Help! I want to get a mortgage!

Fighting Irish

sambuka41 wrote: »

GOOD GOD!!! :eek: Wow how will anyone ever buy a house again!!!!Im all about being responsible and I've accepted to get a house I'll have to sweat for that deposit but really thats very restrictive esp in this current job climate. Who is making that kind of money?? I've taken a pay cut and even with that I think i live comfortably,but I certainly dont have 2,500 left after i pay rent let alone a mortgage payment!!!

Not really, it should be the norm, it should have been the norm for the past ten years

D3PO

Totally agree people are still convinced the last few years are the norm when in fact it was crazy unregulated , poorly underwritten lending practices that took place hence the banks being in the position they are in today.

shayser

JellybeanJen wrote: »

Hi All,

Sorry just joined the conversation.
Me and my Fiance are in the process of applying for a mortgage to build.
Well I say we but its my fiance only as I'm a carer for my daughter and this is not seen as income so its a single application.

We are getting the run around from the banks. We were told by a friend today to try our local council for a mortgage and we tick all their boxes except our house is 5m sq over the criteria. No way will they budge. Has anyone ever come up against this?

Also, on another note, with the council, does anyone know if you hand back the keys to a council house you have rented for 7 years do you get any money back?

People have mentioned this to me but some people think its an old wives tale!

Cheers

If you are within a qualifying income limit - can't remember the limit, think it's mid €20k - you can qualify for a grant of up to €11,000 if surrendering a council house to buy privately.

yungwan

shayser wrote: »

If you are within a qualifying income limit - can't remember the limit, think it's mid €20k - you can qualify for a grant of up to €11,000 if surrendering a council house to buy privately.

I have never heard of this! I am renting a LA house for the last 4 years. I had heard that you get a certain amount of money back from Local Authorities (LAs) for works done to house during your time there - e.g. Fitting wardrobes, tiling and flooring etc.

But to my knowledge this is only to a max of €5000 (probably varies from LA to LA, I am based in Co. Roscommon). And it is evaluated depending on works done.

I hope you are right shayser! It would be nice to get some money back from all that rent!!

P.S would this still apply in the case where the tenant was moving to a self build?? Where could I get further info on this?!

Originally Posted by WaltKowalski
I've debt of €26k, savings of €15k.

Yes i wold agree that on paper you do not having savings - rather debt of €11K. You should clear this first. and then save.

Myself and my bf are in a similar situation. We are saving but I am also going to try hard to clear our car loans in the next year or two. We dont have any other debt thank god. Just moderate car loans. So please god we can start a self build in a couple of years

JellybeanJen

Thats my situation. My partner is self building. I am renting council house, he lives with his mom but we will both move into house together.

As its his mortgage i don't qualify for the council tenant mortgage relief they offer if you are moving out of rented accommodation and getting a council mortgage.

However i was told by neighbours to look into getting a rebate on rents paid when i hand over keys.

Its like trying to find a needle in a haystack though!! The info is nowhere to be found.

JellybeanJen

Hi Yungwan

Just off the phone from local council housing dept. if you are planning on taking out a mortgage and moving from a council house you can get a mortgage allowance. i live in wexford but i'm sure its the same process.

it works as a relief on your mortgage each month for the first 5 years.

the link to the wexford details are : http://www.wexford.ie/wex/Departments/Housing/HousingLoans/#housePurchConst


works out at 11450 off your mortgage over 5 yrs



hope this helps

yungwan

JellybeanJen wrote: »

Just off the phone from local council housing dept. if you are planning on taking out a mortgage and moving from a council house you can get a mortgage allowance. i live in wexford but i'm sure its the same process.

it works as a relief on your mortgage each month for the first 5 years.

WOW :eek: Is this only if getting a council mortgage though?

And is this relief on top of any other reliefs you may be entitled to?

The_Conductor

JellybeanJen wrote: »

Hi Yungwan

Just off the phone from local council housing dept. if you are planning on taking out a mortgage and moving from a council house you can get a mortgage allowance. i live in wexford but i'm sure its the same process.

it works as a relief on your mortgage each month for the first 5 years.

the link to the wexford details are : http://www.wexford.ie/wex/Departments/Housing/HousingLoans/#housePurchConst


works out at 11450 off your mortgage over 5 yrs



hope this helps

Hi Jen-

As far as I know- this refers to a council mortgage- not a mortgage provided by an external 3rd party. Could you clarify?

Shane

JellybeanJen

sorry guys she didn't mention that it had to be with a council mortgage. as its 1 o' clock now i won't get her on the phone, sorry.

i asked about rent rebate and she said the only way to get anything back is if you leave a rented council house to buy. she didn't say with the council but i'll let ye know soon as i find out

yungwan

Sorry if copy & Paste not allowed

I just looked up Ros CoCo website http://www.roscommoncoco.ie/services/housing/TenantSchemesMortgageAllowance.html

and the following criteria are outlined:

"a local authority tenant or tenant purchaser who wishes to buy a private house and to return your present house to the local authority, or
a tenant for more than one year of a house provided by a voluntary body under the Rental Subsidy Scheme who wishes to buy a private house and return your present house to the voluntary body, you may apply for a mortgage allowance."

It doesnt specify that it must be a coco loan just that :

"You must be financing the purchase or building of your house by means of a mortgage loan of at least €38,092"

Mortgage relief is calculated as specified above in JellyJens post above.

Cant believe I never heard of this before!!

JellybeanJen

I know, the more you look at these boards the more you realise how little you are told what you are entitled to!

Well, you can look it up but its never advertised! If you are building or buying a modest house under 175m sq the council are very good for mortgages. 3% deposit needed for ours if we were 5m sq smaller.

very tempted!!

AARRRRGH

Easiest way to find out if you will get a mortgage is to actually call into the banks and find out. You'll hear a lot of stuff about this limit and that limit or banks refusing everyone who has a bald head, all over the place. You'll only hear the facts about your own situation if you go in and apply.

The_Conductor

The other thing to remember- is whereas mortgage approvals in the past might have been for a number of months- the periods of validity these days is typically as short as 3 weeks....... Get all the information- read all the small print and make sure you are fully aware of any terms or conditions attached to your dealings with the lending institution.

The Big Red Button

Apologies if I'm hijacking the thread a little, but I'm in a pretty similar situation!

My fiance and I are in our mid-twenties and hoping to start building a house in the next few years. He is currently self-employed, working in the construction sector (not good, I know!) but he's on the look out for something more permanent. I'm six months into a 3.5 year contract with an accountancy firm.

Basically I'm wondering what we need to be doing now to improve our chances of getting a mortgage in a few years. We both have car loans but will have them paid off in the next 2-3 years. We don't have any savings yet, but will be starting ASAP! But apart from paying off the loans and building up our savings, is there anything else we can be doing now?

Also, I assume that even if he gets a permanent job and we pay off any debt and we manage to save up a decent deposit, there's no point in even applying until I've finished the contract and got something more permanent?

And with regard to the loans ... I always got the impression that it looked better on an application if you did have loans, because it meant that as long as you made your repayments on time you'd have build up a good credit history? Is that not true?

Thanks in advance for any advice!

The_Conductor

Hi Chatterpillar (good to see you back again!)

Basically- at the moment what you need to do is pay down any existing loans, and show a history of saving. If you manage to save a significant amount- so you are looking for lower than max LTV ratios- you may persuade the lender to give you a better spread than at the max.

There is no harm approaching a lender to get their thoughts on how they would proceed with a mortgage application- but in general, fulltime permanent employment or if self employed- between 3 and 5 years of returns, along with a current C2 cert are required.

Re: pre-existing loans- the idea is that you are showing a history of being a good credit risk. At present- any loans are seen as a drag on your net income- and serve to reduce the amount a lender will lend you as a mortgage. A current loan, in good stead, will be a good sign to a lender- but reduce what they will lend you at the same time. What would be better- is pay off the loan, ensure its registered on your credit record, and save like crazy towards a sizeable deposit.

At the moment regardless of the advertising in the media that you see everywhere- mortgage lending is at incredibly low levels, and for incredibly low amounts- and only the rock solid applications are being considered....... AIB, Bank of Ireland, ILP, EBS, INS- are all essentially bankrupt. They are on life support- and until the extent of their NAMA discounts and any refinancing is known- they are zero interest in shovelling more money out the door....... Its a sad reflection of how screwed up this country is........

JajaD

Im new to this post.
Im a 23 year old student. Ill be finished with college in the next 2 years. I plan to be a secondary school teacher. I have a student account with BOI, and currently have maxed out my 400 euro credit card and 600 overdraft.

I dont have any savings as im only working as a part time student.

My question is, Will my credit rating be affected because of my OD and credit card or will having a student account help my circumstance ie when i start working full time and have a normal account will they then start my credit rating?

I really want to start saving for a house now. I dont have any loans taken out.

dolliemix

JajaD wrote: »

Im new to this post.
Im a 23 year old student. Ill be finished with college in the next 2 years. I plan to be a secondary school teacher. I have a student account with BOI, and currently have maxed out my 400 euro credit card and 600 overdraft.

I dont have any savings as im only working as a part time student.

My question is, Will my credit rating be affected because of my OD and credit card or will having a student account help my circumstance ie when i start working full time and have a normal account will they then start my credit rating?

I really want to start saving for a house now. I dont have any loans taken out.

You'll be fine. 600 euro is nothing compared to the thousands other people owe. Get it paid off as quickly as possible. Credit cards charge huge interest rates. You'd be better off with a normal loan of 600 euro than a credit card overdraft.

D3PO

JajaD wrote: »

, Will my credit rating be affected because of my OD and credit card or will having a student account help my circumstance ie when i start working full time and have a normal account will they then start my credit rating?

I really want to start saving for a house now. I dont have any loans taken out.

It may affect your credit rating (some financial institutions dont send this kind of info to the ICB). HOWEVER if you are paying it off every month as per the conditions yo have nothing to worry about becasue it will affect it in a positive manner.

Best thing to do if your worried about your rating is to get a copy of your credit rating. It costs €6 and you can order it from www.icb.ie

ricman

You can sign up with the council on the low cost housing list.
ALSO i think the council have a scheme if you are earning under 70k ,for a couple you can apply directly to them for a mortgage on any private house or apartment thats for sale in their area .Contact the housing dept of the council ,for more detailed info.EG you wont get a mortgage from fingal council,for a house in meath.
MY friend got a council mortgage 7 years ago ,around 100k.You should start saving weekly in a bank anyway, build up your credit status.

shoegirl

As long as you keep up repayments having prior borrowings would be fine. In fact lenders need to see something on your ICB record or they have more difficulty in assessing your risk.

The way it works is that they record a number of items about loans that are current or cleared in the last 3 years.
They keep a record of whether or not you paid on time or late for the last x number of payments. They also tag an account with a letter for whether or not you were generally up to date or not with repayments.

This is useful http://www.icb.ie/credit_rating.php

Note item 20:

A score value of 50 is automatically returned for an Account Holder with an account that has been 3 months (or more) in arrears during the preceding 3 months. Profile Indicators such as 'W' (Written Off), 'P' (Pending Litigation), etc. also qualify for a score value of 50.

50 refers to your score for that account, which would disadvantage you.

Also 2:

The ICB holds information about borrowers and their loans for 5 years after the loan is closed.

This means that even if a previously problem loan is cleared in full, lenders will be able to see it on your record for 5 years after the last repayment. Obviously, at different times they would have read this information in different ways.

The main thing is to always pay on time and keep borrowings within a level so that you can keep up repayments if something happens.

Raskolnikov

JajaD wrote: »

Im new to this post.
Im a 23 year old student. Ill be finished with college in the next 2 years. I plan to be a secondary school teacher. I have a student account with BOI, and currently have maxed out my 400 euro credit card and 600 overdraft.

I dont have any savings as im only working as a part time student.

My question is, Will my credit rating be affected because of my OD and credit card or will having a student account help my circumstance ie when i start working full time and have a normal account will they then start my credit rating?

I really want to start saving for a house now. I dont have any loans taken out.

I had a bank account that was constantly overdrawn. I recently requested a credit check from the ICB and there was no mention of the overdraft or arrears. It did however have the previous history of two loans that I took out with the bank.

My guess is that they only monitor credit card payments, mortgages and personal loans.

D3PO

Raskolnikov wrote: »

I had a bank account that was constantly overdrawn. I recently requested a credit check from the ICB and there was no mention of the overdraft or arrears. It did however have the previous history of two loans that I took out with the bank.

My guess is that they only monitor credit card payments, mortgages and personal loans.

it completly depends. I checked mine last year to make sure no body was attempting to steal my identify and no mention of my mortgage on it at all. I would have though a spotless mortgage payment record would be on it but zero mention of it at all.

Raskolnikov

D3PO wrote: »

it completly depends. I checked mine last year to make sure no body was attempting to steal my identify and no mention of my mortgage on it at all. I would have though a spotless mortgage payment record would be on it but zero mention of it at all.

Unless your name and address match up exactly with what you ask the ICB to check, you may miss part of your credit history. Is the mortgage in your name? If not then the ICB won't pick it up. Also, did you provide your full name (including middle name) when you requested your credit report?

From what I can see, the ICB system is quite flawed in this respect.

D3PO

Raskolnikov wrote: »

Unless your name and address match up exactly with what you ask the ICB to check, you may miss part of your credit history. Is the mortgage in your name? If not then the ICB won't pick it up. Also, did you provide your full name (including middle name) when you requested your credit report?

From what I can see, the ICB system is quite flawed in this respect.

or my bank were too lazy to submit the info

Everything I asked for was correct. All my other banking detail with my mortgage providor was on there re my other financial transactions.

Mind you if it is genuinely flawed it makes the whole thing pointless.

Naked Lepper

Treehouse72 wrote: »

Property prices will be 30% - 40% lower in 5 years. Nothing can stop this absent Ireland striking oil.

lol.