Buying a house 2013!

nibtrix

quad_red wrote: »

And the EA is addressing this by producing an impossible BER cert.

If you get the BER cert number you can look it up on https://ndber.seai.ie/pass/ber/search.aspx

collegeme

Are the banks actually lending? Other half been out of work for years but been working none stop since gaining a permanent job mid last year. I work part time and we are looking at trading up. I don't feel optimistic of being mortgage approved for some reason though.

killers1

collegeme wrote: »

Are the banks actually lending? Other half been out of work for years but been working none stop since gaining a permanent job mid last year. I work part time and we are looking at trading up. I don't feel optimistic of being mortgage approved for some reason though.

Banks will lend where an applicant's salary qualifies for the amount applied for on the banks income calculator, have a proven repayment capacity for the stress tested repayments on the amount requested, a clean credit history and personal savings to put towards the purchase.

collegeme

killers1 wrote: »

Banks will lend where an applicant's salary qualifies for the amount applied for on the banks income calculator, have a proven repayment capacity for the stress tested repayments on the amount requested, a clean credit history and personal savings to put towards the purchase.

Thanks. I presume personal savings are not needed if you have equity in current home.?

killers1

collegeme wrote: »

Thanks. I presume personal savings are not needed if you have equity in current home.?

Banks will always like to see applicants have some level of personal savings outside of equity in the existing property. Are you planning on taking on a larger/smaller mortgage? Without some accurate details it's very hard to give you an idea of your chances.

collegeme

killers1 wrote: »

Banks will always like to see applicants have some level of personal savings outside of equity in the existing property. Are you planning on taking on a larger/smaller mortgage? Without some accurate details it's very hard to give you an idea of your chances.

Taking on a larger mortgage but current mortgage only has 14years left on it and since both applicants are under 35, we were thinking of spreading new mortgage over 20/25 years. We would need a 70-80%ltv on the new house with the rest coming fom selling our current home. We have no substantial savings and the only barrier I could foresee was the full time worker in our household has only been employed for the past 9 months. But no arrears ever occurred in the last 10years of our mortgage.

sportfanatic

Hi all,
I know this has probably been answered in previous threads but I'd appreciate some feedback please!
Myself and the girlfriend are meeting a few of the banks in a few weeks (BOI & AIB). I don't want to be too optimistic, but what are the chances of us getting mortgage approval based on the following;
- I'm in a full time permanent job for the past 3.5yrs on a salary of 37,100.
- girlfriend is in a full time permanent job for the past 5 years on a salary of 46,000
- I'm 29 and she's 27
- we have been paying rent, 1,050 for the past 18 months
- saving for the past 12months and now have 10,000
- both sets of parents are giving us a gift of a combined total of 12,000
- I have a loan of 4000 to be repaid over the next 4 years( engagement ring!)
- she has a car loan of 6000

We are looking for a mortgage of about 220,000..... What's the chances?

killers1

collegeme wrote: »

Taking on a larger mortgage but current mortgage only has 14years left on it and since both applicants are under 35, we were thinking of spreading new mortgage over 20/25 years. We would need a 70-80%ltv on the new house with the rest coming fom selling our current home. We have no substantial savings and the only barrier I could foresee was the full time worker in our household has only been employed for the past 9 months. But no arrears ever occurred in the last 10years of our mortgage.

If the stressed repayments on the higher mortgage over the longer term amounts to less than your current actual repayment you should be ok provided there is sufficient equity to cover legal fees, stamp duty etc... The fact that the main income earner is 9 months in current job isn't a huge issue once they're permanent. AIB would consider after 6 months and others 1 yr. If you haven't sold your house yet you should be in a position to apply everywhere when the time comes.

killers1

sportfanatic wrote: »

Hi all,
I know this has probably been answered in previous threads but I'd appreciate some feedback please!
Myself and the girlfriend are meeting a few of the banks in a few weeks (BOI & AIB). I don't want to be too optimistic, but what are the chances of us getting mortgage approval based on the following;
- I'm in a full time permanent job for the past 3.5yrs on a salary of 37,100.
- girlfriend is in a full time permanent job for the past 5 years on a salary of 46,000
- I'm 29 and she's 27
- we have been paying rent, 1,050 for the past 18 months
- saving for the past 12months and now have 10,000
- both sets of parents are giving us a gift of a combined total of 12,000
- I have a loan of 4000 to be repaid over the next 4 years( engagement ring!)
- she has a car loan of 6000

We are looking for a mortgage of about 220,000..... What's the chances?

How much do you save per month? What are the monthly repayments on both loans?

sportfanatic

Both of us repaying about 180-220 each on loans and saving 450 each per month

killers1

sportfanatic wrote: »

Both of us repaying about 180-220 each on loans and saving 450 each per month

Very straightforward. You have sufficient salaries, a proven repayment capacity and circa €10k of own funds. You'll be approved for the €220k you need.

sportfanatic

Thanks killers, hopefully it goes that smoothly!

makeorbrake

nibtrix wrote: »

If you get the BER cert number you can look it up on https://ndber.seai.ie/pass/ber/search.aspx

Perhaps they never actually got a BER cert for it!

There are some factors whereby a certain house type may fare better than another (other than the obvious). If the house is terraced, then it is likely to rate well.

crazy_kenny

sportfanatic wrote: »

Hi all,
I know this has probably been answered in previous threads but I'd appreciate some feedback please!
Myself and the girlfriend are meeting a few of the banks in a few weeks (BOI & AIB). I don't want to be too optimistic, but what are the chances of us getting mortgage approval based on the following;
- I'm in a full time permanent job for the past 3.5yrs on a salary of 37,100.
- girlfriend is in a full time permanent job for the past 5 years on a salary of 46,000
- I'm 29 and she's 27
- we have been paying rent, 1,050 for the past 18 months
- saving for the past 12months and now have 10,000
- both sets of parents are giving us a gift of a combined total of 12,000
- I have a loan of 4000 to be repaid over the next 4 years( engagement ring!)
- she has a car loan of 6000

We are looking for a mortgage of about 220,000..... What's the chances?

I think the 10000 loan will count against you. I'm in a similar situation. I applied to Aib for 155000 mortgage. I earn 62000 pa. In a full time position. Clean credit history. Car loan of 1200 euro. They offered me 130000 rising to 140000 if the car loan was paid off. If I was you I would pay off both loans and continue saving the extra funds per month.

fricatus

crazy_kenny wrote: »

I think the 10000 loan will count against you. I'm in a similar situation. I applied to Aib for 155000 mortgage. I earn 62000 pa. In a full time position. Clean credit history. Car loan of 1200 euro. They offered me 130000 rising to 140000 if the car loan was paid off. If I was you I would pay off both loans and continue saving the extra funds per month.

+1

Definitely pay off the loans - can they be paid early without penalty?

If you can show the bank statements showing the loans being paid off, that pretty much counts as evidence of saving. We showed them credit card statements with no new borrowing, and dropping by an amount each month until they were paid off - they took those as evidence.

killers1

crazy_kenny wrote: »

I think the 10000 loan will count against you. I'm in a similar situation. I applied to Aib for 155000 mortgage. I earn 62000 pa. In a full time position. Clean credit history. Car loan of 1200 euro. They offered me 130000 rising to 140000 if the car loan was paid off. If I was you I would pay off both loans and continue saving the extra funds per month.

You can't compare one application with another as there will be completely different variables at play. Your ages, number of dependents, single/joint application, living at home/renting, monthly savings contribution etc etc.. Your salary of €62k would be sufficient to borrow well in excess of €130k if you have a proven repayment capacity to borrow a higher amount which the bank felt you don't have or else you have a number of kids which is reducing the loan amount you can borrow when the application is stress tested..

kennyb3

Anyone got an idea of how much outlay would be at present? Broken down if possible.

Trying to get total solicitor cost (know prof fee + vat)

killers1

kennyb3 wrote: »

Anyone got an idea of how much outlay would be at present? Broken down if possible.

Trying to get total solicitor cost (know prof fee + vat)

Outlays would be something like this;

Land Registry fees – Transfer – €600

Land registry fees – Mortgage €175

Copy Folio & Map - €40
Searches €75
Commissioners Fees €22



Then you'll have the actual solicitors fee which can vary greatly (less than €750 is very good), VAT on the Prof fee @ 23% & Stamp Duty of 1% of purchase price.

kennyb3

So about €1,900 all in based on a prof fee of €800+vat if i'm getting that right. Thanks

Is the €600 in every case? I was reading about differences on whether it's a first register v a second hand home.

killers1

kennyb3 wrote: »

So about €1,900 all in based on a prof fee of €800+vat if i'm getting that right. Thanks

Is the €600 in every case? I was reading about differences on whether it's a first register v a second hand home.

There are differences in first reg homes but solicitor can't give you accurate quote until they receive contracts. If the fee is coming in at less than €2k it's a decent quote

Belfunk

Hi Killers,

You maybe able to advise me.

Myself and my partner have 30k in savings and are looking to borrow 210k. BOI have approved me for 150k but will not put my partner on the application as she is only on an 18 month contract with work. For the past 4 years she has been employed and is likely to have her contract extended.

Are banks lending to people on contracts? Should we wait to see if she can get permanent employment before applying elsewhere?

Thanks,
B

killers1

Belfunk wrote: »

Hi Killers,

You maybe able to advise me.

Myself and my partner have 30k in savings and are looking to borrow 210k. BOI have approved me for 150k but will not put my partner on the application as she is only on an 18 month contract with work. For the past 4 years she has been employed and is likely to have her contract extended.

Are banks lending to people on contracts? Should we wait to see if she can get permanent employment before applying elsewhere?

Thanks,
B

Boi are very black & white when it comes to contract employees and won't factor their incomes in. AIB would tend to consider them more often but it would depend on your partners occupation, qualifications, whether she has been on contract with her current employer for 4 yrs on a rolling basis, if her employer can provide some comfort around her contract being renewed and what they see her chances of securing employment elsewhere at a level that would be sufficient for you to meet the obligation of a €210k mortgage in the event of her contract not being renewed. I've had AIB approve a number of contract employees recently but they've also just declined one yesterday on the basis that the applicant was only into her second yearly contract. They indicated that if it was her 3/4th contract they probably would have approved it.

D3PO

Belfunk wrote: »

Are banks lending to people on contracts? Should we wait to see if she can get permanent employment before applying elsewhere?

Thanks,
B

they shouldnt be. We want a prudent lending policy in our banks not one lending to people who could be out of work not long after being granted a mortgage.

killers1

D3PO wrote: »

they shouldnt be. We want a prudent lending policy in our banks not one lending to people who could be out of work not long after being granted a mortgage.

They'll almost never lend to a contract employee as a single applicant or a couple where the contract employee's full income is needed to qualify for the amount needed. They tend to go with qualified individuals who have good employment prospects if their current contract isn't renewed or where contract employment is standard for the industry e.g scientific researchers etc.

Belfunk

30k wage with a masters and working for a semi state company. If the contract was not renewed we are fairly confident she wouldn't be out of work for long and would be on a 5 to 10k more.

Looks like we should hold off for a while as AIB told her no before we even submitted an application due to her being on contract work.

Thanks

killers1 wrote: »

Boi are very black & white when it comes to contract employees and won't factor their incomes in. AIB would tend to consider them more often but it would depend on your partners occupation, qualifications, whether she has been on contract with her current employer for 4 yrs on a rolling basis, if her employer can provide some comfort around her contract being renewed and what they see her chances of securing employment elsewhere at a level that would be sufficient for you to meet the obligation of a €210k mortgage in the event of her contract not being renewed. I've had AIB approve a number of contract employees recently but they've also just declined one yesterday on the basis that the applicant was only into her second yearly contract. They indicated that if it was her 3/4th contract they probably would have approved it.

killers1

Belfunk wrote: »

30k wage with a masters and working for a semi state company. If the contract was not renewed we are fairly confident she wouldn't be out of work for long and would be on a 5 to 10k more.

Looks like we should hold off for a while as AIB told her no before we even submitted an application due to her being on contract work.

Thanks

If she just rang AIB or spoke to an advisor in a branch and asked the question 'can I get a mortgage being a contract employee?' the answer will always be 'no'. The application needs to stack up and be sent to the Underwriters to make the decision, not someone just quoting general Credit Policy to you...There's no disadvantage to you if you are declined now on the basis that she is on a contract as it won't effect a future application if she is in a permanent role as it's a completely different set of circumstances.

D3PO

Belfunk wrote: »

30k wage with a masters and working for a semi state company. If the contract was not renewed we are fairly confident she wouldn't be out of work for long and would be on a 5 to 10k more.

Looks like we should hold off for a while as AIB told her no before we even submitted an application due to her being on contract work.

Thanks

without sounding rude that attitude when it comes to looking to borrow is completely irresponsible. Theres a lot of people with masters out of work you cant jsut assume you will get another job handy if your contract isnt renewed.

Thankfully banks are now beginnig to cop on when it comes to applications.

Glenbhoy

D3PO wrote: »

they shouldnt be. We want a prudent lending policy in our banks not one lending to people who could be out of work not long after being granted a mortgage.

True, prudent lending is what we should aim for, but one rule catching all is not how to apply that.
For example, I have been through the full range of employment status over the past decade and now as a permanent employee again, I would see my income as being the least secure it's ever been (not to mention lower!!). I know that a loan assessor looking on wouldn't know that though, company has a good name, 20 yrs in business (even our own bank wouldn't have any major concerns). Basically what I am saying is that permanent means very little nowadays as outside of the public sector (and some sectors such as banking??), there are very few people who stay with one company in a permanent pensionable position for 40 yrs.

kennyb3

Another couple of questions that I thought of last night;

Whats the situation with seeing the BER report (the actual report giving the issues and recommendations to improve as opposed to just the cert). Okay to try request that before making an offer? Likely to be released? Or is a copy of the cert the most your likely to get?

Also what about an inventory list - just informally ask at the viewing about what is/isn't included?

Belfunk

D3PO wrote: »

without sounding rude that attitude when it comes to looking to borrow is completely irresponsible. Theres a lot of people with masters out of work you cant jsut assume you will get another job handy if your contract isnt renewed.

Thankfully banks are now beginnig to cop on when it comes to applications.

Point taken however you have no idea of our circumstances the nature of her employment is always going to be on contract work.

If we didn't think we could afford it we wouldn't be trying to borrow it.