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

TheShow

hooch-85 wrote: »

Anyone recently closed on a mortgage with UB? Just wondering how long it took to get the 1500 legal fee contribution?

We closed on 28th July and no sign of it coming through yet although i know its only been three weeks.

About 4/6 weeks from what I heard

Bananaleaf

About to put an offer on a home. We've never gotten further than this stage, but if our offer is accepted, what happens then? Do we get a solicitor? Do we pay a booking deposit before getting a solicitor? Or is that who we pay the deposit to? Should we be looking around for a solicitor we would like to deal with now, so that we are ready to just go in and make an appointment straight away?

Bananaleaf

Also, is it acceptable to offer below the listed price (in the same way you would with a car, for example) or is that not done. Sorry, but we have literally nobody to ask these questions to, and would feel a bit stupid asking the EA

TheShow

Bananaleaf wrote: »

Also, is it acceptable to offer below the listed price (in the same way you would with a car, for example) or is that not done. Sorry, but we have literally nobody to ask these questions to, and would feel a bit stupid asking the EA

Go ahead and make your offer, it may or may not be accepted by the vendor, particularly if it's under the asking price, but go ahead and try by all means, you could get lucky. You don't need to make booking deposit until your offer has been accepted by the vendor. You pay the deposit to the agent who holds it in trust. Then you would need to have solicitor and mortgage lined up. Ring around a few local solicitors for quotes as prices can vary by big amounts.

ad1234

TheShow wrote: »

Go ahead and make your offer, it may or may not be accepted by the vendor, particularly if it's under the asking price, but go ahead and try by all means, you could get lucky. You don't need to make booking deposit until your offer has been accepted by the vendor. You pay the deposit to the agent who holds it in trust. Then you would need to have solicitor and mortgage lined up. Ring around a few local solicitors for quotes as prices can vary by big amounts.

Is the booking deposit a full deposit? Or at what stage is the full deposit exchanged? We need to do drainage surveys on the house we are considering but not sure if we can hold off on full deposit until all is clear on that.? Thanks for all answers so far. This page has been a god send. I've said it before and will say again. They really should teach this in school 😂

Baby01032012

Revealed: Top banker's €2.8m mortgage costs him just €1,400 a month

Sorry when I pasted it it doesn't paste as a link.

So the deputy chairman of the bank of Ireland paid €1400 interest a month on a €2.8m mortgage, interest only.

It's really the following paragraph that I find amusing. If that's on same terms as any other mortgage can I have €2.8m also?

That would be some central bank exemption

All loans to directors are made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectability or present other unfavourable features."

Jake2

ad1234 wrote: »

Is the booking deposit a full deposit? Or at what stage is the full deposit exchanged? We need to do drainage surveys on the house we are considering but not sure if we can hold off on full deposit until all is clear on that.? Thanks for all answers so far. This page has been a god send. I've said it before and will say again. They really should teach this in school ��

You usually pay a booking fee of something around 5,000 to the estate agent. This is completely refunadable if you change your mind before you sign contracts, ie if something comes up in a survey and you dont want to buy it anymore.

You don't pay the remainder of the deposit till you sign your contracts.

Definitely go in below asking price, you never know. I got mine for 5 below. I suppose it depends what price of the country you are in and how long its been on the market

TheShow

ad1234 wrote: »

Is the booking deposit a full deposit? Or at what stage is the full deposit exchanged? We need to do drainage surveys on the house we are considering but not sure if we can hold off on full deposit until all is clear on that.? Thanks for all answers so far. This page has been a god send. I've said it before and will say again. They really should teach this in school ��

No, booking deposit is usually 5k deposit to "hold" the property when you go sale agreed. Normally pay 10% deposit (less book deposit) upon exchange of contracts.
You can pay booking deposit and do structural surveys etc, and back out of the sale if needs be, getting your booking deposit back. When you pay the full deposit/exchange contracts you are normally locked in at that stage and if you look to back out then you could be liable for breach of contract, if the vendor was cranky enough about it.

TheShow

Baby01032012 wrote: »

Revealed: Top banker's €2.8m mortgage costs him just €1,400 a month

Sorry when I pasted it it doesn't paste as a link.

So the deputy chairman of the bank of Ireland paid €1400 interest a month on a €2.8m mortgage, interest only.

It's really the following paragraph that I find amusing. If that's on same terms as any other mortgage can I have €2.8m also?

That would be some central bank exemption

All loans to directors are made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectability or present other unfavourable features."

It really depends on what types of mortgages that BOI offer. If they offer a mortgage with an interest only period available, then there is no issue and this is a non story. Maybe the "press" in this country should focus on actual news and facts rather than BS sensationalist rubbish. Journalism is dead and gone, its with O'Leary in the grave.

Greyian

TheShow wrote: »

It really depends on what types of mortgages that BOI offer. If they offer a mortgage with an interest only period available, then there is no issue and this is a non story. Maybe the "press" in this country should focus on actual news and facts rather than BS sensationalist rubbish. Journalism is dead and gone, its with O'Leary in the grave.

I think the issue is that €1,400/month on a €2,800,000 loan is just 0.55% interest annually, which is not on substantially the same terms as ordinary business.

mloc123

My reading of that article makes me think the large lump sums he paid off have probably covered the majority of payments for a year or so?

Michael D Not Higgins

mloc123 wrote: »

My reading of that article makes me think the large lump sums he paid off have probably covered the majority of payments for a year or so?

From the 2012 and 2013 payments, he paid over a third of the principal, then less than the interest owed for the next 3 years. There's more going on here than what we can interpret from the reported figures.

purpleisafruit

Either way does it matter what someone else is paying for their mortgage? Does it have a material affect on other mortgage holders with BOI?

TheShow

Greyian wrote: »

I think the issue is that €1,400/month on a €2,800,000 loan is just 0.55% interest annually, which is not on substantially the same terms as ordinary business.

without knowing the actual repayment terms, you can't determine if this is the case. He could be making large capital reductions annually from bonuses etc, or he could be on a forbearance arrangement. But the press would not be interested in such facts.

justfortherecor

TheShow wrote: »

without knowing the actual repayment terms, you can't determine if this is the case. He could be making large capital reductions annually from bonuses etc, or he could be on a forbearance arrangement. But the press would not be interested in such facts.

Agree. I think given the streak he hit on his remuneration towards the end of his tenure as CEO of Paddy Power, he should be ok to make further capital payments.

myshirt

There are a couple of people I know who were on interest only for 10 years. Basically their housing cost them 350-500 per month for 10 years on c. 300k houses. They then sold, paid off the principal, and pocketed the c. 120k change.

TheShow

myshirt wrote: »

There are a couple of people I know who were on interest only for 10 years. Basically their housing cost them 350-500 per month for 10 years on c. 300k houses. They then sold, paid off the principal, and pocketed the c. 120k change.

they were lucky, could have had negative equity to deal with...

myshirt

TheShow wrote: »

they were lucky, could have had negative equity to deal with...

Of course.

Worked out well though.

shamrock55

When looking to upgrade your house would your current mortgage payments be included in your ability to pay your new bigger mortgage along with savings for example my current mortgage is 1000 pm,the new mortgage would work out at 1500pm,if I saved 500pm for 6-12 mths would that then show I'd be able to pay my new mortgage,i could save an extra 500pm if needed to make it 1000pm along with the 1000im currently paying,or does it all boil down to what your earning and not necassarily what you can prove you can pay back?

ArtyC

Anyone here With experience of planning retention. All was smooth sailing til when I went to pay the estate agent my booking fee he said that we'd need to apply for retention of the roof as it's a higher than it should.

Will this hold me back much? There is nothing else in my price range or area that Competes with this house . Anyone else go through this ?

TheShow

shamrock55 wrote: »

When looking to upgrade your house would your current mortgage payments be included in your ability to pay your new bigger mortgage along with savings for example my current mortgage is 1000 pm,the new mortgage would work out at 1500pm,if I saved 500pm for 6-12 mths would that then show I'd be able to pay my new mortgage,i could save an extra 500pm if needed to make it 1000pm along with the 1000im currently paying,or does it all boil down to what your earning and not necassarily what you can prove you can pay back?

It would be considered as a factor indeed, however the primary formula would be a measure of outgoings vs current income, which should be not greater than 40-50% of income (varies by bank and salary level).

TheShow

ArtyC wrote: »

Anyone here With experience of planning retention. All was smooth sailing til when I went to pay the estate agent my booking fee he said that we'd need to apply for retention of the roof as it's a higher than it should.

Will this hold me back much? There is nothing else in my price range or area that Competes with this house . Anyone else go through this ?

Did the agent/vendor not make you aware of this upfront? I'd be wondering if there are any other issues they have not mentioned.

things to ask:

Is it significantly higher than it should be or a couple of mm?

When was the roof completed? if more than 7 year ago, then its statute barred. If not, the the local authority could potentially refuse the retention request and ask for the roof to be rectified in accordance with the planning.

The agent should be able to tell you the what the situation is, and if you still want to proceed, I'd make it on the condition that retention planning is secured and a structural survey of course, as standard.

shamrock55

TheShow wrote: »

It would be considered as a factor indeed, however the primary formula would be a measure of outgoings vs current income, which should be not greater than 40-50% of income (varies by bank and salary level).

So if all your outgoings including your mortgage payments are under 50% of your income you should be OK? Are outgoings other monthly bills,food shop,clothes etc,or just other loan repayments if you have them,also is it based on gross or net income?
Thanks for reply btw

ArtyC

TheShow wrote: »

Did the agent/vendor not make you aware of this upfront? I'd be wondering if there are any other issues they have not mentioned.

things to ask:

Is it significantly higher than it should be or a couple of mm?

When was the roof completed? if more than 7 year ago, then its statute barred. If not, the the local authority could potentially refuse the retention request and ask for the roof to be rectified in accordance with the planning.

The agent should be able to tell you the what the situation is, and if you still want to proceed, I'd make it on the condition that retention planning is secured and a structural survey of course, as standard.

The house is over 35 years old and about a foot too high, just disappointed about having to wait around for this

TheShow

ArtyC wrote: »

The house is over 35 years old and about a foot too high, just disappointed about having to wait around for this

It should not be an issue from a planning perspective then, just a cost perspective to get the retention permission etc. also will delay the mortgage drawdown as the solicitor will come back to the bank with qualifications on title which the bank will need to approve.

TheShow

shamrock55 wrote: »

So if all your outgoings including your mortgage payments are under 50% of your income you should be OK? Are outgoings other monthly bills,food shop,clothes etc,or just other loan repayments if you have them,also is it based on gross or net income?
Thanks for reply btw

No Probs,
loan repayments, life cover, pension (if funded separately from gross salary), childcare etc. DSC% ranges from 40% to 50% depending on the bank, normally the bigger the salary the higher DSC permitted, but they will also consider how much is left, in terms of how many dependants there are, to cover cost of living etc.

if the committments are less than say 40%, then it should be ok as long as credit check it good and bank statements show a good profile - no excesses, no unpaid items.

shamrock55

Is it true you need roughly 2500 disposable income left over after paying your mortgage and bills if you have 2 kids?

awec

shamrock55 wrote: »

Is it true you need roughly 2500 disposable income left over after paying your mortgage and bills if you have 2 kids?

No, otherwise hardly anyone would have a mortgage.

myshirt

awec wrote: »

No, otherwise hardly anyone would have a mortgage.

It is true actually. 2 adults 2 kids you would want that anyway.

syndrome777

shamrock55 wrote: »

Is it true you need roughly 2500 disposable income left over after paying your mortgage and bills if you have 2 kids?

this is true cca 2k for 2 adults and 250 per child.

Bills are not counted ...but after mortgage, other loans, childcare and maintenance (if their's any of these)