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

With a joint income of €58,000 what realistically will the banks lend?

somesoldiers

Analia Harsh Ketchup wrote: »

With a joint income of ?58,000 what realistically will the banks lend?

Depends on a lot of things, age, outgoings etc. Google any of the banks mortgage calculators and fill out your details

or try here
https://www.mortgages.ie/go/first_time_buyers/how_much_can_i_borrow
for a broader view

coddle

Anyone recommend a good surveyor for D6 area. Have concerns re extension that has been put on so looking for something fairly comprehensive

Would really appreciate any PMs. An original recommendation has fallen through and need to get one done asap ��

the goon

Hi. This might be a bit of an unusual one. Almost three years into our mortgage on our home but potentially looking to swap homes with a parent.

The house we would be moving to would be worth significantly more than our current home.
We do not require a bigger mortgage but would need to tranfer it.

My problem is that since we took out our mortgage, I have moved companies and whilst my actual income has increased about 15%, I am on fixed term contracts.

Just wondering if anyone has experience of something similar and, have I anychance of getting a bank to approve something like this.
Thanks!

kwat

First time buyers here. My partner and I submitted a joint mortgage application to AIB (my bank). Earn €100k+ combined, no debt, no children or other outgoings, deposit saved up (gift from parents also). Both in full-time employment. My partner works in the civil service - he recently got a promotion (more money) and moved to a new department however as part of his contract he's on probation for one year. As stated in his contract however the worst outcome if he doesn't pass probation is he would revert to his previous grade and salary scale. No risk of losing his job - it's the civil service, you can't be sacked! However the underwriters have come back and said because he's on probation they won't consider us. Have explained the situation / offered to send his contract which clearly states he would only revert to the previous salary scale (approx. €3k less than what he's on now) but they've point blank refused - very frustrating.

Anyone else have experience of this? Have also applied to EBS - they queried the probation but we've sent on the contract / explanation etc. so waiting to hear back from them.

Blingy

That sounds like an odd response from AIB. Did they tell you that's the only reason? I remember a couple of years ago two people getting mortgages from AIB after only just changing jobs and being on probation. They only had to prove they were in the same career (cv) and the mortgage was approved. Definitely try elsewhere.

kwat

Blingy wrote: »

That sounds like an odd response from AIB. Did they tell you that's the only reason? I remember a couple of years ago two people getting mortgages from AIB after only just changing jobs and being on probation. They only had to prove they were in the same career (cv) and the mortgage was approved. Definitely try elsewhere.

Yes they've said the probation is the only reason, that a year is too long and couldn't allow drawdown of funds when on probation. They wouldn't even consider allowing me to email on the contract which explicitly states he would just revert to previous scale / grade if he didn't pass the probation period. Feel like appealing this but not sure if there's even such a process? Not sure if I have full confidence in the person I am dealing with in sales and she understands the situation - just gave me standard scripted responses when I challenged her on it. Have been getting angrier about it the more I think about it!
Hopefully EBS will have a different response.

MerrionPippin

I suspect this might not get a favourable response and might ruffle some feathers, but I'm just looking for some advice.

My fiance and I earn €107k combined.

I had no savings up until November 2016. I had been dipping into my Overdraft quite a lot at that stage, sometimes close to the €2.8k limit.

I started selling tech equipment I bought online at a mark up (in addition to working my normal job). From November 2016 to April 2017, improvements in my regular salary and my side work helped me clear my overdraft and amass €13k in savings. All earnings from this side job were deposited to my bank either through Paypal or cash lodgement, and immediately transferred from my current account to a savings account where they've remained untouched.

I also have a car loan of around €6k (monthly payment of 260) and personal loan of €1.5k to clear (€70 monthly payment). I've slipped back into my overdraft this month due to overspending on a holiday I was on but expect it to be cleared come the end of the month. I don't plan to re-enter it.

My fiance has close to €8k in savings and no significant loans.

We've been paying €1.4k rent between us for 4 years now.

(1) I'm worried that my financial mismanagement and improper earnings mean we'll have no chance at a mortgage. Is that correct?

(2) What do I have to do to correct this, or can I? If so, how many months of normal, by the book savings would I have to display? At what point would a bank not look at my "other earnings", ie. If I just saved a portion of my normal salary for 6-12 months and stayed out of my overdraft, would that suffice?

(3) Even given the above, how big of an impact does having an existing car loan or personal loan have on our application?

somesoldiers

MerrionPippin wrote: »

I suspect this might not get a favourable response and might ruffle some feathers, but I'm just looking for some advice.

My fiance and I earn ?107k combined.

I had no savings up until November 2016. I had been dipping into my Overdraft quite a lot at that stage, sometimes close to the ?2.8k limit.

I started selling tech equipment I bought online at a mark up (in addition to working my normal job). From November 2016 to April 2017, improvements in my regular salary and my side work helped me clear my overdraft and amass ?13k in savings. All earnings from this side job were deposited to my bank either through Paypal or cash lodgement, and immediately transferred from my current account to a savings account where they've remained untouched.

I also have a car loan of around ?6k (monthly payment of 260) and personal loan of ?1.5k to clear (?70 monthly payment). I've slipped back into my overdraft this month due to overspending on a holiday I was on but expect it to be cleared come the end of the month. I don't plan to re-enter it.

My fiance has close to ?8k in savings and no significant loans.

We've been paying ?1.4k rent between us for 4 years now.

(1) I'm worried that my financial mismanagement and improper earnings mean we'll have no chance at a mortgage. Is that correct?

(2) What do I have to do to correct this, or can I? If so, how many months of normal, by the book savings would I have to display? At what point would a bank not look at my "other earnings", ie. If I just saved a portion of my normal salary for 6-12 months and stayed out of my overdraft, would that suffice?

(3) Even given the above, how big of an impact does having an existing car loan or personal loan have on our application?

1) depending on the bank you will be asked for 3-6 months statements, just make sure these are in good order for the next few months. Before that is irrelevant as long as you don't have any bad credit skeletons which you would have to declare. Stop using the OD, makes no sense to have savings in one a/c earning no interest and be paying interest on an OD, also makes it look like you don't have enough to live on, big red flag!


2) Roughly (and I am no expert just have been through this a couple of times, you should check the mortgage calculators online) take home for the 2 lets say 5k, minus cost of two adults, (2*1K), am not going to mention kids as you didn't but these will factor also if you have. minus any loans about 300 so lets say that is 2K left after all that.


They will stress test this to a rise in interest rates etc but very roughly now they would assess you as being able to afford to pay about 1,600 a month. They will stretch this out up to when you are 65. so if you are 30 say you would be able to pay back 1,600 * 12* 35 or 670K over the life time of the mortgage working on a rate of 3.5% would probably be in the 350-400 mark - again very roughly but just to give you an idea. am only basing this on my similar circumstances and haven't done the calcs out


3) as above if you don't have the 260, your amount you can pay would rise to 1,860 and consequently the amount you can borrow


They will also check this 1600 against what you are both paying in rent and saving which would seem to be covered.


I would encourage you to speak to an adviser either directly in a bank (UB ask for 3 months statements) or a broker, but please note using a broker MAY preclude you from getting any of the discounts the bank are offering. The more you know going into this the better, will help you get it right first time and save a lot of messing

tobdom

somesoldiers wrote: »

I would encourage you to speak to an adviser either directly in a bank (UB ask for 3 months statements) or a broker, but please note using a broker will preclude you from getting any of the discounts the bank are offering.

Sorry, can you explain this in a bit more detail? What kind of discounts and why would it preclude you?

somesoldiers

tobdom wrote: »

Sorry, can you explain this in a bit more detail? What kind of discounts and why would it preclude you?

There are various sweeteners out there that may work out dearer in the long run so should be fully researched.
1 or 2% cash back from a few of them. UB offer to pay solicitors fees up to €1500.....If they have to pay a broker for bringing your business to them then these may not appl

Will edit OP to May Preclude as I haven't gone through every banks policies

ec18

ULster bank offfers are valid through a broker

HcksawJimDuggan

MerrionPippin wrote: »

I started selling tech equipment I bought online at a mark up (in addition to working my normal job). From November 2016 to April 2017, improvements in my regular salary and my side work helped me clear my overdraft and amass €13k in savings. All earnings from this side job were deposited to my bank either through Paypal or cash lodgement, and immediately transferred from my current account to a savings account where they've remained untouched.

Have you factored in the additional Income tax due on your side work? I suspect that may be a query from the bank also.

hooch-85

somesoldiers wrote: »

There are various sweeteners out there that may work out dearer in the long run so should be fully researched.
1 or 2% cash back from a few of them. UB offer to pay solicitors fees up to ?1500.....If they have to pay a broker for bringing your business to them then these may not appl

Will edit OP to May Preclude as I haven't gone through every banks policies

Not necessarily true, we've been approved by UB through a broker, we received formal loan offer yesterday so just waiting on contracts to be signed and it was confirmed we will be getting 1500 back once the drawdown takes place

Creamy Goodness

hooch-85 wrote: »

Not necessarily true, we've been approved by UB through a broker, we received formal loan offer yesterday so just waiting on contracts to be signed and it was confirmed we will be getting 1500 back once the drawdown takes place

in fairness they just said that it may not apply and that it's good to just do your research before getting too far down the garden path.

tobdom

Creamy Goodness wrote: »

in fairness they just said that it may not apply and that it's good to just do your research before getting too far down the garden path.

I don't think anyone is having a go, it just sounded like a fairly concrete statement* that anyone going through a broker would be concerned about.


* granted, made on an anonymous internet forum, but people do put a lot of faith in other people's experiences on here

hooch-85

tobdom wrote: »

I don't think anyone is having a go, it just sounded like a fairly concrete statement* that anyone going through a broker would be concerned about.


* granted, made on an anonymous internet forum, but people do put a lot of faith in other people's experiences on here

True, and everyone has been very helpful on here, i just wanted to share my recent experience of getting the promotion with the OP

howtolive

Hi All,

Just going sale agreed on a house at the moment, two quick questions:

1) I need to show proof of funds to EA - at this stage, am I generally expected to give the blanked out version of the approval in principle letter or the unblanked one with approval amount?
2) If I had the opportunity to go sale agreed on a second property, would it be wise to pull out of the current one at that time?

Thanks.

Glen_Quagmire

Is the 2% cash back offer from BOI taxed and how soon after drawing down on the mortgage do you receive the cash?

matrim

Glen_Quagmire wrote: »

Is the 2% cash back offer from BOI taxed and how soon after drawing down on the mortgage do you receive the cash?

They say within 6 weeks. Think it was 4 weeks for us.

Glen_Quagmire

matrim wrote:

They say within 6 weeks. Think it was 4 weeks for us.

Do you pay tax on it?

listermint

kwat wrote: »

First time buyers here. My partner and I submitted a joint mortgage application to AIB (my bank). Earn €100k+ combined, no debt, no children or other outgoings, deposit saved up (gift from parents also). Both in full-time employment. My partner works in the civil service - he recently got a promotion (more money) and moved to a new department however as part of his contract he's on probation for one year. As stated in his contract however the worst outcome if he doesn't pass probation is he would revert to his previous grade and salary scale. No risk of losing his job - it's the civil service, you can't be sacked! However the underwriters have come back and said because he's on probation they won't consider us. Have explained the situation / offered to send his contract which clearly states he would only revert to the previous salary scale (approx. €3k less than what he's on now) but they've point blank refused - very frustrating.

Anyone else have experience of this? Have also applied to EBS - they queried the probation but we've sent on the contract / explanation etc. so waiting to hear back from them.

Use a different bank. Aib have been quite poor of late with mortgage offerings perhaps because the state own it.

Why are you only going for aib and ebs might I ask . There are faaaar better offers from Ulster and KBC banks which would save your thousands on a mortgage.

You are severely limiting your applications

UneJolieFemme

hooch-85 wrote: »

Not necessarily true, we've been approved by UB through a broker, we received formal loan offer yesterday so just waiting on contracts to be signed and it was confirmed we will be getting 1500 back once the drawdown takes place

I agree. I've been approved by Ulster Bank too and was told that everyone gets exactly 1500. They don't actually pay the solicitor fees, they just transfer the money to your current account, so you can do whatever you want with the 1500, once you get it.

Unearthly

howtolive wrote: »

Hi All,

Just going sale agreed on a house at the moment, two quick questions:

1) I need to show proof of funds to EA - at this stage, am I generally expected to give the blanked out version of the approval in principle letter or the unblanked one with approval amount?
2) If I had the opportunity to go sale agreed on a second property, would it be wise to pull out of the current one at that time?

Thanks.

1) i got my bank to type out a letter that says that the mortgage amount approved is enough to cover the sale agreed price. This proves you have the funds while not giving away your exact figure

Hollister11

Glen_Quagmire wrote: »

Do you pay tax on it?

I wouldn't say so. It's cash back.

ILikeBoats

Glen_Quagmire wrote: »

Do you pay tax on it?

No

kwat

listermint wrote: »

Use a different bank. Aib have been quite poor of late with mortgage offerings perhaps because the state own it.

Why are you only going for aib and ebs might I ask . There are faaaar better offers from Ulster and KBC banks which would save your thousands on a mortgage.

You are severely limiting your applications

Just submitted applications with AIB and EBS to get the ball rolling and see how the applications go. AIB is my current bank (and cheapest for variable) and EBS cashback offer is also attractive. Will have to look into the other banks in more detail but will definitely be applying with some of the others. Hopefully hear from EBS this week.

listermint

kwat wrote: »

Just submitted applications with AIB and EBS to get the ball rolling and see how the applications go. AIB is my current bank (and cheapest for variable) and EBS cashback offer is also attractive. Will have to look into the other banks in more detail but will definitely be applying with some of the others. Hopefully hear from EBS this week.

Apply for them all at the same time, this rolling application stuff will delay your process and cost you money because you are likely to go with the first approval.

AIB and EBS are not very competitive in the current market. Does not matter if they are your existing bank or not.

You should branch out the applications now. (excuse the pun)

ThisRegard

somesoldiers wrote: »

UB offer to pay solicitors fees up to €1500.....If they have to pay a broker for bringing your business to them then these may not appl

Going through a broker doesn't exclude you from Ulster Bank's offer.

bigronnie9

Glen_Quagmire wrote: »

Is the 2% cash back offer from BOI taxed and how soon after drawing down on the mortgage do you receive the cash?

The 2% (and possibly further 1% in 5 years) aren't taxed.

However the €2000 Mortgage Saver Bonus if you've been saving with them for 6 months is taxed at full DIRT rate, which i think is 39% but I could be wrong on that!