any experience in changing jobs during the mortgage process?

I have been offered a job in the same line of work with an increase in salary but the problem is the 6 month probation period. We have Loan offer and deposit paid on a property,

the property should be ready in around 3 months so I would still be on probation, is there anyway around this as I know you can’t normally draw down while on work probation!

I'd ask the new employer if they can wait 3-6 months before you start with them. You could offer to sign the employment contract now with a start date x or y so that they know you are serious about taking the job. It would be very risky to change jobs before drawdown.

Technope87 · 08-01-2021 9:21pm

recyclebin wrote: »

I'd ask the new employer if they can wait 3-6 months before you start with them. You could offer to sign the employment contract now with a start date x or y so that they know you are serious about taking the job. It would be very risky to change jobs before drawdown.

Yeah Iv asked if the probation could be waived to see what they say but yeah it doesn’t look good.

michael jay · 09-01-2021 7:01pm

hi again, just putting this out there, can two people be on the deeds if only one person name is on the morgage?

Pcgamer · 09-01-2021 7:07pm

House on market for 195K and on daft for two years. Looks like its not selling whatsoever.

Should I be putting in a bid of 160,000 or whats the best way to start off?

michael jay · 09-01-2021 8:00pm

Pcgamer wrote: »

House on market for 195K and on daft for two years. Looks like its not selling whatsoever.

Should I be putting in a bid of 160,000 or whats the best way to start off?

maybe start at 130 after viewing

Pcgamer · 09-01-2021 8:18pm

michael jay wrote: »

maybe start at 130 after viewing

Ha really?

The_Conductor · 09-01-2021 8:21pm

michael jay wrote: »

hi again, just putting this out there, can two people be on the deeds if only one person name is on the morgage?

Certainly- however, as it will be viewed that the person taking out the mortgage only has a share in the property (a half share) their ability to mortgage their share in the property may be reduced by a commensurate percentage- aka your ability to get a mortgage might be half what it would otherwise be (wholly aside from income multiples etc).

Its messy- but it is possible.

rs8 · 10-01-2021 12:19am

Hi all

In the process of saving for a mortgage for a self build!! Were nearly there with our 10 % deposit. Recently got a government job and am very happy as the pandemic won't affect me but out of interest will the banks look apoun me anymore favorably when I apply? I'm sick to death of hearing the old saying "awh they'll throw money at you because of your job" cheers

DubLad69 · 10-01-2021 1:40am

rs8 wrote: »

Hi all

In the process of saving for a mortgage for a self build!! Were nearly there with our 10 % deposit. Recently got a government job and am very happy as the pandemic won't affect me but out of interest will the banks look apoun me anymore favorably when I apply? I'm sick to death of hearing the old saying "awh they'll throw money at you because of your job" cheers

Not really no. They will take into account that you have a mandatory pension payment taking from your pay though. Which could result in a lower mortgage amount.

fin12 · 10-01-2021 4:57am

rs8 wrote: »

Hi all

In the process of saving for a mortgage for a self build!! Were nearly there with our 10 % deposit. Recently got a government job and am very happy as the pandemic won't affect me but out of intjerest will the banks look apoun me anymore favorably when I apply? I'm sick to death of hearing the old saying "awh they'll throw money at you because of your job" cheers

Yes they will if it’s permanent.

C575 · 10-01-2021 11:34am

rs8 wrote: »

Hi all

In the process of saving for a mortgage for a self build!! Were nearly there with our 10 % deposit. Recently got a government job and am very happy as the pandemic won't affect me but out of interest will the banks look apoun me anymore favorably when I apply? I'm sick to death of hearing the old saying "awh they'll throw money at you because of your job" cheers

ICS offers two points above your payscale for public servants. https://www.icsmortgages.ie/

pooch90 · 10-01-2021 2:33pm

C575 wrote: »

ICS offers two points above your payscale for public servants. https://www.icsmortgages.ie/

As do Finance Ireland.
I am a public sector worker and applied by myself as my husband is raising the kids. Both FI and PTSB looked very favourably on my application. Lady in PTSB was very confident about my application due to being PSW. I doubt it would have been the same if I was public sector with same salary. Especially with Covid and everything.
My application to FI was my name only. PTSB was a joint application.

august2016 · 10-01-2021 6:21pm

Looking to apply for a mortgage this year, the original plan was to apply last year but I moved jobs which put a halt on it as I wanted to wait to apply when I was 6 months + in my current job.
My question is do I need anything from my employer to say they're keeping me on or my job is safe after I've been there 6 months? Or is the fact that I'm in the job longer than 6 months enough?
The reason I ask is my probation in work is actually 11 months which would mean another 5 months of waiting before applying!

10-01-2021 6:42pm

august2016 wrote: »

Looking to apply for a mortgage this year, the original plan was to apply last year but I moved jobs which put a halt on it as I wanted to wait to apply when I was 6 months + in my current job.
My question is do I need anything from my employer to say they're keeping me on or my job is safe after I've been there 6 months? Or is the fact that I'm in the job longer than 6 months enough?
The reason I ask is my probation in work is actually 11 months which would mean another 5 months of waiting before applying!

Your employer needs to fill in a salary certificate, as part of that they ask if your on probation. I'm due to finish my probation soon so what I did was start the application process about two months before. Can get approval in principle etc so you'd be in a position to buy as soon as probation is completed.

michael jay · 11-01-2021 3:26pm

The_Conductor wrote: »

Certainly- however, as it will be viewed that the person taking out the mortgage only has a share in the property (a half share) their ability to mortgage their share in the property may be reduced by a commensurate percentage- aka your ability to get a mortgage might be half what it would otherwise be (wholly aside from income multiples etc).

Its messy- but it is possible.

cheers , ya it was messy, cant even give a contribution to the amount without the banks wanting it as joint mortgage

Pete123456 · 11-01-2021 10:43pm

What kind of lead times are people seeing for appliances? Do you have to pay upfront?

DubLad69 · 14-01-2021 5:06pm

I've met with mortgage advisors from both BOI and EBS this week, and both of them insisted that mortgage rates would be dropping in the coming months, so I would be mad to go for anything more than a 1 year fixed rate.

Saving/Applying for a mortgage 2020-22 Edition

Comments