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

jiminho

purpleisafruit wrote: »

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

Ok fair point. So what would be the stress test interest rate? I've seen between 6-8% but tbh there's a big difference in two percent points. Does Ireland still do 35 year mortgages? All the calculators seem to be basing it on 30 year max. Based on age maybe?

big syke

jiminho wrote: »

Ok fair point. So what would be the stress test interest rate? I've seen between 6-8% but tbh there's a big difference in two percent points. Does Ireland still do 35 year mortgages? All the calculators seem to be basing it on 30 year max. Based on age maybe?

All banks stress to different rates.

Yes but also based on age up to 65 as far as I know. So if you are 35 max is 30 year mortgage.

jiminho

big syke wrote: »

All banks stress to different rates.

Yes but also based on age up to 65 as far as I know. So if you are 35 max is 30 year mortgage.

Thanks. I've always banked with BOI but there's been no activity in either of our accounts for 4+ years. Is it more straightforward to get a mortgage with your own bank? What banks are showing the most leniency toward the stress test? Eg. BOI 8% stress test, Ulster 6%....

R11

big syke wrote: »

Yes but also based on age up to 65 as far as I know.

Anyone have any experience of getting mortgage to 68 or even 70? Do any banks do this?

Samuel T. Cogley

R11 wrote: »

Anyone have any experience of getting mortgage to 68 or even 70? Do any banks do this?

They used to, I think my last one was only to 65 though. I plan to be working well past 70.

R11

Retirement age will be pushed to 68 if not 70 by time I retire.

pilly

R11 wrote:

Retirement age will be pushed to 68 if not 70 by time I retire.

Yes but do you want a mortgage around your neck if your in ill health?

listermint

pilly wrote: »

Yes but do you want a mortgage around your neck if your in ill health?

Sure dont people load up the mortgage well before then...

pilly

listermint wrote:

Sure dont people load up the mortgage well before then...

How do you mean load up?

listermint

pilly wrote: »

How do you mean load up?

Over pay.

R11

pilly wrote: »

Yes but do you want a mortgage around your neck if your in ill health?

Not ideal,but getting a mortgage until 68 or 70 will be the only way I can afford one currently.

relax carry on

R11 wrote: »

Not ideal,but getting a mortgage until 68 or 70 will be the only way I can afford one currently.

Got one from Ulster Bank in December which runs until I'm 69. Just had to get a letter from my employer stating that's when my pension would start. Am public sector though.

R11

relax carry on wrote: »

Got one from Ulster Bank in December which runs until I'm 69. Just had to get a letter from my employer stating that's when my pension would start. Am public sector though.

Good to hear,am public sector also. Can I ask what rate did you get from them?

relax carry on

R11 wrote: »

Good to hear,am public sector also. Can I ask what rate did you get from them?

Fixed for 7 years at 3.99℅. Only way we could borrow what we needed.

R11

relax carry on wrote: »

Fixed for 7 years at 3.99℅. Only way we could borrow what we needed.

Interesting. We're going in to our broker tomorrow with all our documents so hopefully we'll know in 2 weeks. Did Ulster Bank pay €1500 towards solicitor fee's?

jiminho

purpleisafruit wrote: »

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

Replying to this post again but doing some more research, Irish banks appear to stress test to 2% above approved mortgage rate...? Anyway, going by this logic, a €270k mortgage at 6% (4% fixed rate plus 2% stressed) would equate to approx €1,500 p/m and using your parameters above (2000pm + 250 pm per child), I would need to net €4K per month or €65k gross per annum. Am I missing anything here?

relax carry on

R11 wrote: »

Interesting. We're going in to our broker tomorrow with all our documents so hopefully we'll know in 2 weeks. Did Ulster Bank pay €1500 towards solicitor fee's?

Yeah. Came in within 3 weeks of draw down.

syndrome777

jiminho wrote: »

Replying to this post again but doing some more research, Irish banks appear to stress test to 2% above approved mortgage rate...? Anyway, going by this logic, a €270k mortgage at 6% (4% fixed rate plus 2% stressed) would equate to approx €1,500 p/m and using your parameters above (2000pm + 250 pm per child), I would need to net €4K per month or €65k gross per annum. Am I missing anything here?

I know for a fact AIB has this as 2200 for a couple + 250 per child ( and this goes higher for exceptions , something like 2500 + 250 per child)

R11

relax carry on wrote: »

Yeah. Came in within 3 weeks of draw down.

Good to hear. AIB and KBC seem to offer best rates, did they offer you a mortgage?

ILikeBoats

Got a 35 year mortgage from ptsb aged 33

relax carry on

R11 wrote: »

Good to hear. AIB and KBC seem to offer best rates, did they offer you a mortgage?

Went through a broker and it was UB and PTSB that offered. Nothing from AIB or KBC.

morrga

ILikeBoats wrote: »

Got a 35 year mortgage from ptsb aged 33

Don't ever ask to see your interest bill versus a 25 year mortgage. Shocking the difference.

Ayuntamiento

morrga wrote: »

Don't ever ask to see your interest bill versus a 25 year mortgage. Shocking the difference.

You can overpay so it hardly matters. Banks will put your mortgage over ridiculously long terms so as to meet their stringent stress-testing. We've calculated that we'd easily be able to overpay our mortgage by 800 per month which will reduce our interest by over 100k and the term by 15yrs.

pilly

listermint wrote:

Over pay.

I wouldn't say "most" people do that, no. A lucky few maybe.

Ayuntamiento

pilly wrote: »

I wouldn't say "most" people do that, no. A lucky few maybe.

Most people I've recently talked to about mortgages have told me they overpay every month. We're planning on overpaying too. Most people on this thread agree that the banks are so stringent about their rules that they massively underestimate a person's ability to pay a mortgage at current rates. So most people who are mortgage approved right now can afford to overpay.

ILikeBoats

morrga wrote: »

Don't ever ask to see your interest bill versus a 25 year mortgage. Shocking the difference.

We did all the maths and saw all the figures. It is mind blowing!! We chose the term which suited us best at that time.

Ayuntamiento wrote: »

You can overpay so it hardly matters. Banks will put your mortgage over ridiculously long terms so as to meet their stringent stress-testing. We've calculated that we'd easily be able to overpay our mortgage by 800 per month which will reduce our interest by over 100k and the term by 15yrs.

Yeah we doing something similar

Jen Pigs Fly

Starting our saving for a house soon - has anyone got any recommendations for a good bank for a savers account? Not thinking mortgage yet as we want to save for at least 2 years, but might be beneficial to save with a bank who also offers good mortgage rates and such?

Be saving a minimum of 24,000 in the 2 years (what we currently pay in rent X2) but hoping much more.

Is it true you can only get 3 times your salary? Seems very unfair if I'm paying it off for 35 years .... surely my salary will be higher in 10 years time :pac:

catrionanic

3.5 times your salary, yes.

neonsofa

Yep 3.5 times your salary unless you are given an exemption but I think they are for the very safe applicants (high earners, no dependants, huge deposit).
Unfortunately they can't judge on potential earnings, only what you actually have, if it was on potential earnings (I'm due increments each year) I'd be living in a lovely house right now it's a pain! But the longer you wait for your salary to increase, the more you will be saving towards your deposit. Best of luck!

Jen Pigs Fly

I get increments each year too ... that's annoying considering if I don't get promotion I'll only be judged on year 4/5 CO grade - the time we hope to apply ....he works in retail so maybe on 18000 - 22000 a year ..... wonder if we could get a mortagage, buy the land and maybe get another mortgage later to build the house ....


We both want 3/4 acres give or take an acre for the horses and to either build or refurbish a dilapidated/outdated house ....