First time buyer mortgage advice

june92

Hi guys,

Just looking for a bit of advice on a mortgage application.....

Ok bit of background:
I'm 21 with a permanent job on €23,500
Partner is 26 with contract job in Russia on roughly €100,000
We have letters from employers (partner's states he will be employed in future with company), salary certs, all documentation needed.
We want to borrow €320,000 with €40,000 savings and counting.
Car loan €15,000 left, Credit card €2,000 and personal loan 1,000.
Have done credit check and no problems there.

We were dealing with IFG who messed us about by saying they were applying but 6 weeks passed and we found out they were never applied!! (I was very upset about this because I was looking at houses and found the dream house )

We left IFG and have gone to Evergreen mortgages as we were advised by developers that they will get our application through quick, just received call today and broker has said that it will take 3 up to months for our application to be approved as he wants to work on a few bits and once everything looks good he will put application forward, also told me we won't get approval with application now. In the meantime I was speaking to AIB direct who gave us a timeframe of 5 working days and with all details given said approval is very very possible about 90% possible.

I'm so confused!!! Should we go directly to bank or stick with broker who won't submit application for up to 3 months (and was also quite condesending on the phone to me)

Are AIB giving mortgages? If so,on average, how long for approval?

Avns1s

Why not do both?
Take whichever comes up or whichever gives the best deal if both come up!

june92

We were thinking of that but I was told by the broker that banks will be able to see on the ICB that other banks are checking our credit and they will be a bit wary about our application.

One good thing is that Evergreen are electronic so we can scan everything to them and at the same time post originals to AIB.

Win win situation (Hopefully!!)

irlrobins

june92 wrote: »

We were thinking of that but I was told by the broker that banks will be able to see on the ICB that other banks are checking our credit and they will be a bit wary about our application.

Complete crap, you can apply to as many lenders as you like. It's called competition. And three months to complete an application? More crap. Took me five days to get AIP from three different banks. You just need to have all your paperwork at hand (P60s, salary certs, letter from employer, proof of savings, last three playslips etc).

Cut out the middleman is my advice, you don't need them unless you're incapable of handling some paperwork.

Senna

june92 wrote: »

Should we go directly to bank or stick with broker who won't submit application for up to 3 months (and was also quite condesending on the phone to me)

Read that question back to yourself and i'm sure you'll see the answer.

bobbysands81

june92 wrote: »

We were thinking of that but I was told by the broker that banks will be able to see on the ICB that other banks are checking our credit and they will be a bit wary about our application.

One good thing is that Evergreen are electronic so we can scan everything to them and at the same time post originals to AIB.

Win win situation (Hopefully!!)

I got a mortgage in the last 5 months with AIB.

Go to as many brokers and banks as you like, be wary using a broker that they're not going to charge you if you don't take the mortgage with them.

Lambsbread

I recently got a mortgage with AIB directly. No problems. THe process was quite quick and easy. Just make sure you send them all the required documents quickly.

sandy09

any thoughts on the following?
between two of us income only bout €40k. have no loans. have 5k saved but parents giving €15k possibly more. what would possiblity of loan to build a house be? have site so looking for bout 150k-160k (actually that would be full amount so less €20k approx that would have for deposit?)
any ideas greatly welcomed.

Fighting Irish

june92 wrote: »

We were dealing with IFG who messed us about by saying they were applying but 6 weeks passed and we found out they were never applied!! (I was very upset about this because I was looking at houses and found the dream house )

everyone thinks theres only one dream house for them, don't worry you'll find plenty more "dream houses"

irlrobins

sandy09 wrote: »

any thoughts on the following?

Only the bank will tell you for certain, as every case is different. They generally follow the principle that they will only lend you an amount that results in the monthly payments not exceeding ~40% of your monthly income.

Taking AIB FTB Fixed rate for 3 years, as a guide, borrowing €140,000 over 30 years means montly payments of around €600.

So if this is less or equal to 40% of your monthly income, then you might be ok.

Of course other factors are involved. They will look to see have you been regularly saving in the past few months, do you have any outstanding loans (car loan, credit union loan, etc), employment status, etc.

But as I said, best way to find out is to go into the bank and arrange a chat with the mortgage advisior. He/She will be able to tell you in a matter of minutes what the likelihood is of getting the loan you require.

girlingalway

Got approval from AIB in 3 days

sandy09

irlrobin,

thanks for that info. i have heard that if you get mortgage approval it only lasts for 6 weeks....is this true? its just i dont want to go ahead with applying for planning etc etc until i find out how much i can borrow...is this possible?

irlrobins

Usually AIP is valid for three months. If it lapses, you just reapply again, and unless your circumstances change, they'll renew it for another 3 months.

You can get AIP at any stage, you don't need to know the exact property you want to buy. This allows people to know their exact budget before they go viewing.

sandy09

ah ok thanks. im so confused with the whole process. whatever bout the mortgage cos obviously we'll either get it or not...but the whole planning etc is a head ache before i even start....