Buying a house 2013!

qwertypop · 01-02-2013 1:54pm

quad_red wrote: »

Well, put in an offer today on a house that's been on the market for 11 months.

They had one offer last March (apparently). We're undercutting that significantly.

EA said zero chance of acceptance. Given the works that need to be done on it it's a fair price given what's on the price register.

Not holding out much hope for realism though.

Still, now that we've put to offer in we can move on!

I've done the same the the ea is in cloud cuckoo land. She's imagining other bidders now and all the misfortune. I'm a cash buyer with the money ready to go

Sunny Dayz · 02-02-2013 10:34am

We are hoping to buy this year, but with the first month gone, starting to feel disheartened now. There seems to be a drop in the number of houses for sale in the area we are looking to buy (for work and school) as compared with last year. My hubbie has taken the role of contacting selling agents and his treatment has been terrible so far. Calls not returned, being given various excuses about not arranging viewings etc. It seems people will put a house for sale on the internet but make no attempts at actually selling it!

rant over for now!

quad_red · 04-02-2013 12:51pm

I have just seen a house added to the property price register in the area we're looking at.

It was sold at the end of November but has just hit the register in the last 4/5 days.

It totally backs up the offer we made on the house that the EA rejected as ridiculous.

Should I send this to the EA?

Or just we just sit and wait?

TheDriver · 04-02-2013 12:59pm

quad_red wrote: »

I have just seen a house added to the property price register in the area we're looking at.

It was sold at the end of November but has just hit the register in the last 4/5 days.

It totally backs up the offer we made on the house that the EA rejected as ridiculous.

Should I send this to the EA?

Or just we just sit and wait?

Thats the same type of situation we have found ourselves in. I would advise not sending it directly to the EA but rather asking again if there is any point putting in offers because house down the road went for **** and you believe your being realistic so obviously seller has no interest in reality?

quad_red · 04-02-2013 1:14pm

TheDriver wrote: »

Thats the same type of situation we have found ourselves in. I would advise not sending it directly to the EA but rather asking again if there is any point putting in offers because house down the road went for **** and you believe your being realistic so obviously seller has no interest in reality?

Y'see, that's it.

We don't want to piss the EA off. And ye don't want to seem too eager.

But... this is hard data. Yet again.

We made the last offer just over a week ago. I put an expiry date of last Friday on it.

Should I just keep waiting to see if he calls back or should I touch base with him.

I do want him to keep us in mind. But I don't want him to think we're desperate.

Mmmm.

makeorbrake · 05-02-2013 2:10am

quad_red wrote: »

We made the last offer just over a week ago. I put an expiry date of last Friday on it.

Stick to your guns. Write it off - and keep the eyes open for the next prospect. If he gets back in contact, that's a bonus...but it will be on your terms at that stage.

Easiest thing in the world to spend $$$ ...so don't let the process frustrate you.

quad_red · 05-02-2013 2:55pm

makeorbrake wrote: »

Stick to your guns. Write it off - and keep the eyes open for the next prospect. If he gets back in contact, that's a bonus...but it will be on your terms at that stage.

Easiest thing in the world to spend $$$ ...so don't let the process frustrate you.

We are.

EA just came up with a BER rating for the house. It's a seventies hollow block build. No insulation in the walls, absolutely minimal insulation in the attic. A garage with a bit of dry lining on it (no insulation) with internal doors leading to it. It's a semi-D in a reasonably exposed position...

And it comes out C2! This is one grade lower than a new build that's up the road.

How the hell can that be?

I feel this is suspiciously in response to our negotiating on the fact that some of the work the house needed doing was insulation to bring it to the level that other houses were selling for.

D3PO · 05-02-2013 3:05pm

quad_red wrote: »

We are.

EA just came up with a BER rating for the house. It's a seventies hollow block build. No insulation in the walls, absolutely minimal insulation in the attic. A garage with a bit of dry lining on it (no insulation) with internal doors leading to it. It's a semi-D in a reasonably exposed position...

And it comes out C2! This is one grade lower than a new build that's up the road.

How the hell can that be?

I feel this is suspiciously in response to our negotiating on the fact that some of the work the house needed doing was insulation to bring it to the level that other houses were selling for.

lots of factors involved in the BER including the boiler, windows etc etc. Personally who cares if you think it needs the walls pumped etc your going to deduct for it.

they will either accept or reject the offer. I dont see how the BER really makes any difference to what they are willing to accept.

quad_red · 05-02-2013 3:19pm

D3PO wrote: »

lots of factors involved in the BER including the boiler, windows etc etc. Personally who cares if you think it needs the walls pumped etc your going to deduct for it.

they will either accept or reject the offer. I dont see how the BER really makes any difference to what they are willing to accept.

At this point we're out.

But the house needing all this work is a factor that is relevant to the price.

And the EA is addressing this by producing an impossible BER cert. After much weird evasion in regards to the BER, they produce this. How can a house with no insulation and a decrepit old heating system come out at C2?

There is zero insulation on any of the walls (no cavity insulation, no dry lining and no external). There is minimal insulation in the attic. There is an uninsulated garage 'conversion' connected to the house via poorly insulated internal doors.

Even if they faked it to D2 or something, I would've been amazed.

But C2!

One careful lady owner indeed.

D3PO · 05-02-2013 4:40pm

quad_red wrote: »

At this point we're out.

But the house needing all this work is a factor that is relevant to the price.

.

its relevant to your offer but irrelevant to what they want to achieve. Makes it irrelevant TBH your right to walk away though you make your offer they take it or they dont cest la vie

re the cert. Ive heard of forgeries. Did you get the cert details to see if its legit ?

nibtrix · 05-02-2013 9:56pm

quad_red wrote: »

And the EA is addressing this by producing an impossible BER cert.

If you get the BER cert number you can look it up on https://ndber.seai.ie/pass/ber/search.aspx

collegeme · 05-02-2013 10:06pm

Are the banks actually lending? Other half been out of work for years but been working none stop since gaining a permanent job mid last year. I work part time and we are looking at trading up. I don't feel optimistic of being mortgage approved for some reason though.

killers1 · 05-02-2013 10:31pm

collegeme wrote: »

Are the banks actually lending? Other half been out of work for years but been working none stop since gaining a permanent job mid last year. I work part time and we are looking at trading up. I don't feel optimistic of being mortgage approved for some reason though.

Banks will lend where an applicant's salary qualifies for the amount applied for on the banks income calculator, have a proven repayment capacity for the stress tested repayments on the amount requested, a clean credit history and personal savings to put towards the purchase.

collegeme · 05-02-2013 10:36pm

killers1 wrote: »

Banks will lend where an applicant's salary qualifies for the amount applied for on the banks income calculator, have a proven repayment capacity for the stress tested repayments on the amount requested, a clean credit history and personal savings to put towards the purchase.

Thanks. I presume personal savings are not needed if you have equity in current home.?

killers1 · 05-02-2013 10:38pm

collegeme wrote: »

Thanks. I presume personal savings are not needed if you have equity in current home.?

Banks will always like to see applicants have some level of personal savings outside of equity in the existing property. Are you planning on taking on a larger/smaller mortgage? Without some accurate details it's very hard to give you an idea of your chances.

collegeme · 05-02-2013 10:46pm

killers1 wrote: »

Banks will always like to see applicants have some level of personal savings outside of equity in the existing property. Are you planning on taking on a larger/smaller mortgage? Without some accurate details it's very hard to give you an idea of your chances.

Taking on a larger mortgage but current mortgage only has 14years left on it and since both applicants are under 35, we were thinking of spreading new mortgage over 20/25 years. We would need a 70-80%ltv on the new house with the rest coming fom selling our current home. We have no substantial savings and the only barrier I could foresee was the full time worker in our household has only been employed for the past 9 months. But no arrears ever occurred in the last 10years of our mortgage.

sportfanatic · 05-02-2013 11:01pm

Hi all,
I know this has probably been answered in previous threads but I'd appreciate some feedback please!
Myself and the girlfriend are meeting a few of the banks in a few weeks (BOI & AIB). I don't want to be too optimistic, but what are the chances of us getting mortgage approval based on the following;
- I'm in a full time permanent job for the past 3.5yrs on a salary of 37,100.
- girlfriend is in a full time permanent job for the past 5 years on a salary of 46,000
- I'm 29 and she's 27
- we have been paying rent, 1,050 for the past 18 months
- saving for the past 12months and now have 10,000
- both sets of parents are giving us a gift of a combined total of 12,000
- I have a loan of 4000 to be repaid over the next 4 years( engagement ring!)
- she has a car loan of 6000

We are looking for a mortgage of about 220,000..... What's the chances?

killers1 · 05-02-2013 11:02pm

collegeme wrote: »

Taking on a larger mortgage but current mortgage only has 14years left on it and since both applicants are under 35, we were thinking of spreading new mortgage over 20/25 years. We would need a 70-80%ltv on the new house with the rest coming fom selling our current home. We have no substantial savings and the only barrier I could foresee was the full time worker in our household has only been employed for the past 9 months. But no arrears ever occurred in the last 10years of our mortgage.

If the stressed repayments on the higher mortgage over the longer term amounts to less than your current actual repayment you should be ok provided there is sufficient equity to cover legal fees, stamp duty etc... The fact that the main income earner is 9 months in current job isn't a huge issue once they're permanent. AIB would consider after 6 months and others 1 yr. If you haven't sold your house yet you should be in a position to apply everywhere when the time comes.

killers1 · 05-02-2013 11:04pm

sportfanatic wrote: »

Hi all,
I know this has probably been answered in previous threads but I'd appreciate some feedback please!
Myself and the girlfriend are meeting a few of the banks in a few weeks (BOI & AIB). I don't want to be too optimistic, but what are the chances of us getting mortgage approval based on the following;
- I'm in a full time permanent job for the past 3.5yrs on a salary of 37,100.
- girlfriend is in a full time permanent job for the past 5 years on a salary of 46,000
- I'm 29 and she's 27
- we have been paying rent, 1,050 for the past 18 months
- saving for the past 12months and now have 10,000
- both sets of parents are giving us a gift of a combined total of 12,000
- I have a loan of 4000 to be repaid over the next 4 years( engagement ring!)
- she has a car loan of 6000

We are looking for a mortgage of about 220,000..... What's the chances?

How much do you save per month? What are the monthly repayments on both loans?

sportfanatic · 06-02-2013 12:12am

Both of us repaying about 180-220 each on loans and saving 450 each per month

killers1 · 06-02-2013 12:14am

sportfanatic wrote: »

Both of us repaying about 180-220 each on loans and saving 450 each per month

Very straightforward. You have sufficient salaries, a proven repayment capacity and circa €10k of own funds. You'll be approved for the €220k you need.

sportfanatic · 06-02-2013 12:17am

Thanks killers, hopefully it goes that smoothly!

makeorbrake · 06-02-2013 1:36am

nibtrix wrote: »

If you get the BER cert number you can look it up on https://ndber.seai.ie/pass/ber/search.aspx

Perhaps they never actually got a BER cert for it!

There are some factors whereby a certain house type may fare better than another (other than the obvious). If the house is terraced, then it is likely to rate well.

crazy_kenny · 06-02-2013 10:29am

sportfanatic wrote: »

Hi all,
I know this has probably been answered in previous threads but I'd appreciate some feedback please!
Myself and the girlfriend are meeting a few of the banks in a few weeks (BOI & AIB). I don't want to be too optimistic, but what are the chances of us getting mortgage approval based on the following;
- I'm in a full time permanent job for the past 3.5yrs on a salary of 37,100.
- girlfriend is in a full time permanent job for the past 5 years on a salary of 46,000
- I'm 29 and she's 27
- we have been paying rent, 1,050 for the past 18 months
- saving for the past 12months and now have 10,000
- both sets of parents are giving us a gift of a combined total of 12,000
- I have a loan of 4000 to be repaid over the next 4 years( engagement ring!)
- she has a car loan of 6000

We are looking for a mortgage of about 220,000..... What's the chances?

I think the 10000 loan will count against you. I'm in a similar situation. I applied to Aib for 155000 mortgage. I earn 62000 pa. In a full time position. Clean credit history. Car loan of 1200 euro. They offered me 130000 rising to 140000 if the car loan was paid off. If I was you I would pay off both loans and continue saving the extra funds per month.

fricatus · 06-02-2013 1:03pm

crazy_kenny wrote: »

I think the 10000 loan will count against you. I'm in a similar situation. I applied to Aib for 155000 mortgage. I earn 62000 pa. In a full time position. Clean credit history. Car loan of 1200 euro. They offered me 130000 rising to 140000 if the car loan was paid off. If I was you I would pay off both loans and continue saving the extra funds per month.

+1

Definitely pay off the loans - can they be paid early without penalty?

If you can show the bank statements showing the loans being paid off, that pretty much counts as evidence of saving. We showed them credit card statements with no new borrowing, and dropping by an amount each month until they were paid off - they took those as evidence.

killers1 · 06-02-2013 1:11pm

crazy_kenny wrote: »

I think the 10000 loan will count against you. I'm in a similar situation. I applied to Aib for 155000 mortgage. I earn 62000 pa. In a full time position. Clean credit history. Car loan of 1200 euro. They offered me 130000 rising to 140000 if the car loan was paid off. If I was you I would pay off both loans and continue saving the extra funds per month.

You can't compare one application with another as there will be completely different variables at play. Your ages, number of dependents, single/joint application, living at home/renting, monthly savings contribution etc etc.. Your salary of €62k would be sufficient to borrow well in excess of €130k if you have a proven repayment capacity to borrow a higher amount which the bank felt you don't have or else you have a number of kids which is reducing the loan amount you can borrow when the application is stress tested..

kennyb3 · 06-02-2013 1:19pm

Anyone got an idea of how much outlay would be at present? Broken down if possible.

Trying to get total solicitor cost (know prof fee + vat)

killers1 · 06-02-2013 4:26pm

kennyb3 wrote: »

Anyone got an idea of how much outlay would be at present? Broken down if possible.

Trying to get total solicitor cost (know prof fee + vat)

Outlays would be something like this;

Land Registry fees – Transfer – €600

Land registry fees – Mortgage €175

Copy Folio & Map - €40
Searches €75
Commissioners Fees €22

Then you'll have the actual solicitors fee which can vary greatly (less than €750 is very good), VAT on the Prof fee @ 23% & Stamp Duty of 1% of purchase price.

kennyb3 · 06-02-2013 4:32pm

So about €1,900 all in based on a prof fee of €800+vat if i'm getting that right. Thanks

Is the €600 in every case? I was reading about differences on whether it's a first register v a second hand home.

killers1 · 06-02-2013 4:36pm

kennyb3 wrote: »

So about €1,900 all in based on a prof fee of €800+vat if i'm getting that right. Thanks

Is the €600 in every case? I was reading about differences on whether it's a first register v a second hand home.

There are differences in first reg homes but solicitor can't give you accurate quote until they receive contracts. If the fee is coming in at less than €2k it's a decent quote

Belfunk · 06-02-2013 4:39pm

Hi Killers,

You maybe able to advise me.

Myself and my partner have 30k in savings and are looking to borrow 210k. BOI have approved me for 150k but will not put my partner on the application as she is only on an 18 month contract with work. For the past 4 years she has been employed and is likely to have her contract extended.

Are banks lending to people on contracts? Should we wait to see if she can get permanent employment before applying elsewhere?

Thanks,
B

killers1 · 06-02-2013 4:52pm

Belfunk wrote: »

Hi Killers,

You maybe able to advise me.

Myself and my partner have 30k in savings and are looking to borrow 210k. BOI have approved me for 150k but will not put my partner on the application as she is only on an 18 month contract with work. For the past 4 years she has been employed and is likely to have her contract extended.

Are banks lending to people on contracts? Should we wait to see if she can get permanent employment before applying elsewhere?

Thanks,
B

Boi are very black & white when it comes to contract employees and won't factor their incomes in. AIB would tend to consider them more often but it would depend on your partners occupation, qualifications, whether she has been on contract with her current employer for 4 yrs on a rolling basis, if her employer can provide some comfort around her contract being renewed and what they see her chances of securing employment elsewhere at a level that would be sufficient for you to meet the obligation of a €210k mortgage in the event of her contract not being renewed. I've had AIB approve a number of contract employees recently but they've also just declined one yesterday on the basis that the applicant was only into her second yearly contract. They indicated that if it was her 3/4th contract they probably would have approved it.

D3PO · 06-02-2013 4:53pm

Belfunk wrote: »

Are banks lending to people on contracts? Should we wait to see if she can get permanent employment before applying elsewhere?

Thanks,
B

they shouldnt be. We want a prudent lending policy in our banks not one lending to people who could be out of work not long after being granted a mortgage.

killers1 · 06-02-2013 5:04pm

D3PO wrote: »

they shouldnt be. We want a prudent lending policy in our banks not one lending to people who could be out of work not long after being granted a mortgage.

They'll almost never lend to a contract employee as a single applicant or a couple where the contract employee's full income is needed to qualify for the amount needed. They tend to go with qualified individuals who have good employment prospects if their current contract isn't renewed or where contract employment is standard for the industry e.g scientific researchers etc.

Belfunk · 06-02-2013 5:09pm

30k wage with a masters and working for a semi state company. If the contract was not renewed we are fairly confident she wouldn't be out of work for long and would be on a 5 to 10k more.

Looks like we should hold off for a while as AIB told her no before we even submitted an application due to her being on contract work.

Thanks

killers1 wrote: »

Boi are very black & white when it comes to contract employees and won't factor their incomes in. AIB would tend to consider them more often but it would depend on your partners occupation, qualifications, whether she has been on contract with her current employer for 4 yrs on a rolling basis, if her employer can provide some comfort around her contract being renewed and what they see her chances of securing employment elsewhere at a level that would be sufficient for you to meet the obligation of a €210k mortgage in the event of her contract not being renewed. I've had AIB approve a number of contract employees recently but they've also just declined one yesterday on the basis that the applicant was only into her second yearly contract. They indicated that if it was her 3/4th contract they probably would have approved it.

killers1 · 06-02-2013 5:12pm

Belfunk wrote: »

30k wage with a masters and working for a semi state company. If the contract was not renewed we are fairly confident she wouldn't be out of work for long and would be on a 5 to 10k more.

Looks like we should hold off for a while as AIB told her no before we even submitted an application due to her being on contract work.

Thanks

If she just rang AIB or spoke to an advisor in a branch and asked the question 'can I get a mortgage being a contract employee?' the answer will always be 'no'. The application needs to stack up and be sent to the Underwriters to make the decision, not someone just quoting general Credit Policy to you...There's no disadvantage to you if you are declined now on the basis that she is on a contract as it won't effect a future application if she is in a permanent role as it's a completely different set of circumstances.

D3PO · 06-02-2013 9:40pm

Belfunk wrote: »

30k wage with a masters and working for a semi state company. If the contract was not renewed we are fairly confident she wouldn't be out of work for long and would be on a 5 to 10k more.

Looks like we should hold off for a while as AIB told her no before we even submitted an application due to her being on contract work.

Thanks

without sounding rude that attitude when it comes to looking to borrow is completely irresponsible. Theres a lot of people with masters out of work you cant jsut assume you will get another job handy if your contract isnt renewed.

Thankfully banks are now beginnig to cop on when it comes to applications.

Glenbhoy · 06-02-2013 11:33pm

D3PO wrote: »

they shouldnt be. We want a prudent lending policy in our banks not one lending to people who could be out of work not long after being granted a mortgage.

True, prudent lending is what we should aim for, but one rule catching all is not how to apply that.
For example, I have been through the full range of employment status over the past decade and now as a permanent employee again, I would see my income as being the least secure it's ever been (not to mention lower!!). I know that a loan assessor looking on wouldn't know that though, company has a good name, 20 yrs in business (even our own bank wouldn't have any major concerns). Basically what I am saying is that permanent means very little nowadays as outside of the public sector (and some sectors such as banking??), there are very few people who stay with one company in a permanent pensionable position for 40 yrs.

kennyb3 · 07-02-2013 10:22am

Another couple of questions that I thought of last night;

Whats the situation with seeing the BER report (the actual report giving the issues and recommendations to improve as opposed to just the cert). Okay to try request that before making an offer? Likely to be released? Or is a copy of the cert the most your likely to get?

Also what about an inventory list - just informally ask at the viewing about what is/isn't included?

Belfunk · 07-02-2013 11:07am

D3PO wrote: »

without sounding rude that attitude when it comes to looking to borrow is completely irresponsible. Theres a lot of people with masters out of work you cant jsut assume you will get another job handy if your contract isnt renewed.

Thankfully banks are now beginnig to cop on when it comes to applications.

Point taken however you have no idea of our circumstances the nature of her employment is always going to be on contract work.

If we didn't think we could afford it we wouldn't be trying to borrow it.

coraline55 · 07-02-2013 2:36pm

Hi killers, I would really appreciate your thoughts on my situation, and anyone else too of course

Have been following the 2012 and 2013 threads closely...

So our story -
Bought 2 bed apt on Dublin's northside for 380k in 2005. Its in a v good area and a well maintained development, top floor so high ceilings, good views over Dublin etc

Its now worth maybe 200k and we owe 280 k on the mortgage.
Offset mortgage with Ulster Bank - ECB + 1.15% which means 1.9% at present

Apartment has been rented for 2 years at 1050/month

We have been renting a house on the southside for 2 yrs, closer to work and family and more space for our small children, paying rent 1600/month.

Savings - 50k
Debts - none

My salary - 55k
Husband's salary - 55k
Both permanent, teacher and lecturer, good pensions etc.

Possible gifts / loans from parents -
30k approx gift and loan of approx 20k

We really really want to sell the apt and buy a house close to where we are renting now. The rental house is in great location but falling to bits, heating, plumbing etc are a joke.

We've been to Ulster Bank twice and they told us we would be perfect candidates for a negative equity trade up mortgage but they dont offer it yet, one guy told us it was delayed by their IT crash last summer but still no sign of it happening if at all.

Would the other banks who offer negative equity mortgages consider us at all ?
Any other advice or things we can try ?
If we switch banks we would lose the offset/tracker, Ulster Bank did tell us we could keep it if we move but not 100% sure about it....

Thanks in advance

))

killers1 · 08-02-2013 12:19am

coraline55 wrote: »

Hi killers, I would really appreciate your thoughts on my situation, and anyone else too of course
Have been following the 2012 and 2013 threads closely...

So our story -
Bought 2 bed apt on Dublin's northside for 380k in 2005. Its in a v good area and a well maintained development, top floor so high ceilings, good views over Dublin etc

Its now worth maybe 200k and we owe 280 k on the mortgage.
Offset mortgage with Ulster Bank - ECB + 1.15% which means 1.9% at present

Apartment has been rented for 2 years at 1050/month

We have been renting a house on the southside for 2 yrs, closer to work and family and more space for our small children, paying rent 1600/month.

Savings - 50k
Debts - none

My salary - 55k
Husband's salary - 55k
Both permanent, teacher and lecturer, good pensions etc.

Possible gifts / loans from parents -
30k approx gift and loan of approx 20k

We really really want to sell the apt and buy a house close to where we are renting now. The rental house is in great location but falling to bits, heating, plumbing etc are a joke.

We've been to Ulster Bank twice and they told us we would be perfect candidates for a negative equity trade up mortgage but they dont offer it yet, one guy told us it was delayed by their IT crash last summer but still no sign of it happening if at all.

Would the other banks who offer negative equity mortgages consider us at all ?
Any other advice or things we can try ?
If we switch banks we would lose the offset/tracker, Ulster Bank did tell us we could keep it if we move but not 100% sure about it....

Thanks in advance ))

Hi Coraline55,
A lot will depend on the price of the new house you'd be hoping to buy but I'd see your options as follows;

1. Wait for Ulster Bank to launch their NE product. Unfortunately no other lender will take on another banks NE and these type of products will only be available to applicants from their existing lender. I wouldn't be surprised if UB are actually allowing customers to do this at present quietly because I enquired on behalf of a client approx 3 yrs ago and know it was feasible then.
2. Sell your existing property and pay off the NE using your savings & gift. Continue to rent for a while until you replenish your savings enough to have a deposit for the new property.
3. Explore the figures in relation to keeping your existing property and taking out a second mortgage to move house.
4. Move to a different rented property (given the current state of plumbing, heating etc).

Some of the options above are obviously dependent on how much you were hoping to buy for so may or may not be viable...

fricatus · 08-02-2013 10:03am

killers1 wrote: »

1. Wait for Ulster Bank to launch their NE product. Unfortunately no other lender will take on another banks NE and these type of products will only be available to applicants from their existing lender. I wouldn't be surprised if UB are actually allowing customers to do this at present quietly because I enquired on behalf of a client approx 3 yrs ago and know it was feasible then.

We enquired into this with UB, and were offered a new morgage to take the NE with us. Unfortunately it wasn't enough to buy the place we wanted, so we've just taken out a new mortgage with BOI. It means that we're back in the position we were in before we met, i.e. with two mortgages, but at least this time we can rent out the smaller place because there's no way we're selling it in the current market.

Glenbhoy · 08-02-2013 2:55pm

fricatus wrote: »

We enquired into this with UB, and were offered a new morgage to take the NE with us. Unfortunately it wasn't enough to buy the place we wanted, so we've just taken out a new mortgage with BOI. It means that we're back in the position we were in before we met, i.e. with two mortgages, but at least this time we can rent out the smaller place because there's no way we're selling it in the current market.

Do you mean there's no way you can sell it or there's no way you will sell it because you feel that prices don't reflect its value?

I only ask to ensure you've done your sums properly as sometimes holding on to an unwanted property can cost a lot more than your realise, and it may be a considerable time before the smaller property appreciates in value to the extent that the ongoing losses are covered.

fricatus · 08-02-2013 3:14pm

Glenbhoy wrote: »

Do you mean there's no way you can sell it or there's no way you will sell it because you feel that prices don't reflect its value?

Can't sell without crystallising a massive loss. We're going to rent it out for now and that will cover the mortgage.

We'll wait until we're at about break even and then decide whether to hold onto it or sell.

coraline55 · 08-02-2013 3:25pm

fricatus wrote: »

We enquired into this with UB, and were offered a new morgage to take the NE with us. Unfortunately it wasn't enough to buy the place we wanted, so we've just taken out a new mortgage with BOI. It means that we're back in the position we were in before we met, i.e. with two mortgages, but at least this time we can rent out the smaller place because there's no way we're selling it in the current market.

Hmm, its interesting that you were offered a NE mortgage, they refused us ... Did you talk to the branch mortgage adviser or someone higher ?
Its great that it worked out for you in the end.

coraline55 · 08-02-2013 3:32pm

Thanks killers, really appreciate you replying.
I did suspect that no other bank would be interested in us.

So I have heard from a few sources now that UB have been quietly giving negative equity mortgages for a while now. I wonder what chance we would have of speaking to someone more senior ? We do seem to be good candidates, good salary, no debts etc etc....
The two guys in the branch we spoke to seemed to be slaves to their computer, popping figures into the mortgage software like it was a sentient being rather than a computer ...
How does one get to speak to someone with some power to think and make decisions ?
Would a broker help ?

To answer your question about the price of the new house we would like to buy, as much as they will give us really

)) Around 350-400k I guess....

killers1 wrote: »

Hi Coraline55,
A lot will depend on the price of the new house you'd be hoping to buy but I'd see your options as follows;

1. Wait for Ulster Bank to launch their NE product. Unfortunately no other lender will take on another banks NE and these type of products will only be available to applicants from their existing lender. I wouldn't be surprised if UB are actually allowing customers to do this at present quietly because I enquired on behalf of a client approx 3 yrs ago and know it was feasible then.
2. Sell your existing property and pay off the NE using your savings & gift. Continue to rent for a while until you replenish your savings enough to have a deposit for the new property.
3. Explore the figures in relation to keeping your existing property and taking out a second mortgage to move house.
4. Move to a different rented property (given the current state of plumbing, heating etc).

Some of the options above are obviously dependent on how much you were hoping to buy for so may or may not be viable...

coraline55 · 08-02-2013 3:36pm

Buying a house 2013!

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