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

ams

Had a deposit placed on a house since November and found out last night that it has been sold for social housing.

Just so annoyed about the time that has been wasted - and the increase in prices in that timeframe :mad:

bigronnie9

Hi All,

Not sure if this is ok or should I start a new thread...

But I've been following this thread for awhile now as we were saving for a deposit. First Time Buyers and have finally saved up the deposit and have approval in principal with BOI, Ulster Bank and KBC.

Struggling to decide which bank to go with?!

From meeting the banks and looking online, it seems the best deals are:

1. KBC 1 year fixed (2.9% if you open up an account with them, + 50% off home insurance)
2. BOI 3 year fixed (3.45% + 3% cashback)
3. KBC 3 year fixed (3.45% + 50% off home insurance)
4. Ulster Bank 3 year fixed (3.65% + €1500 legal fees + €150 valuation)

So afew questions:

- Basically we don't know who to go with, is it just a case of take the lowest rate with KBC?
- What happens after the 1 year fixed runs out, can you refix to the current rates or will it be a case of refixing to the rates as they are in a years time?
- I've seen on other threads its mentioned KBC often doesnt pass on interest rate cuts to existing customers.... what does this mean exactly?
- If after the 1 year fixed (or 3 years) is up, if you wanted to switch banks is there much of a penalty fee involved? Or is it worth it if rates are better elsewhere?

Sorry for the long post, just abit overwhelmed by it all at this stage!!

Thanks

ec18

bigronnie9 wrote: »

Hi All,

Not sure if this is ok or should I start a new thread...

But I've been following this thread for awhile now as we were saving for a deposit. First Time Buyers and have finally saved up the deposit and have approval in principal with BOI, Ulster Bank and KBC.

Struggling to decide which bank to go with?!

From meeting the banks and looking online, it seems the best deals are:

1. KBC 1 year fixed (2.9% if you open up an account with them, + 50% off home insurance)
2. BOI 3 year fixed (3.45% + 3% cashback)
3. KBC 3 year fixed (3.45% + 50% off home insurance)
4. Ulster Bank 3 year fixed (3.65% + €1500 legal fees + €150 valuation)

So afew questions:

- Basically we don't know who to go with, is it just a case of take the lowest rate with KBC?
- What happens after the 1 year fixed runs out, can you refix to the current rates or will it be a case of refixing to the rates as they are in a years time?
- I've seen on other threads its mentioned KBC often doesnt pass on interest rate cuts to existing customers.... what does this mean exactly?
- If after the 1 year fixed (or 3 years) is up, if you wanted to switch banks is there much of a penalty fee involved? Or is it worth it if rates are better elsewhere?

Sorry for the long post, just abit overwhelmed by it all at this stage!!

Thanks

you can get a 2.99% with ulster bank for 3 years if you have an account with them

Jake2

Does anyone know when do you have to pay your solictors fees and stamp duty?

Basically bank has come back on my full approval and said its been granted but I need to supply 20% deposit not 10% due to the location of the property...area too rural so they want a larger deposit.

I wasnt expecting this so I am about 4000 short on the deposit I need now plus he solicitors fees and stamp duty..so will need to go to parents and ask for a loan. Wondering how much I should ask them for, if I have a bit of time to save up a bit more then I might try cover the stamp duty or solicitors fees myself

sabinalee

Jake2 wrote: »

Does anyone know when do you have to pay your solictors fees and stamp duty?

Basically bank has come back on my full approval and said its been granted but I need to supply 20% deposit not 10% due to the location of the property...area too rural so they want a larger deposit.

I wasnt expecting this so I am about 4000 short on the deposit I need now plus he solicitors fees and stamp duty..so will need to go to parents and ask for a loan. Wondering how much I should ask them for, if I have a bit of time to save up a bit more then I might try cover the stamp duty or solicitors fees myself

Great you got full mortgage approval but chnages in % of your deposit is shocking.
What bank did you gorgeous to for a mortgage and how long did you wait for decision.

We Sale agreed on house in rural area, but I hope not too rural, as I would not be in position to borrow money from anyone😑

Jake2

Yeah it was KBC, I thought it was very strange tbh. I had approval in principle with them and I supplied the rest of my documentation and the house valuation once I picked a house and went sale agreed. All came back fine with the valuers but the bank thought area was a rural area so potential for resale/rent wasnt as good so I need to give 20%. The area is rural it is only an hour commute from my office in dublin. I basically need an additional 17000. I luckily have 13,000 of that but I need another 4000 plus all my solicitors fees etc

I looked it up though and the policy for kbc is f your house is not in an urban area they require 20%, maybe not all banks are the same though. Wish I knew earlier as very unexpected last minute when I am already sale agreed!

This mortgage process is soooo difficult. One hurdle after another

lfc200

Jake2 wrote: »

Yeah it was KBC, I thought it was very strange tbh. I had approval in principle with them and I supplied the rest of my documentation and the house valuation once I picked a house and went sale agreed. All came back fine with the valuers but the bank thought area was a rural area so potential for resale/rent wasnt as good so I need to give 20%. The area is rural it is only an hour commute from my office in dublin. I basically need an additional 17000. I luckily have 13,000 of that but I need another 4000 plus all my solicitors fees etc

I looked it up though and the policy for kbc is f your house is not in an urban area they require 20%, maybe not all banks are the same though. Wish I knew earlier as very unexpected last minute when I am already sale agreed!

This mortgage process is soooo difficult. One hurdle after another

No harm setting the ball rolling on getting AIP with another bank and have that working away in the back. You could still be talking months even though it has gone sale agreed.
You probably have all the documents you need almost to hand so it could be a relatively quick process for new AIP

bigronnie9

ec18 wrote: »

you can get a 2.99% with ulster bank for 3 years if you have an account with them

Funny the mortgage adviser never mentioned this, just had a look online and I think 3.2% is the best we would get with them as we wouldn't be below 80% LTV.

So looks like Ulster Bank or KBC are the best?

Also found this thread with some good info on it for switching mortgages in the future:
http://www.boards.ie/vbulletin/showthread.php?t=2057714291&page=4

Bored Accountant

Jake2 wrote: »

Does anyone know when do you have to pay your solictors fees and stamp duty?

Our solicotor just needed it day before finalising the deal I think, the day they were getting the funds from bank

Tuhula

One piece of advice for anyone who thinks they might want to avail of the HTB scheme, do your HTB application as soon into the mortgage application process as you can!! Otherwise any delay will be such a headache! We were told to apply and I didnt and now I am ringing and chasing them for a response!

sabinalee

Hi guys, I'm looking for advice.
After really bad day I have to ask you...

Someone from BOI finaly contacted me and said that original AIP amount will change and decrease for amount of 20.000 !!!
The reason? On my husband salary certs we provided there is a basic salary of 23.000 stated, even that from 8 years he never earned that low money. He always reached much much more. We provided 4 P60s to prove that each year he earned more than 28.000. Last year 32.000 even.My husband works from 8 years for same company, permanently, pensionable and with trade union.
Nothing more is matter for them, only that low basic income now....which never existed.

Sale agreed on the dream house gone...

If we knew in January that we won't get that money we would not even bother. The house places we were looking in January, as for plan B area, now increased for approx 20.000. We lost lots of money....

Bubbaclaus

sabinalee wrote: »

Hi guys, I'm looking for advice.
After really bad day I have to ask you...

Someone from BOI finaly contacted me and said that original AIP amount will change and decrease for amount of 20.000 !!!
The reason? On my husband salary certs we provided there is a basic salary of 23.000 stated, even that from 8 years he never earned that low money. He always reached much much more.

Why did you give them a salary cert if it is incorrect?

The 3.5 loan to income threshold limit is based on base salary only, they can't go above you and your husbands base salary*3.5 unless you are given an exemption.

sabinalee

<quote snipped>

We did not give a incorrect one. The basic on salary certs states true...and it is 22.000. Character of my husband job brings him each year anual of 28.000 minimum. Last year 32.000 even.
Unfortunately now, the banks calculating overtimes differently and they do only accept 20% as addition to the basic.
In January, there was no problem to give us approval for 162.000, now it will be only 142.000.
Apologies from the bank want help here, but at least we can still look for a house,.
Maybe there want be any property to meet our criteria, but let's stay believers.

pilly

sabinalee wrote:

We did not give a incorrect one. The basic on salary certs states true...and it is 22.000. Character of my husband job brings him each year anual of 28.000 minimum. Last year 32.000 even. Unfortunately now, the banks calculating overtimes differently and they do only accept 20% as addition to the basic. In January, there was no problem to give us approval for 162.000, now it will be only 142.000. Apologies from the bank want help here, but at least we can still look for a house,. Maybe there want be any property to meet our criteria, but let's stay believers.

Could you try another bank?

sabinalee

pilly wrote: »

Could you try another bank?

I will try to get advice in few recommended brokers on Monday.
So they will tell me if all banks look for a salary certs and are so strict.

Thank you

sabinalee

each couple situation is different. We only got 142.000 as our basic salaries are 51.000 in total anual plus we could only get mortgage for 18 years.

kwat

Just starting the mortgage application process at the moment and have application forms from two banks to fill out.

They require certified copies of passport etc. Presume either a Garda or solicitor can certify these?
Originals of payslips / P60 etc. also required. If applying with a few different banks how does this work? Can't give originals to them all!

Thanks

68 lost souls

kwat wrote: »

Just starting the mortgage application process at the moment and have application forms from two banks to fill out.

They require certified copies of passport etc. Presume either a Garda or solicitor can certify these?
Originals of payslips / P60 etc. also required. If applying with a few different banks how does this work? Can't give originals to them all!

Thanks

We applied to several banks and we stood with them while they photocopied them and gave us back the original. I think they just need to see the original first.

smurfette2212

Apologies if this is a daft question, and if in the wrong place, please let me know.

Just completed the aib eMortgage application process, and got the Sanction in Principle without submitting any documentation.

I know we'd need to submit before an offer, but is that normal, to get the SIP immediately?

Also, and this is definitely daft, but if you end up finding a property for less than the SIP, can the amount be adjusted, or do you have to re-apply again?

I'd really appreciate any help with the above!

Plasandrunt

Apologies if this doesn't belong in here I just didn't want to start a new thread.

So i bought a apartment last year in cash using the money from a relatives death. It was always just a stopgap to progressing to buy a house. I bought the apartment for €175k and currently apartments in the same block have been going for €190k+ 
I'm 29, single with no dependants and earn about 32k gross per year. My friend lives with me and she gets a good deal paying €450 per month including bills.

I've only been saving for about 5 months so i've a bit of a way to go but i wouldn't be looking for a massive mortgage, only about 100k. I haven't even contacted any banks yet.

Firstly i'm wondering about the deposit, would i have to save up 10% of the total value of the house or 10% of the mortgage i'm looking for? I know banks provide exceptions in regard to the salary of 3.5 but is there any leeway regarding deposits. Also because i own my apartment outright If i were to sell it before applying for the mortgage, could i just use some of the proceeds for the deposit or will the banks need to see evidence of saving for the entire amount of the deposit?

Regarding the money i earn through rent, will the banks factor this in? My payments go into my mortgage saver when I get paid (fortnightly) so it doesn't really affect that but the money is an extra 5k net per year and i'm wondering would it possibly increase the mortgage amount I can apply for?

Also, i'm paying back a bank loan took out about 3 years ago, i fell into some financial difficulties in the meantime and fell behind but everything has been fine in the past year or so paying that back. I currently owe about €8k left on the loan. My friend has offered to give me the money to clear it and i can give him the money back when i sell the property i own but I don't really want that over my head especially when i don't know how much this process will take. If i keep paying back the monthly repayments as it stands then pay off the remaining amount when i sell the property, will the bank still factor in this loan when applying for the mortgage?

Thanks for any replies

cogotazo

I completed the SIP (AIB), too easy, you are right. Now I'm in the process of submitting documentation. Very tiring process.
I applied for SIP even before I started the hunting. Then I found the house, paid the deposit, and started submitting docs. At that moment, I asked for an adjustment of the loan (currently less than applied at first moment) and they updated the loan amount in the very same process, without having to start again another one.
Hope it helps

smurfette2212 wrote: »

Apologies if this is a daft question, and if in the wrong place, please let me know.

Just completed the aib eMortgage application process, and got the Sanction in Principle without submitting any documentation.

I know we'd need to submit before an offer, but is that normal, to get the SIP immediately?

Also, and this is definitely daft, but if you end up finding a property for less than the SIP, can the amount be adjusted, or do you have to re-apply again?

I'd really appreciate any help with the above!

Bradz213

<quote snipped >

I'm no expert but your are within your borrowing limits 32 x 3.5 = 112k - 8k loan = 104k you should be able to borrow.
Also you would be a second time buyer (i think) even though you haven't mortgaged before so you would need 20% deposit. If you think you have 15k equity in the house, you only need to save another 5k

smurfette2212

Very helpful, thank you!

cogotazo wrote: »

I completed the SIP (AIB), too easy, you are right. Now I'm in the process of submitting documentation. Very tiring process.
I applied for SIP even before I started the hunting. Then I found the house, paid the deposit, and started submitting docs. At that moment, I asked for an adjustment of the loan (currently less than applied at first moment) and they updated the loan amount in the very same process, without having to start again another one.
Hope it helps

Plasandrunt

Bradz213 wrote: »

I'm no expert but your are within your borrowing limits 32 x 3.5 = 112k - 8k loan = 104k you should be able to borrow.
Also you would be a second time buyer (i think) even though you haven't mortgaged before so you would need 20% deposit. If you think you have 15k equity in the house, you only need to save another 5k

oh i was under the assumption that because I'd bought the apartment with cash that i'd qualify as a first time buyer as it's my first mortgage I'm applying for. I sure hope so.

shamrock55

Id like to upsize,we have currently been paying our mortgage for approx 12 yrs now of give of take 800 a month ,we are both in the same jobs and getting pretty much same wage as when we got first mortgage, thing is to upsize wed need a mortgage of around 1100 a month but our combined wage @ x 3.5 wouldnt allow this even though we know we could afford it,my question is, does past abillity to pay a mortgage help when applying for a new one,i would also already have the 20% deposit

pilly

Plasandrunt wrote: »

oh i was under the assumption that because I'd bought the apartment with cash that i'd qualify as a first time buyer as it's my first mortgage I'm applying for. I sure hope so.

No, definitely wouldn't be considered a first time buyer.

dolly16

Plasandrunt wrote: »

oh i was under the assumption that because I'd bought the apartment with cash that i'd qualify as a first time buyer as it's my first mortgage I'm applying for. I sure hope so.

You're not a first time buyer - you have already bought so the 20% rule applies now.

zedhead

Well after almost 8 months of sale agreed, countless hours and euros spent our vendor pulled the plug last week. The delays were all on their purchase and they got tired of waiting and decided to stay where they are.

So we are back to the drawing board. We were keeping an eye on the sales for the whole 8 months and nothing was coming up that we were interested in. Luckily it seems to be a good time of year and we have seen a few places popping up and have got the ball rolling with viewings. Just a shame as with the increase in prices we will either have to lower our standards or try for a bigger mortgage. At least we have an extra 8 months of savings under our belts which definitely helps.

tobdom

pilly wrote: »

No, definitely wouldn't be considered a first time buyer.

According to the Central Bank, the definition of a FTB is someone who has not had a loan to buy a property (mortgage) before...... "A first time buyer is defined as a borrower to whom no housing loan has ever before been advanced"

No. 7 here: https://www.centralbank.ie/docs/default-source/macroprudential-policy/policy-documents/faqs-outcome-of-the-2016-review-of-the-mortgage-measures.pdf?sfvrsn=6

pilly

tobdom wrote: »

According to the Central Bank, the definition of a FTB is someone who has not had a loan to buy a property (mortgage) before...... "A first time buyer is defined as a borrower to whom no housing loan has ever before been advanced"

No. 7 here: https://www.centralbank.ie/docs/default-source/macroprudential-policy/policy-documents/faqs-outcome-of-the-2016-review-of-the-mortgage-measures.pdf?sfvrsn=6

I suppose it depends on what purpose you're using the term FTB then. For the purposes of the new HTB scheme you can not have owned any property.