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Saving/Applying for a mortgage 2020-22 Edition

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Comments

  • Registered Users Posts: 9 Qwerty2018


    I know it’s very hard to speculate, just wondering what my chances are.

    Was planning on trying to buy a house next year valued at around 240,000.

    I would need a mortgage of 210,000. I am a single applicant first time buyer. I am a teacher on a full time contract with a gross salary of 42,000.
    Also have parents willing to act as guarantor on my mortgage.

    Would I have any chance of getting a mortgage as I would need 5 times my salary?

    Thanks


  • Banned (with Prison Access) Posts: 179 ✭✭Dylan94


    Qwerty2018 wrote: »
    I know it’s very hard to speculate, just wondering what my chances are.

    Was planning on trying to buy a house next year valued at around 240,000.

    I would need a mortgage of 210,000. I am a single applicant first time buyer. I am a teacher on a full time contract with a gross salary of 42,000.
    Also have parents willing to act as guarantor on my mortgage.

    Would I have any chance of getting a mortgage as I would need 5 times my salary?

    Thanks

    Unfortunately, I would say zero. Generally speaking only those earning above €80,000 get more than 3.5 times their income. Even then its usually only about 4 times. Those on very high incomes with great savings and credit history might get 4.5 times their income. While there have been cases that someone got 5 times their income with BOI, its a 1 in a million case and would have to be the perfect high earning couple Unfortunately.


  • Registered Users Posts: 2,995 ✭✭✭Shelga


    Dylan94 wrote: »
    Unfortunately, I would say zero. Generally speaking only those earning above €80,000 get more than 3.5 times their income. Even then its usually only about 4 times. Those on very high incomes with great savings and credit history might get 4.5 times their income. While there have been cases that someone got 5 times their income with BOI, its a 1 in a million case and would have to be the perfect high earning couple Unfortunately.

    My friend got an exemption for 4.2 times her salary 2 years ago, and she was on less money at the time than I am now. I have recently been told by several brokers that I have no chance of an exemption. I have no idea how these things are decided, I thought that you didn't have to be a super high earner to get an exemption but at some point over the last 2 years the rules have changed.

    I obviously don't think it's a good idea to borrow up to your eyeballs, but it's frustrating nonetheless to be treated differently to my friend for no reason that I can see.


  • Banned (with Prison Access) Posts: 179 ✭✭Dylan94


    Shelga wrote: »
    My friend got an exemption for 4.2 times her salary 2 years ago, and she was on less money at the time than I am now. I have recently been told by several brokers that I have no chance of an exemption. I have no idea how these things are decided, I thought that you didn't have to be a super high earner to get an exemption but at some point over the last 2 years the rules have changed.

    I obviously don't think it's a good idea to borrow up to your eyeballs, but it's frustrating nonetheless to be treated differently to my friend for no reason that I can see.

    Yes it seems that the requirements for an exemption get stricter every few months. I think that most people are wanting an exemption these days and there are only so many to go around.


  • Registered Users Posts: 131 ✭✭ladystardust


    Qwerty2018 wrote: »
    I know it’s very hard to speculate, just wondering what my chances are.

    Was planning on trying to buy a house next year valued at around 240,000.

    I would need a mortgage of 210,000. I am a single applicant first time buyer. I am a teacher on a full time contract with a gross salary of 42,000.
    Also have parents willing to act as guarantor on my mortgage.

    Would I have any chance of getting a mortgage as I would need 5 times my salary?

    Thanks

    With regards guarantors, I was informed that they no longer hold any water after the last crash. So many people had crazy loans propped up my guarantors who ALSO found themselves unable to pay.


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  • Registered Users Posts: 214 ✭✭lir6777


    Qwerty2018 wrote: »
    I know it’s very hard to speculate, just wondering what my chances are.

    Was planning on trying to buy a house next year valued at around 240,000.

    I would need a mortgage of 210,000. I am a single applicant first time buyer. I am a teacher on a full time contract with a gross salary of 42,000.
    Also have parents willing to act as guarantor on my mortgage.

    Would I have any chance of getting a mortgage as I would need 5 times my salary?

    Thanks

    I have also been pursuing an exemption as a single buyer and it is very difficult, but as others are saying, fairly varying. So I would say keep your expectations realistic for sure, it's not definitely going to happen, but give it a go- I have heard of people getting them without being on huge salaries or such so I figure it's worth a shot. Theyre not available right now but will be again at some point hopefully! Good luck :)


  • Registered Users Posts: 3,157 ✭✭✭Markitron


    lir6777 wrote: »
    I have also been pursuing an exemption as a single buyer and it is very difficult, but as others are saying, fairly varying. So I would say keep your expectations realistic for sure, it's not definitely going to happen, but give it a go- I have heard of people getting them without being on huge salaries or such so I figure it's worth a shot. Theyre not available right now but will be again at some point hopefully! Good luck :)

    I am a single applicant, I don't think I will need an exemption but I would still like to try for one. I have pretty much zero outgoings and commitments and am saving about 2.5x what my mortgage would be every month. Hopefully they take this into account


  • Registered Users Posts: 7,670 ✭✭✭Bluefoam


    Need some advice...

    I put a deposit on a house in Feb 2019, completion at the time was to be July 2019.
    House is still being built and in Feb 2020 I got a notice to be prepared for draw down.

    Now in June, the house is still not finished, and no communication from the developer as to when that might be.... It is now 16 months and no significant communication from the developer whatsoever. I have had to make three separate mortgage applications in that time, including to the central bank for my exemption.

    I am in a good financial position with a reasonable salary and almost 30% deposit. However, I am currently on the covid subsidy and a top up from my employer to 85% of my salary. My job is secure though and I have just been added to a life policy as a perk...

    Yesterday I got an email from the mortgage broker stating that drawdown with require two pay slips, a guarantee from my employer that I am on full salary and that i am not on the covid subsidy. There is no mention of negotiation, or alternative arrangements...

    Can anyone let me know if there is anything I can do, anyone I can contact or whether anyone in a similar circumstance has managed their way through?

    I would consider setting aside a sum of money to guarantee mortgage payments, if the bank would accept it.

    I have worked hard for the past 10 years to get this house and have literally given up the past two years to dedicate myself to completing this purchase.

    Any advice or help would be appreciated.


  • Registered Users Posts: 2,598 ✭✭✭antimatterx


    Does anyone feel like they don't really know what they're doing? I'm just saving and hoping I can buy something in a few years.

    I'm 24, I make 32K a year and I have €20K saved. I would like to buy an apartment in Dublin for around the ~200K range. Savings is going well, but I definitely need to move job.


  • Registered Users Posts: 131 ✭✭ladystardust


    Bluefoam wrote: »
    Need some advice...

    I put a deposit on a house in Feb 2019, completion at the time was to be July 2019.
    House is still being built and in Feb 2020 I got a notice to be prepared for draw down.

    Now in June, the house is still not finished, and no communication from the developer as to when that might be.... It is now 16 months and no significant communication from the developer whatsoever. I have had to make three separate mortgage applications in that time, including to the central bank for my exemption.

    I am in a good financial position with a reasonable salary and almost 30% deposit. However, I am currently on the covid subsidy and a top up from my employer to 85% of my salary. My job is secure though and I have just been added to a life policy as a perk...

    Yesterday I got an email from the mortgage broker stating that drawdown with require two pay slips, a guarantee from my employer that I am on full salary and that i am not on the covid subsidy. There is no mention of negotiation, or alternative arrangements...

    Can anyone let me know if there is anything I can do, anyone I can contact or whether anyone in a similar circumstance has managed their way through?

    I would consider setting aside a sum of money to guarantee mortgage payments, if the bank would accept it.

    I have worked hard for the past 10 years to get this house and have literally given up the past two years to dedicate myself to completing this purchase.

    Any advice or help would be appreciated.

    I'm sorry to say, we were in same position in that we saved and worked hard for a decade. This was our time. We had significant savings left after purchase price with the intention of doing the house up to our desired specs. We offered this as a guarantee of mortgage repayments. We offered to pay mortgage plus interest up front for 2 years. We had people offer to br guarantors. All declined. Our LTV was about 50:50. In the end we were actually declined mortgage protection (genuinely medically nothing but insurance underwriters took no chances without consultant to sign off which u certainly wont get anytime soon..... thanks covid) So we lost the dream house, took our cash and are just now contracts signed on a much smaller, starter home. Not ideal. But that's what we had to do. I really hope it works out for you.


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  • Moderators Posts: 12,352 ✭✭✭✭Black_Knight


    Does anyone feel like they don't really know what they're doing? I'm just saving and hoping I can buy something in a few years.

    I'm 24, I make 32K a year and I have €20K saved. I would like to buy an apartment in Dublin for around the ~200K range. Savings is going well, but I definitely need to move job.

    Moving job is generally the best way to get a pay bump. Company loyalty will get you nothing. That's good savings though. I'd wait a while, see where house prices go over the next year or 2. Right now i'd imagine prices are at a high.


  • Registered Users Posts: 949 ✭✭✭Renjit


    Qwerty2018 wrote: »
    I know it’s very hard to speculate, just wondering what my chances are.

    Was planning on trying to buy a house next year valued at around 240,000.

    I would need a mortgage of 210,000. I am a single applicant first time buyer. I am a teacher on a full time contract with a gross salary of 42,000.
    Also have parents willing to act as guarantor on my mortgage.

    Would I have any chance of getting a mortgage as I would need 5 times my salary?

    Thanks

    It's easier to get exceptions in first quarter of the year. But due to covid-19 all exemptions are closed at the moment.

    As a sole applicant with one dependent I was getting 4.2 times. With both applicants earning, this was relaxed to 4.7 times. But now we both will get only 3.5 times.

    Just a bit of advice, if your employer is a big company then it is more assuring.


  • Registered Users Posts: 1,103 ✭✭✭Maz2016


    Qwerty2018 wrote: »
    I know it’s very hard to speculate, just wondering what my chances are.

    Was planning on trying to buy a house next year valued at around 240,000.

    I would need a mortgage of 210,000. I am a single applicant first time buyer. I am a teacher on a full time contract with a gross salary of 42,000.
    Also have parents willing to act as guarantor on my mortgage.

    Would I have any chance of getting a mortgage as I would need 5 times my salary?

    Thanks
    I’m in pretty much the same boat. I had a good chat with a mortgage advisor in ptsb. She said 4 months ago I’d definitely get an exemption. She applied for me but they came back and offered the 3.5 which isn’t great.
    One option I am looking at is the rebuilding Ireland home loan. It’s offered through your county council. Based on your 42k salary, over 30 years they’d offer 188k which is about 40k more than the banks. This is the route I’ve started


  • Registered Users Posts: 214 ✭✭lir6777


    Renjit wrote: »
    It's easier to get exceptions in first quarter of the year. But due to covid-19 all exemptions are closed at the moment.

    As a sole applicant with one dependent I was getting 4.2 times. With both applicants earning, this was relaxed to 4.7 times. But now we both will get only 3.5 times.

    Just a bit of advice, if your employer is a big company then it is more assuring.

    Hope this isn't too nosy and I know it's irrelevant since COVID19 but just wondering which lender was open to 4.2 as a sole applicant? A lot just refused me straight off due to being a single buyer so that's good to hear!


  • Registered Users Posts: 7,670 ✭✭✭Bluefoam


    I'm sorry to say, we were in same position in that we saved and worked hard for a decade. This was our time. We had significant savings left after purchase price with the intention of doing the house up to our desired specs. We offered this as a guarantee of mortgage repayments. We offered to pay mortgage plus interest up front for 2 years. We had people offer to br guarantors. All declined. Our LTV was about 50:50. In the end we were actually declined mortgage protection (genuinely medically nothing but insurance underwriters took no chances without consultant to sign off which u certainly wont get anytime soon..... thanks covid) So we lost the dream house, took our cash and are just now contracts signed on a much smaller, starter home. Not ideal. But that's what we had to do. I really hope it works out for you.

    I'm sorry to hear that. You deserve better treatment. I hope your happy in the new home. I'm praying my place isnt built until September... maybe things will begin to get better by then.


  • Registered Users Posts: 8,397 ✭✭✭RedXIV


    Question for those who may know more than me. We've spotted a house we like the look of and spoken to a mortgage broker who we're happy enough with. In terms of what you need from a solicitor, is there a checklist or anything out there? I've messaged a few but some of them are talking about throwing in things like a free will making service which apparently you need as part of a mortgage application, so I'm trying to figure out where I'd be getting the best value

    Cheers!


  • Registered Users Posts: 96 ✭✭WeeCuppaCha


    I’m hoping some of you would give me a ‘what would you do if you were me’ opinion. I’m really not sure how to proceed.

    Second time buyer, currently renting
    Age: 45
    Single applicant, 1 dependant.
    Full time public servant
    Basic salary €32000
    Guaranteed allowances €3300
    Overtime/unsocial hours €8000

    Savings €60000

    Current rent €550
    Monthly savings €1500
    No loans/credit card

    I am awaiting an increase in basic salary, now due to me but the HSE is working at a snails pace so could be another 6 months before I see it. Basic salary would then be €36000, allowance the same but guaranteed overtime would increase accordingly. I am aware that some allowances/overtime will not be accepted in an application.

    I want to buy a house. The market in my area is pretty stagnant since Covid, but I would expect to see an increase in stock in coming weeks/months.

    Assuming the bank allow 3.5 of current salary and guaranteed allowances only, I would be eligible for a mortgage of €123,540.

    If I wait for my increase to kick in, I would be allowed €137,550.

    However, if I wait until this new base salary kicks in, I’m potentially decreasing the term of the mortgage, making it unaffordable in the banks’ eyes.

    So, what would you do? Continue saving for another year, increasing savings by €18,000 and reducing term by another year? Also running the risk of these savings being swallowed up by rising house prices... Or, just go ahead now on lesser salary and budget?

    Just wondering if anyone else has any thoughts on my situation?


  • Registered Users Posts: 214 ✭✭lir6777


    Just wondering if anyone else has any thoughts on my situation?

    http://www.icsmortgages.ie/public-sector-mortgages I think this crowd will give mortgage based on 2 points up the salary scale for public sector, or at least they did before covid. I think you have to go through a broker but you can certainly make enquiries with them directly- might solve your problem entirely!! Fingers crossed for you!


  • Registered Users Posts: 96 ✭✭WeeCuppaCha


    lir6777 wrote: »
    http://www.icsmortgages.ie/public-sector-mortgages I think this crowd will give mortgage based on 2 points up the salary scale for public sector, or at least they did before covid. I think you have to go through a broker but you can certainly make enquiries with them directly- might solve your problem entirely!! Fingers crossed for you!

    That’s really helpful, thanks. I had a quick look at their site, but it’s unclear if you can apply with them directly or via a broker. Currently waiting on a call back.


  • Registered Users Posts: 214 ✭✭lir6777


    That’s really helpful, thanks. I had a quick look at their site, but it’s unclear if you can apply with them directly or via a broker. Currently waiting on a call back.

    Good luck with it!


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  • Registered Users Posts: 10 pinkwink3


    I contacted a broker about the public sector mortgage, both my husband and I are public servants, we weren't able to get it, as due to central bank restrictions, the 2 points up thing is off the table.


  • Registered Users Posts: 312 ✭✭MrsBean


    Here's a question: do the banks care if only one of the two people in a couple can afford to save a significant amount each month (€1000-1200), with the other saving a just nominal amount? Or is it important that both people demonstrate ability to save?


  • Registered Users Posts: 949 ✭✭✭Renjit


    MrsBean wrote: »
    Here's a question: do the banks care if only one of the two people in a couple can afford to save a significant amount each month (€1000-1200), with the other saving a just nominal amount? Or is it important that both people demonstrate ability to save?

    It shouldn't matter if you are applying together. The savings are seen as a group.

    It will be good to have a regular saving/mortgage saver account which reflects the repayment amount for the mortgage you will be taking.


  • Registered Users Posts: 949 ✭✭✭Renjit


    lir6777 wrote: »
    Hope this isn't too nosy and I know it's irrelevant since COVID19 but just wondering which lender was open to 4.2 as a sole applicant? A lot just refused me straight off due to being a single buyer so that's good to hear!

    It was BOI but we aren't getting this now. And depending on financial and out of your control circumstances the bank may quote you something else.

    I dont see any bank going beyond 3.5 for a good half of this year.


  • Registered Users Posts: 131 ✭✭ladystardust


    lir6777 wrote: »
    http://www.icsmortgages.ie/public-sector-mortgages I think this crowd will give mortgage based on 2 points up the salary scale for public sector, or at least they did before covid. I think you have to go through a broker but you can certainly make enquiries with them directly- might solve your problem entirely!! Fingers crossed for you!

    I was given 2 points bump with these guys as above. Unfortunately withdrawn once covid hit. Reduced back to current earnings.


  • Registered Users Posts: 96 ✭✭WeeCuppaCha


    I was given 2 points bump with these guys as above. Unfortunately withdrawn once covid hit. Reduced back to current earnings.

    Oh, that’s not good news. I got a call back this afternoon and was told the 2 point thing was still available. Hmm, will wait and see if that’s legit. I plan to submit an application in next couple of weeks so will report back.


  • Registered Users Posts: 214 ✭✭lir6777


    Oh, that’s not good news. I got a call back this afternoon and was told the 2 point thing was still available. Hmm, will wait and see if that’s legit. I plan to submit an application in next couple of weeks so will report back.

    The situation with banks will change constantly I'm told so I'm sure they haven't misinformed you, hopefully not anyway! :)


  • Registered Users Posts: 131 ✭✭ladystardust


    Oh, that’s not good news. I got a call back this afternoon and was told the 2 point thing was still available. Hmm, will wait and see if that’s legit. I plan to submit an application in next couple of weeks so will report back.

    I hope it works out for you!


  • Banned (with Prison Access) Posts: 179 ✭✭Dylan94


    Oh, that’s not good news. I got a call back this afternoon and was told the 2 point thing was still available. Hmm, will wait and see if that’s legit. I plan to submit an application in next couple of weeks so will report back.

    Please do post back about it. I'm planning on applying soon and was planning on their 2 point increase if I cant get an exemption.


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  • Moderators, Music Moderators, Social & Fun Moderators Posts: 6,068 Mod ✭✭✭✭LoonyLovegood


    Got AIP from three places, this is feeling incredibly real now. I'm organising viewings for places I'm interested in buying, but where do I go from here? Do I put the mortgage application through before I view and then tell them where I want to buy? Or wait until I find where I want and go sale agreed, and then put the application through?

    My parents bought the first house they looked at, and I'm not sure where I'm at here. I'm not affected by COVID, work is as normal atm. Been approved for 3.5x my salary, and found a few houses where I want to live that are well in my budget.


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