Mortgage Process really difficult and off putting

mudabi

Once you have the documentation in order its not that difficult of a process. most banks will require:

- P60s from previous year
- 3 months payslips
- Salary certs from employers - banks provide the template (one sheet form)
- Proof that you have access to deposit - some savings and some can be gifts
(remember the bank need to see that you have the funds for stamp duty and fees also)
- Proof of capacity to repay - rent receipts or regular rent payments from your account and/or some record of regular saving
- Good recent credit history

In my experience most banks will accept contract employment as long as the contract has been renewed at least once.

Scan copies of your P60s, payslips, statements etc to a folder before you apply and generally you will be able to submit the same to a few banks at the same time.

It took us two weeks from applying with AIB to getting full approval and our savings in recent months have been sporadic at best but quite good at the beginning of the year. we have a reason for the lull in savings and the bank took this into account.

Good luck to anyone going for a mortgage, its stressful waiting and wondering yes but its not difficult.

Cunning Stunt

Bit of a side-track question, but did any of you get a mortgage shortly after arriving in Ireland? I am moving home to Ireland with my husband and 2 kids, hopefully in 2016 - provided we can get our house here sold. We will have to look at renting for the first while in Ireland, but ideally we would like to own our own home.

Hopefully we will have a few bob towards a deposit left over from our house sale here..
Assuming my husband and I get full time employment, how long will we have to have been working before we will be considered for a mortgage?
I have been with BOI for around 20 years and always had a good credit history - any loans I have had have been paid off in full and some ahead of time. Would this stand to me, when applying, or is it irrelevant now? Granted there hasn't been much activity on my BoI account the last 7 years or so, because I was living abroad..

Thanks all

BoatMad

Cunning Stunt wrote: »

Bit of a side-track question, but did any of you get a mortgage shortly after arriving in Ireland? I am moving home to Ireland with my husband and 2 kids, hopefully in 2016 - provided we can get our house here sold. We will have to look at renting for the first while in Ireland, but ideally we would like to own our own home.

Hopefully we will have a few bob towards a deposit left over from our house sale here..
Assuming my husband and I get full time employment, how long will we have to have been working before we will be considered for a mortgage?
I have been with BOI for around 20 years and always had a good credit history - any loans I have had have been paid off in full and some ahead of time. Would this stand to me, when applying, or is it irrelevant now? Granted there hasn't been much activity on my BoI account the last 7 years or so, because I was living abroad..

Thanks all

Most banks have a requirement to have approx 6 months employment history locally, but this can be "tweaked" especially depending on LTV

your previous history will be quite important as will you employment status , self-employed can be a big drawback, whereas, ordinary PAYE employment is preferred

( I have a cousin in exactly the same position , but being self employed it will take a while for the bank to accept his income stream )

Cunning Stunt

Thanks for the info, that's good to know! I was in full-time PAYE employment in Ireland for 8 years before we left and have worked full time in a 'PAYE equivalent' position for the 7 years that I have been abroad. My husband is basically the same. Hopefully it will stand to us so.

FAisms

Does anyone know just how difficult the process will be for two self employed folk? I'm only recently self employed but so far my income is looking to be in the 50-60k region. My partner is owner of a business. .. hasn't earned in over a year and only just went on a wage. He'll be on 30-35k next year when we apply. We'll save about 20% of what we need by next summer...and maybe double that with a gift from family. Might even hit up the credit union. Anyone experience with them?

On another note, I read in this thread about marriage certs being part of application - is it better to be married?

Evil-p

I can't advise on the self employed stuff but I don't think it matter if you're married or not. We are and did have to provide our marriage cert but that was to do with the Family home protection law. We had to sign particular legal documents pertaining to this

hairyslug

FAisms wrote: »

Does anyone know just how difficult the process will be for two self employed folk? I'm only recently self employed but so far my income is looking to be in the 50-60k region. My partner is owner of a business. .. hasn't earned in over a year and only just went on a wage. He'll be on 30-35k next year when we apply. We'll save about 20% of what we need by next summer...and maybe double that with a gift from family. Might even hit up the credit union. Anyone experience with them?

On another note, I read in this thread about marriage certs being part of application - is it better to be married?

Also not sure about how they will look at self employed but is the credit union a serious contender for making up a shortfall of say 5-10k

Flatzie_poo

hairyslug wrote: »

Also not sure about how they will look at self employed but is the credit union a serious contender for making up a shortfall of say 5-10k

The bank will judge this as an outstanding liability and it could impact your loan.

Calhoun

Flatzie_poo wrote: »

The bank will judge this as an outstanding liability and it could impact your loan.

We had to clear off our credit union loan before the bank would lend to us.

However if the poster meant to use the credit union for the loan in itself they now follow the same lending rules as the bank.

I would say also that having a cash gift is great and all but your mortgage application will be judged on the ability to repay.

hairyslug

Flatzie_poo wrote: »

The bank will judge this as an outstanding liability and it could impact your loan.

Thought as much, cheers, have all debts cleared bar the car finance and they don't seem to concerned by that.

What is holding us back though is 6k of my wages is declared as bonus, even though it's guaranteed they won't count it

Pac2015

Calhoun wrote: »

We had to clear off our credit union loan before the bank would lend to us.

However if the poster meant to use the credit union for the loan in itself they now follow the same lending rules as the bank.

I would say also that having a cash gift is great and all but your mortgage application will be judged on the ability to repay.

Are the credit unions doing mortgages ?

Calhoun

I'm not sure but the lending rules they have to stick to would be similar to a banks. I was just speculating as i didnt know what the poster meant.

Pac2015

Calhoun wrote: »

I'm not sure but the lending rules they have to stick to would be similar to a banks. I was just speculating as i didnt know what the poster meant.

Okay I see what you mean I asked as I had heard talk of some CU doing mortgages I know mine doesnt at present but you never know down the line its possible.

Calhoun

Pac2015 wrote: »

Okay I see what you mean I asked as I had heard talk of some CU doing mortgages I know mine doesnt at present but you never know down the line its possible.

I heard that also, which is why i thought that was what the other poster was implying. I don't know of any myself.

Pac2015

Calhoun wrote: »

I heard that also, which is why i thought that was what the other poster was implying. I don't know of any myself.

I might look it up and see what comes up my parents said it to me also but I have not seen anything on my own CU.
I think some are talking about doing it but would they compete with the banks on rates.

Pac2015

http://www.irishtimes.com/business/financial-services/credit-union-role-in-mortgages-merits-tight-monitoring-1.2098937

Here is an interesting article on the subject

Evil-p

I don't know why your bonus won't be counted. Mine was with AIB. There is a tick box iirc to say whether its a guaranteed bonus or not

FAisms

My credit union in Dun laoghaire have a few options on their website... Home Improvements... Home Renovations and Home Loan . The first two are at 10.44% and the Home loan is 5.6%. Will lend up to 120k and with deposit and hopefully gift *fingers crossed* - we will be able to afford a doer-upper in Bray or something to start off with. Need to get out of the in laws which is where we're living to save while the other half was opening his business... self employment sucks in this respect!!

Pac2015

FAisms wrote: »

My credit union in Dun laoghaire have a few options on their website... Home Improvements... Home Renovations and Home Loan . The first two are at 10.44% and the Home loan is 5.6%. Will lend up to 120k and with deposit and hopefully gift *fingers crossed* - we will be able to afford a doer-upper in Bray or something to start off with. Need to get out of the in laws which is where we're living to save while the other half was opening his business... self employment sucks in this respect!!

So your credit union is lending you a mortgage persay and have offered you up to 120K is that correct.

FAisms

Pac2015 wrote: »

So your credit union is lending you a mortgage persay and have offered you up to 120K is that correct.

Not yet of course I will be saving by if you go on the dun laoghaire website it gives you those amounts as a calculations