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

The banks are apparently finding it difficult to track the amount of exceptions that they have granted as they may grant mortgage approval but it may not be drawn down and so doesn't really count. I believe.

368100

sphinx501 wrote: »

On the discussion of exceptions, when a bank issues a loan offer with an exception does the exception remain valid until the expiry of the loan offer?

I presume if it were to expire, then you would have to re-apply and possibly not obtain the exception again?

I've also seen them late in the year where they breached their threshold and a customer went to draw, trying to convince customers to delay drawdown until january because they weren't keeping records of exceptions

mloc123

368100 wrote: »

I've also seen them late in the year where they breached their threshold and a customer went to draw, trying to convince customers to delay drawdown until january because they weren't keeping records of exceptions

PTSB seem to have firmer guidelines on exceptions. No AIP, the exception must be for a specific house... I assume that these can be 'expired' easier than AIP.

likeadoctor

Hey everyone!

First of all, fantastic thread, thanks to everyone for sharing their knowledge and experiences! I'm looking for some advice of course!

So I'm 26 and just got my first 'real' job. Salary (guaranteed) is 31k. No loans, no dependents, pretty low overheads.
My plan is to begin saving immediately- 1000 p/m until I have about 13k saved for a deposit for a mortgage. Hoping to buy an apartment for about 130k- I believe I will end up needing a bigger deposit for that on this salary though, correct?

So what is the best plan of action right off the bat?
-Who do I talk to first? Then who? And then!?
-How do I decide on a provider?
-What are the pitfalls I should watch out for?
-What's the best way to demonstrate my savings? (I currently have none!) IE. Should I open a savings account or will putting money into
my current account regularly and diligently be enough to convince them?

I'm just so afraid of going about this the wrong way and not getting the best potential deal or messing something up and being denied...

Also, does anyone know anything about BOIs Mortgagesaver? Their offer of "We'll give you 2k if you just save 5k over x amount of months" seems too good to be true? And are there any other similar/better offers out there with other banks?

Also, I'm sure this or something quite similar must have been asked here before so I apologise but I couldn't find anything!!

368100

mloc123 wrote: »

PTSB seem to have firmer guidelines on exceptions. No AIP, the exception must be for a specific house... I assume that these can be 'expired' easier than AIP.

It's up to each lender whether to apply exceptions or not, only requirement is the cap which is exceptions drawdown a max of 15% of overall drawdowns

jjdonegal

Id imagine zero chance of success but has anyone any experience of negotiating with lenders on aspects such as Valuation Fee; free banking, etc. Have mortgage approval with all banks and different ones have all these different small offers! Leaning towards KBC for the cheapest repayments but I'd chance my arm for the free valuation (€145) if I thought there was a remote chance of success.

impr0v

likeadoctor wrote: »

-Who do I talk to first? Then who? And then!?

It's probably not worth talking to anyone until you have a sufficient deposit, or close to it. Then talk to some or all of the banks or, if you want to save time and get a broader view, a broker. You will generally pay a relatively small fee to the broker, but not always. AFAIK some institutions don't offer mortgages via brokers (BOI?), so you might still have to do some leg work on your own.

likeadoctor wrote: »

-How do I decide on a provider?

Interest rate. If you need the money you can go with one of the cash-back offers, but you'll generally pay for it with the interest rate on the loan. You can look at availing of the cash-back offer and then switching.

likeadoctor wrote: »

-What are the pitfalls I should watch out for?

Buying something for the sake of it. Paying too much for something you don't want to live in for at least 10 years (aka "getting on the ladder"). Buying something with inherent defects. Buying somewhere without understanding the location fully. Buying something unsuitable for your personal circumstances.

likeadoctor wrote: »

-What's the best way to demonstrate my savings? (I currently have none!) IE. Should I open a savings account or will putting money into
my current account regularly and diligently be enough to convince them?

Open a separate savings account. It's easier to demonstrate your saving practice that way, and it will keep you disciplined.

likeadoctor wrote: »

Also, does anyone know anything about BOIs Mortgagesaver? Their offer of "We'll give you 2k if you just save 5k over x amount of months" seems too good to be true? And are there any other similar/better offers out there with other banks?

I don't.

likeadoctor

impr0v wrote: »

It's probably not worth talking to anyone until you have a sufficient deposit, or close to it. Then talk to some or all of the banks or, if you want to save time and get a broader view, a broker. You will generally pay a relatively small fee to the broker, but not always. AFAIK some institutions don't offer mortgages via brokers (BOI?), so you might still have to do some leg work on your own.



Interest rate. If you need the money you can go with one of the cash-back offers, but you'll generally pay for it with the interest rate on the loan. You can look at availing of the cash-back offer and then switching.



Buying something for the sake of it. Paying too much for something you don't want to live in for at least 10 years (aka "getting on the ladder"). Buying something with inherent defects. Buying somewhere without understanding the location fully. Buying something unsuitable for your personal circumstances.



Open a separate savings account. It's easier to demonstrate your saving practice that way, and it will keep you disciplined.



I don't.

Thanks so much!!

Glen_Quagmire

If applying for a mortgage as a cohabitating couple with one person working full time and good track record of savings and the second person working part time (permanent job) with no track record of savings how do the banks view this scenario?

Does the second person not qualify for a mortgage as they have no savings or is one savings account between both applicants acceptable?

Glen_Quagmire

Glen_Quagmire wrote:

If applying for a mortgage as a cohabitating couple with one person working full time and good track record of savings and the second person working part time (permanent job) with no track record of savings how do the banks view this scenario?

Glen_Quagmire wrote:

Does the second person not qualify for a mortgage as they have no savings or is one savings account between both applicants acceptable?

Sorry for the bump..

Anyone have any idea on this one?

Don't want to ask the bank for obvious reasons

Bawnmore

Glen_Quagmire wrote: »

Sorry for the bump..

Anyone have any idea on this one?

Don't want to ask the bank for obvious reasons

Not sure if applicable with every bank, but I'm with PTSB and my wife is with AIB. All income/savings are on my side with amounts being transferred from mine to my wifes account monthly. We needed to submit my wifes statements etc. but the fact that there was no income savings on that side wasn't ever a concern for the bank. I'd say it's a pretty common scenario in fairness and they just need to ensure there's no debt hanging around.

Glen_Quagmire

Bawnmore wrote:

Not sure if applicable with every bank, but I'm with PTSB and my wife is with AIB. All income/savings are on my side with amounts being transferred from mine to my wifes account monthly. We needed to submit my wifes statements etc. but the fact that there was no income savings on that side wasn't ever a concern for the bank. I'd say it's a pretty common scenario in fairness and they just need to ensure there's no debt hanging around.

Thanks,
I wonder does marriage come into play though as we are not married yet. I'm concerned if I ask the bank they will hold it against me on my application if the answer I get isn't the one I want.

I could go as a single applicant but that doesn't give my partner any security or entitlement to the house, or does it?

ec18

likeadoctor wrote: »

Thanks so much!!

don't forget you'll need an extra 3-5K in for house buying costs that the bank will need to see in addition to the deposit

TheShow

Glen_Quagmire wrote: »

If applying for a mortgage as a cohabitating couple with one person working full time and good track record of savings and the second person working part time (permanent job) with no track record of savings how do the banks view this scenario?

Does the second person not qualify for a mortgage as they have no savings or is one savings account between both applicants acceptable?

Would be just a joint application. As long as everything can be documented and evidenced there should be nothing to worry about other than repayment capacity being demonstrated along with all the other hoops.

Glen_Quagmire

TheShow wrote:

Would be just a joint application. As long as everything can be documented and evidenced there should be nothing to worry about other than repayment capacity being demonstrated along with all the other hoops.

But do both the applicants not have to have strong record of savings behind them?

Jake2

Glen_Quagmire wrote: »

But do both the applicants not have to have strong record of savings behind them?

I would think you would need the appropriate amount of savings between you however that savings comes about. As long as you are saving the amount you should be I don't think it would be an issue it's solely coming from one account. As maybe you are using her income for bills living expenses etc. Might be an idea to put both your names on the savings account therefore it's joint savings rearless who pays into it.

I wouldnt be overly concerned about that but maybe speak to a mortgage broker if you want good advice. I found them worth their weight in gold to put forward the most positive application.

Glen_Quagmire

Jake2 wrote:

I wouldnt be overly concerned about that but maybe speak to a mortgage broker if you want good advice. I found them worth their weight in gold to put forward the most positive application.

Do brokers charge an upfront fee and if so how much, or do they get commission from the mortgage?

Anyone have any recommendations of good brokers around Dublin?

ILikeBoats

Most brokers get paid by the bank

Glen_Quagmire

ILikeBoats wrote:

Most brokers get paid by the bank

Was talking to my mate there and he said he paid for his broker upfront but the broker dealt with everything all my mate done was sign a few forms and didn't speak to a bank once.

Would rather get a broker which the bank paid I had to choice.

Anyone with any recommendations please PM me their details. Thanks

Cuddlesworth

Jake2 wrote: »

Glen_Quagmire wrote: »

But do both the applicants not have to have strong record of savings behind them?

I would think you would need the appropriate amount of savings between you however that savings comes about. As long as you are saving the amount you should be I don't think it would be an issue it's solely coming from one account. As maybe you are using her income for bills living expenses etc. Might be an idea to put both your names on the savings account therefore it's joint savings rearless who pays into it.

I wouldnt be overly concerned about that but maybe speak to a mortgage broker if you want good advice. I found them worth their weight in gold to put forward the most positive application.

Its makes no difference to a join application. They simply want to see the total amount and where it came from.

shamrock55

do mortgage providers take into account your savings in the credit union as proof that your able to save or should your savings be with a bank?

c6ysaphjvqw41k

This post has been deleted.

GaGa21

How long should it take to hear back from broker on application?

Bananaleaf

Hi all

We currently have enough for a deposit saved up. We are just playing the waiting game now until something that suits us comes up. A nice position to be in, compared to 2yrs ago when the dream house appeared but we couldn't afford it.

A few questions:

1. Which is best - (a) largest deposit we can manage and less years on mortgage? (b) Or just pay the 10/20% required and stick to the 35yrs. I personally would have thought (a) is the way to go if you can, but someone we know (who often talks a lot of crap, but also often talks a lot of sense) told us that (b) works out financially better for you.

2. Is approval in principle just filling in an online calculator to see if the bank would hypothetically cover you?

3. How do people figure out which bank to go with? Do you make appointments to see them all? If you make an appointment with a broker what fee do they typically charge for a consultation?

Thank you

LirW

Won't answer to 1. because I can't give you advice there.

2. No, a bank gives you a letter with an amount for how much they'd approve you, after you applied and they did the proper calculation.

3. If you wanna go through a broker depends on a few things. If your application is straight forward enough (no kids involved and/or a high income as a couple) apply with all banks you want directly. Most of them you can start the process by calling or online. Most brokers won't charge you because they'd get paid from the bank you go with in the end. Going with a broker means he'd do most of the work for you so you don't have to go to the banks directly but they might not have access to special offers that you'd get with the banks directly.

pxdf9i5cmoavkz

Bananaleaf wrote: »

1. Which is best - (a) largest deposit we can manage and less years on mortgage? (b) Or just pay the 10/20% required and stick to the 35yrs. I personally would have thought (a) is the way to go if you can, but someone we know (who often talks a lot of crap, but also often talks a lot of sense) told us that (b) works out financially better for you.

Financially better for who? The bank or you? In the case of (b) it's definitely financially better for the bank.

When it comes to paying off debt, you always want to look at the total amount you pay at the end of the term. Not your monthly repayments.

The only way that paying a 10/20% deposit and a 35 year mortgage is "financially better" for you is that the monthly repayments will be lower and thus more manageable when something happens that threatens your ability to pay the monthly installments. However, the total amount you pay will be higher which make you financially poorer in the long term.

The sooner you can pay off your debt the better.

--

Bananaleaf

Moises Refined Tapir wrote: »

Financially better for who? The bank or you? In the case of (b) it's definitely financially better for the bank.

When it comes to paying off debt, you always want to look at the total amount you pay at the end of the term. Not your monthly repayments.

The only way that paying a 10/20% deposit and a 35 year mortgage is "financially better" for you is that the monthly repayments will be lower and thus more manageable when something happens that threatens your ability to pay the monthly installments. However, the total amount you pay will be higher which make you financially poorer in the long term.

The sooner you can pay off your debt the better.

She meant financially better for us!! Her point was hard to follow but it was something along the lines of 'the money you pay in a lump sum deposit is not eligible for tax relief, but if you pay less deposit you get more tax relief' It was hard to follow what she meant exactly. I was thinking that yes, we might be losing some tax relief, but that the tax in itself would be lower if we paid a bigger deposit. Just wanted to check what others thought - this woman has bought 4 houses and has way more experience than us at this (we have 0 homes!) but I needed to double-check.

Bananaleaf

LirW wrote: »

Won't answer to 1. because I can't give you advice there.

2. No, a bank gives you a letter with an amount for how much they'd approve you, after you applied and they did the proper calculation.

3. If you wanna go through a broker depends on a few things. If your application is straight forward enough (no kids involved and/or a high income as a couple) apply with all banks you want directly. Most of them you can start the process by calling or online. Most brokers won't charge you because they'd get paid from the bank you go with in the end. Going with a broker means he'd do most of the work for you so you don't have to go to the banks directly but they might not have access to special offers that you'd get with the banks directly.

Thank you. We have no children. We aren't high earners, I would say modest earners. Between us our salaries do not reach 100k. However, the mortgage we would be looking for would also be modest. We have 25% of the price we are willing to pay saved and have no outstanding loans and two permanent jobs. I would imagine that possibly counts as being straightforward enough so I will call some banks tomorrow and leave the broker out of it for now.

pxdf9i5cmoavkz

Bananaleaf wrote: »

She meant financially better for us!! Her point was hard to follow but it was something along the lines of 'the money you pay in a lump sum deposit is not eligible for tax relief, but if you pay less deposit you get more tax relief' It was hard to follow what she meant exactly. I was thinking that yes, we might be losing some tax relief, but that the tax in itself would be lower if we paid a bigger deposit. Just wanted to check what others thought - this woman has bought 4 houses and has way more experience than us at this (we have 0 homes!) but I needed to double-check.

From reading Housing tax credits and reliefs I don't see anything that indicates you'll have any tax relief? I'm admittedly ****e with tax related topics.

Sarn

If you're a FTB and buying a home to live in there is no tax relief anymore on the mortgage interest.