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

ILikeBoats

zedhead wrote: »

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.

That sucks, sorry to hear. Must be really frustrating

FutureGuy

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

Myself and my wife were AIP by AIB last September but had a pretty tough 6 months and only stuck our head out to renew the mortgage application in March and didn't apply anywhere else as AIB was the best at the time.

Went sale agreed last week on a property for a tad under 250k. I must admit, looking enviously at the rates/offers here BOI would mean 5k back immediately!

AM258

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!

You can't rely on this until all of your documents have been submitted and reviewed by the underwriters.

We recently applied for AIP with AIB through the branch, we submitted all of our documents and it took approximately 2 weeks for the underwriters to review and come back to us with approval in principle.

The amount you receive AIP for is the max amount they will lend to you (or the max amount you applied for). Once you find a house you can apply for a loan offer for less than the AIP given. If you require more it might be some hassle resubmitting docs etc.

Once you receive/accept the loan offer is when you can't reduce the amount without reapplying for a new (lower) loan offer.

This is all based on information received from Mortgage Advisor in branch. Hope it's helpful.

valovalo

Hi

We hope to have 19K saved for deposit come end of June this year and are looking at Oranmore, Claregalway, area 3 bed if possible, dose any one think we will get some place within budget of approx 160-180 ??, The Cuirt Na hbHaninn estate in claregalway looks like they have a lot of empty houses but no one can seem to give us any info on them or if they would be coming up for sale in next 6 months , if any
one here can help it would be great.

athtrasna

valovalo wrote: »

Hi

We hope to have 19K saved for deposit come end of June this year and are looking at Oranmore, Claregalway, area 3 bed if possible, dose any one think we will get some place within budget of approx 160-180 ??, The Cuirt Na hbHaninn estate in claregalway looks like they have a lot of empty houses but no one can seem to give us any info on them or if they would be coming up for sale in next 6 months , if any
one here can help it would be great.

Try the Galway forum, this thread is about mortgages. Thanks

Mod

smurfette2212

Just realising now that the online bit was definitely too easy - docs all submitted but quite a bit of back and forth since! Thanks for the help!

AM258 wrote: »

You can't rely on this until all of your documents have been submitted and reviewed by the underwriters.

We recently applied for AIP with AIB through the branch, we submitted all of our documents and it took approximately 2 weeks for the underwriters to review and come back to us with approval in principle.

The amount you receive AIP for is the max amount they will lend to you (or the max amount you applied for). Once you find a house you can apply for a loan offer for less than the AIP given. If you require more it might be some hassle resubmitting docs etc.

Once you receive/accept the loan offer is when you can't reduce the amount without reapplying for a new (lower) loan offer.

This is all based on information received from Mortgage Advisor in branch. Hope it's helpful.

c6ysaphjvqw41k

This post has been deleted.

izzyflusky

Valeria Rich Somehow wrote: »

This post has been deleted.

A family member bought a house here years ago. He had a mortgage in another european country and he quaified as a first time buyer. I don't know how it worked but I think he didn't have to declare the property or something. He was advised on this by a solicitor. I'm not sure if he didn't have to or just that there was no way that it would be found out if he didn't though.

c6ysaphjvqw41k

This post has been deleted.

Daisy03

Anyone an experience in getting a salary exemption? I just had an appt with KBC and they are sending off my application for 3.5 times my salary but i could qualify for an exemption of up to 4.5 times and he said i have a very good chance of this. I would only want aroud 4 times.

They said they only apply for an exemption when i find a house and it can take a couple of days to a week to get it approved. If however, i find a house where i do need an exemption can I make an offer before getting the exemption approved? I am just thinking that the house could be gone in the week it takes to get the exemption.

stefanovich

Daisy03 wrote: »

Anyone an experience in getting a salary exemption? I just had an appt with KBC and they are sending off my application for 3.5 times my salary but i could qualify for an exemption of up to 4.5 times and he said i have a very good chance of this. I would only want aroud 4 times.

They said they only apply for an exemption when i find a house and it can take a couple of days to a week to get it approved. If however, i find a house where i do need an exemption can I make an offer before getting the exemption approved? I am just thinking that the house could be gone in the week it takes to get the exemption.

I would say stay away from the exemption route if at all possible. It's there for a reason.

Glen_Quagmire

Am I right in saying that a FTB applying for a mortgage on a new build requires only 5% deposit based on the HTB scheme?

listermint

stefanovich wrote: »

I would say stay away from the exemption route if at all possible. It's there for a reason.

Why, we are in a bubble again. It's time to get on the overspend train

Glen_Quagmire

What is the maximum exemption to the 3.5 times lending rule that people are seeing at the moment. Are banks going up to 4.5 times salary or above in some cases?

tobdom

Glen_Quagmire wrote: »

What is the maximum exemption to the 3.5 times lending rule that people are seeing at the moment. Are banks going up to 4.5 times salary or above in some cases?

Heard from a broker that max is 4.5 with the average exemption being in the 3.9-4.1 region

RaulDublin

I am a first time buyer with an existing approval with AIB /3.3 % variable for a LTV of around 72 % on a property we went sale agreed on recently
Looking at way things are headed next year with ECB rates likely to increase I am thinking of Ulster bank as they offer a 5 year fixed at 3.1 % and even lower for 3 year fixed at 2.99x % .
The way I see it the potential follow on rates for UB are high but they are probably going to high for others as well if interest rates go up in late 2018 or mid 2019 timeframe.

Any thoughts or suggestion ?
Thanks a ton , Raul

Naid23

Just got a call from our solicitor and we are signing contracts on thursday morning so all good.

Just a warning for anyone who's been travelling in Asia/Africa or south america before applying for the life insurance, you will probably be asked to get blood test done for HIV etc if you have travelled within the last 5 years. So allow extra time while sorting the Insurance if this is a factor.

Glen_Quagmire

tobdom wrote:

Heard from a broker that max is 4.5 with the average exemption being in the 3.9-4.1 region

Went onto the KBC website and put my details into their mortgage calculator. It told me I was approved in principle for what worked out at over 4.5 times my salary.

Rang them up and went through the process with one of their agents for 25 mins only to find out that they could only offer me 3.5 times my salary.

I asked about the exemption and I was told they had stopped that until further notice. The agent wasn't very convincing in telling me this either so I have my doubts.

I answered all their questions perfectly to my mind as I have a good job, solid savings for the last year, no loans, no credit card, no outgoings at all except rent and household bills.

Bit puzzled what they didn't like about my details as I would be very surprised if KBC have stopped giving exemptions

myshirt

^^^^
Wait until the start of next year when the slate has been cleaned and they can give more exemptions.

I've noticed that about the KBC calculator myself, it'll always give you the max. I think the reality is when it comes down to it you have to have 70k+ for any sort of exemption, or 120k+ for a couple.

CFC007

I'm also in the same situation as yourself 3 year looks more appealing but when a rate increase around the corner probably makes sense to lock down the 5 year rate even if it's going to cost a bit more in the meantime.

Would like to hear people's opinions. I'm approved with BOI with LTV <80%

RaulDublin wrote: »

I am a first time buyer with an existing approval with AIB /3.3 % variable for a LTV of around 72 % on a property we went sale agreed on recently
Looking at way things are headed next year with ECB rates likely to increase I am thinking of Ulster bank as they offer a 5 year fixed at 3.1 % and even lower for 3 year fixed at 2.99x % .
The way I see it the potential follow on rates for UB are high but they are probably going to high for others as well if interest rates go up in late 2018 or mid 2019 timeframe.

Any thoughts or suggestion ?
Thanks a ton , Raul

RaulDublin

CFC007 wrote: »

I'm also in the same situation as yourself 3 year looks more appealing but when a rate increase around the corner probably makes sense to lock down the 5 year rate even if it's going to cost a bit more in the meantime.

Would like to hear people's opinions. I'm approved with BOI with LTV <80%

Any particular reason for going with Boi ?

CFC007

3% cash back,their fixed rates are good but will be looking to switch afterwards. Also getting 2k bonus for setting up a mortgage saver account before I drawdown.

RaulDublin wrote: »

Any particular reason for going with Boi ?

morrga

CFC007 wrote: »

3% cash back,their fixed rates are good but will be looking to switch afterwards. Also getting 2k bonus for setting up a mortgage saver account before I drawdown.

You only get one or the other, not both.

CFC007

That was changed recently you can now get both!

morrga wrote: »

You only get one or the other, not both.

The_Conductor

Glen_Quagmire wrote: »

Went onto the KBC website and put my details into their mortgage calculator. It told me I was approved in principle for what worked out at over 4.5 times my salary.

Rang them up and went through the process with one of their agents for 25 mins only to find out that they could only offer me 3.5 times my salary.

They have a maximum percentage of their loan book which issues on an annual basis which can be subject to exemptions. Last year, and again this year- several lenders exhausted their annual percentage for exemptions- before the end of the first quarter. In the current climate where there are a rash of first-time-buyers snapping up mortgages asap before the rule change comes in in November- you can see how/why this happens.

aloooof

The_Conductor wrote: »

They have a maximum percentage of their loan book which issues on an annual basis which can be subject to exemptions. Last year, and again this year- several lenders exhausted their annual percentage for exemptions- before the end of the first quarter. In the current climate where there are a rash of first-time-buyers snapping up mortgages asap before the rule change comes in in November- you can see how/why this happens.

Curious as to what the rule change in November is? Presumably limiting exemptions?

The_Conductor

aloooof wrote: »

Curious as to what the rule change in November is? Presumably limiting exemptions?

The Central Bank Commission have a meeting pencilled in for Wednesday the 8th Nov 2017- where they have stated they are going to review the property market, especially lending to First Time Buyers and how it has functioned since its last review (Wednesday the 26th Nov 2016). They were petitioned to review the market before then (at their April meeting)- however, they stated to review the market and take necessary actions to stabilise the market, particularly given factors such as the Department's First Time Buyers Assistance programme- would be disruptive were it to happen more than on an annual basis.

What action precisely they will take- is being debated elsewhere- however, its widely believed that the percentage of mortgages that are allowed breach the 3.5 times gross income level- will be reduced (anecdotally a figure of 5-7.5% is being mooted).

At this point in time- what exactly they'll do in Nov- is pure hypothesis- however, their recent statements have expressed displeasure at the booming market- so its a reasonable expectation that they will attempt to take the steam out of the market......... (by whatever means necessary).

trobbin

The_Conductor wrote: »

The Central Bank Commission have a meeting pencilled in for Wednesday the 8th Nov 2017- where they have stated they are going to review the property market, especially lending to First Time Buyers and how it has functioned since its last review (Wednesday the 26th Nov 2016). They were petitioned to review the market before then (at their April meeting)- however, they stated to review the market and take necessary actions to stabilise the market, particularly given factors such as the Department's First Time Buyers Assistance programme- would be disruptive were it to happen more than on an annual basis.

What action precisely they will take- is being debated elsewhere- however, its widely believed that the percentage of mortgages that are allowed breach the 3.5 times gross income level- will be reduced (anecdotally a figure of 5-7.5% is being mooted).

At this point in time- what exactly they'll do in Nov- is pure hypothesis- however, their recent statements have expressed displeasure at the booming market- so its a reasonable expectation that they will attempt to take the steam out of the market......... (by whatever means necessary).

They're definitely gonna try take the steam out of the market. In the last few days both the CB and the minister for housing have said prices are too high and need to come down.

If you look at average house prices to average incomes and compare them with 2007, then you factor in property tax (plus it's growth potential) also factor in USC charges. We are paying more for homes now than in the boom. When interest rates increase a lot of these reckless out bidders will crying.

Fool me once;)

Blingy

Anyone drawndown a mortgage while on probation at work?
I have a letter of offer from two banks and work part time. I now have an opportunity to apply for a full time job but probation would be 6 months. Same industry. We have signed contracts on a new build but won't be ready till later in the year and the 6 months mortgage offer will have lapsed so will have to reapply before drawdown.
Just wondering if probation will be an issue. It's a joint application and other person has a permanent job.

purpleisafruit

I'm an FTB, married with one income. Due to a multitude of tax credits, my take home is equivalent to a salary about 10k more than I actually earn. Will a bank take this into account for income limits?
I could comfortably meet the repayments on the mortgage I require as I'm currently saving 2.5 times the mortgage I want per month without being stretched financially. Is a broker my best option?