Saving/Applying for a mortgage 2015/16/17/18/19

okeydokeys22

listermint wrote: »

Without skirting around it there is scant all stock if any at all that's modest and 250k in Dublin I think the extras year would better option

I have friends that have bought in Enfield, Kilcock, navan and Kinnegad. I would be open to these areas if I got better value. I'd happily buy a 3 bed in Kinnegad for 160,000 for eg, put down 70,000 as a Deposit, leaving me with a small mortgage of 450 p/m. OH could find work in mullingar easily and I could go 3 or 4 day week in my job in Dublin cutting commuting costs. I'd be delighted with that for next 10 years anyway. I don't need/want a large or grand house, small and homely is fine by me.

pilly

okeydokeys22 wrote: »

I have friends that have bought in Enfield, Kilcock, navan and Kinnegad. I would be open to these areas if I got better value. I'd happily buy a 3 bed in Kinnegad for 160,000 for eg, put down 70,000 as a Deposit, leaving me with a small mortgage of 450 p/m. OH could find work in mullingar easily and I could go 3 or 4 day week in my job in Dublin cutting commuting costs. I'd be delighted with that for next 10 years anyway. I don't need/want a large or grand house, small and homely is fine by me.

So what's the issue with only being approved for 175k? I don't understand your problem then or am I'm missing something?

okeydokeys22

pilly wrote: »

So what's the issue with only being approved for 175k? I don't understand your problem then or am I'm missing something?

Just that I'd ideally love to stay within Dublin that's all. But it's not an ideal world and second or third choice of town is probably more realistic. I don't know whether to wait and save more or buy outside Dublin soon.

pilly

okeydokeys22 wrote: »

Just that I'd ideally love to stay within Dublin that's all. But it's not an ideal world and second or third choice of town is probably more realistic. I don't know whether to wait and save more or buy outside Dublin soon.

My advice would be to buy something in Dublin within your budget. 175k plus the savings you both have brings you to 227k. It's not impossible to get something for that.

Too many people back during the last boom fell into the trap of moving outside Dublin. It can be complete torture to be spending 2 or 3 hours a day commuting especially when it comes time to have kids because you've to drop them earlier and pick them up later. End up not seeing them at all.

okeydokeys22

pilly wrote: »

My advice would be to buy something in Dublin within your budget. 175k plus the savings you both have brings you to 227k. It's not impossible to get something for that.

Too many people back during the last boom fell into the trap of moving outside Dublin. It can be complete torture to be spending 2 or 3 hours a day commuting especially when it comes time to have kids because you've to drop them earlier and pick them up later. End up not seeing them at all.

Yes I see your point re commuting and less time at home, but on the other side, the much lower mortgage would allow me to work part time therefore spending more time at home.

For 227k in Dublin I'd be looking at an apartment, maybe a small 2 bed in need of refurbishment for a mortgage of about 750pm.

Pros and cons to both I suppose.

pilly

okeydokeys22 wrote: »

Yes I see your point re commuting and less time at home, but on the other side, the much lower mortgage would allow me to work part time therefore spending more time at home.

For 227k in Dublin I'd be looking at an apartment, maybe a small 2 bed in need of refurbishment for a mortgage of about 750pm.

Pros and cons to both I suppose.

True enough, working part-time can be a huge bonus, particularly with kids.

hooch-85

Is it true that Ulster Banks lending requirements are a little less stingent then some of the rest?

We went to a broker last week and he said they only stress test at half of the rates of the other banks?

Also he reckons the main reason we were declined with AIB was due to my GF being on a contract and therefore they only may have taken a % of her earnings into account.

Find this a bit harsh but he's probably right, anyone else heard of this?

ec18

hooch-85 wrote: »

Is it true that Ulster Banks lending requirements are a little less stingent then some of the rest?

We went to a broker last week and he said they only stress test at half of the rates of the other banks?

Also he reckons the main reason we were declined with AIB was due to my GF being on a contract and therefore they only may have taken a % of her earnings into account.

Find this a bit harsh but he's probably right, anyone else heard of this?

i was under the impression that the stress test was regulation rather than something that can very from bank to bank.

The contract i think they look at what may happen not what will so if its a fixed term contract they knock some of her salary off.

Parchment

Ugh - so tired of the stress. We have signed, apparently the vendors have signed. We have life/house insurance sorted. Bank ready to go.

Just waiting for our solicitor to ring me today - i called for her earlier and the secretary said stuff had arrived for us today. Giving official notice to our landlord today (we have to give 84 days notice....).

I just want it done, im exhausted from the whole thing.

listermint

pilly wrote: »

My advice would be to buy something in Dublin within your budget. 175k plus the savings you both have brings you to 227k. It's not impossible to get something for that.

Too many people back during the last boom fell into the trap of moving outside Dublin. It can be complete torture to be spending 2 or 3 hours a day commuting especially when it comes time to have kids because you've to drop them earlier and pick them up later. End up not seeing them at all.

Its not the commute so much as trying to sell that house afterwards. That will be were the reality would set in.

listermint

hooch-85 wrote: »

Is it true that Ulster Banks lending requirements are a little less stingent then some of the rest?

We went to a broker last week and he said they only stress test at half of the rates of the other banks?

Also he reckons the main reason we were declined with AIB was due to my GF being on a contract and therefore they only may have taken a % of her earnings into account.

Find this a bit harsh but he's probably right, anyone else heard of this?

Sounds like waffle. The broker prob has a cosy with Ulster bank.

Banks are tied to lending rules.

okeydokeys22

listermint wrote: »

Its not the commute so much as trying to sell that house afterwards. That will be were the reality would set in.

Yeah true. Food for thought.

Samuel T. Cogley

hooch-85 wrote: »

Is it true that Ulster Banks lending requirements are a little less stingent then some of the rest?

We went to a broker last week and he said they only stress test at half of the rates of the other banks?

Also he reckons the main reason we were declined with AIB was due to my GF being on a contract and therefore they only may have taken a % of her earnings into account.

Find this a bit harsh but he's probably right, anyone else heard of this?

Stress test, dunno.

Contracts - definately different policies at different banks - we could only get a mortgage for the amount we wanted at UB (I think) or KBC (Which we did).

Parchment

Just my opinion - we applied to all the banks and the most stringent and thorough were AIB by far.

Sono

Parchment wrote: »

Ugh - so tired of the stress. We have signed, apparently the vendors have signed. We have life/house insurance sorted. Bank ready to go.

Just waiting for our solicitor to ring me today - i called for her earlier and the secretary said stuff had arrived for us today. Giving official notice to our landlord today (we have to give 84 days notice....).

I just want it done, im exhausted from the whole thing.

Did the solicitor not give you a closing date? It should be quite close to that unless there are massive stumbling blocks which don't seem apparent in your case as both parties have signed the contracts.

Good luck with it all

Parchment

Sono wrote: »

Did the solicitor not give you a closing date? It should be quite close to that unless there are massive stumbling blocks which don't seem apparent in your case as both parties have signed the contracts.

Good luck with it all

Thank you! We are in rented accommodation but have a great relationship with our landlord, we gave him the heads up about the house before Xmas but didnt give our official notice as we didnt know how things would work out.

We have to meet him tonight to give official notice and see if he will work with us and maybe let us leave early. If he will work with us and not make us see out the notice we will hopefully aim for the keys on Tuesday of next week.

Musefan

Hi,

I am about to embark on the process of saving for a mortgage with my partner (mid 20s). We would be looking to buy in 5 (ish) years time. We have decided on the Malahide area and are familiar with it. Houses that we like are in the 470-570k bracket.

I just wonder what's the best way to prepare for getting a mortgage? We currently manage 1000 a month rent, 6000 in savings per year, and 30k in shares. In 5 years time we will both be earning in the 60k bracket each. No dependents and no plans for any until a house is up and running. We have one car loan and one education loan that will be cleared in the next 3 years.

What can we do know to make our accounts look as healthy as possible apart from maximum savings and minimum spending?

Thanks

Samuel T. Cogley

Exactly that. Max saving - but it needs to be regular and not withdrawn again. Min spending, certainly in the last 18 months or so. Get any loans paid off an never go negative in any accounts. Pay any credit card off each month.

You'd need a crystal ball of course but house prices could increase, they certainly will in the short term. At 120K income you'd be looking at 400Kish mortgage so you'll need to 100-200K available as a deposit.

I'd suggest the number of people buying their first house in Malahide, in their last 20s/early 30s, in the half a million plus range is probably quite small so try not to get totally fixated on a specific area and budget, it can lead to feck it! syndrome, where you give up if you can't get exactly what you want.

OfflerCrocGod

UB Drogheda gave us an exemption, they beat KBC/AIB without a bother.

detoxkid

OfflerCrocGod wrote: »

UB Drogheda gave us an exemption, they beat KBC/AIB without a bother.

I hear allot of people getting deals with Ulster bank. Are u a personal customer? I'm thinking it might be worth setting up a savings account there, we want to apply in 6 months

hooch-85

OfflerCrocGod wrote: »

UB Drogheda gave us an exemption, they beat KBC/AIB without a bother.

I'm hoping UB can come through for us as well after getting declined from AIB, broker seems to think we have a good chance with them..

OfflerCrocGod

No I had no accounts with them. I did have large savings which I think is part of the reason why the lady processing our application was happy to try and get us an exemption. If you can prove you will live on beans and toast when times are good you are almost certainly going to try very hard not to default. I'd been saving for 8 years without any particular aim, I just did it by default.

Mushy

Started fol this forum, I feel I'm going to be in it a lot.

I'm 28, wife is 35, getting going on saving for a house now. It'll take 1.5-3 years for us, there's no set time limit luckily. We have a small amount already, nut it'll be the main focus. Other thing is, wanting a kid in the middle of it looks like it'll be a killer, so have to kind of choose. Or does anyone have any experience or advice on this? I'm kind of starting in a career job now, so would hope/expect savings to go up at an alright rate before it comes to buying/applying to.

I'll be reading the thread over time, but if there's any advice for starting up it would be greatly appreciated! It'll be a long road.

Musefan

Samuel T. Cogley wrote: »

Exactly that. Max saving - but it needs to be regular and not withdrawn again. Min spending, certainly in the last 18 months or so. Get any loans paid off an never go negative in any accounts. Pay any credit card off each month.

You'd need a crystal ball of course but house prices could increase, they certainly will in the short term. At 120K income you'd be looking at 400Kish mortgage so you'll need to 100-200K available as a deposit.

I'd suggest the number of people buying their first house in Malahide, in their last 20s/early 30s, in the half a million plus range is probably quite small so try not to get totally fixated on a specific area and budget, it can lead to feck it! syndrome, where you give up if you can't get exactly what you want.

Thanks for that! I hear what you say about the area and keeping an open mind. We are in a fortunate position of having stable careers with clear progression, but tied to the Dublin area, so we have to be fixed there to a certain extent! 120k is my very conservative estimate of where we will be at, best case scenario will be 140k.

We have never had credit cards, and don't intend to get them at all. Sounds like we need to get saving asap!

Samuel T. Cogley

Musefan wrote: »

Thanks for that! I hear what you say about the area and keeping an open mind. We are in a fortunate position of having stable careers with clear progression, but tied to the Dublin area, so we have to be fixed there to a certain extent! 120k is my very conservative estimate of where we will be at, best case scenario will be 140k.

We have never had credit cards, and don't intend to get them at all. Sounds like we need to get saving asap!

Careers, things happen, people change hugely from mid-twenties to mid-thirties, both mentally and physically!

Dublin area is enormous and moving a few miles closer to town can easily half the amount the same house would cost while maintaining all the benefits. Just don't get stuck on property as a status symbol. Other than that, yep just save as much as you can without making yourselves miserable. You have to live.

I do think you're creating a rod for your own backs though leaping straight for a 500K+ property and not taking an intermediate step if you're going to save 200K in five years you could buy a house and pretty much pay it off, others will disagree and say the ladder idea is nonsense. Each to their own and you have to do whats right for you.

jiminho

Hi folks. I'm hoping to return home in the next year and I'm wanting to get a feel for the mortgage situation. We'll be wanting to get a house as soon as the banks will allow us which I've been told by a BOI rep is after 6 months in a permanent position. Obviously don't have a job yet but the south county dublin/city is where all our family lives and where we'll be sending the kids to school. The reason we're moving home is to be closer to family so we're not wanting to stray too far from this area.

So here are the facts:
A spouse (will be a stay at home mom) and two kids
Hoping to have a relatively large down payment in the region of €130k
Looking for a home priced at €400kish so €270k mortgage
Salary is hard to say but thinking min. €60k. Any lower and I might not come back

Just did a mortgage calculator there on BOI and we're looking at 1,100ish in mortgage repayments which sounds perfectly reasonable to me and that wouldn't be a stretch based on a +3,700 monthly net income. I'll be needing an exception to the 3.5 times rule but what are your guys thoughts/advice?

purpleisafruit

jiminho wrote: »

Hi folks. I'm hoping to return home in the next year and I'm wanting to get a feel for the mortgage situation. We'll be wanting to get a house as soon as the banks will allow us which I've been told by a BOI rep is after 6 months in a permanent position. Obviously don't have a job yet but the south county dublin/city is where all our family lives and where we'll be sending the kids to school. The reason we're moving home is to be closer to family so we're not wanting to stray too far from this area.

So here are the facts:
A spouse (will be a stay at home mom) and two kids
Hoping to have a relatively large down payment in the region of €130k
Looking for a home priced at €400kish so €270k mortgage
Salary is hard to say but thinking min. €60k. Any lower and I might not come back

Just did a mortgage calculator there on BOI and we're looking at 1,100ish in mortgage repayments which sounds perfectly reasonable to me and that wouldn't be a stretch based on a +3,700 monthly net income. I'll be needing an exception to the 3.5 times rule but what are your guys thoughts/advice?

Stress test might cause you an issue. Banks reckon on 2000pm + 250 pm per child. This leaves you with very little wiggle room on the stress test.
The fact your seeking an exemption from the 3.5x rule too might make it very difficult

listermint

Musefan wrote: »

Thanks for that! I hear what you say about the area and keeping an open mind. We are in a fortunate position of having stable careers with clear progression, but tied to the Dublin area, so we have to be fixed there to a certain extent! 120k is my very conservative estimate of where we will be at, best case scenario will be 140k.

We have never had credit cards, and don't intend to get them at all. Sounds like we need to get saving asap!

Not having credit cards or any previous loans and not history of repaying loans is not a good thing tbh. Banks are looking for competency in repayments it goes towards overall application.

listermint

jiminho wrote: »

Hi folks. I'm hoping to return home in the next year and I'm wanting to get a feel for the mortgage situation. We'll be wanting to get a house as soon as the banks will allow us which I've been told by a BOI rep is after 6 months in a permanent position. Obviously don't have a job yet but the south county dublin/city is where all our family lives and where we'll be sending the kids to school. The reason we're moving home is to be closer to family so we're not wanting to stray too far from this area.

So here are the facts:
A spouse (will be a stay at home mom) and two kids
Hoping to have a relatively large down payment in the region of €130k
Looking for a home priced at €400kish so €270k mortgage
Salary is hard to say but thinking min. €60k. Any lower and I might not come back

Just did a mortgage calculator there on BOI and we're looking at 1,100ish in mortgage repayments which sounds perfectly reasonable to me and that wouldn't be a stretch based on a +3,700 monthly net income. I'll be needing an exception to the 3.5 times rule but what are your guys thoughts/advice?

It will be a stretch to get an exception to 270 based on what you've said above tbh.

Maybe 4 times but won't give anymore . Even on 60k as a sole earner chances are very slim

syndrome777

has anyone recently applied or has any experience with 3 party mortgage?

we are considering adding my sister to our mortgage application as she might end up living with us, and this would increase our Income variable

any experience, inbox if you don't want to say publicly