Saving/Applying for a mortgage 2020-22 Edition

13-06-2021 4:15am

Dodge wrote: »

Less houses are selling, so it’s not that they’re selling ‘left right and centre’, it’s that’s the ones that do are bing snapped up

The point I was making is that anything that's up for sale, is selling, or at least has been until very recently, at silly prices. Loads and loads of people are in a situation wherein they can't drawdown on a mortgage, often due to issues beyond their control, yet house prices are edging higher than anytime since the height of the boom.

If you don’t like that offer, try other banks

I was dealing with a broker, who work with several banks/lenders, and the broker informed me that all of the lenders are tightening up on the amounts they'll lend, and to who (hence them using net income instead of gross to calculate an offer for me).

As a result, I am now trying Rebuilding Ireland. AKA: "The loan of last resort".

Dodge · 13-06-2021 10:05am

[Deleted User] wrote: »

The point I was making is that anything that's up for sale, is selling, or at least has been until very recently, at silly prices. Loads and loads of people are in a situation wherein they can't drawdown on a mortgage, often due to issues beyond their control, yet house prices are edging higher than anytime since the height of the boom.

I was dealing with a broker, who work with several banks/lenders, and the broker informed me that all of the lenders are tightening up on the amounts they'll lend, and to who (hence them using net income instead of gross to calculate an offer for me).

As a result, I am now trying Rebuilding Ireland. AKA: "The loan of last resort".

I just think you’re exaggerating the ‘loads and loads’ of people can’t draw down. As you can see enough people can draw down to buy the houses. It’s not that surprising

13-06-2021 12:28pm

Dodge wrote: »

I just think you’re exaggerating the ‘loads and loads’ of people can’t draw down. As you can see enough people can draw down to buy the houses. It’s not that surprising

But it's true. I know a few people personally (anecdotal, of course) that have been given AIP and then once they like the look of a house and send in their documents, it falls apart on them.

Also, houses going sale agreed, and then re-appearing again, or sales falling through because of people going sale agreed with the best of intentions, and then either realising they're paying over the odds and getting cold feet, or the bank stifling their drawdown efforts, and the sale falls apart.

I do a bit of work for Auctioneers and the general story is that the last 6 months have been very 'turbulent'.

Perhaps it's not happening in Dublin City Centre, but it is happening.

Emma2019 · 13-06-2021 2:15pm

If you're not getting the loan you want I would try I ll the institutions independently of your broker. I've seen a lot of people say they got higher amounts independently than going through a broker and lots of others saying they got more via a broker after trying direct. Shouldn't be the case but two bites of the cherry does seem to yield different results for some.

Depending on your CoCo rebuilding ireland can take months. I saw a guy who submitted everything to Meath Coco in May and they gave him a meeting in December! Some will definitely be way quicker (e.g. weeks for AIP in Cork city I think)

I'd also always apply direct with your actual bank. Dont know if its because they look at more than the 6 months they're supposed to but have seen some think there was no point trying AIB and then having a breeze of getting approval because it was their usual bank.

ELM327 · 14-06-2021 9:00am

Ignore the broker.
We've gotten two approvals from two different banks for the full 3.5X our gross salary including 50% of bonuses too. Apply directly. If you're not looking for a CBI exemption and have proven repayment capacity you'll get more direct.

ec18 · 14-06-2021 9:21am

Deleted User wrote: »

But it's true. I know a few people personally (anecdotal, of course) that have been given AIP and then once they like the look of a house and send in their documents, it falls apart on them.

.

just on this there is going to be a reason that it falls apart on these people. Blaming the banks is lovely and all.

But last time (The crash) they were complained about for a lack of prudence and now 'people' complaining about an abundance of prudence.

Ash3011 · 14-06-2021 12:47pm

Anyone know how long it's taking to go from AIP to full loan offer at the moment? All outstanding documents are sent in now, valuation done etc. so keen to know waiting times.

boredatwork82 · 14-06-2021 1:17pm

Anyone having issues with KBC?

Was due to drawdown on Friday. On Thursday they said all was good. My solicitor arranged everything. On Friday no sign of money, my solicitor rang to be told an issue. At this late stage KBC have amended all the criteria to make it unachievable. All information they were provided at both AIP and official approval has not changed. But they have decided not to accept it.

Anyone else having issues? A part of me thinks that with the exit out of the Irish market they are trying to not issue anymore mortgages.

BronsonTB · 14-06-2021 2:10pm

boredatwork82 wrote: »

Anyone having issues with KBC?

Was due to drawdown on Friday. On Thursday they said all was good. My solicitor arranged everything. On Friday no sign of money, my solicitor rang to be told an issue. At this late stage KBC have amended all the criteria to make it unachievable. All information they were provided at both AIP and official approval has not changed. But they have decided not to accept it.

Anyone else having issues? A part of me thinks that with the exit out of the Irish market they are trying to not issue anymore mortgages.

Downside, always a troublesome bank to get over the line...just how they tend to operate. On the upside your interest rate is lower than others.
(I'd also imagine staff morale internally is at rock bottom since the leaving announcement & it won't be long till they officially stop accepting new business)

ec18 · 14-06-2021 2:11pm

boredatwork82 wrote: »

Anyone having issues with KBC?

Was due to drawdown on Friday. On Thursday they said all was good. My solicitor arranged everything. On Friday no sign of money, my solicitor rang to be told an issue. At this late stage KBC have amended all the criteria to make it unachievable. All information they were provided at both AIP and official approval has not changed. But they have decided not to accept it.

Anyone else having issues? A part of me thinks that with the exit out of the Irish market they are trying to not issue anymore mortgages.

what criteria did they change?

boredatwork82 · 14-06-2021 2:14pm

ec18 wrote: »

what criteria did they change?

Job status even though this was clear and communicated through the whole process. I even changed my job status with my company just to satisfy their additional demands.

And now thats not good enough for them. Even though current setup is only in place because they requested it.

IamTheWalrus95 · 14-06-2021 4:19pm

as a rough guide, how long after signing contracts to getting keys?

Emma2019 · 14-06-2021 4:38pm

IamTheWalrus95 wrote: »

as a rough guide, how long after signing contracts to getting keys?

Can be any amount of time at all. My friend is on 6 months now and no keys. I'll be 2 and a half months.

Depends on whether your vendor is in a chain/probate or how long they want to move out. Can be delayed by mortgage protection issues on your side too. A lot of variables.

wolfyboy555 · 14-06-2021 5:24pm

Can someone advise on what to put down when applying for house insurance. House is a new build 4 bed detached costing 420k. I've had two valuations carried out by two different banks as I changed my mind on which bank I want to take mortgage with. Bank 1 has the rebuild cost on valuation form as 310k and bank 2 has a rebuild cost of 259k. Bit of a difference there. Just want to make sure I don't underinsure it.

Emma2019 · 14-06-2021 6:28pm

Do you mean house insurance?

There are apparently some online calculators for house insurance where you fill in parameters and it gives you an estimated rebuild cost. Maybe pick whatever is closer to that.

My 3 bed end of terrace in Dublin had a rebuild of 220k if that helps.

wolfyboy555 · 14-06-2021 6:39pm

Emma2019 wrote: »

Do you mean house insurance?

There are apparently some online calculators for house insurance where you fill in parameters and it gives you an estimated rebuild cost. Maybe pick whatever is closer to that.

My 3 bed end of terrace in Dublin had a rebuild of 220k if that helps.

Yes sorry I meant house insurance. Thanks for that I will check out those calculators. So I am free to declare the amount myself, I don't have to put down what's on the valuation from the bank?

Renjit · 14-06-2021 8:53pm

wolfyboy555 wrote: »

Yes sorry I meant house insurance. Thanks for that I will check out those calculators. So I am free to declare the amount myself, I don't have to put down what's on the valuation from the bank?

You can insure it for any amount greater than or equal to the valuation amount (provided by the bank approved valuer).

15-06-2021 2:30pm

wolfyboy555 wrote: »

the rebuild cost

Apparently, your local Council can give you an accurate figure to use. They did for my brother (but he was buying a 1980s ex-council house.. not sure if that matters or not)

Jasna1982 · 16-06-2021 1:15pm

Does anyone know if AIB are still doing exemptions up front?
I applied for AIP online and got an exemption approved, however when they're asking for all my documents they also ask for the address of the property I'm looking at which I don't currently have yet. I can submit this anytime before December so will I just wait to submit this until I go sale agreed? Or would they already give me underwritten AIP with an exemption without a property?

i'm always worried that I go sale agreed, and that the exemption then gets declined. I'd rather know up front what my budget can be for a house.

errlloyd · 16-06-2021 3:29pm

IamTheWalrus95 wrote: »

as a rough guide, how long after signing contracts to getting keys?

I signed contracts today. I am an FTB buying an empty apartment from a landlord. So I guess I am best case scenario.

My solicitor reckons 2 - 2.5 wks with no hitches BUT we went sale agreed MONTHS ago, and my solicitor has been super diligent on everything before this stage. So I reckon that is part of why he is so confident.

helloquestion · 16-06-2021 8:40pm

I have AIP, went to a viewing today of a nice house. I noticed in the house the floor is wooden and is uneven (bumping out). I asked the estate agent she said there was a basement under that room.
Does anyone know if there would be any issues insuring or getting surveyor there for the bank? Obviously don't want to waste my deposit money for valuation/surveyor. But that house seems good value for it's price for me.

Another question is, the bank I went with PTSB only gives 75% on apartments, I found some interesting property (end of terrace) that has management fees, basically a holiday home, is that considered an apartment or home? So would bank give me 90% or 75% hmmm....

17-06-2021 12:29am

Jasna1982 wrote: »

Does anyone know if AIB are still doing exemptions up front?

I'm not an AIB customer, so perhaps that may be why, but AIB told me they have no exemptions left for this year.

helloquestion wrote: »

I have AIP, went to a viewing today of a nice house. I noticed in the house the floor is wooden and is uneven (bumping out). I asked the estate agent she said there was a basement under that room.

A basement? That'd be exceptionally unusual. Did you go for a look into it?

I'm in and out of houses a lot, in day to day life with work. Any houses that have been lying idle for a while (a few years, generally seems to be the case) the floors are like speed bumps. I don't know if it's the lack of warmth/heating in the house, or stale air becoming damp, but swollen wooden floors are a common enough issue in my experience. I think it's due to the coldness of the concrete, perhaps, as I never really see it upstairs. It's almost exclusively an issue on the ground floor.

Can't imagine they'd be an issue for drawing down. Perhaps tell your surveyor you know the craic with them and ask him not to mention them on his survey? You'll likely need to replace them, though, so budget for that.

DmanDmythDledge · 17-06-2021 1:11am

What's the position for overtime/bonuses being included in the mortgage calculator? I was on overtime up to earlier this year but now on bonus. I won't have received any bonus by the time I was planning to apply. The full bonus would be worth more than the overtime I would have been entitled to.

niniboots · 17-06-2021 6:02am

DmanDmythDledge wrote: »

What's the position for overtime/bonuses being included in the mortgage calculator? I was on overtime up to earlier this year but now on bonus. I won't have received any bonus by the time I was planning to apply. The full bonus would be worth more than the overtime I would have been entitled to.

Finance Ireland take bonus 100% into calculations, ICS give 25% of bonus. You need proof of bonus though, we had to supply 3 years, yep 3 years of salary certs to show overtime & bonus. We did get the increase though. I don't know if other banks do but check with broker.

Ikozma · 19-06-2021 8:55am

Would it be easier to get a mover mortgage rather then a first time one, if you have your 20% deposit saved and you've been paying a mortgage for 15 years on your first home surely it'll be a doddle?

19-06-2021 12:22pm

niniboots wrote: »

Finance Ireland take bonus 100% into calculations

I was talking to a Finance Ireland broker in Dundalk and they told me that they'd only offer 3.5* my net income (instead of gross income). Wasn't much use to me.

19-06-2021 12:23pm

Ikozma wrote: »

Would it be easier to get a mover mortgage rather then a first time one, if you have your 20% deposit saved and you've been paying a mortgage for 15 years on your first home surely it'll be a doddle?

Surely your deposit would be the equity you have in the house?

niniboots · 19-06-2021 1:31pm

[Deleted User] wrote: »

I was talking to a Finance Ireland broker in Dundalk and they told me that they'd only offer 3.5* my net income (instead of gross income). Wasn't much use to me.

Ours was calculated on gross but we had 20% deposit, so maybe ahop around

19-06-2021 1:49pm

niniboots wrote: »

Ours was calculated on gross but we had 20% deposit, so maybe ahop around

How do you know you had 20% deposit at that point, though? Surely up to AIP stage you don't know how much you're going to get offered, or how much you're going to spend on a house?

niniboots · 19-06-2021 2:06pm

[Deleted User] wrote: »

How do you know you had 20% deposit at that point, though? Surely up to AIP stage you don't know how much you're going to get offered, or how much you're going to spend on a house?

I'm not sure what you mean exactly, we did our own figures 3.5 × by our salaries & as I'm civil servant ICS & Finance Ireland offered two points up my scale, we got more with Finance Ireland than ICS. It probably helped that we had house chosen, in that mortgage price range so we knew our deposit savings were strong. I'm not sure if Finance Ireland do on a case by case basis but they absolutely took our gross salaries & not net.

20-06-2021 3:34pm

So how long should I be waiting for a loan offer from bank of Ireland? Valuation was done a week ago. Applying for mortgage protection but that's gonna take a week or two due to request for further info from doc. So think that's gonna be only slow part on my side.

20-06-2021 5:00pm

niniboots wrote: »

I'm not sure what you mean exactly, we did our own figures 3.5 × by our salaries & as I'm civil servant ICS & Finance Ireland offered two points up my scale, we got more with Finance Ireland than ICS. It probably helped that we had house chosen, in that mortgage price range so we knew our deposit savings were strong. I'm not sure if Finance Ireland do on a case by case basis but they absolutely took our gross salaries & not net.

Ah okay, if you'd a house chosen it probably helps a lot.

It's just I would have been under the impression that a bank, when first figuring out what they'll lend to you, wouldn't consider you as having a % deposit, they'd just look at it as 'savings'.

(for example, if you have 50k in the bank, and you buy a house for 500k, you've a 10% deposit, but if you buy a house for 200k you've a 25% deposit, but until you actually settle on a house/go sale agreed, you don't really know how much of a deposit you actually have.. if you get what I mean?).

Renjit · 20-06-2021 7:12pm

Deleted User wrote: »

So how long should I be waiting for a loan offer from bank of Ireland? Valuation was done a week ago. Applying for mortgage protection but that's gonna take a week or two due to request for further info from doc. So think that's gonna be only slow part on my side.

Neither valuation, nor mortgage protection should be necessary for offer letter. Those are only required during before drawdown.

20-06-2021 7:32pm

Renjit wrote: »

Neither valuation, nor mortgage protection should be necessary for offer letter. Those are only required during before drawdown.

Ya I guess, it's more drawdown approval I guess? Sorry I'm bad at terminology. I'm approved already so it's more having the funds ready at this point. The bank has done valuation.

Renjit · 20-06-2021 11:06pm

Deleted User wrote: »

Ya I guess, it's more drawdown approval I guess? Sorry I'm bad at terminology. I'm approved already so it's more having the funds ready at this point. The bank has done valuation.

For drawdown of funds, you will need to have valuation in place. Then you need to have home insurance equal to or more than the reinstatement value mentioned in the valuation report. You should also apply for mortgage protection at the same time. Send these to the bank or whoever is your bank contact. Send to your solicitor too.

Your solicitor will also receive notification of completion from developer solicitor. Then your solicitor will send the final documentation to your bank. Bank will release the funds then.

ec18 · 21-06-2021 7:33am

Deleted User wrote: »

Ah okay, if you'd a house chosen it probably helps a lot.

It's just I would have been under the impression that a bank, when first figuring out what they'll lend to you, wouldn't consider you as having a % deposit, they'd just look at it as 'savings'.

(for example, if you have 50k in the bank, and you buy a house for 500k, you've a 10% deposit, but if you buy a house for 200k you've a 25% deposit, but until you actually settle on a house/go sale agreed, you don't really know how much of a deposit you actually have.. if you get what I mean?).

Realistically though when you go to a bank you'll have a rough idea of what your house budget is when you go to a bank so you'll know what deposit % you have.

sillysocks · 22-06-2021 7:02pm

[Deleted User] wrote: »

So how long should I be waiting for a loan offer from bank of Ireland? Valuation was done a week ago. Applying for mortgage protection but that's gonna take a week or two due to request for further info from doc. So think that's gonna be only slow part on my side.

Just curious, we’ve had approval in principle and have just now put in on a specific house for full approval. Need to get life assurance sorted now too and wondering do you need a doctors report for that or what did you need from the doctor?

22-06-2021 7:10pm

sillysocks wrote: »

Just curious, we’ve had approval in principle and have just now put in on a specific house for full approval. Need to get life assurance sorted now too and wondering do you need a doctors report for that or what did you need from the doctor?

Depends on loads of factors I think. Eg I have a preexisting condition so they queried my doc on it and got me to fill out some additional forms. I don't think they ask for anything if you're in perfect health etc. It seems like a pretty quick process though.

Renjit · 22-06-2021 7:16pm

sillysocks wrote: »

Just curious, we’ve had approval in principle and have just now put in on a specific house for full approval. Need to get life assurance sorted now too and wondering do you need a doctors report for that or what did you need from the doctor?

May be required if you have some existing ailment. We were not asked for doctor's report. You have to declare existing conditions in the form provided.

brianc27 · 22-06-2021 9:36pm

sillysocks wrote: »

Just curious, we’ve had approval in principle and have just now put in on a specific house for full approval. Need to get life assurance sorted now too and wondering do you need a doctors report for that or what did you need from the doctor?

Mine was sorted in about 2 minutes, no existing known issues so was all very straight forward

xElDeeX · 23-06-2021 8:15am

Deleted User wrote: »

Depends on loads of factors I think. Eg I have a preexisting condition so they queried my doc on it and got me to fill out some additional forms. I don't think they ask for anything if you're in perfect health etc. It seems like a pretty quick process though.

Just wondering did the extra paperwork take long? How detailed was it? I'm hoping to go sale agreed this week and have a preexisting condition. There was one consultation I was waiting for but not happening until August. Trying to decide do I bite the bullet and go for a private consultation in case this loose end slows things down.

23-06-2021 8:24am

xElDeeX wrote: »

Just wondering did the extra paperwork take long? How detailed was it? I'm hoping to go sale agreed this week and have a preexisting condition. There was one consultation I was waiting for but not happening until August. Trying to decide do I bite the bullet and go for a private consultation in case this loose end slows things down.

Not long, took me half an hour. They do ask if any pending results etc so I'm not sure how they treat that. It is a bit of a frustrating and anxiety inducing part of process for me if I'm honest. I get it but Christ, it's invasive.

Alwandy · 23-06-2021 12:08pm

Anyone has experience on how long it takes for AIB to hand you the letter of offer? Was told it went on Friday to the department, but they keep iterating that they have a mass application going on that's causing delay... Just wondering if it's worth pestering them or not?

UPDATE:
Rang them today, got a short answer: It's with the lending department, nothing else I can say. Being absolute hard walled here not knowing what's going on. Unsure how the EA is feeling about the wait yet ..

Quick background,
Submitted my application on May 4th...

aodh_rua · 23-06-2021 8:26pm

Alwandy wrote: »

Anyone has experience on how long it takes for AIB to hand you the letter of offer? Was told it went on Friday to the department, but they keep iterating that they have a mass application going on that's causing delay... Just wondering if it's worth pestering them or not?

UPDATE:
Rang them today, got a short answer: It's with the lending department, nothing else I can say. Being absolute hard walled here not knowing what's going on. Unsure how the EA is feeling about the wait yet ..

Quick background,
Submitted my application on May 4th...

I spoke to a mortgage advisor in AIB today. There has been a surge in applications since restrictions lifted, and this is delaying decisions, but not beyond the 10 working days they advise.

Alwandy · 23-06-2021 9:43pm

aodh_rua wrote: »

I spoke to a mortgage advisor in AIB today. There has been a surge in applications since restrictions lifted, and this is delaying decisions, but not beyond the 10 working days they advise.

Yeah figured .. Just the 2 month delay has been driving me up the wall with lack of information on how it's going and the customer service some are great but some barely want to give you an answer and just shrugs you off.

Ulick_ · 24-06-2021 9:47am

Alwandy wrote: »

Anyone has experience on how long it takes for AIB to hand you the letter of offer? Was told it went on Friday to the department, but they keep iterating that they have a mass application going on that's causing delay... Just wondering if it's worth pestering them or not?

UPDATE:
Rang them today, got a short answer: It's with the lending department, nothing else I can say. Being absolute hard walled here not knowing what's going on. Unsure how the EA is feeling about the wait yet ..

Quick background,
Submitted my application on May 4th...

We submitted our application in March, only got full AIP last week (mid June), valuation submitted on Monday, now waiting on full loan offer.

paulers06 · 24-06-2021 10:57am

Anyone know how long a BOI letter of offer is taking at this stage? All our finances are with BOI so we thought the process would be a bit quicker, we’re three weeks submitted now.

Alwandy · 24-06-2021 1:09pm

Ulick_ wrote: »

We submitted our application in March, only got full AIP last week (mid June), valuation submitted on Monday, now waiting on full loan offer.

So in other words, no point of contacting them... Just wait?

brianc27 · 24-06-2021 1:50pm

Ulick_ wrote: »

We submitted our application in March, only got full AIP last week (mid June), valuation submitted on Monday, now waiting on full loan offer.

That's a very long wait for AIP, mine took a month back in March to come through and I thought that was very long (with KBC)

Ulick_ · 24-06-2021 1:51pm

Alwandy wrote: »

So in other words, no point of contacting them... Just wait?

Probably, didn’t seem to make any difference in our case. My understanding is that you aren’t communicating directly with the underwriter in any case. The only thing anyone else can see is whether your file is being looked at or not. They aren’t able to tell how close the underwriter is to completing the file. We seem to be in the midst of a surge not seen since before the big crash.

Saving/Applying for a mortgage 2020-22 Edition

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