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

awec

Ha, somehow I forgot to add in the adults. :pac:

ELM327

awec wrote: »

No, otherwise hardly anyone would have a mortgage.

It is true, that's the affordability calculation.
Joint income, less mortgage amount (including 1% interest increase "stress test") must be greater than 2050 for 2 adults and 250 extra per child. And you cannot include child benefit.

awec

ELM327 wrote: »

It is true, that's the affordability calculation.
Joint income, less mortgage amount (including 1% interest increase "stress test") must be greater than 2050 for 2 adults and 250 extra per child. And you cannot include child benefit.

Yea I know, I forgot the adults and for some reason thought he meant the bank wanted 1250 per child.

Amber 123

Hi all, apologies if this is a ridiculous question but we don't really have anyone else to ask and would so appreciate some help.

We are hoping to sell our current home and purchase a new property. As we are second-time buyers we need to have a 20% deposit. A portion of this deposit is coming from our savings and a portion of it will come from the sale of our current home.

Spoke to the bank and they are confident that we tick boxes for approval but the mortgage man in the bank mentioned that we need to go sale agreed on our current home before we can actually apply for mortgage approval on a new mortgage. Obviously we would like to stay in our house until we have found our new home but we could move in with parents if absolutely necessary. We thought we would view some properties in our price range to see if we can find anything worth moving on so we have a viewing set up for this week on a house that looks quite promising.

If we decide that this house is the one we want then we will put our current house on the market, hope that sells quickly and then go back into the bank and look for mortgage approval on our new mortgage when this house goes sale agreed.

My question is, if we fall for the house that we view this week, is there anything that we can do to hold it? Could we pay a holding deposit then put our house on the market, sell it and then apply for a new mortgage, draw that down and pay the rest of the cost of the new house?

Is there a way that we can get mortgage approval before the sale of this house so that we could make an offer on a new house?

I'm so confused. The technicalities of moving from one place to another are really confusing me and I would appreciate it so much if anyone can offer some advice.

Thanks all!

mloc123

Amber 123 wrote: »

Hi all, apologies if this is a ridiculous question but we don't really have anyone else to ask and would so appreciate some help.

We are hoping to sell our current home and purchase a new property. As we are second-time buyers we need to have a 20% deposit. A portion of this deposit is coming from our savings and a portion of it will come from the sale of our current home.

Spoke to the bank and they are confident that we tick boxes for approval but the mortgage man in the bank mentioned that we need to go sale agreed on our current home before we can actually apply for mortgage approval on a new mortgage. Obviously we would like to stay in our house until we have found our new home but we could move in with parents if absolutely necessary. We thought we would view some properties in our price range to see if we can find anything worth moving on so we have a viewing set up for this week on a house that looks quite promising.

If we decide that this house is the one we want then we will put our current house on the market, hope that sells quickly and then go back into the bank and look for mortgage approval on our new mortgage when this house goes sale agreed.

My question is, if we fall for the house that we view this week, is there anything that we can do to hold it? Could we pay a holding deposit then put our house on the market, sell it and then apply for a new mortgage, draw that down and pay the rest of the cost of the new house?

Is there a way that we can get mortgage approval before the sale of this house so that we could make an offer on a new house?

I'm so confused. The technicalities of moving from one place to another are really confusing me and I would appreciate it so much if anyone can offer some advice.

Thanks all!

What bank? Same situation here... PTSB have approved us in principal for a new mortgage without advertising our current house yet. They just wanted to know what we expected to sell for.

Amber 123

We were dealing with Ulster Bank. Have contacted PTSB for an appointment this week so hopefully will get some more clarity on that. Thanks for the reply. Feels like we are juggling at the moment. I assume if we have approval in principle we are in a position to offer a bid on a new house?

Jake2

Can anyone tell me if banks do electronic transfer or do they issue a cheque to your solicitor? I am finally at that stage where I am very close, funds have been requested. How long should it take from here?

Once the funds have been received they are transferred to vendors solicitor do I need to wait till these clear to get the keys? Or will they be transferred and I can pick up the keys straight away.

Vendors have moved out and house is ready to go

kippy

Jake2 wrote: »

Can anyone tell me if banks do electronic transfer or do they issue a cheque to your solicitor? I am finally at that stage where I am very close, funds have been requested. How long should it take from here?

Once the funds have been received they are transferred to vendors solicitor do I need to wait till these clear to get the keys? Or will they be transferred and I can pick up the keys straight away.

Vendors have moved out and house is ready to go

Depends on the bank unfortunately. In this day and age one would expect an electronic transfer however at least one bank almost insists on cheque unless you push the bejaysus outta them unless things have changed in the past few months (PTSB). If the bank issue a cheque to your solicitor your solicitor will have to wait for the cheque to clear before they can eft it to the other solicitor.
You wont get the keys until the funds are in the vendors solicitors account generally.

Jake2

kippy wrote: »

Depends on the bank unfortunately. In this day and age one would expect an electronic transfer however at least one bank almost insists on cheque unless you push the bejaysus outta them unless things have changed in the past few months (PTSB). If the bank issue a cheque to your solicitor your solicitor will have to wait for the cheque to clear before they can eft it to the other solicitor.
You wont get the keys until the funds are in the vendors solicitors account generally.

Thanks for the response. Just trying to set my expectations as it's been a long ol process to get to this point. I'll continue to wait patiently and possible and try to remain calm !

kippy

Jake2 wrote: »

Thanks for the response. Just trying to set my expectations as it's been a long ol process to get to this point. I'll continue to wait patiently and possible and try to remain calm !

Ah yeah, been in that position as well.
It'll happen, just keep the relevant people moving!

ad1234

Hi all

Going to view a house we REALLY want but want to play ot cool and try get ahead of the crowd on it.

Has anyone any hints and tips on what questions to ask and how to possibly bag ot for under asking? It's a 2nd hand home in need of repairs... but I still think there will be a few like us after it...

Thanks!

TheShow

Jake2 wrote: »

Can anyone tell me if banks do electronic transfer or do they issue a cheque to your solicitor? I am finally at that stage where I am very close, funds have been requested. How long should it take from here?

Once the funds have been received they are transferred to vendors solicitor do I need to wait till these clear to get the keys? Or will they be transferred and I can pick up the keys straight away.

Vendors have moved out and house is ready to go

electronic transfer to your solicitors account, who then transfers it to the vendors solicitors account.

Jake2

TheShow wrote: »

electronic transfer to your solicitors account, who then transfers it to the vendors solicitors account.

Thanks I havent heard anything yet. Monday they requested the policy documents for insurance. I think they have these now....so hoping the transfer has been made. Im presuming no contact is good, Im still nervous they will come looking for more information at this stage.

Im expecting the next I hear will be the solicitor telling me funds are received ...or does something in the bank let you know its been processed

ams

Could someone PM me a recommendation for a good snagger in South Dublin? Many thanks

Jake2

ahhhhh heldup waiting on some policy documents for house insurance. No further on in a week, I have no idea how it takes a week of phone calls to get a piece of paper sent from one department in the same bank to another. You would think they could just talk to each other. Instead I am stuck on endless queues to speak to someone to make requests that no one follows through on.

So tomorrow is hopefully a day where I can make some progress and proceed with draw down on this bloody mortgage. I never want to buy a house again. Worst 9 months of my life

MentalMario

Signed contracts, at my side, a few weeks back, and still no closing date. Stupidly, but was told there was no choice. Can't get closing date without the contracts as they were in a chain.

If they haven't signed, yet, is it still possible to pull out? - Presume it is, as it isn't legally binding without their signature, right?

Thepoet85

Morning folks. I have a question and I'm wondering if I could get some advice from the people here.

Myself and my fiancée are looking to get a mortgage for a house. The value of the house is 150k, and the mother in law is gifting us 75k towards the purchase, so we will be looking for a 30 year mortgage to coverage the other 75k. ( The mil will be getting a letter from her solicitor stating she will not be looking for the money back)

The potential pitfall that I'm worried about is that I'm self employed. I started my business six years ago and have been paying back my start up business loan since then( The loan, from the credit union, will be fully paid off in April 18). Due to this, I haven't a history of savings, however I am able to show repayment capacity that is more than double the repayment of the mortgage.

Will there be any bank that would be easier to deal with/ or avoid?

Sorry for the questions, this is all new to me and just looking for some help.

ELM327

For self employed applicants you generally need 2 years at least of bank statements and records, and an uptodate tax clearance cert, in addition to the standard documents. You will also need to have generated at least 25% of the deposit from savings, although this is only a general rule and not a central bank requirement so you may get around this.

I believe other than the above, it is the standard stress tests re repayment capacity that are applied. I'm currently in the application process with PTSB and can - so far - reccomend them.

Thepoet85

ELM327 wrote:

I believe other than the above, it is the standard stress tests re repayment capacity that are applied. I'm currently in the application process with PTSB and can - so far - reccomend them.

Thanks for the reply Elm. Hopefully the fact that I will be able to show I can comfortably make the repayments will go in my favour. Have all the other documents in hand so that won't be a problem.

averagejoe123

No need for your MIL to go to a solicitor for the letter. No point in spending money unnecessarily.

Just get her to type up something to the effect-

To whom it may concern.

I am gifting my child , XXXNAMEXXX (not both parties due to possible CAT arising on the gift to non child) €75,000 to assist Him/Her with the purchase of a house. This is a gift that does not need to be repaid. Please contact me on Telephone Number xxxxx should you need to discuss further.

Kind Regards
MIL

LirW

On a different note, taking out a mortgage for 30 years on 75k might result in low monthly repayments but you're paying massive interest on such a long mortgage. It might make more sense looking for a shorter mortgage with slightly higher repayments but a shorter term.
Just had a look at the calculator, a 20 year term costs you a hundred euro more than a 30 year term, but you pay off a decade faster.

ELM327

averagejoe123 wrote: »

No need for your MIL to go to a solicitor for the letter. No point in spending money unnecessarily.

Just get her to type up something to the effect-

To whom it may concern.

I am gifting my child , XXXNAMEXXX (not both parties due to possible CAT arising on the gift to non child) €75,000 to assist Him/Her with the purchase of a house. This is a gift that does not need to be repaid. Please contact me on Telephone Number xxxxx should you need to discuss further.

Kind Regards
MIL

.
No need, the bank will give you a letter for her to sign, it is slightly different for each lender - just like the specific salary certs

LirW wrote: »

On a different note, taking out a mortgage for 30 years on 75k might result in low monthly repayments but you're paying massive interest on such a long mortgage. It might make more sense looking for a shorter mortgage with slightly higher repayments but a shorter term.
Just had a look at the calculator, a 20 year term costs you a hundred euro more than a 30 year term, but you pay off a decade faster.

+1

Thepoet85

LirW wrote:

On a different note, taking out a mortgage for 30 years on 75k might result in low monthly repayments but you're paying massive interest on such a long mortgage. It might make more sense looking for a shorter mortgage with slightly higher repayments but a shorter term. Just had a look at the calculator, a 20 year term costs you a hundred euro more than a 30 year term, but you pay off a decade faster.

Yea that's certainly an option. I read somewhere before that you should get the longest term possible and then over pay if you can.

At the moment I might be applying for the mortgage on my own, so not sure if there will be an issue with the money beige gifted to me. If it is, we might go jointly.

Thanks again to all for the input.

ELM327

Thepoet85 wrote: »

Yea that's certainly an option. I read somewhere before that you should get the longest term possible and then over pay if you can.

At the moment I might be applying for the mortgage on my own, so not sure if there will be an issue with the money beige gifted to me. If it is, we might go jointly.

Thanks again to all for the input.

Good advice, once you are on a variable rate
If you are on a fixed rate there are often penalties for overpaying, it would be worth checking the terms with your specific lender

Thepoet85

ELM327 wrote:

Good advice, once you are on a variable rate If you are on a fixed rate there are often penalties for overpaying, it would be worth checking the terms with your specific lender

Will do Elm thanks.

Cyrus

ELM327 wrote: »

Good advice, once you are on a variable rate
If you are on a fixed rate there are often penalties for overpaying, it would be worth checking the terms with your specific lender

anyone that has fixed in the last few years can most likely break out at little or no cost, worth asking

LirW

Snowflake17 wrote: »

Morning guys.I was hoping for some advice regarding buying a house on mortgage .Since the crazy rise in rents my husband and I are thinking of buying a house on mortgage that can be a potential source of investment as well.We have the deposit money saved up and have a mortgage approvals well of 200k.The only issue is that we might have to move Bec of our jobs in a couple of years.So if we rent out our mortgaged house will the rent be enough to cover the mortgage repayments every month?or would it be a bad idea??

In my opinion this idea is mad if the legislation stays very anti landlords. Your rental income will be taxed 50% and you have to keep in account other expenses like repair, insurance and the like. Depending on where you are you might be able to cover the mortgage. You get a relief of 80% on the interest (!) of the mortgage but the chances are real that you have to top up yourself.
Not to mention what if you get a bad tenant who overholds and doesn't pay, it can take you 1,5 years easily to evict.

I'd consider this with a lot of care, there is a reason why a lot of small landlords are selling up.

zl1whqvjs75cdy

So nearly by accident we've been approved for a mortgage. Was kind of strange. My partner is on a fixed term contract so I figured it was pointless even applying. She is a bit stubborn so insisted on getting onto a broker, even after two flat out rejections from the banks. The broker spoke to haven, who have approved us for a nice chunk of change. Happy days I guess but I still don't really believe it ha.

I'll just stress that the contract is grand, it will definitely roll into another one indefinitely but the banks didn't seem to want to hear it. Strange how it works. Anyway, off viewing our first house this evening. Don't even know what to look for but sure we'll learn as we go.

c6ysaphjvqw41k

This post has been deleted.

Michellenman

Valeria Rich Somehow wrote: »

Hi all,

My husband and I have been saving for the last few months getting ready to apply for a mortgage in October. Today my husband got quite a large salary increase which was kind of unexpected and effective from this months paycheck. We still want to apply for the mortgage in October but this increase will really help us with how much we can borrow because we were going to be very tight anyway and it will make things a lot easier. My question is will the banks let us borrow based on his new salary now in October even though the increase is only from this month? He isnt on probation and it isnt conditional on anything its just his raise so it will be on his salary cert, just his payslips for 6 months wont reflect this. He will only only have 2 payslips saying that amount.

The same happened to me in April this year. Most banks didn't question it but Ulster bank wanted a letter from my employer that it was a salary increase and confirmation if I was or was not on a salary scale. I only had 2 months payslips with this salary when we applied and it didn't cause any issues.