Buying a house 2012

Glenbhoy

ted1 wrote: »

well if you qualify for interest relief before Christmas and not after, the banks may reduce the amount on offer on the basis that you'll be quid less off per 100,000 per month.

Also you apply for interest relief around the same Time off your first payment, so I'm not to sure when it'll kick in.

is it when sign the contract?
when the solicitor files the paperwork?
when the bank come looking for the first payment?

You should look into this.

Not sure what you mean by 100k per month - in any case, it's supposedly irrelevant with regards to the amount that will be offered as bank do not take interest relief into account when working out affordability and max loan servicing capability etc.

ted1

200k is roughly 200 euro relief, 300k is roughly 300 euro.

Glenbhoy

Catweasel wrote: »

I'm sure this question has been asked before but I just can't find the exact answer to my question. I owned a house before for about 5 years before selling when I moved home from Dublin. Now I'm buying again but the vendor has asked for the closing date to be delayed until January - basicly just so he can have a less hassled Christmas. So two questions - I'm not sure if I qualify for Mortgage interest relief having owned a house before........ not clear from the revenue website. Just wondering if anyone knows if I am entitled until 2017 or is it restricted by the relief I previously claimed. The other question is obviously when is the trigger for being eligible for the relief - on signing of contracts which will be before Christmas or on closing after Christmas. On first appearances it looks like delaying might cost be a lot.

Thanks for any advice.

Given the current situation, my understanding is that you will be entitled to 2 years at the 'FTB' rates, i.e. 25% and the remaining years prior to 2017 will be at 15% - this is because you have already benefited from 5 yrs at the top rate, giving you seven years in total.
Remember of course, it's restricted to 10,000 per person, so the max saving you can make is €2500 per person for yrs 1 & 2 and €1500 per person for the remaining 3 or 4 years. I've said it before on here, it's not that much really.

SannB

Catweasel wrote: »

ted1 wrote: »

You should be able to claim it provided you buy before the new year.

Cheers. By this do you mean contracts signed or closing date before year?(

You have to draw down the mortgage before the year is out. You can apply for the MIR after that then.

sparrowcar

Closing date delayed to the 30th Oct and moving out of apartment on the 16th. Homeless for the next 2 weeks but at least something finally to look forward too.

Lenny

Can anyone recommend an engineer and also their prices please.pm me

Lenny

Has anyone used fahy fitzpatrick before as engineers

orlaanne

sparrowcar wrote: »

Closing date delayed to the 30th Oct and moving out of apartment on the 16th. Homeless for the next 2 weeks but at least something finally to look forward too.

I wonder how common this is for closing dates to get delayed. We went looking at furniture at the weekend and any time we mentioned we were closing next month the sales assistants all laughed and said "oh yeah we hear that a lot "I'm getting the keys next week" and then it's pushed out for ages" Umm thanks, I think I'll leave that couch

L1011

Contracts signed, notional closing date set (7 days after an event that has yet to happen, a probate grant). Starting to feel real, so I'm starting to feel VERY old.

DavyD_83

orlaanne wrote: »

I wonder how common this is for closing dates to get delayed. We went looking at furniture at the weekend and any time we mentioned we were closing next month the sales assistants all laughed and said "oh yeah we hear that a lot "I'm getting the keys next week" and then it's pushed out for ages" Umm thanks, I think I'll leave that couch

Think it can vary hugely on case to case basis.
Try not to get too focussed on the date that has been floated unless it is Fully Confirmed, it may end up taking a little longer.
Hope for the best obviously, but just be aware that it may shift by days or weeks dependiong on situation and don't be too worried or disappointed if it does.
Good Luck!!

orlaanne

DavyD_83 wrote: »

Think it can vary hugely on case to case basis.
Try not to get too focussed on the date that has been floated unless it is Fully Confirmed, it may end up taking a little longer.
Hope for the best obviously, but just be aware that it may shift by days or weeks dependiong on situation and don't be too worried or disappointed if it does.
Good Luck!!

There was a date in our contracts but I had to push back because I'm out of the country that one day. But if they corrected it to a day later and we signed I wonder would they have to stick to it because it's a legal document?

killers1

orlaanne wrote: »

There was a date in our contracts but I had to push back because I'm out of the country that one day. But if they corrected it to a day later and we signed I wonder would they have to stick to it because it's a legal document?

The mantra of a conveyancing solicitor 'closing dates in contracts are for guideline purposes only'....

efb

Moving date 26th Oct!!!

Felexicon

efb wrote: »

Moving date 26th Oct!!!

BOOM!!!!!!!!! Get in.
Congratulations. It's an awesome feeling the first time you turn the key in the door

gmisk

I think I might have had a bid accepted on a house.....what are the chances of me getting everything done and dusted to get the mortgage interest relief?

folan

efb wrote: »

Moving date 26th Oct!!!

very jealous! were signing contracts hopefully on monday.

dublin8681

gmisk wrote: »

I think I might have had a bid accepted on a house.....what are the chances of me getting everything done and dusted to get the mortgage interest relief?

Highly likely - get valuer out asap..... get onto your solicitor and get them to get onto the vendors solicitor to get it moving! As soon as they receive the contracts instead of getting them to post them - drop into them and collect them (as you can read over them before you sign) so you can save a day or two instead of waiting on post. follow up with everyone..... get on and do your life assurance and make sure your home insurance and all is in place.....

folan

gmisk wrote: »

I think I might have had a bid accepted on a house.....what are the chances of me getting everything done and dusted to get the mortgage interest relief?

pretty decent. Keep on the EA and solicitors to keep everything moving forward, and get as much of the form filling out done as well and as quick as you can. the mortgage only has to be drawn down by dec 31st, as killers1 said a while ago.

however, since you say "might", ill assume that you aren't quite there. good luck, and remember that mir shouldnt be rushing you into a house.

gmisk

Thanks for that. I would be a bit lost minus the help of the lovely folks on here!
I rang revenue to just check 100% and it is only the draw down date that matters as Killers1 said phew.

orlaanne

Contracts arrived in the post yesterday, signing on Friday, booked some days off work to move, woohoo!

efb

folan wrote: »

very jealous! were signing contracts hopefully on monday.

Best of luck!!!

killers1

gmisk wrote: »

Thanks for that. I would be a bit lost minus the help of the lovely folks on here!
I rang revenue to just check 100% and it is only the draw down date that matters as Killers1 said phew.

Did you not believe me?! :rolleyes: Whilst the mortgage has until the 31st Dec to drawdown in reality you'll only have till around the 19th Dec as the banks have a cut off date for issuing loan cheques before Christmas and there will be no solicitors working the two days the Bank's open between Christmas & New Years...

beezlebub

Hi All,

Been and avid reader of this thread over the past while and singed up to ask some specific advice about my own situation. Killers has added very insightful contributions to this thread so I hope you could analyze my situation.

I have seen two properties i am interested in:

Property1: 100K to buy outright.
Property2: 100K on a rent to buy deal with 550 p/m rent over three years and 4K deposit up front.

I like property one much better but property two would allow me more time to get my finances in order.

I am a permanent private sector work with 10 years permanent employment.

My basic salary at the moment is 24,000 but with overtime (built in) and shift premium my basic take home is 2,400 per month. This overtime and premium has always been in my salary. Also i am getting additional overtime.

I will soon receive an increase to push my basic to 26K.

I am recently married and my first child will arrive in February 2013.

I have 7K in savings and am now saving 250 each and every week. I pay rent of 550 each month in cash but withdraw using the narrative rent from my account every month.

I have been saving in this way for two months now.

I have two previous loans on my ICB record which have been payed off in full years ago but the record will not be removed until April 2014.

I project to have 35-39k saved in 3 years time in which case i would be in a stronger position.

I have a few questions.

1. What hope would i have now of getting an application approved?

2. Saving 250 weekly and 550 a month rent what repayement capacity am i showing?

3. How would a wife and child affect my application in future? Is it true that AIB say 2000 is require for two people??? My wife will continue to run the house and look after the children into the future so childcare costs would not be an issue.

4. Am i saving enough or what could i improve.

5. I currently bank with PTSB (should i change?)

I hope someone can help me out. Thank you in advance

FastFullBack

Hey guys,
Looking for some advice. Agreed a price on a house about 2 months back. The house is a new development and included in the price will be a kitchen, tiling and timber floor (all still be to fitted but we've already picked them out)
Got loan approval about 6 weeks ago. We signed the contracts 2 weeks ago but our solicitor included a clause that the contract is subject to my loan approval. Basically if we have any issues drawing down the mortgage that I'm not liable. The developer is not happy with this clause and wont sign the contract until it is removed. He is saying that the contract would be legally binding for him but not for me.

I talked to a financial advisor today in work and he suggested this clause may be a little OTT and that there should be no issues in drawing down the mortgage because we have already got loan approval.

I'm now thinking of asking the solicitor to remove this clause so that the contract can be signed by both parties and the finish on the house can move ahead.

The alternative is to go ahead and draw down the mortgage now from AIB and only return the updated contract (without clause) once I know I have the money. This will delay the finish on the house by probably 2 weeks and also mean I'd have to pay the mortgage for about 2-3 weeks (at least) before I'm into the house.

What do you guys think? Is this type of clause standard nowadays? My solicitor says it is but the financial advisor has not heard of it being standard practice at all.

Do you think I'm safe to go ahead and ask for the clause to be removed?

Thanks

PS Killers, any advice here? You seems to be the man around here.

killers1

FastFullBack wrote: »

Hey guys,
Looking for some advice. Agreed a price on a house about 2 months back. The house is a new development and included in the price will be a kitchen, tiling and timber floor (all still be to fitted but we've already picked them out)
Got loan approval about 6 weeks ago. We signed the contracts 2 weeks ago but our solicitor included a clause that the contract is subject to my loan approval. Basically if we have any issues drawing down the mortgage that I'm not liable. The developer is not happy with this clause and wont sign the contract until it is removed. He is saying that the contract would be legally binding for him but not for me.

I talked to a financial advisor today in work and he suggested this clause may be a little OTT and that there should be no issues in drawing down the mortgage because we have already got loan approval.

I'm now thinking of asking the solicitor to remove this clause so that the contract can be signed by both parties and the finish on the house can move ahead.

The alternative is to go ahead and draw down the mortgage now from AIB and only return the updated contract (without clause) once I know I have the money. This will delay the finish on the house by probably 2 weeks and also mean I'd have to pay the mortgage for about 2-3 weeks (at least) before I'm into the house.

What do you guys think? Is this type of clause standard nowadays? My solicitor says it is but the financial advisor has not heard of it being standard practice at all.

Do you think I'm safe to go ahead and ask for the clause to be removed?

Thanks

PS Killers, any advice here? You seems to be the man around here.

What stage is the house at now and when does the builder anticipate it will be completed? What date is on your loan offer?

FastFullBack

killers1 wrote: »

What stage is the house at now and when does the builder anticipate it will be completed? What date is on your loan offer?

House is pretty much complete. It is plastered, painted, has power, water & gas. All that's pending is a kitchen which takes 2-3 weeks to deliver when ordered and a couple of days to fit. Tiling and timber floors need to be put down as well.
In total, from the day both parties sign the contract, it will take 4-5 weeks to do this finish.
The letter of offer was issued from AIB on August 28.

killers1

FastFullBack wrote: »

House is pretty much complete. It is plastered, painted, has power, water & gas. All that's pending is a kitchen which takes 2-3 weeks to deliver when ordered and a couple of days to fit. Tiling and timber floors need to be put down as well.
In total, from the day both parties sign the contract, it will take 4-5 weeks to do this finish.
The letter of offer was issued from AIB on August 28.

You'll be fine... AIB have changed their policy a little bit and loan offers are now valid for 6 months. Ask your solicitor to send a one-liner fax to AIB simply asking them to 're-issue the loan offer' and you will get a new loan offer valid for a further 3 months. They changed their policy in September and loan offers and approval in principles are now valid for 6 months as opposed to 3 so the loan offer dept should automatically just send out a new one without any underwriting requirements. I had a case recently where the loan offer was due to expire in 2 days and I chanced my arm and asked the solicitor to send in that fax and 2 days later she received a new loan offer valid for a further 3 months without any questions being asked. I'd suggest trying this over the next day or so and once the new loan offer arrives it will more than cover you for the closing timeframe involved and you can have that clause deleted to satisfy the builder.

killers1

beezlebub wrote: »

Hi All,

Been and avid reader of this thread over the past while and singed up to ask some specific advice about my own situation. Killers has added very insightful contributions to this thread so I hope you could analyze my situation.

I have seen two properties i am interested in:

Property1: 100K to buy outright.
Property2: 100K on a rent to buy deal with 550 p/m rent over three years and 4K deposit up front.

I like property one much better but property two would allow me more time to get my finances in order.

I am a permanent private sector work with 10 years permanent employment.

My basic salary at the moment is 24,000 but with overtime (built in) and shift premium my basic take home is 2,400 per month. This overtime and premium has always been in my salary. Also i am getting additional overtime.

I will soon receive an increase to push my basic to 26K.

I am recently married and my first child will arrive in February 2013.

I have 7K in savings and am now saving 250 each and every week. I pay rent of 550 each month in cash but withdraw using the narrative rent from my account every month.

I have been saving in this way for two months now.

I have two previous loans on my ICB record which have been payed off in full years ago but the record will not be removed until April 2014.

I project to have 35-39k saved in 3 years time in which case i would be in a stronger position.

I have a few questions.

1. What hope would i have now of getting an application approved?

2. Saving 250 weekly and 550 a month rent what repayement capacity am i showing?

3. How would a wife and child affect my application in future? Is it true that AIB say 2000 is require for two people??? My wife will continue to run the house and look after the children into the future so childcare costs would not be an issue.

4. Am i saving enough or what could i improve.

5. I currently bank with PTSB (should i change?)

I hope someone can help me out. Thank you in advance

The issue you have is that you are married so the bank will insist on your wife being party to the mortgage. AIB's guideline now is that a couple (with no dependents) need to have €2,050pm left over to live on after the stressed mortgage repayment is deducted from net salary. Add in a child and this figure increases to €2,300pm which is the majority of your salary leaving no scope to service a mortgage repayments. If you had applied as a single applicant prior to getting married you probably would have qualified for what you needed. If you go down the rent to buy route your chances of approval will be quite low unless there is a significant increase in your income or alternatively your wife secures full-time permanent employment for at least 6 months before you apply.

FastFullBack

killers1 wrote: »

You'll be fine... AIB have changed their policy a little bit and loan offers are now valid for 6 months. Ask your solicitor to send a one-liner fax to AIB simply asking them to 're-issue the loan offer' and you will get a new loan offer valid for a further 3 months. They changed their policy in September and loan offers and approval in principles are now valid for 6 months as opposed to 3 so the loan offer dept should automatically just send out a new one without any underwriting requirements. I had a case recently where the loan offer was due to expire in 2 days and I chanced my arm and asked the solicitor to send in that fax and 2 days later she received a new loan offer valid for a further 3 months without any questions being asked. I'd suggest trying this over the next day or so and once the new loan offer arrives it will more than cover you for the closing timeframe involved and you can have that clause deleted to satisfy the builder.

Thanks Killers. I wasnt actually too worried about the loan offer running out. Currently it is valid until the end of November and we'll do what you've outline if we dont draw down before then.

What do you think about that clause? I think it should be fine to remove that and move ahead with signing the contracts without it.

Thanks

killers1

FastFullBack wrote: »

Thanks Killers. I wasnt actually too worried about the loan offer running out. Currently it is valid until the end of November and we'll do what you've outline if we dont draw down before then.

What do you think about that clause? I think it should be fine to remove that and move ahead with signing the contracts without it.

Thanks

The only reason your solicitor is inserting that clause is their fear that the property wont be competed before the loan offer expires and then if for any reason AIB wouldn't re-approve the mortgage. If you can complete in the current loan offer timeframe great, if not then ask your solicitor to request a new loan offer which will buy you a further 3 months. There's no other reason for the clause being inserted. I presume you have life cover underwritten & accepted? This would be the only other reason the bank wouldn't honour a loan offer but I'm sure it's just the timeframe your solicitor is concerned about.