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100% Mortgages

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    #32
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    dearg lady wrote: »
    Gurramok, I'd say the reason the question hasn't been answered is cos you're looking for 16 banks and there aint 16! :)

    Of course there are people who buy in a crappy market, there is never a zero amount of buyers.

    That 16 has been wiltered down to at least 5 offering 95% mortgages, no-one has answered who these mysterious banks are. :)


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    #33
    ?Cee?view
    Registered Users Posts: 2,848 ✭✭✭?Cee?view


    gurramok wrote: »
    Of course there are people who buy in a crappy market, there is never a zero amount of buyers.

    That 16 has been wiltered down to at least 5 offering 95% mortgages, no-one has answered who these mysterious banks are. :)


    There certainly ain't five either!


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    #34
    ?Cee?view
    Registered Users Posts: 2,848 ✭✭✭?Cee?view


    gdael wrote: »
    No. It stays where it is. Best rates and we're not moving it.

    I work in the IT Sector - Software house. Partner works in the Food business.
    We dont actually need a 100% mortgage. We can well afford the payments even if one of us is unemployed. Intend to pay what we save from the rent into savings too and then pay it all off the mortgage when interest rates change enough to make it more economical to do that than save it.

    We might as well take the 100% and earn more than mortgage interest costs us - along with the mortgage interest relief. The interest rates are like that now, so its good to do. When they switch around so it makes more sense to pay off the mortgage with our savings, we'll pay it all off it.

    Its much, much cheaper than what we are renting just down the road at the moment for essentially the same house and to tell the truth we would rather own a house now because babies are in mind.

    We just visited all the banks and talked to their lenders. 2 Offered us the 100%. Several offered 95%. Several 90%, Some wouldnt give us anything - well i mean they wanted 30%+ deposit, which is as good as offering you nothing.
    Mind you we havent drawn down yet. Until we do nothing is certain.


    Genuinely interested, so a few questions to get a bit of clarity.

    1. Has the bank given you an Approval in Principle, or do you have an actual formal letter of offer, stating that the security being offered is the particular house you're looking at?

    2. Has the Bank's nominated valuer carried out a valuation of the house?

    3. Very surprised that you've got a positive response being in the IT industry. Is yours the smaller of the two salaries? Is your partner's salary (in the food business) the primary salary? I presume your partner is not in the restaurant business.

    4. Were you asked to offer any security other than the house?

    My concern for you here would be that the lender might now be promising you the sun, moon and stars, but when/if you come to draw down you may find that due to "unforeseen" complications, you'll have to ear into your cash straight away.


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    #35
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    gurramok wrote: »
    You are assuming that the haircut of the original price to reach that purchase is huge to prevent future negative equity?

    .

    No I am not. You were saying they will be in immediate negative equity. Now you have changed it to "future negative equity". If they got it for 20% below current value they may never be in negative equity. (Even if you don't take into account the extra money they save by not renting)


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    #36
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    ZYX wrote: »
    No I am not. You were saying they will be in immediate negative equity. Now you have changed it to "future negative equity". If they got it for 20% below current value they may never be in negative equity. (Even if you don't take into account the extra money they save by not renting)

    You're being pedantic now. In 1 second after purchase, there will be negative equity, happy now? :P

    '20% below current value'. The purchaser does not know what the current value is. They are buying on what's it worth to them. Values are going down day by day hence the term immediate/future(for you:P) negative equity.

    Pedalling maybe 1 year of 'its cheaper to buy than rent hence saving' does not hold up for the duration of the mortgage, you know it.


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    #37
    Amhran Nua
    Closed Accounts Posts: 4,124 ✭✭✭Amhran Nua


    ZYX wrote: »
    If they got it for 20% below current value they may never be in negative equity.
    Current value is the price they bought it for.


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    #38
    ?Cee?view
    Registered Users Posts: 2,848 ✭✭✭?Cee?view


    Amhran Nua wrote: »
    Current value is the price they bought it for.


    Their problem is that that statement is these days often not true in the context of a mortgage. For example, they may pay 200k, but when the bank sends a valuer, he may say it's only worth 150k. They will then only be given 90% of 150k, not 200k.

    This is happening frequently these days.


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    #39
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    Amhran Nua wrote: »
    Current value is the price they bought it for.

    Then they will not be in negative equity as they are not selling it. :rolleyes::rolleyes:
    I think you know what I meant.


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    #40
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    gurramok wrote: »
    You're being pedantic now. In 1 second after purchase, there will be negative equity, happy now? :P

    '20% below current value'. The purchaser does not know what the current value is. They are buying on what's it worth to them. Values are going down day by day hence the term immediate/future(for you:P) negative equity.

    Pedalling maybe 1 year of 'its cheaper to buy than rent hence saving' does not hold up for the duration of the mortgage, you know it.

    I cannot believe you don't understand this. Actually I can.


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    #41
    eth0_
    Registered Users Posts: 10,846 ✭✭✭✭eth0_


    Well, Gdael still hasn't replied to our requests to tell us which banks offered 95 and 100% mortgages.

    So I can only assume he's a troll.


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    #42
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    ZYX wrote: »
    I cannot believe you don't understand this. Actually I can.

    Understand what?

    Still waiting on who these 5 banks are.


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    #43
    gdael
    Closed Accounts Posts: 179 ✭✭gdael


    eth0_ wrote: »
    Well, Gdael still hasn't replied to our requests to tell us which banks offered 95 and 100% mortgages.

    So I can only assume he's a troll.

    Just following Taximans advice. Ive read some posts by yourselves elsewhere and and hes dead right about yourself and guramok.
    i dont appreciate being called a liar, so im out of this discussion.

    Find out your own answers. I dont really care what you believe at this stage.

    Why not walk into the banks and find out what you want to know for yourselves, instead of calling people liars?


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    #44
    ?Cee?view
    Registered Users Posts: 2,848 ✭✭✭?Cee?view


    I'm not calling you a liar.

    I do suggest that you address the questions that I've asked, either here, or with a financial advisor.

    Also, be aware that bank branches have little or no decision making power in relation to mortgages. You may find yourself promised something by a branch which is denied by "head office". All too common an occurence.


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    #45
    gdael
    Closed Accounts Posts: 179 ✭✭gdael


    churchview wrote: »
    I'm not calling you a liar.

    I do suggest that you address the questions that I've asked, either here, or with a financial advisor.

    Also, be aware that bank branches have little or no decision making power in relation to mortgages. You may find yourself promised something by a branch which is denied by "head office". All too common an occurence.

    Im more financially literate than most on here. I know how to organize my finances. Im just not happy with the way this thread is going, so im out.


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    #46
    average_runner
    Registered Users Posts: 12,851 ✭✭✭✭average_runner


    Who ever made the comment about the way the IT industry is at the moment.

    Well jsut in case you havent done your research, it has pick up alot over last two monthss.

    All the people i knew that were unemployed all pick up a job in last two months, thats about 10 people i knew!

    Our place recruited alot also.


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    #47
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    gurramok wrote: »
    Understand what?

    .
    Understand that you are saying, that no matter how much someone pays for a property, they are paying too much. No matter what kind of deal they got, it is too much. If they paid €1 then it is still too much.


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    #48
    ?Cee?view
    Registered Users Posts: 2,848 ✭✭✭?Cee?view


    average_runner wrote: »
    Who ever made the comment about the way the IT industry is at the moment.

    Well jsut in case you havent done your research, it has pick up alot over last two monthss.

    All the people i knew that were unemployed all pick up a job in last two months, thats about 10 people i knew!

    Our place recruited alot also.

    I think that it's me you're misquoting :rolleyes:

    I met with a senior lender in one of the lenders the day before yesterday. He told me that they would put IT in the same category as Construction Related. Banks tend to take a bit longer to change their views of these things!

    Personally, I have no idea about the state of the IT industry.


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    #49
    ?Cee?view
    Registered Users Posts: 2,848 ✭✭✭?Cee?view


    gdael wrote: »
    Im more financially literate than most on here. I know how to organize my finances. Im just not happy with the way this thread is going, so im out.


    To be quite frank, everyone can continue to learn, regardless of their level of literacy (in any subject), and letting a few eegits here with agendas (who obviously have some sorts of axes to grind) put you off learning more is tantamount to cutting off your nose to spite your face.

    My last words to you, unless you want to engage further.

    Unless you have a formal letter of offer, with a valuation carried out by the bank's nominated valuer (and that valuation having been accepted by the bank), which states the house being offered as security, then effectively you have nothing. At best, you have a Bank's promise to lend, which is unenforceable and not worth the paper it's written on.

    Don't mind all the negative equity BS being spouted here. If you want a particular house as a home, go for it, but be mindful that the process of going from a Bank telling you they will give you money, to them actually giving you the money, can be tortuous, regardless of how accomodating they seem at an early stage.


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    #50
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    ZYX wrote: »
    Understand that you are saying, that no matter how much someone pays for a property, they are paying too much. No matter what kind of deal they got, it is too much. If they paid €1 then it is still too much.

    Nope, note i said 'haircut'. If the haircut went from 1 million quid to 1 euro, then yes its a good buy.
    gdael wrote: »
    Im more financially literate than most on here. I know how to organize my finances. Im just not happy with the way this thread is going, so im out.
    gdael wrote: »
    Just following Taximans advice. Ive read some posts by yourselves elsewhere and and hes dead right about yourself and guramok.
    i dont appreciate being called a liar, so im out of this discussion.

    Find out your own answers. I dont really care what you believe at this stage.

    Why not walk into the banks and find out what you want to know for yourselves, instead of calling people liars?

    What you on about?! Why not answer the questions asked of you?

    At least don't insult us by saying we are inferior to you financially.

    Correct me if i'm wrong, Taximan has a bee in his bonnet as he was tackled before on the so called benefits of 35yr mortgages he loved and didn't like been pulled up on it and hence attacks any post of mine and others that was involved in that debate.

    Now, you come along and say that at least 5 banks were offering 95%-100% mortgages and refuses to name them. Back up your post or what you are saying is just unfounded conjecture.


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    #51
    TwoShedsJackson
    Closed Accounts Posts: 9,438 ✭✭✭TwoShedsJackson


    So what is the difference between someone who insisted prices are only going to go up back in the day, and someone who now insists prices are only going down? They have to stop going down at some point don't they?


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    #52
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    TwoShedsJackson wrote: »
    So what is the difference between someone who insisted prices are only going to go up back in the day, and someone who now insists prices are only going down?

    Difference of opinion. Some use facts and figures while others just speculate. All near term of course :)
    They have to stop going down at some point don't they?

    Yes at the bottom, we're a long way off that yet.

    Topic was 100% mortgages, still no answer to who is giving them and who is giving 95% mortgages. If the question was answered, the info might even help people make informed decisions if they were revealed! ;):)


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    #53
    ZYX
    Registered Users Posts: 882 ✭✭✭ZYX


    gurramok wrote: »
    Nope, note i said 'haircut'. If the haircut went from 1 million quid to 1 euro, then yes its a good buy.


    .


    Now that is just a daft point of view. Forget what it is worth, look at how much the price has dropped. But at least then you feel they would not be in negative equity.


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    #54
    eth0_
    Registered Users Posts: 10,846 ✭✭✭✭eth0_


    gdael wrote: »
    Just following Taximans advice. Ive read some posts by yourselves elsewhere and and hes dead right about yourself and guramok.
    i dont appreciate being called a liar, so im out of this discussion.

    Taximan said nothing about me, and no one called you a liar, least of all me.
    I (and most people on this thread) find your claim of being offered a 100% mortgage when you are not in their list of 'hallowed professions', and your saying the bank told you to keep your 25% where it is and don't use it to pay off your mortgage - that is just so far fetched.


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    #55
    jetski
    Registered Users Posts: 820 ✭✭✭jetski


    gurramok wrote: »
    Thanks ZYX.

    I have not seen a price rise yet nor one pencilled into the future, have you?


    I have actually, 48 in the last 21 days alone


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    #56
    Boo2009
    Closed Accounts Posts: 16 ✭Boo2009


    Does anyone know what banks are giving out 100% mortgages?


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    #57
    confuzed
    Registered Users Posts: 302 ✭✭confuzed


    few things will never change in this country.
    1) People love for house and land.
    2) Denial re: property values.

    As I said before I don't want to advice people buy or not; its thier decision after all. And this time it will be informed decision because there is enough evidence of NE; price falling. Now its up to them they see few, how many again, price increase or they see thousand of them falling in price.

    But heart bleeds when all of us have to pay for those wrong decision via NAMA; tax relief etc.

    Attacking someone personally wont change reality. But one thing I am still waiting which bank actually agreed to give 100% mortgage. Not to prove anyhting but just out of curiosity.

    Reagarding your calculations; I am actually not surprised you could save a few quids by buying a house but you are buying liabilities for 25-30 years and it will be an asset only if you pay a substantial amount of that.

    And its not always loosing job, not able to move for some very good opportunity because you are tied with your mortgage is same as loosing job. Or you don't want to move from your place at all. Its always nice to keep your options open in tough times.

    BUT AGAIN ITS YOUR DECISION. BUT PLEASE TELL US WHICH BANK? :D:D


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    #58
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    Just to clear it up and stop giving false hope to people wanting a 100% mortgage. No banks are giving 100% mortgages (afaik, no professions has exemptions), 92% is the normal amount now for houses, apartments maybe lower.

    Some banks may go higher than 92% if the house your buying is on their books. Very rare at the moment.


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    #59
    JupiterKid
    Moderators, Social & Fun Moderators Posts: 12,748 Mod ✭✭✭✭JupiterKid


    I find the claim by the OP very difficult to believe. I mean it's one thing to be offered a 100% mortgage (and as another poster mentioned, a formal written offer from Head Office is what counts, not a verbal promise by a branch manager) and another to have 25% deposit already saved to be told by the lending institution to "keep it" - I find that very hard to fathom.

    There is still a shocking and frankly sad amount of denial going on in this country regarding the property market and its direction.

    House prices are going to continue dropping for a while yet - the floor won't be reached until around 2011.


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    #60
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    ZYX wrote: »
    Now that is just a daft point of view. Forget what it is worth, look at how much the price has dropped. But at least then you feel they would not be in negative equity.

    How do you know they would not be in negative equity straight after purchase?
    jetski wrote: »
    I have actually, 48 in the last 21 days alone

    Asking prices my friend. Contrast it to the thousands of drops and you know well whats happening.

    So 2 days later and no-one has answered the question about these mysterious banks of which at least 3 offer 95% mortgages and 2 offer 100% mortgages.


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    #61
    JuliusCaesar
    Registered Users Posts: 4,882 ✭✭✭JuliusCaesar


    gurramok wrote: »
    So 2 days later and no-one has answered the question about these mysterious banks of which at least 3 offer 95% mortgages and 2 offer 100% mortgages.

    Jeez! Can you not do your own research?


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