Saving/Applying for a mortgage 2020-22 Edition

conor05 · 07-07-2020 11:02am

mayota wrote: »

If the family land is farmland I’d be looking to get the ball rolling on PP sooner rather than later, one off housing is under threat from environmentalists.

Big time.

All new county development plans are going to make one-off houses in Rural Ireland difficult to get PP granted.

They want people living in village settlements to avail of services already in place.

IRtax · 08-07-2020 12:18am

ELM327 wrote: »

I found AIB a right pain in the hole to deal with. Went with BOI last time and now PTSB a couple of years later.

AIB wanted a ream of documents, including tax clearance certs (which cannot be obtained by PAYE employees)

Tax clearance certificates can be obtained for paye workers through my account

jenno86 · 08-07-2020 11:43pm

Anyone apply with BOI lately ? Just wondering how long it took.

frank730 · 09-07-2020 12:19am

jenno86 wrote: »

Anyone apply with BOI lately ? Just wondering how long it took.

got AIP a few weeks ago, took 2 weeks, they say normally 7-10 working days

LoonyLovegood · 09-07-2020 8:57am

Got full approval yesterday! Actually such a relief, now to spend way too much time on Daft

Duke of Url · 09-07-2020 9:44am

LoonyLovegood wrote: »

Got full approval yesterday! Actually such a relief, now to spend way too much time on Daft

Congrats : )

I signed contracts yesterday so hopefully the end is near....

The Wordress · 09-07-2020 3:43pm

The paperwork for our mortgage was sent to ICS 3 weeks ago and not a peep since. Would like to hear back by tomorrow :cool:

WeeCuppaCha · 10-07-2020 9:29am

The Wordress wrote: »

The paperwork for our mortgage was sent to ICS 3 weeks ago and not a peep since. Would like to hear back by tomorrow :cool:

It’s almost 2 weeks since I submitted my application to ICS. I received notification through ID Pal yesterday that the due diligence report was now complete and that they would be ‘in touch soon’.

Does this mean that approval has been granted I wonder? Would they give information over the phone?

The waiting is a killer. There is a property I would like to view, but I’m loath to do so until I know exactly my position.

10-07-2020 11:54am

Hi, I am about to begin the process of applying for a mortgage, I have the deposit and I earn more than enough to meet the requirement for my target price.

However, 8 years ago I found myself out of work and as a consequence I had a credit card revoked. All of that is clear and paid off about 7 years ago and it no longer shows up on my ICB report. My current record on ICB is clean and I have no recent arrears history nor do I have any other debt other than a credit card which I don't use very often.

How do I approach this issue when applying for a mortgage now?

Thanks

Creamy Goodness · 10-07-2020 11:58am

Deleted User wrote: »

Hi, I am about to begin the process of applying for a mortgage, I have the deposit and I earn more than enough to meet the requirement for my target price.

However, 8 years ago I found myself out of work and as a consequence I had a credit card revoked. All of that is clear and paid off about 7 years ago and it no longer shows up on my ICB report. My current record on ICB is clean and I have no recent arrears history nor do I have any other debt other than a credit card which I don't use very often.

How do I approach this issue when applying for a mortgage now?

Thanks

If you're up front with it if they ask you, you shouldn't have any issues.

If you apply to the same bank that issued their credit card in question they will know about it from their internal records so don't try deny it, it'll be a huge red flag.

Bluefoam · 10-07-2020 11:58am

WeeCuppaCha wrote: »

It’s almost 2 weeks since I submitted my application to ICS. I received notification through ID Pal yesterday that the due diligence report was now complete and that they would be ‘in touch soon’.

Does this mean that approval has been granted I wonder? Would they give information over the phone?

The waiting is a killer. There is a property I would like to view, but I’m loath to do so until I know exactly my position.

They will let you know if it's been approved or not, or whether there might be other conditions. You'll just have to wait for them to let you know.

Regarding viewings... this is a process you'll have to engage with, if you get this mortgage application or have to go to the wider market... I recommend that you go to see as many houses as possible and build up your own knowledge of the market and what value is generally available, so go to see as many properties as possible, so that when you have approval, you can make the most informed decisions.

10-07-2020 12:01pm

Creamy Goodness wrote: »

If you're up front with it if they ask you, you shouldn't have any issues.

If you apply to the same bank that issued their credit card in question they will know about it from their internal records so don't try deny it, it'll be a huge red flag.

Ok thanks, will do.

Bluefoam · 10-07-2020 12:02pm

Deleted User wrote: »

Hi, I am about to begin the process of applying for a mortgage, I have the deposit and I earn more than enough to meet the requirement for my target price.

However, 8 years ago I found myself out of work and as a consequence I had a credit card revoked. All of that is clear and paid off about 7 years ago and it no longer shows up on my ICB report. My current record on ICB is clean and I have no recent arrears history nor do I have any other debt other than a credit card which I don't use very often.

How do I approach this issue when applying for a mortgage now?

Thanks

I had a similar situation over a tiny amount of money... Credit Ratings expire after 5 years & they shouldn't be able to see any record of that. In my scenario they knew of the CR and queried me on it. I was able to explain it easily and they didn't consider it against my application.

Markitron · 10-07-2020 12:47pm

Bluefoam wrote: »

I had a similar situation over a tiny amount of money... Credit Ratings expire after 5 years & they shouldn't be able to see any record of that. In my scenario they knew of the CR and queried me on it. I was able to explain it easily and they didn't consider it against my application.

I will be applying a few months from now and I'm worried about a few loan payments I missed last year. The amounts were not large and I paid the loan off almost a year early but I'm pretty worried about it

random_banter · 10-07-2020 1:07pm

Our application is being reviewed at the moment. I am anxious about it - but I'm a worrier.

We both have good savings history, income, job security, deposit status etc.

I tried to get an ICB report a few weeks back but the website wouldn't work for me.

There is one niggly worry I have about a credit card payment from last year - simple enough - I usually pay off on the same day each month when I get paid and I was distracted in the middle of the process - ended up forgetting as was stressed with work. Anyway by the time I'd discovered the overdue payment reminder it was close to the 30 day limit the bank says they have before reporting you to the ICB. So I paid it within the 30 days. But of course, these tiny worries now keep me awake at night. Couldn't get the report out of the ICB to check it myself, as I noted above. The credit card is now in a negative balance anyway so no debt on it.

Should this be queried, does anyone have advice on what is the best approach in answering - brutal honesty as in "I literally forgot."? I clearly had the money to get it paid, so wondering what the best explanation is.

Did a check two years ago and it was clear at that point. Fingers crossed anyway.

Duke of Url · 10-07-2020 1:11pm

random_banter wrote: »

Our application is being reviewed at the moment. I am anxious about it - but I'm a worrier.

We both have good savings history, income, job security, deposit status etc.

I tried to get an ICB report a few weeks back but the website wouldn't work for me.

There is one niggly worry I have about a credit card payment from last year - simple enough - I usually pay off on the same day each month when I get paid and I was distracted in the middle of the process - ended up forgetting as was stressed with work. Anyway by the time I'd discovered the overdue payment reminder it was close to the 30 day limit the bank says they have before reporting you to the ICB. So I paid it within the 30 days. But of course, these tiny worries now keep me awake at night. Couldn't get the report out of the ICB to check it myself, as I noted above. The credit card is now in a negative balance anyway so no debt on it.

Should this be queried, does anyone have advice on what is the best approach in answering - brutal honesty as in "I literally forgot."? I clearly had the money to get it paid, so wondering what the best explanation is.

Did a check two years ago and it was clear at that point. Fingers crossed anyway.

Based on my experience it wont be an issue.

bulmersgal · 10-07-2020 1:57pm

Got my valuation done two weeks ago, Finance Ireland rang last week to pay for valuation and said that loan offer letter would be sent to myself and solicitor. Rang on Wednesday and they said I should get it end of week. No letter yet and my solicitor said in previous email that when they get that letter they will start their review of contracts.

It just seems so slow at the moment. I don't want to hassle solicitor either but I don't even know when closing date is expected or what contents they are including in the sale. Like do I need to buy fridge and washing machine.

frank730 · 10-07-2020 3:13pm

Deleted User wrote: »

Hi, I am about to begin the process of applying for a mortgage, I have the deposit and I earn more than enough to meet the requirement for my target price.

However, 8 years ago I found myself out of work and as a consequence I had a credit card revoked. All of that is clear and paid off about 7 years ago and it no longer shows up on my ICB report. My current record on ICB is clean and I have no recent arrears history nor do I have any other debt other than a credit card which I don't use very often.

How do I approach this issue when applying for a mortgage now?

Thanks

ICB wont have the record now so only the bank who revoked your card might have internal record, others can't find out if it's not on your icb report, they see what you see on icb

The Wordress · 10-07-2020 3:55pm

WeeCuppaCha wrote: »

It’s almost 2 weeks since I submitted my application to ICS. I received notification through ID Pal yesterday that the due diligence report was now complete and that they would be ‘in touch soon’.

Does this mean that approval has been granted I wonder? Would they give information over the phone?

The waiting is a killer. There is a property I would like to view, but I’m loath to do so until I know exactly my position.

Can I ask if you applied through a broker for ICS? I applied through a broker but ICS did come back to us last week looking for an updated ID. Our broker told us expect a 12 day wait and it is now day 16 :eek:. Just annoying as we have found a house we really like and would like to proceed with an offer. I already had to badger my broker about something else and I'm reluctant to do it again

Duke of Url · 10-07-2020 4:51pm

bulmersgal wrote: »

Got my valuation done two weeks ago, Finance Ireland rang last week to pay for valuation and said that loan offer letter would be sent to myself and solicitor. Rang on Wednesday and they said I should get it end of week. No letter yet and my solicitor said in previous email that when they get that letter they will start their review of contracts.

It just seems so slow at the moment. I don't want to hassle solicitor either but I don't even know when closing date is expected or what contents they are including in the sale. Like do I need to buy fridge and washing machine.

Are you buying a new build?

bulmersgal · 10-07-2020 4:54pm

Duke of Url wrote: »

Are you buying a new build?

No a second hand house. I've got the survey done the week before. 3 weeks sale agreed now. Just waiting on the loan offer before the solicitor will start doing their review.

KilOit · 10-07-2020 5:43pm

Took us 4 months to fully switch mortgage from AIB to UB during covid, initial request end of Feb and everything sorted end of June, even when i thought it was all completed, it wasn't :mad:

Astro127 · 10-07-2020 9:55pm

Hi If I I'm getting rent payed into my bank every month can I claim it as income being saved for a mortgage or do they just look at your job salary .

I'm saving 1k a month but would like to put the rent I am receiving aswell.

I'm also getting a gift from parent so is it better to put it in now or near the end of applying for a mortgage.

ebayissues · 10-07-2020 10:03pm

How're you guyings deciding what mortgage provider to choose from?

For a mortgage of approx 250k, the lowest interest rate seems to be KBC.

edit...

PTSB offers 2% cashback on drawdown as well as on mortgage payments each month.

pooch90 · 10-07-2020 11:36pm

random_banter wrote: »

Our application is being reviewed at the moment. I am anxious about it - but I'm a worrier.

We both have good savings history, income, job security, deposit status etc.

I tried to get an ICB report a few weeks back but the website wouldn't work for me.

There is one niggly worry I have about a credit card payment from last year - simple enough - I usually pay off on the same day each month when I get paid and I was distracted in the middle of the process - ended up forgetting as was stressed with work. Anyway by the time I'd discovered the overdue payment reminder it was close to the 30 day limit the bank says they have before reporting you to the ICB. So I paid it within the 30 days. But of course, these tiny worries now keep me awake at night. Couldn't get the report out of the ICB to check it myself, as I noted above. The credit card is now in a negative balance anyway so no debt on it.

Should this be queried, does anyone have advice on what is the best approach in answering - brutal honesty as in "I literally forgot."? I clearly had the money to get it paid, so wondering what the best explanation is.

Did a check two years ago and it was clear at that point. Fingers crossed anyway.

I applied to ICB & CCR last week and have gotten my ccr one back already. Not sure
If ICB one is back because they post it out and im not home.
Ccr a lot more hassle than the ICB application though.

Astro127 · 11-07-2020 10:54am

How does the credit history work when applying for a mortgage do they only care if you didnt pay a loan back on time or currently have a loan out ?

I took two loans out a few years ago nothing big and where paid off on time

Also after you get approved for a mortgage do they care where the money comes from when you are paying it back or just once you have the money in the back every month to pay it off .

Graham · 11-07-2020 11:17am

A current loan may reduce your borrowing capacity.
Previous loans paid off on time will not harm your application. Personally I'd expect them to demonstrate you're able to meet your financial commitments as agreed.
You will need to demonstrate capacity to repay (your income) before a mortgage is granted. Afterwards I doubt they care where the money comes from unless the source of funds looks suspicious.

WeeCuppaCha · 11-07-2020 11:19am

The Wordress wrote: »

Can I ask if you applied through a broker for ICS? I applied through a broker but ICS did come back to us last week looking for an updated ID. Our broker told us expect a 12 day wait and it is now day 16 :eek:. Just annoying as we have found a house we really like and would like to proceed with an offer. I already had to badger my broker about something else and I'm reluctant to do it again

Hi, I went through a broker. I’m public service so figured I needed a bit of assistance in respect of allowances and unsocial hours being included as earnings. Anyway, I got a verbal confirmation from my broker yesterday. He said that the letter should be with me mid next week. Call me a pessimist (realist?), but I’ll feel the true pressure release when the AIP letter is in my hands.

Hope you hear something back soon.

Astro127 · 11-07-2020 12:30pm

Graham wrote: »

A current loan may reduce your borrowing capacity.
Previous loans paid off on time will not harm your application. Personally I'd expect them to demonstrate you're able to meet your financial commitments as agreed.
You will need to demonstrate capacity to repay (your income) before a mortgage is granted. Afterwards I doubt they care where the money comes from unless the source of funds looks suspicious.

Thanks for the help , what would look suspicious?
I do cash in hand jobs sometimes and could get a couple of hundred so I would probably use that aswell as income .

pooch90 · 11-07-2020 12:38pm

Astro127 wrote: »

Thanks for the help , what would look suspicious?
I do cash in hand jobs sometimes and could get a couple of hundred so I would probably use that aswell as income .

Are you declaring it for tax etc?

Duke of Url · 11-07-2020 12:41pm

Astro127 wrote: »

Thanks for the help , what would look suspicious?
I do cash in hand jobs sometimes and could get a couple of hundred so I would probably use that aswell as income .

My colleague was lodging cash from nixers into his account and was asked by the bank for a tax clearance cert from revenue.

SarahJ100 · 11-07-2020 7:55pm

Hi all,

Same situation with ICS. Waiting 2 weeks and received the text about the due diligence report. Didn’t go through broker went direct. Really panicking now as we are currently sale agreed on a house. Whenever we ring for an update we’re told we’ll hear the next day and we never hear anything.

How long does it normally take for them to get back?

Astro127 · 11-07-2020 8:55pm

Duke of Url wrote: »

My colleague was lodging cash from nixers into his account and was asked by the bank for a tax clearance cert from revenue.

What bank bit surprised as why would they ask once mortgage payments are getting paid each month .
Il just pay mortgage from my job salary. Leave the extra money . Will look more into it thanks for the help

Jasna1982 · 12-07-2020 12:19am

Hey all,
I’m looking for a mortgage exception and I’ve read that banks don’t do them and I’ve read that some banks do.
There’s a new estate going for sale off plan that I would love to buy a house in, because phase 2 will be more expensive.
Did anyone recently get an exception approved? And is it better to go direct or go through a broker?
Single applicant but well above the salary limit for an exception

12-07-2020 1:12am

Astro127 wrote: »

What bank bit surprised as why would they ask once mortgage payments are getting paid each month .
Il just pay mortgage from my job salary. Leave the extra money . Will look more into it thanks for the help

Putting the mortgage completely aside, banks are actually obligated to do KYC (know your customer). When you first set up even just a basic current account, they take all your ID, proof of address, info on occupation, etc. and they're supposed to ask what your source of funds is. It's very much their business where your money comes from.

Pivot Eoin · 12-07-2020 6:36am

Jasna1982 wrote: »

Hey all,
I’m looking for a mortgage exception and I’ve read that banks don’t do them and I’ve read that some banks do.
There’s a new estate going for sale off plan that I would love to buy a house in, because phase 2 will be more expensive.
Did anyone recently get an exception approved? And is it better to go direct or go through a broker?
Single applicant but well above the salary limit for an exception

Depends on what bank you go with really.

Some banks are still doing them, put it's working on a queue basis. They spread their exemptions out over the year, but only give out 1 exemption for every 4 normal 3.5X mortgages that are approved. As there is far less mortgages approved this year, it has slowed down the exemption rate massively and it is now a queue to get one... at least this is the case for FInance Ireland.

Some other banks just roughly guess at beginning of year how many exemptions they will have for the year, and then give them all out early. These are the banks that you have little to no chance of an exemption with, as the amount they have already given out will far surpass the Central Bank max limit of 20% Exemption Mortgages to be given by banks.

Like us, If i were you I'd just be planning on buying without an exemption or waiting until next year to be "guaranteed" one.

Duke of Url · 12-07-2020 9:37am

Astro127 wrote: »

What bank bit surprised as why would they ask once mortgage payments are getting paid each month .
Il just pay mortgage from my job salary. Leave the extra money . Will look more into it thanks for the help

I believe it’s in relation to money laundering. There was a section on it in our application BOI

Top chief · 12-07-2020 10:28am

Duke of Url wrote: »

I believe it’s in relation to money laundering. There was a section on it in our application BOI

Yeah I seen that when I was looking through it makes sense , did anyone find it hard to get a mortgage here or is it just about saving for 6 months to a year so the bank can see you can pay the mortgage back .
Most mortgage repayments are around 500 to 1k a month anyway not a lot when two people are paying it .

How much is everyone is or hoping to pay back each month on there mortgage, would you say 1k - 1200 is a good mark and for how many years 25 or lower?

Duke of Url · 12-07-2020 10:45am

Top chief wrote: »

Yeah I seen that when I was looking through it makes sense , did anyone find it hard to get a mortgage here or is it just about saving for 6 months to a year so the bank can see you can pay the mortgage back .
Most mortgage repayments are around 500 to 1k a month anyway not a lot when two people are paying it .

How much is everyone is or hoping to pay back each month on there mortgage, would you say 1k - 1200 is a good mark and for how many years 25 or lower?

Depends on what you are buying.

Getting a 90% mortgage on the 350k house will be around 1500 a month on a 5 year fixed rate on a 25 years term

Top chief · 12-07-2020 12:54pm

Duke of Url wrote: »

Depends on what you are buying.

Getting a 90% mortgage on the 350k house will be around 1500 a month on a 5 year fixed rate on a 25 years term

Will be building one in kildare, I'd say around 250k will be enough to build a 4 - 5 bedroom house . How much would we need to pay back a month.

benjy1000 · 12-07-2020 1:01pm

Top chief wrote: »

Will be building one in kildare, I'd say around 250k will be enough to build a 4 - 5 bedroom house . How much would we need to pay back a month.

As a general rule of thumb for every €100,000 borrowed you will pay back €400 approx per month , a €250,000 mortgage one can expect to pay €1,000 approx per month in repayments.

Danger781 · 12-07-2020 4:59pm

Are there any disadvantages to going via a broker? I'm just curious as not a single person I know, who has recently purchased their house, have gone through a broker. Going through a broker just seems a no-brainer to me? Am I missing something?

Geuze · 12-07-2020 8:50pm

Danger781 wrote: »

Are there any disadvantages to going via a broker? I'm just curious as not a single person I know, who has recently purchased their house, have gone through a broker. Going through a broker just seems a no-brainer to me? Am I missing something?

I never bothered with a broker. I never even considered it

Contacted four banks, set up four appts, met staff, provided docs, etc., applied for AIP.

OK, if you were very time constrained, I suppose a broker might save time.

But I suppose I wanted to meet the sellers of the mortgage face to face.

I ended up going with a bank based on good rate (2.6%), and the staff were keen to do business.

IvoryTower · 12-07-2020 8:56pm

I went with a broker because I had applied to a bank but part of my application was making it awkward, so in order to save time I reapplied through a broker leaving out that detail and it went through no bother....

Anyway it was no different to applying directly other than they sorted the life insurance for me as well. Its the same deal whichever way you go

Rhythmics · 12-07-2020 8:59pm

Does anyone know the reasoning behind one-bed houses requiring a 20% deposit for first time buyers?

I'm going to start applying for mortgages soon as a single applicant, and my price range has more one-bed houses, but the 20% deposit requirement means I'll need to look for two-beds.

Bluefoam · 12-07-2020 9:01pm

Rhythmics wrote: »

Does anyone know the reasoning behind one-bed houses requiring a 20% deposit for first time buyers?

I'm going to start applying for mortgages soon as a single applicant, and my price range has more one-bed houses, but the 20% deposit requirement means I'll need to look for two-beds.

I presume it's to do with security... With a two bed, you have the potential to rent out a room if necessary...

Ray1990 · 12-07-2020 9:34pm

Hi everyone,
has anyone had any recent experience with getting approval from Bank of Ireland or ICS? Just wondering how long it's taken other people to get a decision on their applications.

We submitted our documents to BoI, they rang us a week later asking for a missing page of a bank statement. They realised we had already submitted it but the underwriters hadn't seen it, but told us the whole application would be sent back to the very end of the queue again.

It's been nearly 2 weeks since we submitted documents to ICS via a broker and also just wondering how long it'll take to get a decision. I've heard the banks are quite busy so hoping it won't take too long! BoI were very confident in our application and told us to put a holding deposit down on the house. Because we did, the developers then issued the contract which has a 21 day deadline - we're in limbo now since they're looking for signatures but the banks have been delayed getting back to us!

Duke of Url · 12-07-2020 9:47pm

Ray1990 wrote: »

Hi everyone,
has anyone had any recent experience with getting approval from Bank of Ireland or ICS? Just wondering how long it's taken other people to get a decision on their applications.

We submitted our documents to BoI, they rang us a week later asking for a missing page of a bank statement. They realised we had already submitted it but the underwriters hadn't seen it, but told us the whole application would be sent back to the very end of the queue again.

It's been nearly 2 weeks since we submitted documents to ICS via a broker and also just wondering how long it'll take to get a decision. I've heard the banks are quite busy so hoping it won't take too long! BoI were very confident in our application and told us to put a holding deposit down on the house. Because we did, the developers then issued the contract which has a 21 day deadline - we're in limbo now since they're looking for signatures but the banks have been delayed getting back to us!

Did you get Approval in Principle letter or letter of offer from BOI?

Ray1990 · 12-07-2020 10:18pm

Duke of Url wrote: »

Did you get Approval in Principle letter or letter of offer from BOI?

Not yet - BoI went through our application with us at meeting and said he couldn’t see any problems so advised us to get the ball rolling with the holding deposit etc while we waited on their underwriters.

I know we technically could’ve waited for the AIP before putting the holding deposit down but it’s fully refundable if it falls through so we lose nothing by having our names on the property for now!

Top chief · 12-07-2020 10:38pm

benjy1000 wrote: »

As a general rule of thumb for every €100,000 borrowed you will pay back €400 approx per month , a €250,000 mortgage one can expect to pay €1,000 approx per month in repayments.

That's good to know. Will see might get a cheaper mortgage if possible see what we can build for less as lower the mortgage the better, but being realistic aswell . Bigger the mortgage more money and years will be spent paying it off .

Saving/Applying for a mortgage 2020-22 Edition

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