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Saving/Applying for a mortgage 2015/16/17/18/19

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Comments

  • Registered Users Posts: 6 kaixbre


    Long time lurker on this page here!

    Quick bit of advise needed, I got my end of year bonus today and I'm wondering would it be better suited to use it towards the deposit (we're so close) or use it to clear the last legs of my boyfriends car loan?

    The loan has been paid off regularly with no payments missed so I don't think its going to be a huge deal but just wondering should I take the opportunity to clear it now.

    Thanks :)


  • Registered Users Posts: 2,260 ✭✭✭Mink


    kaixbre wrote: »
    Long time lurker on this page here!

    Quick bit of advise needed, I got my end of year bonus today and I'm wondering would it be better suited to use it towards the deposit (we're so close) or use it to clear the last legs of my boyfriends car loan?

    The loan has been paid off regularly with no payments missed so I don't think its going to be a huge deal but just wondering should I take the opportunity to clear it now.

    Thanks :)

    I'd clear the loan. When we had a loan, the bank we're offering a lot less. Once we cleared it we got a better mortgage loan offer


  • Registered Users Posts: 271 ✭✭Earleybird


    Mink wrote: »
    kaixbre wrote: »
    Long time lurker on this page here!

    Quick bit of advise needed, I got my end of year bonus today and I'm wondering would it be better suited to use it towards the deposit (we're so close) or use it to clear the last legs of my boyfriends car loan?

    The loan has been paid off regularly with no payments missed so I don't think its going to be a huge deal but just wondering should I take the opportunity to clear it now.

    Thanks :)

    I'd clear the loan. When we had a loan, the bank we're offering a lot less. Once we cleared it we got a better mortgage loan offer

    Not necessarily, I would go through an application with the banks or through a broker and wait for them to tell you if the monthly loan repayment impacts your repayment capacity. You might not need to clear it at all and could use for deposit.


  • Registered Users Posts: 1,881 ✭✭✭hooch-85


    boris1234 wrote: »
    It was 10 days/2 weeks for us. Took a few days before our branch submitted all the stuff to the underwriters and from when it was submitted we heard within a week.

    Give them a call just to see when it was submitted to the underwriters.

    Got an email back from EBS there and might have an answer today, if not he is hoping Monday. Fingers crossed. Heard nothing from AIB but we will probably go with EBS if we get approval from both, I just hoping one of them comes through.


  • Registered Users Posts: 1,607 ✭✭✭tony1980


    Contracts ready to sign this afternoon :D

    Structural Survey done and everything is fine :)

    Will hopefully know our closing date today, can't wait :)


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  • Registered Users Posts: 876 ✭✭✭TheBully


    tony1980 wrote: »
    Contracts ready to sign this afternoon :D

    Structural Survey done and everything is fine :)

    Will hopefully know our closing date today, can't wait :)
    Well done Tony, it's a really exciting time! We just moved into our home 5 weeks ago and although we thought there was nothing to do to it apart from furnish we have been busy every evening, but enjoyably busy!
    When you get the keys it's a huge sense of relief all your hard work has paid off and all the saving was worth it!
    The experience of bidding and getting the mortgage is daunting but things work out, as you are starting too see.
    We got a 2 month moratorium on mortgage payments just to help us get settled and start to furnish the place, you should do this if available!

    But congratulations, and welcome to the club!


  • Registered Users Posts: 206 ✭✭lbyrne121


    Would anyone know... I am going for a second mortgage but first mortgage is with PTSB and is a tracker.. I plan to buy a second home will I lose my tracker, I plan to get mortgage with BOI, will they inform PTSB that I am going for a mortgage?


  • Registered Users Posts: 1,523 ✭✭✭machalla


    lbyrne121 wrote: »
    Would anyone know... I am going for a second mortgage but first mortgage is with PTSB and is a tracker.. I plan to buy a second home will I lose my tracker, I plan to get mortgage with BOI, will they inform PTSB that I am going for a mortgage?

    You don't automatically lose a mortgage just by taking out a new one.

    It will depend on your repayment capacity as judged by BOI.

    So your potential borrowings will be reduced by any payments you make on your original mortgage.

    Its all based on your capacity to pay back any new debt.

    Depending on what you choose to do with the original house (keep it and rent or sell it) you need to consider any tax implications. If you rent it you will lose roughly 52-60% of any rental income in government taxes based on your personal circumstances (working on the higher rate of tax).

    If you sell it as your home you won't incur a Capital gains tax charge as ppr's (principal private resident) are exempt. You may incur a charge if you rent it for a few years then sell it as it will no longer be your ppr and this liable for cgt. This depends on you being able to sell it for more than you bought it for of course.

    So just be sure of the options facing you.

    If you are afraid of losing your tracker mortgage I don't think any of the banks have enforced this. It may depend on the terms of your original mortgage agreement.


  • Registered Users Posts: 206 ✭✭lbyrne121


    Thank you for your response. I bought in the boom so I am in negative equity so CG will never be an issue as I doubt I will ever make profit on it. I have to buy another place as it is currently far too small. What I was wondering is do BOI need to inform PTSB that I am getting another mortgage making me lose my tracked ?


  • Registered Users Posts: 1,523 ✭✭✭machalla


    lbyrne121 wrote: »
    Thank you for your response. I bought in the boom so I am in negative equity so CG will never be an issue as I doubt I will ever make profit on it. I have to buy another place as it is currently far too small. What I was wondering is do BOI need to inform PTSB that I am getting another mortgage making me lose my tracked ?

    I wouldn't have thought so no. Its only if the bank choose to enforce mortgage terms. Some of the trackers that were given out supposedly had clauses stating that if the property was rented out you needed to inform the bank. How enforceable any of that is well I would say its questionable. Particularly with all the cases of banks taking trackers off people illegally.

    Ultimately all BOI would look to be doing is covering their interests that you could pay off the second mortgage. They might insist you sell the first house before offering you a mortgage.

    There are some negative equity mortgage products out there but I don't think they had a great take up.

    Why BOI by the way? Their rates are fairly awful. Take a look here from some ideas on rates.

    http://www.askaboutmoney.com/threads/mortgage-rates-best-buys.197714/

    EBS with cashback seems to be one of the better options now and they are hungry for business from what I've heard.

    Also run through this calculator to get some idea on what might be the best mortgage rates for you

    http://www.bonkers.ie/compare-mortgages/search/


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  • Registered Users Posts: 206 ✭✭lbyrne121


    Not going to sell as I want to retain it.. The rent exceeds the mortgage payment and I have taken tax on rental income into consider.....I am going to try other banks I am just concerned that the bank I go for a mortgage with will inform ptsb and I will lose tracker?


  • Registered Users Posts: 1,523 ✭✭✭machalla


    lbyrne121 wrote: »
    Not going to sell as I want to retain it.. The rent exceeds the mortgage payment and I have taken tax on rental income into consider.....I am going to try other banks I am just concerned that the bank I go for a mortgage with will inform ptsb and I will lose tracker?

    Take a look at your original mortgage agreement to see what it says. That is all that matters, a new bank and mortgage has no impact on this. It wouldn't exactly be in their interest for your payments on the existing mortgage to rise so I can't see what possible scenario this would make any sense for them to do.

    I would think its unlikely as I've not heard of any cases of losing trackers being enforced but I am not a professional in that industry. A mortgage broker can probably advise you better or else take your mortgage agreement to a solicitor to check the terms.

    Or go to your current bank and ask them. That would be a definitive answer at least.


  • Registered Users Posts: 193 ✭✭Donkeygonads


    As a FTB i got approved for a mortgage yesterday with AIB ... rate 3.1%, delighted now , i applied for it last Thursday week .... had a few sleepless night nights just thinking about ... i also applied through EBS , they have a 2% cashback offer which works out slightly cheaper over the term than the AIB offer ... no give away Santy this year ! :D


  • Registered Users Posts: 206 ✭✭lbyrne121


    Hi wondering if anyone would know if you can apply for a mortgage over the Christmas period as in are ebs opened any days throughput Christmas just would suit as I am off work find it hard to get time off to go.


  • Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    lbyrne121 wrote: »
    Hi wondering if anyone would know if you can apply for a mortgage over the Christmas period as in are ebs opened any days throughput Christmas just would suit as I am off work find it hard to get time off to go.

    Banks open between Christmas and new year


  • Registered Users Posts: 206 ✭✭lbyrne121


    Does anyone know ebs Christmas opening hours?


  • Registered Users Posts: 3,014 ✭✭✭Monife


    lbyrne121 wrote: »
    Does anyone know ebs Christmas opening hours?

    Google it?


  • Registered Users Posts: 206 ✭✭lbyrne121


    Unfortunately doesn't say


  • Registered Users Posts: 21,064 ✭✭✭✭Water John


    Should be open 28th on.


  • Registered Users Posts: 1,830 ✭✭✭RandomAccess


    In a recent discussion I learned from the horses mouth so to speak that its common practice among a certain circle to fail to disclose that they own property abroad so my question is.. what if any are the implications for this, is it likely to be a future scandal, or maybe it is all too normal, and the real shock is that we are just shockingly naive..

    I would have presumed there was a certain increased risk in that kind of borrowing since there are an undisclosed number of liabilities secured on the applicants wages.

    Is this being discussed anywhere?


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  • Registered Users Posts: 1,881 ✭✭✭hooch-85


    hooch-85 wrote: »
    Got an email back from EBS there and might have an answer today, if not he is hoping Monday. Fingers crossed. Heard nothing from AIB but we will probably go with EBS if we get approval from both, I just hoping one of them comes through.

    So AIB declined us, not saving for long enough, girlfriend on contract etc.. is it very unlikely that EBS can approve now that they have the same parent company etc?


  • Registered Users Posts: 6,784 ✭✭✭Alkers


    hooch-85 wrote:
    So AIB declined us, not saving for long enough, girlfriend on contract etc.. is it very unlikely that EBS can approve now that they have the same parent company etc?


    Try anyway, we had completely different results from the two


  • Registered Users Posts: 1,881 ✭✭✭hooch-85


    Simona1986 wrote: »
    Try anyway, we had completely different results from the two

    That's positive. Thanks we have applied with both and are still waiting to hear from EBS. AIB seemed pretty negative from the get go so wasn't surprised with the decline. EBS were quite the opposite and were very positive..Fingers crossed.


  • Registered Users Posts: 83 ✭✭bizebee


    hooch-85 wrote: »
    So AIB declined us, not saving for long enough, girlfriend on contract etc.. is it very unlikely that EBS can approve now that they have the same parent company etc?

    If you dont mind my asking - how long were you saving for?


  • Registered Users Posts: 1,881 ✭✭✭hooch-85


    bizebee wrote: »
    If you dont mind my asking - how long were you saving for?

    Just 6 months, we hadn't been serious about buying until our landlord approached us then and asked us if we were interested in buying our house which we have been renting.


  • Registered Users Posts: 2,260 ✭✭✭Mink


    hooch-85 wrote: »
    Just 6 months, we hadn't been serious about buying until our landlord approached us then and asked us if we were interested in buying our house which we have been renting.

    We only had 6 months savings record when we applied to AIB & we got approved. It could be a combo of things - ie not enough saved, the contract employment thing.

    If you're not having luck direct with banks, try see if a broker can do anything. They'd at least be able to advise you on next steps to take so you can get approved.


  • Closed Accounts Posts: 415 ✭✭Jentle Grenade


    hooch-85 wrote: »
    Just 6 months, we hadn't been serious about buying until our landlord approached us then and asked us if we were interested in buying our house which we have been renting.

    Try other banks, we got approval second time around with 8 months of savings.


  • Registered Users Posts: 1,881 ✭✭✭hooch-85


    Try other banks, we got approval second time around with 8 months of savings.

    Thanks, will wait to here back from EBS first and will keep up our monthly savings. If it's a no from EBS as well we will just have to try a little harder to save more in the new year.


  • Registered Users Posts: 3,014 ✭✭✭Monife


    hooch-85 wrote: »
    Thanks, will wait to here back from EBS first and will keep up our monthly savings. If it's a no from EBS as well we will just have to try a little harder to save more in the new year.

    Do you mind me asking how much your saving?


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  • Registered Users Posts: 1,881 ✭✭✭hooch-85


    Monife wrote: »
    Do you mind me asking how much your saving?

    400 per month on top of rent of 550. Our application was for 164k. Repayments on that are approx 730 over 30 years so we thought we would be well covered.


This discussion has been closed.
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