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

Tasden · 01-04-2016 10:29am

SarahMollie wrote: »

Yes, thats my understanding (although I've never had one). I don't think past loans are a bad thing once they're fully paid off and there were no issues with the repayments that could impact your credit score.

I hope this is the case!

Jen44 · 01-04-2016 1:32pm

Santy2015 wrote: »

Our application was declined last week becauce of a small car loan 3k. a mortgage of 135k savings just over 18k I was shocked. Our gross is just under 45k. We've Appealed the decision and are waiting now. Bank advisor wanted to put in a condition that we'd clear the loan before we draw down any mortgage in the appeal. Anyone know how long they take to appeal? We wanted to clear the loan immediately after he told us but the bank manager said not to. Why?

why dont you just try some other banks? They generally wont change a decision unless something has changed in the application

Santy2015 · 01-04-2016 1:49pm

Thanks for all the replies. The bank manager said not to clear it and keep saving our 300 a week and if the appeal is successful and if we are close to closing on a house that we'd have the savings put aside to clear the loan and would've paid off extra in the mean time too. Herself has 1700 against the loan so the outlay would be small only 1300 if things go well. I just find their explanations a bit dramatic. I've stress tested ourselves and even with a jump in interest rates we'd be fine. Plus the loan.

aka accounts 2010 · 01-04-2016 1:59pm

Santy2015 wrote: »

Our application was declined last week becauce of a small car loan 3k. a mortgage of 135k savings just over 18k I was shocked. Our gross is just under 45k. We've Appealed the decision and are waiting now. Bank advisor wanted to put in a condition that we'd clear the loan before we draw down any mortgage in the appeal. Anyone know how long they take to appeal? We wanted to clear the loan immediately after he told us but the bank manager said not to. Why?

Around 3 months before we applied for our mortgage last year, I sat down with the branch managers/mortgage advisors in PTSB and BOI to discuss our upcoming application.

We had a 20% deposit saved and all the legal & professional fees put aside.

We had €3.5K of total car loans with the local CU. I proposed to the bank managers that we clear the CU loans with a one off payment, which would be taken out of the legal & professional fees we had put aside and then use the 3 months before the application to build back up the fund.

From a borrowers and lenders perspective, it makes perfect sense. If the loan is cleared, it frees up extra cash each month which will result in a better result on the "Stress Test".

Jentle Grenade · 01-04-2016 6:46pm

We had to clear the balance of my OH's GEM loan (€6k outstanding) and our credit cards (one €800 and one €1200) before reapplying. I'm surprised the mortgage adviser didn't tell you to clear them, or at least advise you to do so. All of the bank mortgage advisers advised us to clear them before we applied the first time but we went ahead and applied anyway to test the waters. This time around we were approved in five days. Tbh if I was in your position I'd just clear the loan.

Santy2015 · 01-04-2016 6:50pm

Jentle Grenade wrote: »

We had to clear the balance of my OH's GEM loan (€6k outstanding) and our credit cards (one €800 and one €1200) before reapplying. I'm surprised the mortgage adviser didn't tell you to clear them, or at least advise you to do so. All of the bank mortgage advisers advised us to clear them before we applied the first time but we went ahead and applied anyway to test the waters. This time around we were approved in five days. Tbh if I was in your position I'd just clear the loan.

Ye had a bit more then us when it came to loans. We taught 173 a month on a car loan would be okay and so did he. I've a credit card but pay that off every month 100% so I never have to pay extra on it.

Utah · 05-04-2016 7:55am

Hi Guys,

Just looking to see if this would be possible.

We've been saving steadily for a deposit for the past 2 years.
We recently found out we're expecting a baby in November.
The apartment we're in would be way to small to fit in a baby with all the stuff so we're going to try and fast track buying a house. We have enough to get a decent sized mortgage and our savings and credit would be clean and consistent.

If we got mortgage approval within the next 2 months, do you think it would be possible to buy a house and be moved in by November? I've heard a lot of people waiting a long time to get keys etc

Thanks

Inspector Coptoor · 05-04-2016 8:06am

Utah wrote: »

Hi Guys,

Just looking to see if this would be possible.

We've been saving steadily for a deposit for the past 2 years.
We recently found out we're expecting a baby in November.
The apartment we're in would be way to small to fit in a baby with all the stuff so we're going to try and fast track buying a house. We have enough to get a decent sized mortgage and our savings and credit would be clean and consistent.

If we got mortgage approval within the next 2 months, do you think it would be possible to buy a house and be moved in by November? I've heard a lot of people waiting a long time to get keys etc

Thanks

It's certainly possible.
We went sale agreed Dec 23rd and got keys March 1st but I've been told that's a quick turn around

Utah · 05-04-2016 8:10am

Inspector Coptoor wrote: »

It's certainly possible.
We went sale agreed Dec 23rd and got keys March 1st but I've been told that's a quick turn around

Good to hear. Congrats.

I suppose every purchase is going to be different and depends on numerous factors.

We could get a larger apartment for a year, it would take the pressure off, but we've a really good deal on our current one and 2 bedroom apartments around us (South County Dublin) are around 600/700 extra a month on what we're paying at the moment. I don't know if can justify that.
The other option is to move in with the folks for a bit - don't fancy that.

I'll just have to see what we can do I reckon!

Jen44 · 05-04-2016 8:42am

yes if you get lucky and find a house thats not in a chain, as you are also not trying to sell a property it could move quick enough

SarahMollie · 05-04-2016 10:05am

From sale agreed to deal done took about 4/5 months in my case.

That said, finding the right place took a lot longer. I also had previous properties that I'd been sale agreed fall through for various reasons which I wont go in to, but needless to say there are no guarantees with property and timelines!

frankythefish · 05-04-2016 1:34pm

bro started toying with idea of buying house in jan, went sale agreed on a place mid feb, got keys start april. just saying. it can go v quick sometimes. bear in mind also that once bank valuation is done the mortgage has to be drawn down within 2 months commonly or another valuation required

SB_Part2 · 05-04-2016 2:55pm

Sorry for the stupid question but if a bank only values the house at 200 and the current offer on the house if 220 does that mean they'll only give you a mortgage for 90% of the 200?

SarahMollie · 05-04-2016 3:02pm

Well I'm not too sure, because they might question your reasoning for paying over the odds for a property and then decide that you don't have good financial sense.

Technically though, the reason for the valuation is only to ensure (as much as is possible) that if you default that the bank can cover their losses by repossessing and selling the property, therefore it has to be worth at least as much as the loan, and they'd probably want some wiggle room to cover costs etc.

Black_Knight · 05-04-2016 3:20pm

SarahMollie wrote: »

Well I'm not too sure, because they might question your reasoning for paying over the odds for a property and then decide that you don't have good financial sense.

Technically though, the reason for the valuation is only to ensure (as much as is possible) that if you default that the bank can cover their losses by repossessing and selling the property, therefore it has to be worth at least as much as the loan, and they'd probably want some wiggle room to cover costs etc.

Friend of mine went sale agreed on a house, bank came in and valued it lower than the sale agreed price. They ended up re-negotiating with the seller on the basis that the house was overpriced. Though im sure that exception rather than the norm

Santy2015 · 05-04-2016 3:52pm

So we won our appeal, we'll sort of. Got an offer less the amount we were looking for. Now other banks have said that amount to us before so it wasn't a shock. When bidding for a house how much less should you offer? Let's say a house is 150000k offer 130k?

Sleepy · 05-04-2016 3:57pm

That's an impossible question Santy2015.

We offered over 20k below asking to flush out the real price the vendor wanted and met them 10k below asking. I'd be surprised if you'd be able to knock 20k off an 150k house but there are so many factors to be taken into account (is the vendor in a chain? Will they reduce asking for a cash / first time buyer? are they in a hurry to sell? Are they asking high and hoping for offers close to it, or asking low and hoping to kick off a bidding war? Is their valuation of their property way out of line with reality? etc. etc. etc.

Santy2015 · 05-04-2016 4:05pm

Sleepy wrote: »

That's an impossible question Santy2015.

We offered over 20k below asking to flush out the real price the vendor wanted and met them 10k below asking. I'd be surprised if you'd be able to knock 20k off an 150k house but there are so many factors to be taken into account (is the vendor in a chain? Will they reduce asking for a cash / first time buyer? are they in a hurry to sell? Are they asking high and hoping for offers close to it, or asking low and hoping to kick off a bidding war? Is their valuation of their property way out of line with reality? etc. etc. etc.

Sorry never gave much details. They want 150k finished but on the property price register just before Xmas one of the same houses sold for 120k now I know prices have gone up in the last few months but 30k seems excessive. On these houses as well, we viewed them a few weeks back and one of the houses next to the one we were looking at was sale agreed and had men working in the house on the day. Since then I took a spin up to them and that exact house is now for sale again. I kinda think the developer is playing a game but that's doubtful. He has been noted in the past as being a bit of an ass, couple I know were asked to pay 10k more after going sale agreed and took them 7 months to get the keys( they didn't pay the 10k)

turniphead · 06-04-2016 12:04am

Hi there,

Not sure if there's a definite answer to my question but I'd be grateful for any information at all.

I bought a house with my brother in 2006. It's in negative equity now and over the years we fell short on a few monthly repayments but thankfully we're on top of that now and managing to pay the full mortgage each month. In total we were short on 3 monthly payments but still lodged every last penny we had. (i.e. our repayment was 1600 but we could only lodge 1000) It must be said that the bank were quite understanding at the time.

Now looking forward to the future I will be hoping to buy a house with my wife in the next few years. We're both saving away for a deposit at the moment with the credit union. She is a first time buyer but obviously I am not. Does this mean we'll most likely have to raise a 20% deposit? Also, will my negative equity home and 3 under-payments go badly against me when looking for approval?

Thanks.

mirrorwall14 · 06-04-2016 7:23am

turniphead wrote: »

Hi there,

Not sure if there's a definite answer to my question but I'd be grateful for any information at all.

I bought a house with my brother in 2006. It's in negative equity now and over the years we fell short on a few monthly repayments but thankfully we're on top of that now and managing to pay the full mortgage each month. In total we were short on 3 monthly payments but still lodged every last penny we had. (i.e. our repayment was 1600 but we could only lodge 1000) It must be said that the bank were quite understanding at the time.

Now looking forward to the future I will be hoping to buy a house with my wife in the next few years. We're both saving away for a deposit at the moment with the credit union. She is a first time buyer but obviously I am not. Does this mean we'll most likely have to raise a 20% deposit? Also, will my negative equity home and 3 under-payments go badly against me when looking for approval?

Thanks.

In short yes. You will need the 20% as you are not a full time buyer.

Are you planning to sell? If so how far in negative equity are you?

Unless you can pass stress tests by a good margin on the two mortgages I'd say you will seriously struggle to get a second mortgage. You have a history of struggling to pay one, that property is still in negative equity

Muff Richardson · 06-04-2016 10:23am

mirrorwall14 wrote: »

In short yes. You will need the 20% as you are not a full time buyer.

Out of curiosity, does that mean if two people are buying and one is a first time buyer and the other is not, that one pays 10% and the other 20%, i.e. 15% in total deposit?

Inspector Coptoor · 06-04-2016 10:25am

As far as I know, if one member of a couple applying for a mortgage is not a first time buyer, both are considered to be second time buyers.

ando · 06-04-2016 10:25am

Muff Richardson wrote: »

Out of curiosity, does that mean if two people are buying and one is a first time buyer and the other is not, that one pays 10% and the other 20%, i.e. 15% in total deposit?

No but if the name of the house goes under the person being the first time buyer, then it will be 10% (if they can afford the full mortgage by themselves). If its a joint application, it will be 20%

ando · 06-04-2016 10:27am

turniphead wrote: »

Hi there,

Not sure if there's a definite answer to my question but I'd be grateful for any information at all.

I bought a house with my brother in 2006. It's in negative equity now and over the years we fell short on a few monthly repayments but thankfully we're on top of that now and managing to pay the full mortgage each month. In total we were short on 3 monthly payments but still lodged every last penny we had. (i.e. our repayment was 1600 but we could only lodge 1000) It must be said that the bank were quite understanding at the time.

Now looking forward to the future I will be hoping to buy a house with my wife in the next few years. We're both saving away for a deposit at the moment with the credit union. She is a first time buyer but obviously I am not. Does this mean we'll most likely have to raise a 20% deposit? Also, will my negative equity home and 3 under-payments go badly against me when looking for approval?

Thanks.

I'm in a similar boat. 20% is needed for a new mortgage!

Flatzie_poo · 06-04-2016 10:30am

Inspector Coptoor wrote: »

As far as I know, if one member of a couple applying for a mortgage is not a first time buyer, both are considered to be second time buyers.

This is correct - just to add to it as it was a surprise to me if you're in this situation.

The one party that is (technically still) a FTB in a joint application, is eligible to claim FTB DIRT relief from revenue, if you can prove what savings relate to that individual.

loveisdivine · 06-04-2016 11:14am

This is a super silly question but I'm gonna ask anyway.

There's a house we really want to view, we have some time off work next Thursday and Friday (14th & 15th) Should I ring the estate agent now to try and make an appointment or wait till next week?

Flatzie_poo · 06-04-2016 11:21am

loveisdivine wrote: »

This is a super silly question but I'm gonna ask anyway.

There's a house we really want to view, we have some time off work next Thursday and Friday (14th & 15th) Should I ring the estate agent now to try and make an appointment or wait till next week?

Ring now! The EA have more flexibility to make the viewing suit your needs - if possible - with the more notice you give him/her.

Or there may be an evening/weekend viewing that could suit you better!

Definitely ring and find out!

Michael D Not Higgins · 06-04-2016 11:39am

ando wrote: »

No but if the name of the house goes under the person being the first time buyer, then it will be 10% (if they can afford the full mortgage by themselves). If its a joint application, it will be 20%

Just to add to this, you cannot get a mortgage on your own if you're married.

Muff Richardson · 06-04-2016 11:59am

Flatzie_poo wrote: »

This is correct - just to add to it as it was a surprise to me if you're in this situation.

yeah, lived abroad between 2002-2010, never had any desire to buy a house/apt anywhere, came home, started renting, met someone, moved in together, got her pregnant, 5 months into her pregnancy get an email saying the landlord is moving back into the house (had a great relationship with the landlord and he was very apologetic btw but he couldn't afford the rent hike he had from his rental property). we now have a 1 month old. have absolutely no interest in buying but I never want to get turfed out of somewhere again especially since the arrival of the baby. the new PRTB rules to protect renters have done nothing but made things worse for renters IMO, just guarantees a rental increase every two years. My rent didnt go up the four years I was renting.

she has a house down the country which she bought way back, some small amount of equity in it but she wants to hang on to it as its paying for itself and has no private pension.

only way we see to possible to have a safe and secure future schools, clubs etc for our family is to buy although we don't want to. in recent weeks are considering longterm/potential permanent emigration. <snip>

Jen44 · 06-04-2016 12:04pm

Michael D Not Higgins wrote: »

Just to add to this, you cannot get a mortgage on your own if you're married.

You can get a mortgage on your own you just cant put down any of your other halves earnings savings etc as part of the application

Michael D Not Higgins · 06-04-2016 12:08pm

Jen44 wrote: »

You can get a mortgage on your own you just cant put down any of your other halves earnings savings etc as part of the application

No, if it's for the family home, then the other half would have an interest in the property by law and the bank would require the loan is assessed on both individuals.

You can get an investment property on your own but that would then be 30% deposit so there's no way of getting around the first time buyer deposit by applying on your own.

06-04-2016 12:28pm

Muff Richardson wrote: »

y
only way we see to possible to have a safe and secure future schools, clubs etc for our family is to buy although we don't want to. in recent weeks are considering longterm/potential permanent emigration. <snip >

I can't see why you would rather pay rent than buy your own place to be honest or even go to the lengths of emigrating just to avoid owning your own place which most people strive for.

MrMorooka · 06-04-2016 1:09pm

Azalea Screeching Padding wrote: »

I can't see why you would rather pay rent than buy your own place to be honest or even go to the lengths of emigrating just to avoid owning your own place which most people strive for.

Because he can't afford it, perhaps? That's an increasing geopolitical reality, the number of people who can afford to own their own home will continue to decrease.

But then we get into the old argument of "shure just move to the country, it's cheaper" versus "I need to stay in Dublin for the jobs/amenities" and we go around in circles again.

SarahMollie · 06-04-2016 1:42pm

PM Sent

06-04-2016 2:55pm

MrMorooka wrote: »

Because he can't afford it, perhaps? That's an increasing geopolitical reality, the number of people who can afford to own their own home will continue to decrease.

But then we get into the old argument of "shure just move to the country, it's cheaper" versus "I need to stay in Dublin for the jobs/amenities" and we go around in circles again.

The poster doesn't cite not being able to afford to buy rather not actually wanting to buy. I just find it a strange outlook and wondered why.

loveisdivine · 06-04-2016 4:07pm

Flatzie_poo wrote: »

Ring now! The EA have more flexibility to make the viewing suit your needs - if possible - with the more notice you give him/her.

Or there may be an evening/weekend viewing that could suit you better!

Definitely ring and find out!

Going for a look this Saturday. We don;t have our approval yet, husband will be in his jobs 6 months in 2 weeks time, then we can officially apply.

Spoke with a broker though and he reckons it should all be fine.

Really like the look of the place so hopefully having already viewed it, things will move a bit quicker when we can put in an offer. Currently living with MIL so desperate for things to move quickly

SB_Part2 · 06-04-2016 5:49pm

Went sale agreed on a house this morning

Santy2015 · 06-04-2016 9:29pm

SB_Part2 wrote: »

Went sale agreed on a house this morning

Congrats.

what's people's opinions on end of terrace houses? It's a mixed estate with detected semi d and terrace. We viewed one earlier today I like it, it's a bit small but you can work with it, it's around 1100 sq foot. Herself likes it but not as much as me. But I reckon she'll come around. It's a lovely estate quite and there's zero social housing which I find strange but not giving out about.

PhoenixParker · 06-04-2016 9:46pm

What's the aspect of the unattached wall?
I've found if it's north facing the house will be freezing, south facing and it can be toasty warm.

Sleepy · 07-04-2016 9:34am

1100sq foot is small? :eek: We're buying a property of that size and thought it was pretty big for a modestly priced house in Dublin!

I'd consider an end of terrace house to be worth a premium over a terrace, having side access between the gardens is great for stuff like putting out bins, moving lawnmowers, kids bikes etc.

The aspect of the unattached wall is an interesting consideration but I'd imagine one that's easily sorted with extra insulation if it's North facing...

Santy2015 · 07-04-2016 10:11am

Sleepy wrote: »

1100sq foot is small? :eek: We're buying a property of that size and thought it was pretty big for a modestly priced house in Dublin!

I'd consider an end of terrace house to be worth a premium over a terrace, having side access between the gardens is great for stuff like putting out bins, moving lawnmowers, kids bikes etc.

The aspect of the unattached wall is an interesting consideration but I'd imagine one that's easily sorted with extra insulation if it's North facing...

Yeah, the side access is great and it has the biggest of the back gardens in those terraced ones. Just waiting for confirmation on certain things like the stira stairs, and input into the kitchen

07-04-2016 10:11am

Sleepy wrote: »

1100sq foot is small? :eek: We're buying a property of that size and thought it was pretty big for a modestly priced house in Dublin!.

The poster is from a country area I think from reading this thread so its all about perspective.

I'm from a rural area where nearly everything is 2000sq ft+ (as would my home place etc so its what I'm used to). I've been looking at houses in the city I find them very small I have to say when someone else would find them normal from chatting about it. It's what you are used to I suppose.

Balmed Out · 07-04-2016 11:53am

Rural homes will always be bigger, not so many facilities on your doorstep so more space needed.

07-04-2016 12:04pm

Balmed Out wrote: »

Rural homes will always be bigger, not so many facilities on your doorstep so more space needed.

They are bigger because you have the space and/or a lot are built by the people who will live in them rather than a developer so they make them bigger to have more space rather than trying to pack as many houses as you can into a space etc. Lets be honest living in a city you more often than not have to compromise on living space.

I don't see any connection between space needed and facilitates. Most rural areas are not far from towns or cities anyway so you are only a short drive from all the facilities available to those living in the city.

Anyway this is off topic for this thread.

Black_Knight · 07-04-2016 12:21pm

Azalea Screeching Padding wrote: »

I don't see any connection between space needed and facilitates. Most rural areas are not far from towns or cities anyway so you are only a short drive from all the facilities available to those living in the city.

You need at least 20sqrm extra for the home cinema.

angeldelight · 07-04-2016 12:23pm

One house we were interested in has an offer of 50k above asking on it, another just went sale agreed and there's no others at all available where we want

07-04-2016 12:27pm

Black_Knight wrote: »

You need at least 20sqrm extra for the home cinema.

What I mean is I don't see any connection between the size of a house and the facilities close by.

Of course if you build a house in the country you can have a home cinema, games room etc (reasons why I plan to build a house in the future) which you can't have in a city but you aren't having them to replace anything you have in a city.

Santy2015 · 07-04-2016 7:46pm

I need a hand, we want to put an offer down on the house we want, what way would you word the email to the EA?

Glen_Quagmire · 07-04-2016 7:50pm

Santy2015 wrote:

I need a hand, we want to put an offer down on the house we want, what way would you word the email to the EA?

Howya boss,

Give ya 100k for your house there boss and I'll throw in a good pony too...

Joking of course, I've never had the luxury of sending such an email so others here will point you in the right direction I'm sure..

Santy2015 · 07-04-2016 7:59pm

Glen_Quagmire wrote: »

Howya boss,

Give ya 100k for your house there boss and I'll throw in a good pony too...

Joking of course, I've never had the luxury of sending such an email so others here will point you in the right direction I'm sure..

Haha, brilliant. Thanks though but no sale boss

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

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