Buying a house 2013!

jython98 · 15-03-2013 5:09pm

davet82 wrote: »

click on the entry

it will give you a list of details, one of them being 'VAT Exclusive:'

if it says yes well then VAT hasn't been included in the price listed

Cool, I can see that now, thanks for your help.

killers1 · 15-03-2013 5:10pm

jython98 wrote: »

Really? does €297,500.00 look like a weird number?

I doubt the purchase price was €337,662.50 so probably safe to assume it's VAT inclusive

jython98 · 15-03-2013 5:14pm

killers1 wrote: »

I doubt the purchase price was €337,662.50 so probably safe to assume it's VAT inclusive

Yep, totally agree, thanks Killers1.

kennyb3 · 20-03-2013 1:09pm

This might be an unusual question (then again may not). We are waiting on contact from our solicitor, who has wrote to the vendors solicitor requesting contracts, to come in and sign same.

At this stage or even later in the process is there anything in particular I need to ensure the solicitor has/hasn't done? Or anything I need to particularly ask?

What i'm getting at is do I just assume the solicitor will take care of the process and relax or should I keep on top of them in relation to certain matters (copies of searches). I'll definitely look for a copy of the receipt for the stamp duty anyway I know that much.

D3PO · 20-03-2013 1:22pm

kennyb3 wrote: »

This might be an unusual question (then again may not). We are waiting on contact from our solicitor, who has wrote to the vendors solicitor requesting contracts, to come in and sign same.

At this stage or even later in the process is there anything in particular I need to ensure the solicitor has/hasn't done? Or anything I need to particularly ask?

What i'm getting at is do I just assume the solicitor will take care of the process and relax or should I keep on top of them in relation to certain matters (copies of searches). I'll definitely look for a copy of the receipt for the stamp duty anyway I know that much.

Without getting into the nitty gritty. You can relax. If your solicitor screws up you could sue them so you really have nothing to worry about at this stage

kennyb3 · 20-03-2013 1:29pm

D3PO wrote: »

Without getting into the nitty gritty. You can relax. If your solicitor screws up you could sue them so you really have nothing to worry about at this stage

Cheers, it's a pity i'm not very good at the relaxing bit.:)

quad_red · 21-03-2013 10:55am

House we are interested in has an asking of 335k.

Called there and after a week on show it has 2 bidders and it stands at 320k currently.

We're going to see it again on Saturday but I put down an offer of 321k. The EA said he 'appreciated' the offer but 1k increments wouldn't win anything as no one would 'lose' a house for a grand.

The Mrs want's me to ask the EA 'what would take this house off the market today'. Is such a question ridiculous?

Our limit is 328k. Should we go all in now and try and put off the other bidders?

Do a slow 1k creep keep people in the game?

gmisk · 21-03-2013 10:58am

We're going to see it again on Saturday but I put down an offer of 321k. The EA said he 'appreciated' the offer but 1k increments wouldn't win anything as no one would 'lose' a house for a grand.
It all depends if the other person is willing or not to pay a grand more...I dont see anything at all wrong with bidding in 1k increments

The Mrs want's me to ask the EA 'what would take this house off the market today'. Is such a question ridiculous?
I think so tbh

Skittlebrau · 21-03-2013 11:09am

quad_red wrote: »

House we are interested in has an asking of 335k.

Called there and after a week on show it has 2 bidders and it stands at 320k currently.

We're going to see it again on S. urday but I put down an offer of 321k. The EA said he 'appreciated' the offer but 1k increments wouldn't win anything as no one would 'lose' a house for a grand.

The Mrs want's me to ask the EA 'what would take this house off the market today'. Is such a question ridiculous?

Our limit is 328k. Should we go all in now and try and put off the other bidders?

Do a slow 1k creep keep people in the game?

Everyone has a limit on what they're willing/able to pay. At some point a 1k increase will put them out of the game. It just mightn't be the first 1k increase.

With regards to the other question...IMO no price under the asking will "take a house off the market today", particularly when there's 3 interested parties and its already close to the asking price.

Going "all in" and bidding 328k has one advantage in that you will put yourself out of your misery quicker. Either you'll get it or you won't. But if someone else has 329k and wants it well then there's nothing you can do. You're not going to scare anyone off with those numbers.

Edit - went through something similar myself recently albeit at a lower level. Our limit is 250k. Asking price was 250k. Bid of 238k on it with 3 interested parties. Bids were going up in 1k increments so when it was at 242k we bid 250k. Last I heard it was at 256k and it's now sale agreed but at least we weren't hanging on for ages seeing as we were never going to get it.

qwertypop · 21-03-2013 11:16am

Skittlebrau wrote: »

Everyone has a limit on what they're willing/able to pay. At some point a 1k increase will put them out of the game. It just mightn't be the first 1k increase.

With regards to the other question...IMO no price under the asking will "take a house off the market today", particularly when there's 3 interested parties and its already close to the asking price.

Going "all in" and bidding 328k has one advantage in that you will put yourself out of your misery quicker. Either you'll get it or you won't. But if someone else has 329k and wants it well then there's nothing you can do. You're not going to scare anyone off with those numbers.

I've been looking at a few places for buy to let (cash buyer) these places have been on the market for nearly 18 months roughly each. All of a sudden there's loads of interest. I'd stand my ground with maybe 324 and leave them hang tell them your not interested in bidding. Once they know you've copped there's no one else interested its yours. They should be damn lucky that there getting anything near the asking.
From looking at the price register and looking at asking prices for these house there roughly about 75% of the asking that there being sold at

kennyb3 · 21-03-2013 11:17am

quad_red wrote: »

House we are interested in has an asking of 335k.

Called there and after a week on show it has 2 bidders and it stands at 320k currently.

We're going to see it again on Saturday but I put down an offer of 321k. The EA said he 'appreciated' the offer but 1k increments wouldn't win anything as no one would 'lose' a house for a grand.

The Mrs want's me to ask the EA 'what would take this house off the market today'. Is such a question ridiculous?

Our limit is 328k. Should we go all in now and try and put off the other bidders?

Do a slow 1k creep keep people in the game?

Nothing wrong with bidding in increments at all, but from personal experience I definitely found you drag people along as every time they make another bid they get a bit more attached to the house.

If you think €328k represents a fair price, and the house meets all your requirements - you've nothing to lose by trying it.

Say the other two bidders have limits of even 322k - paying an extra €6k too much isn't really that big a deal when its over 25/30 years and it means you secure a house that meets your requirements and you want to live in for the forseeable future. That's not to say €6k is not a lot of money it clearly is but at the end of the day it's an extra 1.9%. You might be outbid anyway.

A lot does depend on the level of supply in the area - in terms of how many similar house are available or are going to come up. Also how certain you are this house meets all the required criteria.

It's easy to come on here (I use to do it) when it's other people's money, lives and you know nothing of the circumstances and say - oh you might end up overpaying by €5k if you bid straight up to €328k. Honestly it's not a whole lot of money in the greater scheme of things given your talking about spending nearly €330k.

Skittlebrau · 21-03-2013 11:23am

qwertypop wrote: »

I've been looking at a few places for buy to let (cash buyer) these places have been on the market for nearly 18 months roughly each. All of a sudden there's loads of interest. I'd stand my ground with maybe 324 and leave them hang tell them your not interested in bidding. Once they know you've copped there's no one else interested its yours. They should be damn lucky that there getting anything near the asking.
From looking at the price register and looking at asking prices for these house there roughly about 75% of the asking that there being sold at

Agree completely where a property has been on the market for a good while but in certain parts of Dublin houses are selling quickly and are attracting bids in the first couple of weeks of being listed.

Galego · 21-03-2013 11:28am

qwertypop wrote: »

I've been looking at a few places for buy to let (cash buyer) these places have been on the market for nearly 18 months roughly each. All of a sudden there's loads of interest. I'd stand my ground with maybe 324 and leave them hang tell them your not interested in bidding. Once they know you've copped there's no one else interested its yours. They should be damn lucky that there getting anything near the asking.
From looking at the price register and looking at asking prices for these house there roughly about 75% of the asking that there being sold at

Different EAs use different price strategies. This EA may have put a competitive asking price close to market price. If those 2 are real bidders then 1k incremental are pointless IMO. If I were you, I would go all or nothing. 328k and set a deadline. If not accepted then I’d suggest you to walk away. To me, house prices in this country are still overpriced and government current strategy of starving the market is unsustainable. Market will eventually correct itself and the real prices will not look any close those askings today.

skyfall2012 · 21-03-2013 1:40pm

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

gmisk · 21-03-2013 1:44pm

I think it means the buyer got it for less than the asking price

davet82 · 21-03-2013 1:45pm

skyfall2012 wrote: »

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

mostly property bought off the local council

D3PO · 21-03-2013 1:45pm

skyfall2012 wrote: »

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

its nothing to do with asking prices. Its to do with not being the full market price.

i.e buying a share of a property from a sibling for example where you both previously owned 50%

etc

qwertypop · 21-03-2013 2:49pm

davet82 wrote: »

mostly property bought off the local council

Yes exactly or if you buy from a family member or close friend for really cheap price

Ritchi · 21-03-2013 3:11pm

skyfall2012 wrote: »

Does anybody know what 'not at full market price' means when you look at houses sold in the property price register? Does it mean the buyer got it for less than the asking price, or have these houses have a certain market value which they fall below and sometimes rise above?

In a small number of transactions included in the Register the price shown does not represent the full market price of the property concerned for a variety of reasons. For example, the price declared may reflect the retention of an interest in the property by the previous owner, or the fact that a part or fraction only of the property is being purchased; alternatively, the property may have been purchased at a reduced price under the Affordable Homes Scheme. In addition, in a very small number of cases, properties may be declared as purchased in exchange for other property, stocks and shares, etc. All such properties are marked **

http://propertypriceregister.ie/Website/npsra/pprweb.nsf/page/ppr-price-en

skyfall2012 · 21-03-2013 3:29pm

Shouldn't working class housing prices reflect 5 times the average working class wage which by my calculations would be 120,000 euro and that would be single income cos this double income household is negated by cost of childcare.

dines08 · 21-03-2013 8:32pm

Very new to this so thanks for the time and patience
My girlfriend and I, both 28, have viewed a house we both like and are willing to make an offer on. It's slightly above our original plan in terms of price but worth it in my opinion provided we can afford it. Which is why I am here! I need some input and advice on the figures to understand if we are being unrealistic.

I'm a factory worker in a permanent job earning €2400 per month after tax
She is a PHD physiotherapist working for the HSE in a permanent position earning €2100 per month after tax. We are completely debt free and have been saving in the region of €250 each per week for the last year and couple of months which gives us savings of €30000.
The house has an asking price of €300000 and the current highest offer is €280000

The advice I need is would we be eligible for the loan amount and repayments?
Also, what sort of increments should we increase the offer by?

Shedite27 · 22-03-2013 1:26pm

Just wondering where I can get information on where current "follow on rates" for mortgages are published? Been looking through the banks websites and all they advertise is "4.2% fixed for 2 years" but can't get any information on variances between the banks follow on rates.

Is there a big discrepancy between different banks follow on rates? Are they secretive about these things?

For example, AIB advertise 4.08% 1 year fixed, PTSB 3.99% 1 year fixed, but I can't find information on what eyar 2/3 would be (obviously know these are likely to change but is there any info on what they are currently?)

killers1 · 22-03-2013 2:04pm

dines08 wrote: »

Very new to this so thanks for the time and patience
My girlfriend and I, both 28, have viewed a house we both like and are willing to make an offer on. It's slightly above our original plan in terms of price but worth it in my opinion provided we can afford it. Which is why I am here! I need some input and advice on the figures to understand if we are being unrealistic.

I'm a factory worker in a permanent job earning €2400 per month after tax
She is a PHD physiotherapist working for the HSE in a permanent position earning €2100 per month after tax. We are completely debt free and have been saving in the region of €250 each per week for the last year and couple of months which gives us savings of €30000.
The house has an asking price of €300000 and the current highest offer is €280000

The advice I need is would we be eligible for the loan amount and repayments?
Also, what sort of increments should we increase the offer by?

Presuming you've no kids you'll be fine for mortgage approval in excess of €300k. You've asked for monthly repayments but what loan amount do you want to base them on?

In terms of putting an offer in, I wouldn't go too far above €280k initially and see how it goes.

killers1 · 22-03-2013 2:08pm

Shedite27 wrote: »

Just wondering where I can get information on where current "follow on rates" for mortgages are published? Been looking through the banks websites and all they advertise is "4.2% fixed for 2 years" but can't get any information on variances between the banks follow on rates.

Is there a big discrepancy between different banks follow on rates? Are they secretive about these things?

For example, AIB advertise 4.08% 1 year fixed, PTSB 3.99% 1 year fixed, but I can't find information on what eyar 2/3 would be (obviously know these are likely to change but is there any info on what they are currently?)

AIB's 1 yr fixed rate is 4.15%, you are looking at their APR on a 20 yr term (4.08%). AIB are one of the few banks who don't differentiate between new & existing business rates and the follow on rates are the same i.e. someone purchasing @ 92% LTV can borrow at 4.15% fixed for 1 yr and move on to 4.88% 3 yr fixed rate at expiry (provided no change in rates). Be very careful with follow on rates or discounted 'headline' rates advertised by other banks as a carrot to get your business. They may have attractive looking discounted variable rates which move to much more expensive SVR's after the discounted period. If you want any specific rates let me know..

GetWithIt · 22-03-2013 2:20pm

killers1 wrote: »

Presuming you've no kids you'll be fine for mortgage approval in excess of €300k. You've asked for monthly repayments but what loan amount do you want to base them on?

In terms of putting an offer in, I wouldn't go too far above €280k initially and see how it goes.

In excess of 300K seems high. Based on my sample set of 1, the combined salaries if they were held by one person would indeed come in well above 300K. But I thought banks were returning to the more traditional metrics of, say, 2.5 + 1 for couples?

killers1 · 22-03-2013 2:32pm

GetWithIt wrote: »

In excess of 300K seems high. Based on my sample set of 1, the combined salaries if they were held by one person would indeed come in well above 300K. But I thought banks were returning to the more traditional metrics of, say, 2.5 + 1 for couples?

Throwing their incomes into a banks calc taking €38k & €32k as gross annual figures (approx. based on net figures supplied) equates to a loan amount of over 300k over a 35 yr term which they qualify for based on AIB's income calc, they don't work off multiples (few banks do) and instead allow the mortgage repayment be up to a certain % of net monthly income. The % changes depending on the income levels. Their combined net income of €4500, less living exp guidleline for a couple with no dependents of €2,050 leaves €2,741`available to cover stressed mortgage repayment. Stressed repayments on €300k over 35 yrs @ 6.24% = €1,759pm so well within policy. They have been saving €250 each per week or €2,166pm giving them a proven repayment capacity to afford a mortgage of €300k..

GetWithIt · 22-03-2013 2:39pm

Ah, 35 years.

Like I said, I had a sample set of one. I wanted the best rate for the shortest period of time.

Personally I would not like a mortgage of that size where neither partner has take home far in excess of that figure. Personally.

killers1 · 22-03-2013 2:47pm

GetWithIt wrote: »

Ah, 35 years.

Like I said, I had a sample set of one. I wanted the best rate for the shortest period of time.

Personally I would not like a mortgage of that size where neither partner has take home far in excess of that figure. Personally.

The OP and his partner are both 28 so qualify to have their application assessed over a 35 yr term. Just because they might take a 35 yr term doesn't mean it can't be paid over a short term. Whether they want to take on a debt of that level is completely their decision, I was just pointing out that they would qualify. If they are used to saving €2166pm they should be able to cope with the actual mortgage repayment of €1,371pm. Also, if the highest offer on the property is currently €280k the chances are they wouldn't need a mortgage close to €300k to buy the property. You're right to always want the cheapest rate and aim to pay it off as quickly as possible..

bedstuybosco · 22-03-2013 3:25pm

Like many others here looking for house purchase advice.

My other half and I have 2 houses, we both bought before we met. The one which we live in is in negative equity and on a variable rate and the other which we rent is not in negative equity and on a tracker.

We have one child and are both public servants and would like to buy a bigger house. We have a loan of about 14000 but otherwise debt free. We also have about 20,000 savings

Should we try and shake loose the property which isn't in negative equity before applying for mortgage as it would give us more equity and less if a financial burden? The current tenants are interested in buying it.

I gues what I'm asking is what's the best wat to go about getting another mortgage. Any houses we seem to like are around the 300k mark and would be hoping to have around 50k saved so possibly looking for mortgage of 250k. Do we have any hope?

I'm sure there are plenty of people like us who had houses before they met.

Any advice greatly appreciated

Thanks in advance

killers1 · 22-03-2013 3:34pm

bedstuybosco wrote: »

Like many others here looking for house purchase advice.

My other half and I have 2 houses, we both bought before we met. The one which we live in is in negative equity and on a variable rate and the other which we rent is not in negative equity and on a tracker.

We have one child and are both public servants and would like to buy a bigger house. We have a loan of about 14000 but otherwise debt free. We also have about 20,000 savings

Should we try and shake loose the property which isn't in negative equity before applying for mortgage as it would give us more equity and less if a financial burden? The current tenants are interested in buying it.

I gues what I'm asking is what's the best wat to go about getting another mortgage. Any houses we seem to like are around the 300k mark and would be hoping to have around 50k saved so possibly looking for mortgage of 250k. Do we have any hope?

I'm sure there are plenty of people like us who had houses before they met.

Any advice greatly appreciated

Thanks in advance

You're missing a lot of info for anyone to give you an accurate idea of how you are fixed...

1. Ages?
2. Incomes?
3. Mtg amounts o/s on each property?
4. Monthly repayments on each?
5. Amount of rent being recevied? How long has it been rented?
6. LTV on tracker mortgage?
7. Level of NE on existing property?
8. Repayment amount on €14k loan?
9. How much do you add to savings per month or on average over the past 6 months?

adam88 · 22-03-2013 3:46pm

Hi all. Just a quick one for ye.

Bought a house last year for a knock down price of 55k had 20 in savings but really wanted to keep that as a raining day fund so I took out two personal loads of 45 to buy the house. Used ten in savings to supplement. Current loan repayments are about 900 a month and 200 a month in savings. This is manageable as I'm single and no children.
I'm a public servant with about 2100 after tax a month.
Finally getting around to doing up the house and am wondering would it be possible to get a mortgage and if so how much. I'm 25. Obviously I'd pay off the personal loans (one bank loan and one credit union loan) from this mortgage and do up the house with the balance.
Also if I was to get the house valued I'd be hoping to get a value of about 85 to 90 k on it. Person selling was really stuck and I had cash available hence how I got it so handy.

Any help appreciated

killers1 · 22-03-2013 3:50pm

adam88 wrote: »

Hi all. Just a quick one for ye.

Bought a house last year for a knock down price of 55k had 20 in savings but really wanted to keep that as a raining day fund so I took out two personal loads of 45 to buy the house. Used ten in savings to supplement. Current loan repayments are about 900 a month and 200 a month in savings. This is manageable as I'm single and no children.
I'm a public servant with about 2100 after tax a month.
Finally getting around to doing up the house and am wondering would it be possible to get a mortgage and if so how much. I'm 25. Obviously I'd pay off the personal loans (one bank loan and one credit union loan) from this mortgage and do up the house with the balance.
Also if I was to get the house valued I'd be hoping to get a value of about 85 to 90 k on it. Person selling was really stuck and I had cash available hence how I got it so handy.

Any help appreciated

Your best bet is to approach the bank that you have the current loan with as other banks don't have any appetite to lend mortgage monies to clear another banks debt. You should qualify for a small mortgage easily enough based on your income and the fact that your current loan & savings will far outstrip the stressed mortgage repayment on the amount you'll need.

bedstuybosco · 22-03-2013 4:15pm

killers1 wrote: »

You're missing a lot of info for anyone to give you an accurate idea of how you are fixed...

1. Ages?
2. Incomes?
3. Mtg amounts o/s on each property?
4. Monthly repayments on each?
5. Amount of rent being recevied? How long has it been rented?
6. LTV on tracker mortgage?
7. Level of NE on existing property?
8. Repayment amount on €14k loan?
9. How much do you add to savings per month or on average over the past 6 months?

Pm ;-)

adam88 · 22-03-2013 4:44pm

killers1 wrote: »

Your best bet is to approach the bank that you have the current loan with as other banks don't have any appetite to lend mortgage monies to clear another banks debt. You should qualify for a small mortgage easily enough based on your income and the fact that your current loan & savings will far outstrip the stressed mortgage repayment on the amount you'll need.

What's the max you'd expect them to lend on my wages

Independance · 22-03-2013 4:48pm

just wondering, if you were a cash buyer and really liked a house would/should you disclose this to the EA.

Would you be at advantage or disadvantage, would they phantom bid you to get more money?

killers1 · 22-03-2013 5:04pm

adam88 wrote: »

What's the max you'd expect them to lend on my wages

In effect you are looking for an equity release mortgage on your existing property so will be bound by their loan to value criteria. You might not be allowed borrow in excess of 75% of the value of the property. Your income is fine to borrow close to €140k so it's the loan to value which will control how much you can borrow.

adam88 · 22-03-2013 5:52pm

killers1 wrote: »

In effect you are looking for an equity release mortgage on your existing property so will be bound by their loan to value criteria. You might not be allowed borrow in excess of 75% of the value of the property. Your income is fine to borrow close to €140k so it's the loan to value which will control how much you can borrow.

Was thinking that alright. Just have to get a very genourous value so lol shouldn't be too hard. 140k you say. Is the 2.5 of your salary being relaxed as of late???

killers1 · 22-03-2013 6:17pm

adam88 wrote: »

Was thinking that alright. Just have to get a very genourous value so lol shouldn't be too hard. 140k you say. Is the 2.5 of your salary being relaxed as of late???

The 2.5 times salary was probably last used in circa 1989

... If your net income is €2,100 the guidleline is that you should have €1300pm to live off so that leaves you with €800pm to put towards a mortgage repayments. The stressed mortgage repayment on €140k over 35 yrs is €820pm, so yes in and around €140k is the max your salary would allow you to borrow

dines08 · 22-03-2013 6:29pm

killers1 wrote: »

Presuming you've no kids you'll be fine for mortgage approval in excess of €300k. You've asked for monthly repayments but what loan amount do you want to base them on?

In terms of putting an offer in, I wouldn't go too far above €280k initially and see how it goes.

Sorry about the missing information. Just as a guide, the house asking price minus our savings. So a loan amount of €270000. We have a baby on the way in June so I'm assuming this will affect the amount we can borrow. My take home pay mentioned above is my basic wage. I was lead to believe that banks don't consider overtime and bonuses. Would that be correct? Would it rule out borrowing the loan amount we are talking about?

Perfect Ring · 22-03-2013 8:09pm

yeah with a baby on the way they will deduct the amount and add to your expenses what you expect to pay on childcare.

Balarrr Didiarr · 23-03-2013 9:35am

Hi, looking for advice please. We hope to buy in the near future but will keep saving until good deposit amount built up. Just wondering what amount of mortgage we would be offered?

Our circumstances are as follows: 1st income is 60k gross, permanent full time. 2nd income is 34k gross, permanent full time. We have 1 child & pay €975 per month in childcare. We pay rent of €1050 per month and save €1400 per month. No loans. Age: 34 and 32.

We would hope to buy modestly in case something unforeseen was to happen, but curious as to where we would stand with mortgage approval amount.
Thanks.
BD

killers1 · 23-03-2013 12:34pm

Balarrr Didiarr wrote: »

Hi, looking for advice please. We hope to buy in the near future but will keep saving until good deposit amount built up. Just wondering what amount of mortgage we would be offered?

Our circumstances are as follows: 1st income is 60k gross, permanent full time. 2nd income is 34k gross, permanent full time. We have 1 child & pay €975 per month in childcare. We pay rent of €1050 per month and save €1400 per month. No loans. Age: 34 and 32.

We would hope to buy modestly in case something unforeseen was to happen, but curious as to where we would stand with mortgage approval amount.
Thanks.
BD

You could expect approval up to €350k.

GetWithIt · 23-03-2013 3:03pm

killers1 wrote: »

You could expect approval up to €350k.

killers1, you're dealing with this on a day to day basis so it's somewhat nonsensical of me in trying to argue with your numbers, but 350 just looks a very big number.

I assume this couple would be given a max term of 31 years rather than 35. Maybe even only 30.

From my own minute sample set the numbers coming out of online mortgage calculators are not matching actual approval amounts since the start of this year.

I earn 10k more per annum this year than I did last - no other change - yet my mortgage approval has FALLEN by 10k. I assume the end of mortgage interest relief, higher taxes and higher mortgage interest rates have contributed to this. In fact my 3 monthly renewal was all of a sudden a lot more involved once this year started.

In your experience are you satisfied with the accuracy of these calculations versus actual approval levels?

quad_red · 23-03-2013 5:40pm

Went to see a house for a repeat viewing today.

Made a bid during the week. EA came back the following day saying there were three other bidders and we'd been outbid by 2k.

Looked at the house again today. I don't think the EA realized who we were. He said bidding was currently at the price we had bid previously. No mention of the supposed new price.

Now - there were too many people around to chase this down and he rushed off.

Is that a simple mistake on his part I wonder? Or are we competing with phantom bidders here. Or else the other bidder pulled out I suppose.

I wonder.

Went to see another house that is being sold for 45k more than it was sold for in mid 2011. House has had some work done on it alright. Would it count as an (attempted) flip?

killers1 · 23-03-2013 6:46pm

GetWithIt wrote: »

killers1, you're dealing with this on a day to day basis so it's somewhat nonsensical of me in trying to argue with your numbers, but 350 just looks a very big number.

I assume this couple would be given a max term of 31 years rather than 35. Maybe even only 30.

From my own minute sample set the numbers coming out of online mortgage calculators are not matching actual approval amounts since the start of this year.

I earn 10k more per annum this year than I did last - no other change - yet my mortgage approval has FALLEN by 10k. I assume the end of mortgage interest relief, higher taxes and higher mortgage interest rates have contributed to this. In fact my 3 monthly renewal was all of a sudden a lot more involved once this year started.

In your experience are you satisfied with the accuracy of these calculations versus actual approval levels?

Hi getwithit,
I'd say the calculations are 99% accurate and match approval levels. Be careful with online calculators as they may not be up to date and may not take into account the end of TRS & budgetary changes. My figure of €350k for the OP was arrived at as follows;

Incomes of €60k & €34k over a 31 yr term indicate max loan amount of €422k. Net income will be circa €5,570pm. The stress testing then works out as follows;

Net Income €5,570
Less living exp €2,300 (couple with 1 dependent)
Less Creche €975
= €2,295 (available to put towards stressed mortgage repayment)

The stressed mortgage repayment on €350k over 31 yrs = €2,129 and because this figure is below amount available it is within policy. Applicants are currently showing a repayment capacity of €1050 (rent) + €1400 (savings PM) = €2,450. (creche fees cant be used to prove repayment capacity as they will be continuing after drawdown). Provided applicants have been paying rent & saving at this level in excess of the past 6 months they WILL be approved for €350k. They won't get approval for the €422k indicated by the Banks income calculator as they don't have sufficient available monthly income to meet the stressed repayment on €422k (€2,567 V €2,295 available). If they had new childcare arrangements with no childcare costs the would be approved for up to €422k.

In relation to your own figures, I'd love to run them for you to give you an idea of the rationale behind the loan amount you have been offered and subsequently lower amount approved. This will be in part due to the new calculator post TRS & budget, an increase in stress testing rates since your initial approval but may also be something to do with the repayment capacity you are able to show. By all means put your details up or send me a PM with them and I'll be happy to do the same exercise for you..

In a nutshell, the first part of the calculation is the income calc. This gives a max figure. There is no guarantee you will qualify to borrow this amount but you will never get approval for a higher amount. The second part is the stress testing on the amount you qualify for and whether you can prove it's affordable. For example, someones salary qualifies for €200k mtg but they can only prove they can afford the stressed repayments on €150k. They will only be approved for €150k. Alternatively if they have demonstrated a proven repayment capacity to take on a mtg of €250k they will only be approved for €200k (max income calc allows)

Balarrr Didiarr · 23-03-2013 9:27pm

Thanks so much Killers1 and GetWithIt, the detail and responses are really appreciated. Thanks again for taking the time to respond. I had no idea of the workings. Will be aiming for a much lower mortgage but let's us know we are in a good position. BD

killers1 · 23-03-2013 10:19pm

Balarrr Didiarr wrote: »

Thanks so much Killers1 and GetWithIt, the detail and responses are really appreciated. Thanks again for taking the time to respond. I had no idea of the workings. Will be aiming for a much lower mortgage but let's us know we are in a good position. BD

I figured by your original post you'd be looking for a much lower amount, you'll have no difficulty whatsoever obtaining approval for the amount you need based on your details posted.

qwertypop · 24-03-2013 10:27am

quad_red wrote: »

Went to see a house for a repeat viewing today.

Made a bid during the week. EA came back the following day saying there were three other bidders and we'd been outbid by 2k.

Looked at the house again today. I don't think the EA realized who we were. He said bidding was currently at the price we had bid previously. No mention of the supposed new price.

Now - there were too many people around to chase this down and he rushed off.

Is that a simple mistake on his part I wonder? Or are we competing with phantom bidders here. Or else the other bidder pulled out I suppose.

I wonder.

Went to see another house that is being sold for 45k more than it was sold for in mid 2011. House has had some work done on it alright. Would it count as an (attempted) flip?

Your dealing with phantom bidders I'm afraid. I think something really needs to be done about this as its really slowing down the market. I've had it done to me so many times. One occasion they told me someone viewed the house that morning and outbid me by 5k this was despite my mothers house being across the road and not one single person going into the house that morning. I called there bluff and all of a sudden that bidder pulled out.
On another occasion I kept ringing ea about a house and they kept sayin it was sale agreed but when I made contact wit seller direct we were able to come to a deal ourselves. Don't know what they were doing wit sayin sale agreed.

marketty · 24-03-2013 10:56pm

Hi all just sticking my head in here to say I will be hopefully buying this year, and I'm sure I'll be back looking for advice! Spoke to a BoI mortgage adviser a couple of months back and was told I could borrow 175k based on last years earnings of 37k. I know these things can change so might not get that amount later in the year, it is quite a bit more than I plan on borrowing anyway.

Just wondering if Killers1 or someone could clear something up for me. The mortgage adviser I spoke to went through some basic figures with me obviously to come to that amount. I asked her am I approved for that amount, as in can I go and view houses and make an offer without wasting anyone's time? She told me that they are approving on a case by case basis so I would need to apply with the details of the house I am considering. But surely that is for the actual loan application once sale is agreed? I just want to know can I go and view properties at around let's say 120k and be able to make an offer or do I need further approval from the bank 1st? Thanks

killers1 · 25-03-2013 12:01am

marketty wrote: »

Hi all just sticking my head in here to say I will be hopefully buying this year, and I'm sure I'll be back looking for advice! Spoke to a BoI mortgage adviser a couple of months back and was told I could borrow 175k based on last years earnings of 37k. I know these things can change so might not get that amount later in the year, it is quite a bit more than I plan on borrowing anyway.

Just wondering if Killers1 or someone could clear something up for me. The mortgage adviser I spoke to went through some basic figures with me obviously to come to that amount. I asked her am I approved for that amount, as in can I go and view houses and make an offer without wasting anyone's time? She told me that they are approving on a case by case basis so I would need to apply with the details of the house I am considering. But surely that is for the actual loan application once sale is agreed? I just want to know can I go and view properties at around let's say 120k and be able to make an offer or do I need further approval from the bank 1st? Thanks

I hate BOI's system of mortgage approval. My biggest fear around discussing your application with the mortgage advisor is that they have just done the income calculation poart of the process. Your salary is fine to qualify for the amount you are now thinking of borrowing, even taking into account any increase in stress test rates since you had your last discussion with them. I'm presuming you're under the age of 40 and have no kids. If your rent + savings outweigh the stressed repayment on the amount you are planning on borrowing and has done for a consistent period of time you should be ok. If you want to get a more concrete approval from BOI and have an Underwriter actually assess your application give them a dummy property address of a house for sale at the level you want to buy which requires no works. Once your are approved subject to a satisfactory valuation report only, you'll know you have a concrete approval and can just tell them you decided to purchase a different property once you've had an offer accepted. If you read back a few posts on this thread you'll see the type of info I'd need to be able to give you an accurate assessment of your application i.e, age, income, rent, savings etc etc

Buying a house 2013!

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