Mortgage chances?

shaviebeby

Hi guys,
Myself and my boyf have applied for a mortgage with AIB. I would just like to know what are our chances. We both have permanent jobs and our combined wages are 80,000 per year. We have paid rent of 730 monthly for over a year and for that period we are also saving about 1000 a month. Are banks lending?
Also, we have viewed a house we really like and are wondering how long it will take AIB to give us answer?

Thanks,
Shavie.

L1011

How much is the house and how much do you have saved in total (beyond the 12k)? Both of those are fairly important in whether you'll get approval or not.

shaviebeby

MYOB wrote: »

How much is the house and how much do you have saved in total (beyond the 12k)? Both of those are fairly important in whether you'll get approval or not.

Hi,
We have 35k in total. House is on market for 290k, probably get it for 275.

Trish56

You will have no problem qualifying for a 92% mortgage on those figures with AIB or any other lender. AIB are slow at the moment and are taking approx. 10 working days to issue 'An Approval in Principle'

Best of Luck
Trish 56

Henry Ford III

Is 92% not very highly geared?

the groutch

I'm assuming here you don't have kids, but a bank might wonder with why with a net income of approx €4,500pm and relatively low outgoings you've only been saving €1,000 per month.

Going from rent of €700 to a mortgage of €1,100-€1,200 (which will increase with inevitable interest rate increases), plus property tax, house & contents insurance, water rates on the way etc, they will want to be sure that good at managing your finances.

otherwise you seem to be an ideal candidate for a mortgage.

Moonbeam

It depends, you both have average incomes and some savings so the banks should approve you but maybe not for that much. Go talk to them and see.
Good Luck:)

Scortho

Henry Ford III wrote: »

Is 92% not very highly geared?

It is. But there are still some people in this country, who want a house and want it now, rather than save like crazy for another year.

Im surprised banks are even lending at 92%. Or even 82%. Doesnt give them much room for any future negative equity that may arise.

shaviebeby

Thanks!!
We probably save more than €1000 a month. We just put €1000 into our savings, probably about €1200. Also, within the last year we've had a two week holiday to America (€6000) and a week in Lanzarote (€2000).
They said approval in principle takes about 2-3 days but I saw other posts saying 2 weeks!!

L1011

BOI at least were entirely willing to accept holidays/travel as a reason for lower than expectable savings for me. However, I was borrowing a lower LTV and a lower multiple and its a different bank...

killers1

shaviebeby wrote: »

Hi guys,
Myself and my boyf have applied for a mortgage with AIB. I would just like to know what are our chances. We both have permanent jobs and our combined wages are 80,000 per year. We have paid rent of 730 monthly for over a year and for that period we are also saving about 1000 a month. Are banks lending?
Also, we have viewed a house we really like and are wondering how long it will take AIB to give us answer?

Thanks,
Shavie.

So long as you don't have an adverse credit history you'll be approved all day long...

comanche_cor

shaviebeby wrote: »

Thanks!!
We probably save more than €1000 a month. We just put €1000 into our savings, probably about €1200. Also, within the last year we've had a two week holiday to America (€6000) and a week in Lanzarote (€2000).
They said approval in principle takes about 2-3 days but I saw other posts saying 2 weeks!!

What the banks want to see is regular savings i.e. not 800 one month, 1200 another. They want to see 1000 each month. This will give you a payability of 1730 (when coupled with your rent). Correct me if I am wrong but they will work backwards from this figure to figure out what sort of a loan you can afford.

We have gone through this process recently - the one piece of advice I can give you is to keep your finances simple - decide what you want to save regularly and save it each month, clear your credit card every month, put any extra savings into a separate savings account to your regular savings. This way is is simple for the bank to see what you are saving regularly, your are not incurring any debts and that you are in fact able to save some extra.

Btw just something take on board - just because the banks are willing to loan you amount x does not mean that you should borrow it all. I am guessing that you are a young couple and may be thinking about starting a family - you need to think about how you will manage that and the expense that will bring, the lifestyle you want to live etc and how you can do all that with your monthly mortgage payments.

Also if you have any debts such as personal loan/car financing it may be best to pay these off as soon as you can.

shaviebeby

comanche_cor wrote: »

What the banks want to see is regular savings i.e. not 800 one month, 1200 another. They want to see 1000 each month. This will give you a payability of 1730 (when coupled with your rent). Correct me if I am wrong but they will work backwards from this figure to figure out what sort of a loan you can afford.

We have gone through this process recently - the one piece of advice I can give you is to keep your finances simple - decide what you want to save regularly and save it each month, clear your credit card every month, put any extra savings into a separate savings account to your regular savings. This way is is simple for the bank to see what you are saving regularly, your are not incurring any debts and that you are in fact able to save some extra.

Btw just something take on board - just because the banks are willing to loan you amount x does not mean that you should borrow it all. I am guessing that you are a young couple and may be thinking about starting a family - you need to think about how you will manage that and the expense that will bring, the lifestyle you want to live etc and how you can do all that with your monthly mortgage payments.

Also if you have any debts such as personal loan/car financing it may be best to pay these off as soon as you can.

Great, thanks!
We have a regular €1000 savings a month and put the rest into other savings account. We have paid off both car loans, (about 2 years ago).
We want the mortgage as low as possible so will only be borrowing the minimal amount for the house and do up the house as we go along. We would like to bid for this house but have to wait approval. If not then its no big deal waiting a few months. We're not throwing all our eggs into one basket!

Jenni76

Hi there,
It's been over a month now and I'm just curious as to how your application went with aib, were you successful?? Did you have any issues, would love to know more as I have just applied myself??

claytonie

Hi all,

Sorry to poach a thread, but just wanted to add to this, my wife and I were also looking at purchasing a home and have started saving for a deposit but want to get and idea of what deposit we should be aiming for to give us a goal.

Our current combined basic salaries are €50k with my bonuses and overtime pushing that to €60k in total. We have been paying rent of €700 for the last two years and saving between €400-€800/month. We also have one child with childcare costing between €500-700/month depending on how many days we send her. We would be looking for something in the €150-170k bracket.

Thanks in advance,

L1011

Bare minimum you need 10% - 92% max loan, 1% stamp duty and fees. Realisticly 15% would be seen as safer, so 20k+

claytonie

MYOB wrote: »

Bare minimum you need 10% - 92% max loan, 1% stamp duty and fees. Realisticly 15% would be seen as safer, so 20k+

Thanks MYOB,

€20k was the figure I had in my head to aim for so at least I am on the right track

shaviebeby

Hi,

Yes we got approved, for €295,000. It took around 9 days, seemingly the wait is normally 5 days but a lot of people are applying now so it takes longer to process. We bid on a house and we were successful. But now we have to wait 6-8 weeks for title deeds. Hope this helps. Any questions please ask!!!

Jenni76

Can I ask did you have any flaws at all ie: a missed payment on a credit card or loan was there anything you thought that might have gone against you , just wondering as I think I have a flaw on my credentials and I'm afraid it will go against me thanks

D3PO

Jenni76 wrote: »

Can I ask did you have any flaws at all ie: a missed payment on a credit card or loan was there anything you thought that might have gone against you , just wondering as I think I have a flaw on my credentials and I'm afraid it will go against me thanks

get a credit report form the ICB and see for sure.

And yes if you have something on your credit report it will go against you. How minor or major it is will ultimately decide if the bank are willing to overlook it or not.

Moonbeam

Congratulations on your new house:)
It is good to see the banks are lending people enough to buy again.

L1011

I had a single missed payment (due to an employer scheduling issue but still, it happened) on a since cleared car loan with the same bank. Didn't get mentioned.

shaviebeby

I did miss a payment about 3 years ago, on car loan and credit card. But since then I've been flawless with payments. Had to get another loan and paid it well before it was due, also paid off credit card as soon as I used it. Big thing is to show consistent savings. We opened a savings account and put same amount in each month, sometimes more. You have to show you have the capacity to pay back the mortgage even if interest rates rise.

Jenni76

Thanks , you have given me a little sigh of relief not that mine will definitely work out like yours did but maybe I can relax a bit now while we wait, cheers

Marchbride

Jenni76 wrote: »

Thanks , you have given me a little sigh of relief not that mine will definitely work out like yours did but maybe I can relax a bit now while we wait, cheers

Hiya guys,
Sorry for crashing in on thread but like you too Jen we applied same day as you to AIB and are now doing the waiting game. It's awful isn't it waiting on a phone call!!

Just wondering if anyone can share any knowledge on my application and rate out chances. We earn 105k gross per annum, last three years my hubby earned extra 10-15k in bonuses and will be getting same next yr. we've been renting 4 yrs at 1000 per mth never missed a payment. Hubby has loan of 13k in cred union n savings of 5k n I have 5 k saved. Dh's parents are giving us the deposit for house. I have cred card but its in cred n have perfect cred rating. Dh defaulted on payment on cred card march '12 after speaking with cred card company telling them he couldn't pay mthly payment being asked and card was revoked. however he has completely cleared 9500k on card in 13 mths whereas bank wanted him to pay 200per mth so he'd still be paying back card for next 2yrs but he paid monthly payments and lumps from bonuses. Mortgage advisor said that they will view that positively. We have two babies but my mam will be minding them when I return to work so no childcare costs.
My dh is a manager in his job 15 yrs and I permanent in my public sector job 5yrs full time.
Anyone wanna offer some kind hopeful words?? Or the truth thank you
Jen let me know if you hear anything.

Marchbride

Marchbride wrote: »

Hiya guys,
Sorry for crashing in on thread but like you too Jen we applied same day as you to AIB and are now doing the waiting game. It's awful isn't it waiting on a phone call!!

Just wondering if anyone can share any knowledge on my application and rate out chances. We earn 105k gross per annum, last three years my hubby earned extra 10-15k in bonuses and will be getting same next yr. we've been renting 4 yrs at 1000 per mth never missed a payment. Hubby has loan of 13k in cred union n savings of 5k n I have 5 k saved. Dh's parents are giving us the deposit for house. I have cred card but its in cred n have perfect cred rating. Dh defaulted on payment on cred card march '12 after speaking with cred card company telling them he couldn't pay mthly payment being asked and card was revoked. however he has completely cleared 9500k on card in 13 mths whereas bank wanted him to pay 200per mth so he'd still be paying back card for next 2yrs but he paid monthly payments and lumps from bonuses. Mortgage advisor said that they will view that positively. We have two babies but my mam will be minding them when I return to work so no childcare costs.
My dh is a manager in his job 15 yrs and I permanent in my public sector job 5yrs full time.
Anyone wanna offer some kind hopeful words?? Or the truth thank you
Jen let me know if you hear anything.

Oh and meant to add that my hubby pays 250 every week to cred union which can be reduced to 100

killers1

Marchbride wrote: »

Oh and meant to add that my hubby pays 250 every week to cred union which can be reduced to 100

Best of luck with your application.

The two most important aspects to this for AIB will be whether your mortgage advisor has put a convincing enough argument to the lenders in relation to the revoked credit card and secondly a strong enough case as to why a couple with earnings of €105k have €5k in personal savings. A regular reason for a decline from AIB is clients lack of own funds to put towards a purchase regardless of a family gift being available. Either one of the above items in it's own right could be reason enough for your application to be declined so it will really boil down to how convincing an application was made.

Marchbride

killers1 wrote: »

Best of luck with your application.

The two most important aspects to this for AIB will be whether your mortgage advisor has put a convincing enough argument to the lenders in relation to the revoked credit card and secondly a strong enough case as to why a couple with earnings of €105k have €5k in personal savings. A regular reason for a decline from AIB is clients lack of own funds to put towards a purchase regardless of a family gift being available. Either one of the above items in it's own right could be reason enough for your application to be declined so it will really boil down to how convincing an application was made.

Hiya killars1
Thanks for reply
Dh decided he wanted to approach mortgage advisor for the reason you mentioned above, to put strong case forward. Hopefully we get it and if not we'll be looking for your expertise if ok? My wages went up last two yr due to increments but our taxes were extremely high due to personal issues and has only being rectified now. Also we got married, i had to get a new car for safety reason (this is cred union loan) and I was ill for awhile so savings were limited last two yrs for this reason. Also two babies in two yrs added a lil extra But we are paying 1000 rent, 1000CU, saving 500+pr mth, recently cleared 12500k of cred card debt. So we are getting acc's in order. With dh famiky offering dep we feel we are a strong candidate especially with a wages, history of rent repayments and when stress tested last wk we were still a good bit above what were looking for 230. Fingers n toes crossed.

killers1

Marchbride wrote: »

Hiya killars1
Thanks for reply
Dh decided he wanted to approach mortgage advisor for the reason you mentioned above, to put strong case forward. Hopefully we get it and if not we'll be looking for your expertise if ok? My wages went up last two yr due to increments but our taxes were extremely high due to personal issues and has only being rectified now. Also we got married, i had to get a new car for safety reason (this is cred union loan) and I was ill for awhile so savings were limited last two yrs for this reason. Also two babies in two yrs added a lil extra But we are paying 1000 rent, 1000CU, saving 500+pr mth, recently cleared 12500k of cred card debt. So we are getting acc's in order. With dh famiky offering dep we feel we are a strong candidate especially with a wages, history of rent repayments and when stress tested last wk we were still a good bit above what were looking for 230. Fingers n toes crossed.

No problem at all. I hope you explained all the above to the advisor too in order to justify your lack of personal funds. It would make your application stronger if those details were all submitted with the application rather than the underwriter be given no explanation and take a dim view.. Fingers crossed!

MonaPizza

Everyone here is mentioning AIB.
Are they the best, friendliest, cheapest, most approachable guys to go for to get a mortgage.

Here's my situation, well me and the girlfriend. She is a freelance who nets about 1k per month. I am an IT freelance contractor and my monthly net is about 4.5k.
We have about 80k for a deposit. Would we get approval for anything? I wouldn't mind something around the 250k mark.

Also, I I jacked in the freelancing and took a permanent position for say 60k what amount could I realistically expect to egt approval for?

Thanks

Oh and sorry if I too am kinda hijacking

Jenni76

I'd like to think that there would be few people around today that don't have done sort of gremlin in their financial closet, I hope that aib consider each case on its own merits, I think you have to remain positive..... If it doesn't work out for us we will be approaching a broker as I think they can argue cases better than individual applications with the bank ..,. Stay positive ...... So I keep telling myself ;-)