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

listermint

We finally moved in. Been here a week dream home with 3/4 acre garden .

Very tough getting here lived with the folks for over a year funnily enough with our wedding half way through it.

It's a slog but worth all the stress.

Went sale agreed on this place in January and it's been months of nonsense with the bank and solicitor's. Rights of way on the house boundaries all sorts of crap and then repeating it over and over to different departments in the bank.

We got there though and staring out this morning at the sun in the Wicklow air I couldn't be happier.

Essien

Spent the past few years looking at heaps of suitable houses sell for feck all but we could never get the mortgage.

Now our work situations have improved, we've got AIP for more than enough and there's nothing decent for sale.

The development we really want to buy in was taken over buy a foreign investor who (it appears) has now fallen out with the builder. Now it's at a standstill.

Jaysus it's frustrating.

heebusjeebus

Once sale agreed, is it wise to pay the booking deposit directly to the estate agent, or should it be done via solicitors?

Flatzie_poo

heebusjeebus wrote: »

Once sale agreed, is it wise to pay the booking deposit directly to the estate agent, or should it be done via solicitors?

Directly to the EA is fine - you're a protected buyer until you sign contracts. Just be sure to get a receipt.

johnny66179

Confused ftb wrote: »

Has anyone had any trouble with life insurance because of ongoing medical issues? Nothing too serious but investigative.

Our bank agreed to waive insurance for myself (transplant a couple of years ago) after presenting two rejection letters. My partner took out insurance as normal. We got mortgage approval from three banks, two rejected the waiver. It helps if you have good death in service benefits from your work pension, mine was eight times salary.

bigronnie9

Just FYI since I havent seen it advertised anywhere major, Bank Of Ireland have dropped there fixed rates down to compete with Ulster Bank.

For a 3 year fixed its now 3.2% for >80% LTV, and its 3.0% for <80%.

Not sure of other offerings but I gather they all dropped

lbyrne121

Hi

I was wondering if someone could help me.. I am sale agreed on a house, signed contracts and been waiting for vendor (which is bank as it is a receiver sale to sign contracts), it has been now 5 weeks. 

My mortgage approval letter from EBS stated the 7th of July for expiry date on mortgage approval in priniciple.  On the 13td of May we got Final approval when we signed contracts then.  My question is when I got final approval does it go 6 Months from that date when it expires the offer or is it still the same as Mortgage Approval and Prinicple letter? 

Would really appreciate information on this.

lbyrne121

Hi

I was wondering if someone could help me.. I am sale agreed on a house, signed contracts and been waiting for vendor (which is bank as it is a receiver sale to sign contracts), it has been now 5 weeks. 

My mortgage approval letter from EBS stated the 7th of July for expiry date on mortgage approval in priniciple.  On the 13td of May we got Final approval when we signed contracts then.  My question is when I got final approval does it go 6 Months from that date when it expires the offer or is it still the same as Mortgage Approval and Prinicple letter? 

Would really appreciate information on this.

BBMcQ

Not trying to be an eejit, but have you phoned the bank? Someone on here could give you what they think is good advice, but EBS could have different rules. You need to speak with them.

myshirt

If the FTB grant gets abolished, realistically what can replace it and assist first time buyers to save the deposit? (Bar more graft!)

sabinalee

Can anyone advice...
We finally got our letter of offer for a mortgage and at the end there is a question

When you will require your loan cheque?

If we want to move to the house around 15th of August latest should I put 1st of August as a date for loan cheque or earlier?

Can anyone tell me how long after giving back signed letter of offer everythingreat will take?
I'm still totally blind,....

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DwightSchrute1

Hi guys, I am looking to purchase a site for a self build. A friend told me that certain banks will allow me to use the site as equity instead of having to pay for a deposit on a mortgage. Does anybody know if this is true and if so, what banks allow this? I can't seem to find any information online.

okeydokeys22

Hi all

Any idea what conditions need to be met in order to get a little more than the 3.5 rule?
Combined salary of only 50k yet we've saved almost 70,000 over 4 years. We have also been gifted an extra 20,000 by my father.
Would our savings record allow us to achieve 210,000. Online calculators give us 175,000.

Also, has anybody any idea if any particular bank offers more exemptions?

And lastly, are there any banks in particular which include extras such as unsociable hours allowances etc which make up a substantial part of my take home pay.

somesoldiers

okeydokeys22 wrote: »

Hi all

Any idea what conditions need to be met in order to get a little more than the 3.5 rule?
Combined salary of only 50k yet we've saved almost 70,000 over 4 years. We have also been gifted an extra 20,000 by my father.
Would our savings record allow us to achieve 210,000. Online calculators give us 175,000.

Also, has anybody any idea if any particular bank offers more exemptions?

And lastly, are there any banks in particular which include extras such as unsociable hours allowances etc which make up a substantial part of my take home pay.

>3.5 Usually only available to "the professions"as far as I'm aware,doctors,solicitors and those with capacity for high income.the rules are there as much to protect you against over borrowing as the lenders.
Are these allowances "income" if regular and guaranteed they could be considered. Does this bring up your 50k? If you could get income to 60k you could be in business

myshirt

50k is low to be looking for an exemption. How did you manage to save all that money on such a low income? That's what they will examine and ask is that sustainable. Were you propped up or did you just live on beans?

If your combined income can get to 70k, hopefully more, you will have a better chance, but here's the key, get approved for the max you can but do look for houses more expensive. Once you definitely know you want a house, tell the bank you want that house and ask them to apply for an exemption from their credit committee. That's the trick. You need to make it real. They won't give you approval in principle for more than 3.5times your income.

If you ended with 4 times your income it would be a very good result, but risky.

zedhead

somesoldiers wrote: »

>3.5 Usually only available to "the professions"as far as I'm aware,doctors,solicitors and those with capacity for high income.the rules are there as much to protect you against over borrowing as the lenders.
Are these allowances "income" if regular and guaranteed they could be considered. Does this bring up your 50k? If you could get income to 60k you could be in business

We aren't in one of those professions and we got an exception to the 3.5 rule. My partner is self employed too so may even be considered a little riskier.

We went through a broker and we got AIP for the 3.5 and then told us that we could possibly be approved up to a certain amount with the exception but they couldn't officially give it to us until we had a specific house. We didn't go as high as we were told was a possibility but when we went sale agreed for more than our official AIP had promised we got the exception with no problem.

We were told exceptions were a possibility with KBC & Permanent TSB, the others had all closed their exception business for this half of the year but they would be opening up more in July. It's worth chatting to the bank or a broker and seeing what is possible.

shamrock55

How much hard saving do banks look for,would it be 6 or 12 mths,if i had deposit, i just need to start building some savings,also what percentage of your take home pay does the bank think is a good amount to save per month?

The_Conductor

myshirt wrote: »

If the FTB grant gets abolished, realistically what can replace it and assist first time buyers to save the deposit? (Bar more graft!)

First time buyers already have a lower deposit requirement than do other category of purchasers. This is likely to remain the case.

The current 'first-time-buyers-grant' was nothing of the sort. It was simply a fillip to developers- it is well documented that the entirety of the 'first time buyers grant' was simply incremented onto the price of new builds within days of the scheme being announced (RTE's 'News at One' did a reasonable investigative report on it).

The only downside to abolishing the subsidy- that seems to have any currency whatsoever- is what its abolition would do to second-hand prices. At the moment- the vast majority of FTBs are being corralled into new builds- with this incentive/inducement. If this is no longer the case- its entirely foreseeable that a significant cohort of FTBs who would otherwise not have considered doing so- will now chase second hand property instead- shifting some of the heat from the new build market to the stagnating second hand market.

There always are going to be unintended consequences of any government interaction in the market- however, it behoves any prospective purchaser to sit down and evaluate the broader picture, and where they sit in the picture.

If I were a first-time-buyer, and the 'subsidy' were being abolished- I'd try and evaluate what it was likely to do to the wider market. I'd suggest putting an offer on a second hand property- prior to the abolition of the subsidy on new builds- would make most economic sense- if you were evaluating this purely on the basis of economic fundamentals- which of course don't necessarily apply in the property market.

Don't get too hung up on the first time buyer's grant, one way or the other- it was a game of smoke and mirrors- the winners in this were the developers who got an extra wad of cash thrown at them- and the politicians who presume the scheme translates into votes. One way or the other- FTBs were not the winners in this equation.

ILikeBoats

The_Conductor wrote: »

One way or the other- FTBs were not the winners in this equation.

What about the few that had bought their houses before the subsidy was introduced? So they got the house before prices inflated, they weren't buying because of the subsidy, and yet still fell into the bracket which allowed them to claim it retrospectively?

The_Conductor

ILikeBoats wrote: »

What about the few that had bought their houses before the subsidy was introduced? So they got the house before prices inflated, they weren't buying because of the subsidy, and yet still fell into the bracket which allowed them to claim it retrospectively?

That's splitting hairs. They got lucky. They were not the average person who availed of the subsidy.

However, the flipside of the coin is- were they to try sell their property- even if there were still units being sold in subsequent phases in their development- its worth significantly less that the new builds- as no first time buyer would consider touching it with a barge pole unless it were reduced by at very least as much as the value of the 'FTB grant'.

This was recognised by some advocates of grants for first-time-buyers- and their favoured solution- was to remove the restriction on the FTB 'grant' so FTB'ers could avail of the grant on second hand property too........

Sort of a 'no-good-deed-goes-unpunished' scenario.

theboringfox

Removing FTB grant will only impact the new build market which is very small. There are other controls through central bank on what people can pay. Politicians knocking FG for introducing it rightly but they are trying to swing on way out too. It was stupid policy and hugely unfair to give preferential treatment to one section of market. It wasnt even helping the most needy as there was no means testing. People who didnt need any assistance were still getting it.

okeydokeys22

somesoldiers wrote: »

>3.5 Usually only available to "the professions"as far as I'm aware,doctors,solicitors and those with capacity for high income.the rules are there as much to protect you against over borrowing as the lenders.
Are these allowances "income" if regular and guaranteed they could be considered. Does this bring up your 50k? If you could get income to 60k you could be in business

Yes it is most certainly regular income. My job has circled that the income is regular on my salary cert provided by my bank. They could have chosen guaranteed/regular/irregular. I hope the next bank consider this money as it is considerabe.

The_Conductor

theboringfox wrote: »

Removing FTB grant will only impact the new build market which is very small. There are other controls through central bank on what people can pay. Politicians knocking FG for introducing it rightly but they are trying to swing on way out too. It was stupid policy and hugely unfair to give preferential treatment to one section of market. It wasnt even helping the most needy as there was no means testing. People who didnt need any assistance were still getting it.

It won't only impact the new build market though.
At the moment the vast preponderance of purchasers of new builds- are first time buyers- as they have increased fire power over other prospective purchasers.

If you remove this increase in purchase power from FTBs- you level the playing field- and other buyers who might not have considered a new build might now do so- however, far more likely- is that first time buyers- will now look at the second hand market- where it was not on their agenda whatsoever previously (sure why would you buy a second hand property- it would extinguish your FTB status, and you get no 'grant'..........)

In all likelihood- there will be a speed bump in second hand prices, but any reduction in new prices will be rather limited.

Bradz213

Probably a bit of a silly question but how does the process of transferring funds to solicitor work? I've paid the deposit but also have additional funds to be paid upon drawdown of the mortgage. I had to pay the deposit in multiple installments as the limit was €5k per day. Can the bank be given permission to transfer the funds with the mortgage drawndown or do I have to get a draft or something?

lbyrne121

Hi I was wondering if anyone in this post know or have been involved in a house being sold by bank through receiver.  We have signed contracts and paid the 10% deposit they have been sent back to be signed.  It has been 6 weeks today since we have signed contracts.  Our solicitor is emailing on a regular basis to their solicitors but they keep informing that "you will hear from us when we get contracts back".   My question I know it can take a long time but has anyone been in this situation?  and how long did it take to get contracts signed?

I am just afraid that the receivers or bank no longer want to go ahead with sale.

I would be greatly of any experience on this.

TIA

m*pp*t

Quick question about mortgage rates - thanks in advance for any help!
We're just dipping our toes into the start of the mortgage process (and it looks like it's going to be a barrel of laughs I must say!).
Playing around in the calculators I see that banks offer a different rate depending the LTV ratio. Now, obviously we won't be able to predict in advance the selling price of a house so I'm assuming we try for approval in principle from a few places and decide later. But I'm just wondering is that LTV calculation based on the actual purchase price? Or does the bank send in an assessor?
Sorry for the long winded question!

ad1234

hi all, prob a silly question but my brain has decided to opt out!! if im looking at a 240000e new house is my deposit just 10% now, - 24000..

or...... just 12000, relating to the tax back...? or do i need the full 24k now..... im not able to think any more at all about it all!!! or am i wwwaaayyy off altogether!!!

they need to teach this stuff in school!!

myshirt

^^^^^

How much have you paid in income tax over the past four fully complete tax years?

syndrome777

okeydokeys22 wrote: »

Hi all

Any idea what conditions need to be met in order to get a little more than the 3.5 rule?
Combined salary of only 50k yet we've saved almost 70,000 over 4 years. We have also been gifted an extra 20,000 by my father.
Would our savings record allow us to achieve 210,000. Online calculators give us 175,000.

Also, has anybody any idea if any particular bank offers more exemptions?

And lastly, are there any banks in particular which include extras such as unsociable hours allowances etc which make up a substantial part of my take home pay.

we got exemption on a little over 50K combined, but it was in the beggining of the year.
If you can wait after new years, you stand a much better chance.

Good few thing to note is
permanent jobs, that this 50K is guaranteed, no bonuses in that sum(usually they don't take bonuses in to account much), no other debts, level of rents paid
they want to see around 2500 left after mortgage payment(stressed at 6%) and each additional child is €250(we have non), any maintenance.

drop me a pm , if you want to go in to any more details

myshirt

Yes the market will basically correct downwards given the FTB will not be available, bit the point was the signalling effect this had on the market and the means to an end of getting the deposit saved up.