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Buying a house 2012

  • 07-03-2012 10:12pm
    #1
    Registered Users Posts: 66 ✭✭Verte11


    Hi there,
    I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
    I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
    Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.


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Comments

  • Registered Users Posts: 1,443 ✭✭✭killers1


    Hi Verte11,

    Not buying in 2012 but happy to contribute here & answer any queries. Regarding your TRS, you don't need to wait until the 1st repayment has gone through to apply online, you can do so as soon as the mortgage cheque is issue by your bank. The items you need besides the obvious personal details are as follows;
    PPS Number
    Date of First Repayment (this is literally the month e.g. April 2012 & the first repayment will be due the month after you drawdown)
    Are you a FTB or Not?
    What percentage of the loan is being used for the purchase? (for FTB's it'll be 100%)
    Everything else on it is fairly straightforward. If you got your mortgage from AIB you pick the AIB Finance & Leasing option in the dropdown box but check with the bank for the correct account number to enter as it will differ from the account number on your loan offer. I'd suggest applying asap after the mortgage issues as it takes 6-8 weeks for Revenue to process your application and inform your Bank how much they need to reduce your DD by.


  • Registered Users Posts: 140 ✭✭dufferlover


    Verte11 wrote: »
    Hi there,
    I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
    I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
    Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

    I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.


  • Registered Users Posts: 400 ✭✭marcus2000


    Verte11 wrote: »
    Hi there,
    I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
    ....Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

    Was buying in 2009....still buying in 2012. (Same House!!) Everything that could go wrong with a house purchase, has gone wrong. 3 years of saying " I'll be in within 4-6wks"....I dont even believe myself anymore when I say it.

    I should be in within 4-6wks!!!


  • Registered Users Posts: 140 ✭✭dufferlover


    marcus2000 wrote: »
    Was buying in 2009....still buying in 2012. (Same House!!) Everything that could go wrong with a house purchase, has gone wrong. 3 years of saying " I'll be in within 4-6wks"....I dont even believe myself anymore when I say it.

    I should be in within 4-6wks!!!

    No way! What happened?

    Jesus, maybe I should say we'll be in by the end of the month :D


  • Registered Users Posts: 400 ✭✭marcus2000


    No way! What happened?

    I'm not sure I'm allotted enough characters to type it all in here. It was a new build in a tiny development - as good as finished when I put a holding deposit on it about Feb 2009. It was a 'quick sale' - I'd be in in within a few weeks.
    Given I'm still 'mid' purchase, I probably cant give too much away. But there were issues with getting homebond insurance initially,then revenue were involved, then financial problems....solicitor change.....(a market crash)...the banks got involved...mortgage expirey...change in jobs...sewerage connection... I think I'm missing about a year or two of issues in there, but its all a blur now....

    Its a lovely house though!! :D I should probably point out that the final price agreed was about 40% lower than the original price...silver cloud and all that!! But at this point, I just want in!!!


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  • Registered Users Posts: 1,443 ✭✭✭killers1


    marcus2000 wrote: »
    No way! What happened?

    I'm not sure I'm allotted enough characters to type it all in here. It was a new build in a tiny development - as good as finished when I put a holding deposit on it about Feb 2009. It was a 'quick sale' - I'd be in in within a few weeks.
    Given I'm still 'mid' purchase, I probably cant give too much away. But there were issues with getting homebond insurance initially,then revenue were involved, then financial problems....solicitor change.....(a market crash)...the banks got involved...mortgage expirey...change in jobs...sewerage connection... I think I'm missing about a year or two of issues in there, but its all a blur now....

    Its a lovely house though!! :D I should probably point out that the final price agreed was about 40% lower than the original price...silver cloud and all that!! But at this point, I just want in!!!

    Sounds like the sequel to 'The Money Pit'..... 2 weeks, 2 weeks...... Nightmare!


  • Registered Users Posts: 400 ✭✭marcus2000


    killers1 wrote: »
    Sounds like the sequel to 'The Money Pit'..... 2 weeks, 2 weeks...... Nightmare!

    from what i remember , they live happily ever afterwards in their lovely new home.........right????


  • Registered Users Posts: 1,443 ✭✭✭killers1


    marcus2000 wrote: »
    from what i remember , they live happily ever afterwards in their lovely new home.........right????

    I'm sure Marcus you will have a Hollywood ending too...:)


  • Registered Users Posts: 73 ✭✭Learpholl


    I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.
    I'm in the exact same situation as Dufferlover so count me in. Hope to be in by the end of the month also.
    killers1 wrote: »
    the first repayment will be due the month after you drawdown
    Quick question for you on this killers, we've requested for the direct debit for our mortgage to come out on the 1st of the month. If we drawn down our mortgage on, say, the 20th of March, would our first payment be on the 1st of April only 11 days later or would it carry over and end up being on the 1st of May which would be about 41 days later? And when exactly would the cut-off point be?

    I realise this is most definitely a question for the bank but since you mentioned it, I thought I'd ask before I go back to them again.


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Learpholl wrote: »
    I'm in the exact same situation as Dufferlover so count me in. Hope to be in by the end of the month also.

    Quick question for you on this killers, we've requested for the direct debit for our mortgage to come out on the 1st of the month. If we drawn down our mortgage on, say, the 20th of March, would our first payment be on the 1st of April only 11 days later or would it carry over and end up being on the 1st of May which would be about 41 days later? And when exactly would the cut-off point be?

    I realise this is most definitely a question for the bank but since you mentioned it, I thought I'd ask before I go back to them again.

    If you drawdown on the 20th March the bank won't take a full repayment until the 1st May as the 1st April would be too soon. What you'll probably find will happen is that on the 1st May your repayment will be the full repayment (as per the gross repayment quoted on your loan offer as your TRS won't have kicked in by then) and also the additional 11 days interest between the 20th March - 1st April if this makes sense? Then on the 1st of June you'll probably have just the monthly repayment as per your loan offer and then on the 1st July your TRS should have kicked in (and backdated) and you'll have your net repayment which will be the amount going forward until your TRS reduces (presuming no change in interest rates)...


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  • Registered Users Posts: 73 ✭✭Learpholl


    killers1 wrote: »
    If you drawdown on the 20th March the bank won't take a full repayment until the 1st May as the 1st April would be too soon. What you'll probably find will happen is that on the 1st May your repayment will be the full repayment (as per the gross repayment quoted on your loan offer as your TRS won't have kicked in by then) and also the additional 11 days interest between the 20th March - 1st April if this makes sense? Then on the 1st of June you'll probably have just the monthly repayment as per your loan offer and then on the 1st July your TRS should have kicked in (and backdated) and you'll have your net repayment which will be the amount going forward until your TRS reduces (presuming no change in interest rates)...
    Thanks a lot killers. Thats extremely helpful as always.

    Do you know of a decent mortgage calculator online which will help me to work out how much 11 days worth of interest would be?


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Learpholl wrote: »
    Thanks a lot killers. Thats extremely helpful as always.

    Do you know of a decent mortgage calculator online which will help me to work out how much 11 days worth of interest would be?

    If you want to PM me your loan amount, rate (are you AIB 3.24% variable?) & term I'll work it out for you...


  • Registered Users Posts: 1,443 ✭✭✭killers1


    actually an easy way for you to work it out is multiply the amount you have borrowed X interest rate, divide by 365 (to get daily int figure) & multiply X 11.....


  • Registered Users Posts: 73 ✭✭Learpholl


    killers1 wrote: »
    actually an easy way for you to work it out is multiply the amount you have borrowed X interest rate, divide by 365 (to get daily int figure) & multiply X 11.....
    Thank you. I didn't think it would be as simple as that and had assumed the interest rate being applied would be a lot more complex.


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Learpholl wrote: »
    Thank you. I didn't think it would be as simple as that and had assumed the interest rate being applied would be a lot more complex.

    It is only as simple as that because you are at the start of the loan because interest is calculated daily on the balance outstanding but as you won't have made any repayments the amount outstanding on each of the 11 days is the full capital amount that you've borrowed. The term of the loan is always irrelevant on an interest only repayment because if you were always to just pay the interest the term would never end as the capital would never reduce... (maths lesson over for the day!) My sister asked me the exact same question yesterday....


  • Registered Users Posts: 188 ✭✭Yeboah


    myself and my patner basically wasted 9 months on a house that turned out to have problems with building regulations and planning permission. Advised to walk away..In last few weeks have found a better house in a better location. Sale agreed with contents incl, valuation tomorrow and hopefully full loan offer out within the next week or so all going well. Hopefully with no hiccups could be in there in April as vendor doesnt live there anymore :)

    Not sure will i have to go through all the life assurance process again as already did it a few months ago when the deal on the other house was supposed to be done :confused:


  • Registered Users Posts: 166 ✭✭blueturnip


    Verte11 wrote: »
    Hi there,
    I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
    I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
    Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

    I'm in! We are hoping to buy this year. Just in the process of getting all the paperwork together for the bank (there sure is a lot!). We have also seen a house we like and we we get mortgage in principle we will head back again to view. It's exciting yet nerve racking at the same time!


  • Registered Users Posts: 66 ✭✭Verte11


    Cool. Glad there's a few people up for it. Killers you know so much about all this.


  • Registered Users Posts: 66 ✭✭Verte11


    I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.

    Cool-congrats. So whats the order things happen in? I still have to get life assurance+house insurance sorted. Then what happens? Don't have a clue


  • Registered Users Posts: 66 ✭✭Verte11


    Yeboah wrote: »
    myself and my patner basically wasted 9 months on a house that turned out to have problems with building regulations and planning permission. Advised to walk away..In last few weeks have found a better house in a better location. Sale agreed with contents incl, valuation tomorrow and hopefully full loan offer out within the next week or so all going well. Hopefully with no hiccups could be in there in April as vendor doesnt live there anymore :)

    Not sure will i have to go through all the life assurance process again as already did it a few months ago when the deal on the other house was supposed to be done :confused:

    Yeah I'm wondering that too. I completed one to have it on stand by. Not sure how long it lasts for -anyone know?


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  • Registered Users Posts: 66 ✭✭Verte11


    marcus2000 wrote: »
    Was buying in 2009....still buying in 2012. (Same House!!) Everything that could go wrong with a house purchase, has gone wrong. 3 years of saying " I'll be in within 4-6wks"....I dont even believe myself anymore when I say it.

    I should be in within 4-6wks!!!

    That's mad. At least you'll really appreciate it when you finally get there!


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Verte11 wrote: »
    Cool. Glad there's a few people up for it. Killers you know so much about all this.

    Thanks! I'd want to, it's what I do for a living! I'm happy to point people in the right direction and help in any way I can. I appreciate buying a house particularly as a FTB can be a daunting experience so if I can make it easier in any way I'm happy to help!


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Verte11 wrote: »
    I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.

    Cool-congrats. So whats the order things happen in? I still have to get life assurance+house insurance sorted. Then what happens? Don't have a clue

    If it'll help I'll try to write a comprehensive overview of all the steps involved from the mortgage to getting your keys and what needs to be done... I'll get something up on this tomorrow...


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Verte11 wrote: »
    Yeboah wrote: »
    myself and my patner basically wasted 9 months on a house that turned out to have problems with building regulations and planning permission. Advised to walk away..In last few weeks have found a better house in a better location. Sale agreed with contents incl, valuation tomorrow and hopefully full loan offer out within the next week or so all going well. Hopefully with no hiccups could be in there in April as vendor doesnt live there anymore :)

    Not sure will i have to go through all the life assurance process again as already did it a few months ago when the deal on the other house was supposed to be done :confused:

    Yeah I'm wondering that too. I completed one to have it on stand by. Not sure how long it lasts for -anyone know?

    In relation to your life cover, if you previously had a proposal form completed and accepted it's usually valid for 3 months. After this time the insurance co can ask you to sign a declaration of health to confirm that your health hasn't changed in the time since you completed the original proposal forms. If you were accepted before and there has been no change to our health you'll have no problem getting cover. It will be slightly more expensive if either of your birthdays have passed since then.


  • Registered Users Posts: 400 ✭✭marcus2000


    Verte11 wrote: »
    That's mad. At least you'll really appreciate it when you finally get there!

    at this point when seems like if but sure we'll see. :(


  • Registered Users Posts: 167 ✭✭Man007


    We've also went sale agrees and are hoping to be in by mid April.

    Should I start organising life assurance now I'm surprised aib haven't contacted us as I believe they offer a discount to ftb anyone know if their rates are competitive.

    I got a good quote off 123.ie all seemed straight forward but then got a call from mortgage advisor who basically made it out like it was the hardest thing in the world to get cover and could be waiting months to get approved but not to worry he'll look after it sounds like load of crap.

    One week later and h still hasn't got back to me with a quote.


  • Registered Users Posts: 12 altoids


    yep, we're also hoping to buy this year. not a first time buyer though. killers, i'll be in contact soon!!!


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Verte11 wrote: »
    Cool-congrats. So whats the order things happen in? I still have to get life assurance+house insurance sorted. Then what happens? Don't have a clue

    Just to give all the FTB's an idea of the process involved, when things need to be done and in what order etc...

    AIP - The bank give you an approval in principle and you are free to start bidding on properties. Once you have an offer accepted you pay your booking deposit to the estate agent and give them your solicitors details so the vendors solicitor can arrange for the contracts to be sent to your solicitor.

    Loan Offer - You then give the bank the details of the property you have bought & your solicitors details and decide on rate & term of your mortgage. The bank's valuer inspects the property to ensure the house is acceptable security for the bank and that it's worth the amount you have agreed to pay for it. Once the bank receive the valuation report and rate, term etc they'll issue a loan offer to your solicitor which will allow you to sign contracts in due course.

    Structural Survey - Once your offer is accepted you arrange to have a structural survey completed. This will be (should be!) an in-depth inspection of the property by a suitably qualified individual who will then issue you with a comprehensive report highlighting any defects with the property and whether there are any serious issues with the property that need attending to or may affect your decision as to whether or not you will continue with your purchase. ALWAYS GET A STRUCTURAL SURVEY DONE!!

    Life Cover - You should tend to this before you sign contracts to ensure you are able to get cover. In the event that you/either of you were declined cover on medical grounds then you would need to tell the bank that life cover isn't available and it will be their decision whether they are still happy to give you the loan or not. Don't sign contracts without having life cover accepted as you would lose your deposit if you can't get cover and bank withdraw mortgage offer. You'd be surprised the number of solicitors that allow people to sign contract without having first met this condition. You need to have life cover for the amount and term of the mortgage. There are numerous types of life cover policies so you need to make sure the one you opt for suits your needs and you are not over-sold or conversely taking the bear minimum while acceptable to the bank may not offer sufficient protection particularly if you have a family...

    Home Insurance - In the case of a house, the amount you need to insure the property for is dictated by the Valuer and there is a section on the valuation report called 'Reinstatement Sum'. This is the amount you insure the property for (not the purchase price). The reinstatement sum is the total cost to clear the site, engage an Architect and have the property rebuilt to it's current state in the event that it burnt down. The name of the bank you are borrowing from are the interested party who must be named on your policy. This just means that if your house burns down the cheque goes to the bank as opposed to you. The level of contents cover you opt for is up to you and dependent on the value of your oil painting collection, crown jewels etc.. In the event of an apartment there is a Block Policy that the management company will have in place so you would only need to take out a contents policy for your own belongings but this does not form part of the mortgage conditions and the bank do not need to see that you have this in place. The vendors solicitor is responsible for sending a copy of the Block Policy to your solicitor to have your name & the name of your lender added to it.

    DD Mandate - You need to sign a Direct Debit Mandate for the bank you are borrowing from just detailing the account you want the monthly repayment to come from.

    Contracts - Once your solicitor has received the contracts and the loan offer from the bank they will get you in to sign the loan documentation and the contracts. Any queries your solicitor has on the contracts will be communicated to the vendors solicitor and your solicitor will need to be satisfied with replies before they will allow you to complete the purchase. A closing date is then agreed.

    The conditions on a loan offer are generally the same for everyone (unless there are specific conditions to your application. There are 2 parts the legal & the non-legal. The non-legal items are the life cover, home insurance, DD mandate & ID & Address verification that you/your broker needs to send to the bank prior to closing. The legal items that your solicitor will look after are the signed loan offer acceptance, Letter of Undertaking & Solicitor Cheque Request. Only when all these items have been received by your bank and checked off will your lender be in a position to issue funds to your solicitor to allow you to get your keys on the closing date.

    I know the above list isn't exhaustive but it will cover 99% of applications.. I hope this throws some light on the process and if anyone has any queries let me know....


  • Registered Users Posts: 1,443 ✭✭✭killers1


    altoids wrote: »
    yep, we're also hoping to buy this year. not a first time buyer though. killers, i'll be in contact soon!!!

    No problem at all, I'll be here!!


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  • Registered Users Posts: 71 ✭✭muttley-dps


    Good thread.

    Am in the middle of purchasing (FTB too). We're into 2 week extension on mortgage offer (elapsed due to issues with management company queries, Xmas, solicitor holidays etc) and bank have told us we must close by next Friday as if we have to apply again our affordability index has dropped and we wouldn't qualify for the same amount again. All going to plan sort of at the moment.

    Except that our solicitor wants written proof we have loan extension. By the time this will be issued to them then our 2 weeks could have elapsed! I don't see why they need written proof when on the loan pack there is no mention of an expiry date plus the bank have verified extension is in place. I don't understand why they don't just return the loan pack given we've signed it rather than sitting on their hands. There could be a heated conversation with solicitor this evening if I get no satisfaction on them sending in the pack.

    Will also qualify for Tax relief but as I'm a cross border worker (work in Derry, live in Donegal) am sure i'm going to have to jump through hoops of tax returns for last 5 years i've been doing this work to prove income. There is a reciprocal tax treaty in place with the UK where I pay my dues to HMRC and don't actually owe anything in the republic but the onus is on me to still fill in tax returns seemingly because I'm resident in the state. So if I want TRS then imagine this is the pain to go through next.


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