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

Bananaleaf

Sarn wrote: »

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

Yes, we are first time buyers buying a home to live in.

Okay, well, there you go. Glad I asked now. Pay off as much as possible in deposit so. Thank you

Michellenman

Is the 20% deposit required over 220k not gone now??

Bananaleaf

Michellenman wrote: »

Is the 20% deposit required over 220k not gone now??

Was it only ever 20% over 220? Man, I am so stupid when it comes to this topic - I've all the saving and the credit rating bit done, but I have shied away from the topic for so long - the thought of the buying process just fills me with so much anxiety! All my family telling me it's the most exciting time of our lives - I just see it as this HUGE thing that needs to be done and I couldn't look forward to it less. Will be great when we have it bought, but I'm just not one of those people that get excited about meetings with brokers and home viewings.

Either way - 10 and 20% too low for me. I want a tiny mortgage so I can retire earlier.

Sarn

Michellenman wrote: »

Is the 20% deposit required over 220k not gone now??

It was changed, only 10% is needed now.

With the overheating going on at the moment it will be interesting to see what the Central Bank does come the end of the year in relation to deposit requirements, salary multiples and exemptions.

Monife

Hi all,

Would banks look negatively on someone who uses their card a lot for things like online shopping, groceries, lunches out? The online purchases aren't massive, approximately between €100-200 a month, sometimes less.

No debts or loans and consistently saving although my savings are low enough (€100 a month and more when I can) but I may get a gift of a deposit fairly soon.

Should I use my card less and use cash more?

Thanks.

ILikeBoats

Monife wrote: »

Hi all,

Would banks look negatively on someone who uses their card a lot for things like online shopping, groceries, lunches out? The online purchases aren't massive, approximately between €100-200 a month, sometimes less.

No debts or loans and consistently saving although my savings are low enough (€100 a month and more when I can) but I may get a gift of a deposit fairly soon.

Should I use my card less and use cash more?

Thanks.

No, doesn't make a difference. At least with the card they can see where you are spending your money.

c6ysaphjvqw41k

This post has been deleted.

Monife

Valeria Rich Somehow wrote: »

This post has been deleted.

Thanks for that.

My husband saves €200 a month and we pay €900 a month in rent. I was saving €300 a month but had to reduce it due to other expenses. I have a direct debit for €100 a month but put more in at the end of most months. So the €100 I put in is the minimum.

Cuddlesworth

Sarn wrote: »

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

And its gone at the end of the year for a lot of other people.

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.

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

1 - If the money you have saved can make more on interest, then the rate you are paying on your mortgage, including DIRT, then saving it makes more sense.

In practical terms, if you on a tracker mortgage then save, if your not then drop it off the mortgage if you can.

2 - Nope, its completing the application

3 - Whoever offers the best deal and doesn't shaft their current customers.

messy tessy

likeadoctor wrote: »

Hey everyone!

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

Some good advice on this thread in one handy place!

http://touch.boards.ie/thread/2057743045/1/#post103591748

Bananaleaf

Does anyone know, the cashback offer on BOI mortgages - do both applicants have to hold a BOI account or just one?

Cocobongo

Bananaleaf wrote: »

Does anyone know, the cashback offer on BOI mortgages - do both applicants have to hold a BOI account or just one?

Neither of us 2 is holding a BOI account and when applied for a morgage we were told that we are eligible for a cashback

Eric Cartman

Anyone know any brokers that do well with self employed people (and don't just pass them to pepper for underwriting)

Bananaleaf

Okay, so, sorry for all the questions which are probably very stupid, but....

If I begin the application process right now, online, with BOI (only because I have an account with them. Haven't shopped around but need to at least get started) and, lets say I get approval. Am I locked into anything? I don't have to take anything from them, right? If they say 'approved' I just go about looking and if I find something I want, within the price range I'm approved for, I call them and then I can access the funds?

And, how long does approval last for? Is it a big deal if we get it now because we want to start looking and being taken seriously, but we have to get it renewed because approval ran out before we found something we wanted?

Thanks - I've nobody else to ask!

368100

Bananaleaf wrote: »

Okay, so, sorry for all the questions which are probably very stupid, but....

If I begin the application process right now, online, with BOI (only because I have an account with them. Haven't shopped around but need to at least get started) and, lets say I get approval. Am I locked into anything? I don't have to take anything from them, right? If they say 'approved' I just go about looking and if I find something I want, within the price range I'm approved for, I call them and then I can access the funds?

And, how long does approval last for? Is it a big deal if we get it now because we want to start looking and being taken seriously, but we have to get it renewed because approval ran out before we found something we wanted?

Thanks - I've nobody else to ask!

Normally it'll last 6 months for a house hunter approval but I've heard of them pulling it back to 3 months in some cases. If you go through process now it should be easy enough to renew if you need to.....just need to provide up to date payslips, bank statements etc and any changes to your financial situation

sabinalee

Think we are on final step...3 months after booking deposit paid and 3.5 months after we got AIP
We placed Mortgage Protection and Home Insurance documents in the BOI branch today, paid all money to solicitor and now....question?
How long it will take to the bank to transfer mortgage funds you think? 
We just want to feel the happiness and start to pack...:)!

sabinalee

Bananaleaf wrote: »

Okay, so, sorry for all the questions which are probably very stupid, but....

If I begin the application process right now, online, with BOI (only because I have an account with them.  Haven't shopped around but need to at least get started) and, lets say I get approval. Am I locked into anything? I don't have to take anything from them, right? If they say 'approved' I just go about looking and if I find something I want, within the price range I'm approved for, I call them and then I can access the funds?

And, how long does approval last for? Is it a big deal if we get it now because we want to start looking and being taken seriously, but we have to get it renewed because approval ran out before we found something we wanted?

Thanks - I've nobody else to ask!

We did same with BOI. Went with BOI online application. Got approval in a last week of of April - BUT we had a house found already. We sale agreed on the 4th of May. 
3 months later...we are waiting for the bank to transfer the mortgage funds to the vendor.
Good Luck with all!

Bananaleaf

sabinalee wrote: »

We did same with BOI. Went with BOI online application. Got approval in a last week of of April - BUT we had a house found already. We sale agreed on the 4th of May. 
3 months later...we are waiting for the bank to transfer the mortgage funds to the vendor.
Good Luck with all!

If you sale agreed in May why has it taken this long to get funds transferred? Or is that normal?

So if I get approval in principle from BOI now, I'm not committed to going with them and can change my mind? Calling them in the AM anyway, but just checking.

Okay. Maybe it is a little exciting after all ...

sabinalee

Bananaleaf wrote: »

sabinalee wrote: »

We did same with BOI. Went with BOI online application. Got approval in a last week of of April - BUT we had a house found already. We sale agreed on the 4th of May. 
3 months later...we are waiting for the bank to transfer the mortgage funds to the vendor.
Good Luck with all!

If you sale agreed in May why has it taken this long to get funds transferred? Or is that normal?

So if I get approval in principle from BOI now, I'm not committed to going with them and can change my mind? Calling them in the AM anyway, but just checking.

Okay. Maybe it is a little exciting after all ...

Your not getting money from bank to your account after you sale agree on the property, just to be clear.

Whole process of buying a house, apartment takes approx from 2 to 6 months...even longer in some cases, when you read some other comments here.

After younsale agree, you pay deposit to estate agent.
Then you do the structural survey on the property yiu wish to buy.
Next step iis valuation.
Your solicitor and vendors solicitor do all legal paperwork and check if everything is ok.
In the meantime you organize life insurance/ mortgage protection and house insurance...
You meet your solicitor and sign in contract plus you pay rest of deposit
At the end ....your waiting for money being tranfered to the vendors account.
Cant say more...as we just stopped here for now ☺
Possibly keys should be waiting for us very very soon.

Bananaleaf

sabinalee wrote: »

Your not getting money from bank to your account after you sale agree on the property, just to be clear.

Whole process of buying a house, apartment takes approx from 2 to 6 months...even longer in some cases, when you read some other comments here.

After younsale agree, you pay deposit to estate agent.
Then you do the structural survey on the property yiu wish to buy.
Next step iis valuation.
Your solicitor and vendors solicitor do all legal paperwork and check if everything is ok.
In the meantime you organize life insurance/ mortgage protection and house insurance...
You meet your solicitor and sign in contract plus you pay rest of deposit
At the end ....your waiting for money being tranfered to the vendors account.
Cant say more...as we just stopped here for now ☺
Possibly keys should be waiting for us very very soon.

Thank you very much! This is very clear - I have taken a lot from this.
So, deposit you pay to estate agent - is a deposit of the deposit? (as you say later, pay rest of deposit)

Solicitor fee, valuation, house, life ins/mort protection etc. is this what people say you should allow about an additional 10% of cost price of house for? Or would that be too much?

Congratulations and good luck on getting those keys

ILikeBoats

You pay a booking deposit to EA. Usually 5k - 10k.
You give the rest of the deposit (10% minus booking deposit) to your solicitor around when you sign contracts.

You wouldn't need another 10% for solicitor fee, valuation, house, life ins/mort protection.
Solicitor fee = ~900 - 1200
Valuation = ~150
House Insurance/Mortgage Protection/Life Insurance are monthly fees

You'll need 1% of house value for stamp duty. That will be paid to solicitor at same time you pay the solicitor fees, around the end of the whole process just before you draw down.

Bananaleaf

Just got AIP. Didn't realise that bit was so easy. Feel a little more familiar with the process now, had a good 45min chat with the girl on the phone too.

I accidentally overestimated our total savings amount (by about 8k!) but told her I was estimating as only had access to my account when calling (wasn't expecting to get AIP, was just asking a few questions). I also underestimated the OHs salary by 6k but the deposit amount of 25% that I said we have, we do have. The approval we got was for twice our salary so I doubt this will make a difference when we send through all the documents and get proper approval.

Our AIP is for 6months and we can renew for a further 6 before having to reapply, so hopefully we will have something before the reapplication applies.

For others interested in BOI mortgages the girl on the phone told me about a mortgage savers account they have. You get 2k back off mortgage when time comes. One of the terms was that you have to be saving in it for 6months prior to drawing down, but may be of benefit to some (if you didn't know about it already)

mloc123

Bananaleaf wrote: »

Just got AIP. Didn't realise that bit was so easy. Feel a little more familiar with the process now, had a good 45min chat with the girl on the phone too.

I accidentally overestimated our total savings amount (by about 8k!) but told her I was estimating as only had access to my account when calling (wasn't expecting to get AIP, was just asking a few questions). I also underestimated the OHs salary by 6k but the deposit amount of 25% that I said we have, we do have. The approval we got was for twice our salary so I doubt this will make a difference when we send through all the documents and get proper approval.

Our AIP is for 6months and we can renew for a further 6 before having to reapply, so hopefully we will have something before the reapplication applies.

For others interested in BOI mortgages the girl on the phone told me about a mortgage savers account they have. You get 2k back off mortgage when time comes. One of the terms was that you have to be saving in it for 6months prior to drawing down, but may be of benefit to some (if you didn't know about it already)

Have you got AIP... as in the application was sent to underwriters after the phone call and you got confirmation back a week later that it was approved? the info you mention above about incorrect salary etc.. sounds like you have not submitted salary certs etc..?

awec

Bananaleaf wrote: »

Just got AIP. Didn't realise that bit was so easy. Feel a little more familiar with the process now, had a good 45min chat with the girl on the phone too.

I accidentally overestimated our total savings amount (by about 8k!) but told her I was estimating as only had access to my account when calling (wasn't expecting to get AIP, was just asking a few questions). I also underestimated the OHs salary by 6k but the deposit amount of 25% that I said we have, we do have. The approval we got was for twice our salary so I doubt this will make a difference when we send through all the documents and get proper approval.

Our AIP is for 6months and we can renew for a further 6 before having to reapply, so hopefully we will have something before the reapplication applies.

For others interested in BOI mortgages the girl on the phone told me about a mortgage savers account they have. You get 2k back off mortgage when time comes. One of the terms was that you have to be saving in it for 6months prior to drawing down, but may be of benefit to some (if you didn't know about it already)

This "proper approval" you talk of is AIP.

AIP comes after you submit all the relevant salary documents and everything else that they ask for. They send it off to their underwriters and you get an official letter with the amount on it. It's not just a verbal thing and the mortgage advisor you talk to in the bank wouldn't have the authority to approve you.

They can certainly give you an accurate idea of how much you would be allowed to borrow and tell you they don't see any issues but it's not official AIP until the underwriters sign off.

JaMarcusHustle

Bananaleaf wrote: »

Just got AIP. Didn't realise that bit was so easy. Feel a little more familiar with the process now, had a good 45min chat with the girl on the phone too.

I accidentally overestimated our total savings amount (by about 8k!) but told her I was estimating as only had access to my account when calling (wasn't expecting to get AIP, was just asking a few questions). I also underestimated the OHs salary by 6k but the deposit amount of 25% that I said we have, we do have. The approval we got was for twice our salary so I doubt this will make a difference when we send through all the documents and get proper approval.

Our AIP is for 6months and we can renew for a further 6 before having to reapply, so hopefully we will have something before the reapplication applies.

For others interested in BOI mortgages the girl on the phone told me about a mortgage savers account they have. You get 2k back off mortgage when time comes. One of the terms was that you have to be saving in it for 6months prior to drawing down, but may be of benefit to some (if you didn't know about it already)

I don't think you have AIP like the others said.

When you have a chat with them over the phone/in person, they'll tell you how much you would be eligible for, what the repayments would be etc. But it's all just hypothetical. You don't get AIP until you submit proof of salary, savings, account records etc.

They've basically just told you what you should be able to get assuming all your paperwork checks out once you submit it.

Sarn

I have to echo what the others have said. Our first experience with EBS was a 45 min chat to give us a rough idea of what we would be eligible for. In order to get AIP we had to fill out an application form and provide all of the necessary documentation as if we were getting formal approval for a specific house. We then received a letter stating how much we were approved for (subject to final approval). It was at that point that we started making bids.

Bananaleaf

Oh, okay, thanks for that. As you have all said, we haven't submitted any proof of anything yet. But, the girl on the phone said to me "We have approved you in principle" and I got a letter via my email saying "We are giving you approval in principle for the next six months (from date above)" which is today's date. It says that docs etc needed "for full approval" but just as I type all of this I realise that she told me that this was "Househunter approval in principle" so maybe that's a different thing? Same is written on the letter.

jobless

For those of buying as a couple... How much are banks giving out roughly as a multiple of combined salary

368100

jobless wrote: »

For those of buying as a couple... How much are banks giving out roughly as a multiple of combined salary

Usually 3.5 times....there may be exceptions if you're on high salaries and obviously if you have existing commitments this will lower the amount available

Michellenman

jobless wrote: »

For those of buying as a couple... How much are banks giving out roughly as a multiple of combined salary

We've been approved for 4.1 x our basic salaries but they're taking in to consideration commission and bonuses paid too as they've been consistent over last 3+ years.