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

BBMcQ

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.

KBC haven't updated their online calculator since before the original central bank rules of Jan 2015. I was offered over 5 times my salary but when I went into the branch it was under 3.5 times and was told "maybe look somewhere more modest to better suit what you can afford", even though I was saving the mortgage amount while paying rent.

They get you into the branch with a broken calculator. Should be laws against that kind of thing.

tobdom

purpleisafruit wrote: »

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?

I would say yes based on what you have said. I think a Broker is better positioned to put your specific case forward, looking at your take home, savings etc. rather than going direct and the bank just blankly applying the rules to you......

Glen_Quagmire

BBMcQ wrote:

They get you into the branch with a broken calculator. Should be laws against that kind of thing.

I couldn't agree more, the calculator is obviously bait to get you into a branch or on the phone so they can try sell you other services. I spent 25 mins going through things with that agent yesterday which was a complete waste of my time!

ec18

Glen_Quagmire wrote: »

I couldn't agree more, the calculator is obviously bait to get you into a branch or on the phone so they can try sell you other services. I spent 25 mins going through things with that agent yesterday which was a complete waste of my time!

When I went into the branch their calculator was broken and giving us an offer of 8.5 times salary :P

purpleisafruit

For anyone who is wondering, I had a discussion with AIB yesterday.
They say that a couple requires €2050 per month for day to day expenses and an additional €250 per child. To be eligible for an exemption on LTI, the figure increases to €2750 for a couple.
Hope that helps others out!

Glen_Quagmire

purpleisafruit wrote:

For anyone who is wondering, I had a discussion with AIB yesterday. They say that a couple requires €2050 per month for day to day expenses and an additional €250 per child. To be eligible for an exemption on LTI, the figure increases to €2750 for a couple. Hope that helps others out!

So if a couple with one child stayed within the 3.5 LTI rule and their mortgage was 1000 per month they would have to have 2300 for day to day expenses.

However, if the couple got an exemption and their mortgage was 1200 a month they would be required to have 3000 for day to day expenses??

Bored Accountant

Glen_Quagmire wrote: »

So if a couple with one child stayed within the 3.5 LTI rule and their mortgage was 1000 per month they would have to have 2300 for day to day expenses.

However, if the couple got an exemption and their mortgage was 1200 a month they would be required to have 3000 for day to day expenses??

I assume that is so that you can easily absorb any rate increases up to 6 or 8% whatever they stress test up to.

FutureGuy

The_Conductor wrote: »

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 wrote: »

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.

Sorry, but how do you think they will go about this?

purpleisafruit

Glen_Quagmire wrote: »

So if a couple with one child stayed within the 3.5 LTI rule and their mortgage was 1000 per month they would have to have 2300 for day to day expenses.

However, if the couple got an exemption and their mortgage was 1200 a month they would be required to have 3000 for day to day expenses??

Yup, those are the numbers I was given by AIB yesterday

Glen_Quagmire

In a new development, what would be the typical time frame before the properties are finished for the developers to release them for booking deposits?

Glen_Quagmire

purpleisafruit wrote:

Yup, those are the numbers I was given by AIB yesterday

Bored Accountant wrote:

I assume that is so that you can easily absorb any rate increases up to 6 or 8% whatever they stress test up to.

I suppose different banks will have different levels on this, I would hope so anyway

aloooof

Glen_Quagmire wrote: »

I suppose different banks will have different levels on this, I would hope so anyway

When I read this, all I could think about was Gareth from The Office going "different frogs, different times".

Anyways, apologies for the derail!

trobbin

FutureGuy wrote: »

Sorry, but how do you think they will go about this?

Short answer will be interest rates. Lots of talk about Ireland's escalating property prices and how vulnerable individuals are to rate increases. IMF has started pushing for higher rates.

Increase property tax.? They can do whatever they want to do. After all, they caused our current situation. CB could also change things in November, deposit rules. If they stop these bank exemptions it will have huge affect on the over bidders.

purpleisafruit

Glen_Quagmire wrote: »

I suppose different banks will have different levels on this, I would hope so anyway

I'd guess that they're all fairly close to each other in this respect.
Wouldn't expect to see one bank asking for 2k per couple and another at 1500

Glen_Quagmire

For a FTB, what is the general rule of thumb when looking at deposit, stamp duty, solicitors fees, surveys, etc. Would I be right in saying savings in the region of 14% of the house price would be required to cover all this?

ILikeBoats

Glen_Quagmire wrote: »

For a FTB, what is the general rule of thumb when looking at deposit, stamp duty, solicitors fees, surveys, etc. Would I be right in saying savings in the region of 14% of the house price would be required to cover all this?

Mine worked out around 11.5%

Member16

How are things just looking for some clarity. Can we get mortgage approved with just having the 10% deposit? As in not yet having the amount necessary for stamp duty and solicitors fees? From what I understand the whole process takes a couple of months and this would allow us to come up with the rest of the funds. Would this be correct?

Glen_Quagmire

ILikeBoats wrote:

Mine worked out around 11.5%

1.5% to cover everything over the 10% deposit? So for example of your house was 250k, your deposit would be 25k so everything else only would have cost 3750?

ILikeBoats

The legal fees will be a flat fee with only the stamp duty varying. Suppose the value of the house would have an effect on this.

380k value
38k deposit
5.5k legal fees including stamp duty

43.5/380 = 11.44%

We had to do 2 valuations also. They were 130 and 70, so you could add that on!

ec18

Member16 wrote: »

How are things just looking for some clarity. Can we get mortgage approved with just having the 10% deposit? As in not yet having the amount necessary for stamp duty and solicitors fees? From what I understand the whole process takes a couple of months and this would allow us to come up with the rest of the funds. Would this be correct?

When I went for mortgage approval the whole process took 2 weeks, not months.

You might get mortgage approval, just put in an application and see, it's free to apply after all

myshirt

Anyone look at the BOI mortgage saver deal?

Save 5 grand and they give you 2 grand. Seems good. Now I know they get it back on the interest rate, but it's a good offer from the perspective of a mechanism to get the deposit. Restructure after a few years after you get the foot in the door.

The same goes for the FTB grant, yes the market just added it to the house price, but it also sent a strong signalling effect through the market, got the pipeline moving, and was a mechanism to get the deposit for those who could afford a mortgage but not a deposit. They could have ensured it was ringfenced to those needing it, and not those with parental gifts to hand, people with inheritances coming, or those living at home for saving etc, but that's a conversation for the other thread.

Nevertheless, are people taking up these offers like BOI's one as a means to an end?

Bananaleaf

Hi all

Looking for some quick feedback and didn't think it warranted a thread of its own.

We have been saving for a mortgage for the past 2.5yrs. Have deposit but haven't ever gone for mortgage approval because we didn't see anything that suited us and our price range. A few things are starting to come up so I guess we will apply now.

1. How do you apply for approval? Individual banks or a broker? Can this be done online? Does it cost anyone?
2. Can we ask to view the properties anyway, without approval?

Thank you

Xaniaj

Bananaleaf wrote: »

Hi all

Looking for some quick feedback and didn't think it warranted a thread of its own.

We have been saving for a mortgage for the past 2.5yrs. Have deposit but haven't ever gone for mortgage approval because we didn't see anything that suited us and our price range. A few things are starting to come up so I guess we will apply now.

1. How do you apply for approval? Individual banks or a broker? Can this be done online? Does it cost anyone?
2. Can we ask to view the properties anyway, without approval?

Thank you

1. Doesn't cost anything. You can go with a a broker but not all banks deal with brokers. If you're going with individual banks, just set up a meeting at a local branch.
2. You can but if bidding, some agents with ask for your proof of funds (approval letter from the banks etc). Might as well start the approval first IMO unless you just want to see what's out there.

Bananaleaf

Xaniaj wrote: »

1. Doesn't cost anything. You can go with a a broker but not all banks deal with brokers. If you're going with individual banks, just set up a meeting at a local branch.
2. You can but if bidding, some agents with ask for your proof of funds (approval letter from the banks etc). Might as well start the approval first IMO unless you just want to see what's out there.

Thank you.

Does approval run out after a certain number of months? I know it used to but I'm not sure if that is still the case.

Is it much of a muchness going with different banks or are some better than others? I guess that this is different depending on thte applicant, but is there anything major to be looking out for?

Apologies for what I guess are the most basic of questions - neither of us have parents to ask or friends who have bought before

Xaniaj

Bananaleaf wrote: »

Thank you.

Does approval run out after a certain number of months? I know it used to but I'm not sure if that is still the case.

Is it much of a muchness going with different banks or are some better than others? I guess that this is different depending on thte applicant, but is there anything major to be looking out for?

Apologies for what I guess are the most basic of questions - neither of us have parents to ask or friends who have bought before

I'm not sure about all banks but our approval with Ulster Bank was for 6 months. If AIP runs out before you decide on a property, you may need to resubmit your docs.

There's definitely a difference between the banks with some banks giving better rates, treating new/existing customers differently and giving 'sign up' bonuses etc. Definitely shop around and see which suits you best!

stop

Xaniaj wrote: »

I'm not sure about all banks but our approval with Ulster Bank was for 6 months. If AIP runs out before you decide on a property, you may need to resubmit your docs.

There's definitely a difference between the banks with some banks giving better rates, treating new/existing customers differently and giving 'sign up' bonuses etc. Definitely shop around and see which suits you best!

Did UB do a check with employers on Drawdown?

KBC required a form signed off by employers when applying for AIP, but UB didn't seem to have an equivalent?

LirW

Question because I looked up and down online and can't find a single thing that'd be useful for us.

Following situation: We want to buy in a certain price range (not in Dublin), we have around 65-70% ourselves, partly saved and partly gifted. The rest we'd need is just too low that a bank would consider it as a mortgage. We really just don't want to take an awful lot more out than we would need. What would be our next step? Talking to a broker?

It seems like this is an uncommon situation but we can't be the only one.

Sarn

LirW wrote: »

Following situation: We want to buy in a certain price range (not in Dublin), we have around 65-70% ourselves, partly saved and partly gifted. The rest we'd need is just too low that a bank would consider it as a mortgage. We really just don't want to take an awful lot more out than we would need. What would be our next step? Talking to a broker?

It seems like this is an uncommon situation but we can't be the only one.

Ridiculous as it seems, if the bank won't accommodate you, could you take out the minimum mortgage that the bank would offer and then immediately pay off a lump sum?

LirW

Sarn wrote: »

Ridiculous as it seems, if the bank won't accommodate you, could you take out the minimum mortgage that the bank would offer and then immediately pay off a lump sum?

That was actually one thought: taking out the lowest mortgage available, afaik the banks vary a bit in that regard.
Only thing I've heard is that banks are trying everything to avoid giving out low mortgages because it's not much business for them.

Lekrub

Hey, have gone sale agreed on a house, the valuation came with a warning saying it is basically not great value but is still inline with market demand.

House is a reg 3 bed semi in cork city for under 300k and approx 1100sqft. Is this common? Any advice?