Mortgage HELP

rothai

Hi,
I'm applying for a mortgage. God there is so many options.
Fixed Rate Mortgage
Variable Rate Mortgage
Discount Rate Mortgage
Where do I go to compare them all? Where the hell do I start?
Any help would be savage!

skippy2

You can do plenty of research online for all of this

Fixed Rate is just that a fixed rate for a specific period of time maybe 3 - 5 years this normally then return to a variable rate

Variable rate is just that ie. it can change/vary at the decision of the Bank who issues it, this is in the news a lot at the moment as the banks can change it when they like so. Normally it is moved with the ECB rate which is the European Central Bank rate but this has not been so in recent times as banks try to recoup as much profit as possible

Discount rate would normally be a short term discount on the Standard Variable Rate...just to lure you in... you will normally pay later

One thing you MUST DO is not take any mortgage offer until you fully understand all you are getting into. This is the reason a lot of people are in trouble at present with their mortgages.

From you're post i suggest you need/have to do a lot more research before you embark on any mortgage. Make sure it is right for you and you can repay the monthly amount in the event of a change in your circumstances such as losing you're job etc if this could be a possibility. Try to build up a good deposit and avoid getting a too high Mortgage although i doubt if you will have a problem there.

Watch the property market ..........as prices may have further to fall but we wont start that argument here.

Don't forget the Property tax is coming so maybe put off till that is clarified so you know how it will be calculated
It could be calculated on the size of the property, or size of plot, or value of house so all these might make you change your mind on what/where you buy. Personally I would put off buying a house for a while till these and other things settle down

And as they used to say in one of those TV programmes....

"Be careful out there"

Hill Street Blues maybe....god is that showing my age or what

altoids

Hi

I was wondering if any of the banks are actually giving out mortgages? and what is the minimum deposit required now - i've heard a lot of talk that its 20%?
Does anyone know?

rothai

I've applied to boi, I'll let you know if they are giving them out. I'm going to try for a variable, hoping the rate doesn't rise!much.

killers1

altoids wrote: »

Hi

I was wondering if any of the banks are actually giving out mortgages? and what is the minimum deposit required now - i've heard a lot of talk that its 20%?
Does anyone know?

Banks are lending as follows to first time buyers;

AIB 92%
BOI 92%
ICS 90%
Ptsb 90%
KBC 80%

killers1

rothai wrote: »

I've applied to boi, I'll let you know if they are giving them out. I'm going to try for a variable, hoping the rate doesn't rise!much.

I'd suggest you apply to AIB also, their variable rate is cheaper than BOI

altoids

thank you!!

Kev.

Whatever you do please dont go near the PTSB,

Absolute thieves charging 5.19%....

killers1

Kev. wrote: »

Whatever you do please dont go near the PTSB,

Absolute thieves charging 5.19%....

ptsb have recently shown signs that they may be making a comeback into the market with a variable rate of 3.69% for new business although they are still more expensive than AIB & BOI

locomo

killers1 wrote: »

Banks are lending as follows to first time buyers;

AIB 92%
BOI 92%
ICS 90%
Ptsb 90%
KBC 80%

What about EBS? Is it true they are not lending at all?

killers1

locomo wrote: »

killers1 wrote: »

Banks are lending as follows to first time buyers;

AIB 92%
BOI 92%
ICS 90%
Ptsb 90%
KBC 80%

What about EBS? Is it true they are not lending at all?

EBS will say they lend up to 92% but they are not very active in the Market. They're in the process of being taken over by AIB and currently don't have the money to lend.. They're Intermediary Channel Haven Mortgages are virtually closed for business until the takeover is completed.

fair play for ever

killers1 wrote: »

EBS will say they lend up to 92% but they are not very active in the Market. They're in the process of being taken over by AIB and currently don't have the money to lend.. They're Intermediary Channel Haven Mortgages are virtually closed for business until the takeover is completed.

Only two banks really lending and they are BoI and KBC.EBS very active until December 2010 when they started to put every obstacle in place to allow loans through(also made it very difficult to get your remaining stage payments). It appears that they have to waste money on advertising just to be seen by the government to be lending(more optics).
Be careful of introductory discounted rates.
Caught for time now but when you are approved let us know and I will give my twopence on Fixed v Variable.you can opt for a fixed/variable up to the date of drawing down the mortgage.However dont chop and change your mind too often as you need your advisor on your side and not fed up of you.

killers1

fair play for ever wrote: »

Only two banks really lending and they are BoI and KBC.EBS very active until December 2010 when they started to put every obstacle in place to allow loans through(also made it very difficult to get your remaining stage payments). It appears that they have to waste money on advertising just to be seen by the government to be lending(more optics).
Be careful of introductory discounted rates.
Caught for time now but when you are approved let us know and I will give my twopence on Fixed v Variable.you can opt for a fixed/variable up to the date of drawing down the mortgage.However dont chop and change your mind too often as you need your advisor on your side and not fed up of you.

To say that BoI & KBC are the only two banks lending is completely wrong & misleading... All banks will lend where the application meets their criteria (just some banks have tighter criteria than others!). AIB have the cheapest variable rate on the market at the moment and as a mortgage broker I am currently placing 90% of applications with them which are all being approved...Their statistics show that they are sanctioning 4/5 loan applications. KBC will only lend 80% of the purchase price too which doesn't suit a lot of first time buyers.

fair play for ever

killers1 wrote: »

To say that BoI & KBC are the only two banks lending is completely wrong & misleading... All banks will lend where the application meets their criteria (just some banks have tighter criteria than others!). AIB have the cheapest variable rate on the market at the moment and as a mortgage broker I am currently placing 90% of applications with them which are all being approved...Their statistics show that they are sanctioning 4/5 loan applications. KBC will only lend 80% of the purchase price too which doesn't suit a lot of first time buyers.

You are the expert and I dont mean to be smart with that comment(thought better add that in).Would it be fair to say only 3 banks lending so.My view on AIB is based on what my own manager told me(off the record and I wasnt borrowing)It may depend on area and I know that there are some excellent brokers out there who have a good hit rate and get through loans that others wouldnt(including bank staff). I would imagine the quality of the applications coming through at the moment should be good as only a madman would borrow if they hadn't job security and the average amount being borrowed must be nearer 150k now than nearly 300k in the past.

killers1

fair play for ever wrote: »

You are the expert and I dont mean to be smart with that comment(thought better add that in).Would it be fair to say only 3 banks lending so.My view on AIB is based on what my own manager told me(off the record and I wasnt borrowing)It may depend on area and I know that there are some excellent brokers out there who have a good hit rate and get through loans that others wouldnt(including bank staff). I would imagine the quality of the applications coming through at the moment should be good as only a madman would borrow if they hadn't job security and the average amount being borrowed must be nearer 150k now than nearly 300k in the past.

It would be fair to say that 3 banks are lending - particularly in the Broker market. All banks will say they are 'open for business' but some will find any reason to decline an application whereas others who are anxious to lend will support it. To be honest it is more important than ever that people deal with a good broker for mortgage applications nowadays as there is the perception that banks aren't lending so applicants are happy to get 'any' approval even though it may be from a lender with hugely more expensive rates when they don't realise they may have gotten approval from a cheaper bank. Basically to qualify for a mortgage you need the following;

1. Be in permanent full-time employment
2. Be able to prove that you can afford the proposed monthly repayment +2% stressed. E.g. stressed repayment is €1,200. Applicants save €500pm, recently repaid a loan of €200pm & pay rent of €500pm. They have shown they have the capacity to afford outgoings totalling €1,200pm
3. Savings of some description. The banks don't mind a parental gift towards the purchase but like to see that the clients have manged their finances in such as way that they were able to save at the same time.

The above list is not exhaustive but if you can meet these three things then each bank will seriously assess your application. The other point in relation to using a broker is that any underwriter in the bank will tell you that the decision is based 50% on the information & 50% on the way it is packaged so a good broker will know the particular bank's credit policy and will be able to package the application in such a way that it makes sense to the underwriter to approve the loan.

The quality of applications have improved as you say because people don't really apply unless they think they have a chance. It may also have gone too far that way and people don't apply for a mortgage in the thought that they would be declined where in fact they would get an approval. The loan amounts requested have certainly dropped too over the years as property prices have halved...Mortgage Discussions are regular pub talk conversations but people take advice from their friends who can only relate their particular experience. No two mortgage applications are the same and each should be treated on it's own merits.. If you had a brain tumour you'd talk to a neurologist as opposed to taking advice from your friends discussed over a pint!!! (Rant over - apologies!)