Buying a house 2013!

kennyb3

+ solicitors etc costs. Basically you don't have enough money to buy at present even if you had the repayment capacity.

janeybaby

Thanks Killers - would have been good if that was explained to me in the first instance..
I had come out of the initial meeting feeling quite hopeful so yesterday was a real knock.

If I went to a broker or an advisor would they reitterate what I have been told already or would it be worth trying?

janeybaby

Thanks D3PO & Kennyb3 - really feeling like my application was just taken to meet bank mortgage targets now but good to have the info..much appreciated!

D3PO

janeybaby wrote: »

Thanks Killers - would have been good if that was explained to me in the first instance..
I had come out of the initial meeting feeling quite hopeful so yesterday was a real knock.

If I went to a broker or an advisor would they reitterate what I have been told already or would it be worth trying?

FYI Killers is a broker and a damn good one at that by all reccomendations and comments on this forum.

Be a good idea to PM him and arrange a chat.

nibtrix

janeybaby wrote: »

Thanks Killers - would have been good if that was explained to me in the first instance..
I had come out of the initial meeting feeling quite hopeful so yesterday was a real knock.

If I went to a broker or an advisor would they reitterate what I have been told already or would it be worth trying?

Killers1 is a broker. We went to him and he showed us that we would be very close to showing the repayment capacity for the amount we wanted. He was able to help us pull together some proof of recent loan repayments etc that brought us up to the needed amount. If we had sent the application in directly it would have been rejected, and like you, we wouldn't have been told why.

If you're in Dublin and decide to go to a broker I highly recommend Killers, and if you look through the forum you'll find many other recommendations for him!

We've recently gone sale agreed and apart from the loan documents he's helped us with the valuer, the surveyor and gave quotes for a solicitor (although we had our own it was great to compare the quotes).

kennyb3

Have a quote of €221 from La brokers for mortgage protection - it mentions you can pay the first year in advance for €44. Is there any catch? Are you stuck for a minimum period of time?

Shedite27

What are the differences between getting a mortgage before and after marriage (ie as a unmarried couple V as a married couple).

Are there any extra levels of complexity/costs involved in either? If you were going to be buying and marrying within 6 months of each other is there a benefit to either?

D3PO

Shedite27 wrote: »

What are the differences between getting a mortgage before and after marriage (ie as a unmarried couple V as a married couple).

Are there any extra levels of complexity/costs involved in either? If you were going to be buying and marrying within 6 months of each other is there a benefit to either?

No benefits that I can think of bar if your married depending on your respective salaries you may be able to work your tax liability in such asway using your credits that you pay less and therefore might have the tiniest tiniest difference in what you would qualify for mortgage wise (although i suspect probably not)

killers1

D3PO wrote: »

No benefits that I can think of bar if your married depending on your respective salaries you may be able to work your tax liability in such asway using your credits that you pay less and therefore might have the tiniest tiniest difference in what you would qualify for mortgage wise (although i suspect probably not)

+1. The only other difference it makes is if either of you are not employed. If that is the case you'll get a higher loan amount if the sole earner applies in their own name prior to getting married. If you apply after marriage the bank will insist both people are party to the loan which will mean a lower loan amount being made available.

Shedite27

Thanks, both salaries are close so that shouldn't make much/any difference. I was just wondering if mortgage providers considered a marriage more secure so less risk of defaulting or anything.

killers1

Shedite27 wrote: »

Thanks, both salaries are close so that shouldn't make much/any difference. I was just wondering if mortgage providers considered a marriage more secure so less risk of defaulting or anything.

Not really. Obviously there is more comfort for the bank if there are 2 applicants and 2 incomes to fall back on but if the sole applicant meets the criteria based on income & repayment capacity in their own right the bank will still be more than happy to lend to them on their own.

kennyb3

kennyb3 wrote: »

Have a quote of €221 from La brokers for mortgage protection - it mentions you can pay the first year in advance for €44. Is there any catch? Are you stuck for a minimum period of time?

Any thoughts?

Skipper12

Hi,

Currently in the process of buying a house and I just want to recommend Killers1 from on here to anyone that is thinking of buying or are in the process of buying. He has always been spot on with any information that he has given us so far and has responded to phone calls and e-mails without any delay.

We are at the early stages but his advice has been really helpful and I would strongly recommend anyone in the same situation to contact Killers1.

We have narrowed down our search and actually have a live bid on one at present. Will update as things progress

Thanks Killian!

Glenbhoy

kennyb3 wrote: »

Any thoughts?

I used them back when we first purchased. It was a fairly standard MPP deal, still have it even though we long ago sold the property.
Very similar deal to that you've mentioned. I paid practically nothing in year one and then about 240 p.a in a one off debit every jan. I can cancel the policy if I want, but i'm happy to keep it for the time being.
Note, I can cancel as I no longer have a mortgage, but if it's tied to a mortgage, then you most likely have to replace it with something offering the same level of protection as a condition of the mortgage - i'm sure our resident broker might be able to confirm that.

kennyb3

Glenbhoy wrote: »

I used them back when we first purchased. It was a fairly standard MPP deal, still have it even though we long ago sold the property.
Very similar deal to that you've mentioned. I paid practically nothing in year one and then about 240 p.a in a one off debit every jan. I can cancel the policy if I want, but i'm happy to keep it for the time being.
Note, I can cancel as I no longer have a mortgage, but if it's tied to a mortgage, then you most likely have to replace it with something offering the same level of protection as a condition of the mortgage - i'm sure our resident broker might be able to confirm that.

Why have you kept it if you've no mortgage? Seems a waste, no?

Glenbhoy

kennyb3 wrote: »

Why have you kept it if you've no mortgage? Seems a waste, no?

Relatively cheap form of life insurance for us, no medical or new forms - I'll cancel it in a few years time when the payout reduces further.

Melanoma

janeybaby wrote: »

Hi All,

Just wondering if anyone might be able to help - I applied to AIB for a mortgage approx
2 weeks ago of 145000 (over 30 years) as a single applicant and got word back yesterday that I was unsuccessful & the max they could offer was circa 100k. In the original meeting I was advised my extreme max would be between 155k-159k and that because I was looking for less, I was in a good position. This is my situation:

working in semi-state company on salary 37,000/year for the past 4 1/2 years (permanent & pensionable)
savings of just over 10k
Savings 400/month
Rent at home 200/month
no loans (owe 500 on a credit card)

On their response, I was told that because I was "borderline" on replayments it had to go to three lenders and it was the third who made the call on it & I should try to up my savings for the next 6-9months to reapply. Naturally, I am very disappointed after nearly 5 years saving & I don't particularly want to wait that length when my finances are already in a good place.

I am wondering firstly, if this has happened to anybody else and what steps they took? and secondly, does being a single applicant hugely reduce my chances?

Any help or advice would be greatly appreciated!!

Thanks guys...

Well there is the problem that soon there will be no permanent job as such. Just that you will be entitled to redundancy payments.

I know from personal experience paying the repayments on that salary would be hard. Once you have a house there will be several bills tv licence, property tax, esb, and maybe phone. Then there is just ongoing things like repairs and stuff you buy for it.

If later you ended up having dependent children and a spouse/partner ex partner that did not pay much you would be totally broke.


I think they should give it to you based on low property prices and the lower risk of falling into negative equity.

100,000 would be much easier to pay off. Maybe you could buy something acceptable with that. If you are in a city apartments are undervalued (not in remote places they should never have been built in) This is always the case when a recession occurs. Exit somewhere in the middle and it should be OK to cover legal fees etc.

Avoid ghost estates as the council might buy many of the left overs and move in a mixture that might contain some problems, in any event its normally better to live in an owner occupied estate.

I would advise you to get in now though, prices are reasonable and will more than like go up. Just be aware of the risk of inflation as the money supply might poke the fire and interest rates go up too despite no wage increases.

What will matter most is if emigration can be stopped or reversed.

Shedite27

I've been using the mortgage calculator or mortgages.ie to get an idea of repayments - they still include a column for "first year repayment including interest relief". I thought this was abolished in the last budget? Should this column be ignored for any mortgages taken out in 2013+

mel.b

Shedite27 wrote: »

I've been using the mortgage calculator or mortgages.ie to get an idea of repayments - they still include a column for "first year repayment including interest relief". I thought this was abolished in the last budget? Should this column be ignored for any mortgages taken out in 2013+

Yes it has been abolished.

Saying that i was in the revenue website yesterday and they still have it on their website too. Not even a mention that is was going to be / has now been abolished.

Skipper12

I probably sound like I am a Killers1 in disguise BUT I want to once again say how good he has been for us to date. Late last night he sent e-mails, replied to texts, even rang us to give advice. (Calmed us down and explained things with professionalism) He gave us advice on how to approach our next bid on the house and this has definitely helped us.

This morning e-mails, phone calls organising everything for use without any delay whatsoever. Solicitor, valuer, surveyor, dealing with bank etc etc

Nearly there now so its exciting times for us at this end but Killian has definitely made the whole process a lot more straightforward for us. What makes us appreciate Killers even more is that a guy we know is having a nightmare with his purchase arranging things so we have absolutely no qualms at all in recommending Killers from on here to him.

Galego

Looking to buy this year but reading the news one wonders how repossessions will be handled by the banks and how much these will depress prices in the market.


Glut of repossessed houses could depress prices ‘by up to 25%
http://www.irishexaminer.com/ireland/glut-of-repossessed-houses-could-depress-prices-by-up-to-25-224964.html

jay0109

I'd not hold my breath on seeing Repossessions reaching any sort of numbers which would have a knock on impact on house prices....as much as they should happen, they just wont.:mad:

makeorbrake

jay0109 wrote: »

I'd not hold my breath on seeing Repossessions reaching any sort of numbers which would have a knock on impact on house prices....as much as they should happen, they just wont.:mad:

The banana republic in (in)action - well and truly - if that remains to be the case!


What other country in the universe has not let the market develop naturally in this regard?

@Galego - I have been watching and waiting (and sticking the odd unsuccessful bid in) but to be honest, I'm getting fed up. Prices are still too high relative to where we are (as a country) and the local economy in relation to those properties. Slowly but surely going off the idea. Might just find something else for my hard earned savings.

sportfanatic

Some good news,
Got mortgage approval last week from BOI and AIB.

We have a long way to go yet before we buy, but we're in no panic. Fingers crossed we find what we are looking for, otherwise we are happy enough to rent for another while.

Thanks for the advice!

kennyb3

sportfanatic wrote: »

Some good news,
Got mortgage approval last week from BOI and AIB.

We have a long way to go yet before we buy, but we're in no panic. Fingers crossed we find what we are looking for, otherwise we are happy enough to rent for another while.

Thanks for the advice!

Congrats, best of look with the search

kennyb3

Couple of questions if I may for killers or a.n other.

1. It says in my solicitor doc's the closing date is usually 4 weeks after the exchange of contracts. Why is this? Time to give the solicitors to do searches etc?

2. What happens in a situation where you've exchanged contracts (signed on the dotted line and paid a contract deposit), if the bank then have some issue and won't issue the loan cheque (just thinking worst case scenario)

3. I'm at the stage where i'm about a day away from having my formal loan offer pack and survey report. Assuming both come through and the survey is okay - at what stage do I put house insurance/mortgage protection in place?

Should I give copies of these to the bank asap after they are in place to ensure there are no issues?

Thanks

lima

makeorbrake wrote: »

The banana republic in (in)action - well and truly - if that remains to be the case!


What other country in the universe has not let the market develop naturally in this regard?

@Galego - I have been watching and waiting (and sticking the odd unsuccessful bid in) but to be honest, I'm getting fed up. Prices are still too high relative to where we are (as a country) and the local economy in relation to those properties. Slowly but surely going off the idea. Might just find something else for my hard earned savings.

I really really hope this happens otherwise I don't think I'd be able to stay in this country with all the vested interested getting debt writeoffs and such. I've been waiting for 8 months now and yet nothing good has happened. I'm actually very suprised that certain houses have sold for their price, as some are really overpriced still. I'm more than happy to rent but would like to know either way at this stage whether truth and fairness will prevail or whether the irish vested interests will win and keep house proces propped up.

killers1

kennyb3 wrote: »

Couple of questions if I may for killers or a.n other.

1. It says in my solicitor doc's the closing date is usually 4 weeks after the exchange of contracts. Why is this? Time to give the solicitors to do searches etc?

2. What happens in a situation where you've exchanged contracts (signed on the dotted line and paid a contract deposit), if the bank then have some issue and won't issue the loan cheque (just thinking worst case scenario)

3. I'm at the stage where i'm about a day away from having my formal loan offer pack and survey report. Assuming both come through and the survey is okay - at what stage do I put house insurance/mortgage protection in place?

Should I give copies of these to the bank asap after they are in place to ensure there are no issues?

Thanks

Hi Kennyb3

To answer your questions...

1. The Searches take an hour and a half and are done on the day of closing. The 4 weeks mentioned by your solicitor is so God forbid someone might put them under pressure to work at anything other than 'solicitor pace'.. Once the contracts are exchanged you are pretty much at the end of the process. If your solicitor is saying 4 weeks from after YOU sign the contracts then it's to give the vendor time to sign them and allow for any additional paperwork etc... It's really just your solicitor using a general timeframe to give you an indication as to how long it can take. It's possible to close a couple of hours after the exchange of contracts!

2. You won't sign a contract without a loan offer in place. I'd never sign a loan offer which had underwriting type conditions on it and also ensure your life cover has been accepted (not necessarily activated). If your loan offer is just subject to the standard life cover, home ins, DD mandate conditions then it will never be revoked. Nowadays the purchasers solicitor tends to put a condition in the contracts to say it's subject to mortgage approval so that in the unlikely event the bank withdraw their offer you won't lose your deposit.

3. The life cover and home insurance need to activated and with the bank a few days prior to the date your solicitor will be requesting funds. I'd be inclined to activate life cover on signing contracts and home ins 4/5 days prior to cheque issue.

Any queries let me know

jay0109

Lima.....prepare to be disappointed I'm afraid.
The Prime Time special tonight on Mortgage arrears was an indication of how this is being spun

Monica Leech has set up yet another 'mortgage support group' and wants no one repossessed or 'evicted' as she insisted on saying
George Mordaunt saying how these deals with the banks (and yes, he got one) are so tough, you don't get to keep sky tv
A Irish Times letter writer who wants compassion for all, turns out to own 5 btl's and does'nt think it'll serve the banks or the country any use if he has to give them up. Anyway's, he created jobs with all the fees etc he paid when he bought all the gaffs
Woman who handed back her keys and was made 'homeless' (she actually went into council housing) can't understand why the council wouldn't bail her out in the 1st place so she could stay where she liked best

And the sole voice of reason was a German (who else!) living in Ireland who stressed that those (like yourself probably and defo like myself...I bough a small gaff that I could afford in an average area, that's now to small for my expanding family) who acted prudently during the boom should'nt be made to pay for the people who did'nt or who just lucked out...especially not at the future expense of these people.

How are you ever supposed to buy a gaff or trade up when so many people and landlords have the market tied up even though they can no longer afford it....but are being allowed to keep all and sundry, as even the thought of downgrading, let alone dispossessing, them is too much for the people above to entertain.

Frankly Lima, we dont matter....we played it safe and it's blown up in our faces

kennyb3

Killers really appreciate your input - thanks.