Rebuilding Ireland home loan

BKWDR · 19-09-2020 1:43pm

KH1591 wrote: »

Quick question, has anyone on here paid a booking deposit on a new home before their R.I mortgage was approved? Our application is looking good but still waiting for approval and afraid we'll lose the house we found.

Just wondered if anyone else done it this way!
Thanks

2 things

Make sure it's fully refundable (it should be)

Accept that if you do this, you might be putting yourself under pressure pending your approval. Vendor might want a quick sale etc.

Talk to your solicitor and make sure your deposit isn't at risk

jill_valentine · 19-09-2020 2:13pm

jill_valentine wrote: »

Thanks again for this.

Just as information for anybody at the same stage - I posted my app to this address at DCC Friday, got a call today (Wednesday) to tell me things look good bar one minor doc, which I managed to scan in and return by email within about two hours.

Recieved a mail confirming my app would then be sent to the underwriters. So far so good, now comes the rest

Just posting for information's sake - the above post was from 12/08.

As of yesterday, 18/09, I've been told my app is back from the underwriters and awaiting decision by the DCC Credit Committee. The Committee is expected to meet again sometime early to mid October.

KH1591 · 19-09-2020 4:48pm

BKWDR wrote: »

2 things

Make sure it's fully refundable (it should be)

Accept that if you do this, you might be putting yourself under pressure pending your approval. Vendor might want a quick sale etc.

Talk to your solicitor and make sure your deposit isn't at risk

Thanks so much! We don't want to lose the house but won't be ready til November!
Have tou used your own solicitor?

BKWDR · 19-09-2020 9:13pm

KH1591 wrote: »

Thanks so much! We don't want to lose the house but won't be ready til November!
Have tou used your own solicitor?

You will have to get your own solicitor to tend to the conveyance. This will cost you, 1300-2000e

KH1591 · 19-09-2020 9:22pm

BKWDR wrote: »

You will have to get your own solicitor to tend to the conveyance. This will cost you, 1300-2000e

Yes we have received quotes from solicitors. Just wondered if you had to use the councils reccomended solicitors or if you can go with one you found yourself.

BKWDR · 19-09-2020 9:28pm

KH1591 wrote: »

Yes we have received quotes from solicitors. Just wondered if you had to use the councils reccomended solicitors or if you can go with one you found yourself.

The council will advise but I'd 100 percent be sure that you just go with your own. It's independent legal advice, wouldn't be that independent if you had to go with someone they nominate

KH1591 · 20-09-2020 9:32am

BKWDR wrote: »

The council will advise but I'd 100 percent be sure that you just go with your own. It's independent legal advice, wouldn't be that independent if you had to go with someone they nominate

Very true! Thanks for your help!

Dankarl · 20-09-2020 5:45pm

Hi Guys,

Currently sale agreed 12 weeks now and haven’t heard anything from solicitors.

Haven’t signed any contracts.
What’s normal time frame ?

DK

NM2020 · 21-09-2020 11:40am

jill_valentine wrote: »

Just posting for information's sake - the above post was from 12/08.

As of yesterday, 18/09, I've been told my app is back from the underwriters and awaiting decision by the DCC Credit Committee. The Committee is expected to meet again sometime early to mid October.

Thanks for update! i applied same week so assuming im in the same boat

Proporridge · 21-09-2020 2:20pm

Hi I submitted my application to Donegal CC mid July after 7 weeks I got a request for more information which was sent back to them tuesday last week. I rang them this morning and was told they have everything now and are sending it Dublin for recommendations to be made before it is put before the credit control committee. My question is does anyone know how long it takes Dublin to make the recommendations as the next credit meeting is on the 5th October and is only on Once a month. I’m really hoping it comes back in time for the 5th as I’m trying to buy the house I’m currently renting and my deadline to get a letter of offer to be able to proceed is mid November before the land lord sells it to someone else ðŸ™ˆðŸ™ˆ

Gael23 · 21-09-2020 4:28pm

Can you get more than 3.5 times your salary with this mortgage?

Jafin · 21-09-2020 5:05pm

Gael23 wrote: »

Can you get more than 3.5 times your salary with this mortgage?

Yes. Go to the calculator here to see how much you can borrow. What I got offered was significantly more than 3.5 times my salary.

KH1591 · 21-09-2020 8:33pm

jill_valentine wrote: »

Just posting for information's sake - the above post was from 12/08.

As of yesterday, 18/09, I've been told my app is back from the underwriters and awaiting decision by the DCC Credit Committee. The Committee is expected to meet again sometime early to mid October.

Thats great! When did you get your apprival in principle? We need that to completely secure our home with the auctioneers!

Ukelele! · 22-09-2020 9:50am

Dankarl wrote: »

Hi Guys,

Currently sale agreed 12 weeks now and haven’t heard anything from solicitors.

Haven’t signed any contracts.
What’s normal time frame ?

DK

Mine took 4 months from sale agreed to getting the keys and that was pre-covid. The first 6-8 weeks after sale agreed was slow because the seller didn't have everything ready to go in order to sign contracts. Then we played a waiting game with the council for another 8 weeks or so to get the cheque issued from the council. But I was contacting my solicitor every few days and she was contacting me, keeping me updated, chasing the sellers solicitor and the council's solicitor. So, I'd get onto your solicitor and ask them to find out what the hold up is... They work for you at the end of the day. I'd to remind myself of that a few times!

Gael23 · 22-09-2020 10:11am

Jafin wrote: »

Yes. Go to the calculator here to see how much you can borrow. What I got offered was significantly more than 3.5 times my salary.

Yes it’s quite dramatically more but at a higher interest rate. Can you take this mortgage then refinance with a high street lender at a lower interest rate after a while?

What puts me off slightly is you have to identify a specific property before you apply and the Dublin market moves quite fast so that’s not really practical

KH1591 · 22-09-2020 11:10am

Gael23 wrote: »

Yes it’s quite dramatically more but at a higher interest rate. Can you take this mortgage then refinance with a high street lender at a lower interest rate after a while?

What puts me off slightly is you have to identify a specific property before you apply and the Dublin market moves quite fast so that’s not really practical

When you do your application, put the loan amount as 'Maxium Available and where it asks for the property details put 'to be confirmed'.. you can pick your property once you're approved then

estabon · 22-09-2020 1:41pm

Hi on the refusal letter of the banks does it have to state the amount that you applied for? I have one from the Boi but it doesn't state the amount but then I was chatting to an aib mortgage advisor and they reckon you have to have the same amount turned down from two different lenders on the refusal letters? Anyone know for sure? Applying to Donegal Co. Co in near future.

jessimirish · 22-09-2020 2:23pm

jill_valentine wrote: »

Just posting for information's sake - the above post was from 12/08.

As of yesterday, 18/09, I've been told my app is back from the underwriters and awaiting decision by the DCC Credit Committee. The Committee is expected to meet again sometime early to mid October.

This update is much appreciated! I posted my application off September 9, so all going very smoothly, I could hopefully make it into the same credit committee meeting - otherwise god knows when the next one will be. Fingers crossed!

John Hutton · 22-09-2020 3:40pm

Hi all, I have a question about the evidence of insufficient offers of finance.

On the FAQ it says "An on-line lender calculator output sheet showing inadequate borrowing capacity for the amount sought from your local authority " can suffice.

Does this mean I can print out the output from something like https://aib.ie/our-products/mortgages/mortgage-calculator and use that?

Or can I get approval in principal for an amount too little and use that?

Lets say the bank will give me approval for 140k, but I need 180k. Would two "approval in principal" letters for the 140k suffice for the application if I state that any house I want to buy is more than this and I want the maximum available? How do I word this?

Or do I need to go to the bank and say I want 180k and need a letter explicitly where they say we wont give you that?

TG94 · 22-09-2020 5:11pm

estabon wrote: »

Hi on the refusal letter of the banks does it have to state the amount that you applied for? I have one from the Boi but it doesn't state the amount but then I was chatting to an aib mortgage advisor and they reckon you have to have the same amount turned down from two different lenders on the refusal letters? Anyone know for sure? Applying to Donegal Co. Co in near future.

it has to show the amount and date but you can also use the online calculators as evidence of insufficient funds.

bakerie · 22-09-2020 5:27pm

Lads I heard something unusual and was just wondering if it was true.

On a normal mortgage, if I die the mortgage is canceled and it's left to my next of kin.

On the RIHL, I'm told the house reverts to the council. Is this true?

BKWDR · 22-09-2020 6:45pm

bakerie wrote: »

Lads I heard something unusual and was just wondering if it was true.

On a normal mortgage, if I die the mortgage is canceled and it's left to my next of kin.

On the RIHL, I'm told the house reverts to the council. Is this true?

It's not true. In the slightest.

optogirl · 22-09-2020 6:47pm

bakerie wrote: »

Lads I heard something unusual and was just wondering if it was true.

On a normal mortgage, if I die the mortgage is canceled and it's left to my next of kin.

On the RIHL, I'm told the house reverts to the council. Is this true?

I think whoever you heard that from was thinking of council houses as opposed to a house bought with a mortgage from the council

Dobloman · 22-09-2020 8:10pm

Just wondering if anyone can give me advice as to getting a council house in rural location Ballinasloe /Loughrea area for my daughter

bakerie · 22-09-2020 8:19pm

Just to clarify, just like a normal mortgage, if I die the death goes with me and the house would go to my next of kin?

BKWDR · 22-09-2020 9:43pm

bakerie wrote: »

Just to clarify, just like a normal mortgage, if I die the death goes with me and the house would go to my next of kin?

In the event of the borrowers death, mortgage protection insurance will cover the remainder of the loan,like any other mortgage.
Even in the event of MPI paying out there are rules about who will inherit what. But if you have a will that an be specific about your wishes and a solicitor should and would advise you to have one.

Jafin · 22-09-2020 10:07pm

John Hutton wrote: »

Hi all, I have a question about the evidence of insufficient offers of finance.

On the FAQ it says "An on-line lender calculator output sheet showing inadequate borrowing capacity for the amount sought from your local authority " can suffice.

Does this mean I can print out the output from something like https://aib.ie/our-products/mortgages/mortgage-calculator and use that?

Or can I get approval in principal for an amount too little and use that?

Lets say the bank will give me approval for 140k, but I need 180k. Would two "approval in principal" letters for the 140k suffice for the application if I state that any house I want to buy is more than this and I want the maximum available? How do I word this?

Or do I need to go to the bank and say I want 180k and need a letter explicitly where they say we wont give you that?

Double check with your local council before using the online mortgage calculator. Originally I was told that an online calculator would be fine as evidence but then when I submitted it they said an online calculator was not sufficient evidence. If you can get two letters that's the best thing, but do check about the online calculators.

Gael23 · 23-09-2020 10:03am

What is deemed inadequate borrowing?

In theory I can get enough from the bank for a 1 bed apartment in an undesirable area.

Jafin · 23-09-2020 10:12am

Gael23 wrote: »

What is deemed inadequate borrowing?

In theory I can get enough from the bank for a 1 bed apartment in an undesirable area.

It's inadequate/insufficient if the banks offer you less than what you're looking for. Let's say for example the banks will offer you €200k, but you want €240k, then that €200k is inadequate and you can apply to the council for €240k (if you're eligible for it of course).

NM2020 · 23-09-2020 11:29am

jessimirish wrote: »

This update is much appreciated! I posted my application off September 9, so all going very smoothly, I could hopefully make it into the same credit committee meeting - otherwise god knows when the next one will be. Fingers crossed!

Hi, I spoke with council yesterday as I had a query. I was told that my application will be with the underwriters for a minimum of 12 weeks (same for every application apparently) and after the 12 weeks, if approved, it will be sent to committee who meet only once a month. Just an FYI on timeframes. it is a long wait with everything!

Rebuilding Ireland home loan

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