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

starmc14

A bit to wait yet so! So close but so far at this stage 😊

Jake2

I got it back from KBC in a week. Do you have a contact in there I usually rang them/emailed them constantly asking for an update. They told me it takes up to 48 hours once its submitted by them.

starmc14

Yeah I spoke to my contact last Thursday and he told me up to 10 working days.



UPDATE: loan offer issued to my solicitor this morning!

markmmmm

mloc123 wrote: »

What are estate agents looking for in terms of booking deposit these days... a % of the sale price?

our house price was 295000 booking deposit was 5000

mloc123

markmmmm wrote: »

our house price was 295000 booking deposit was 5000

To close out my original question.. went sale agreed today. 10k booking deposit.

Colonel Claptrap

mloc123 wrote: »

To close out my original question.. went sale agreed today. 10k booking deposit.

Congratulations.

Powerfairy

Hi There,

I was wondering if I could get some advice here, Myself and my partner are starting the process of properly saving for a mortgage, my partner has been saving for years, but I have not, at all (i know this is terrible so no judgement please) as I was on a n extremely low training salary for years, and paying for college (accountant), We are finally earning an OK income, and really want to buy a house, as our rent in dublin is colossal. (1500)

My questions are:
1. Will the fact that my partner has done the majority of the saving (not me) work against us?

2. We are moving in with his family soon for 6 months to try and save the final 9k that we would have spent on rent. (We are hoping to save more than 9k ideally 1.8k per month so 11k) Will this in a way work against us as in we had to move home in order to drastically save?

3. We have got help from a parent who has taken a small loan for us to boost our current savings (They wanted to help we did not ask for this at all and were against it but it is much appreciated) is this something that the banks would have a problem with?

4. The current savings including parent loan is 18k. We would be looking for houses for 200k so we are comfortable paying it back, and still able to save and live, so 10% of that is 20k, then we need along with that Stamp duty 2k, sols fees guessing 2k ?? & all the other hidden bits, and bobs.


5. We have no major debt (credit cards have balances on them nothing major, about 500 euro, at any given time and we do pay them back, and my partner small car loan of 1.5k which he will clear in the next few months)

6. Would you advise waiting the 6 months to have our full deposit ready to go before approaching a mortgage advisor?

Any advice is welcome, Thanks a million

LirW

Do you wanna buy in Dublin? If you want a house 200k in Dublin is not going to take you very far.
If you apply jointly they want to see 6 months of savings record. If you now move back home to save over the next 6 months that should be more than fine. Banks mainly look for you being able to pay back and if you can handle money well.
Regarding the money of your parents that should be alright really, if the banks have questions a letter of the parent stating it's a gift should do it. No need to mention that they took a loan from the bank.

For the legal costs, stamp duty is 1%, so around 2k in your case. Solicitor can be anything from 1 - 3k, shop around, we paid 1500 for the whole lot. You also need to pay for the land registry which was a bit under 1k I think. So 5k in Legal should definitely cover you. Also factor in you need furniture, a moving van etc.

As long as you can repay the mortgage (they'll also stress test your repayment ability) they don't care much about the loan, especially when it's paid off soon. It can make sense though clearing the loan first but I don't think it's a problem.

Good luck with the hunt!

Powerfairy

LirW wrote: »

Do you wanna buy in Dublin? If you want a house 200k in Dublin is not going to take you very far.
If you apply jointly they want to see 6 months of savings record. If you now move back home to save over the next 6 months that should be more than fine. Banks mainly look for you being able to pay back and if you can handle money well.
Regarding the money of your parents that should be alright really, if the banks have questions a letter of the parent stating it's a gift should do it. No need to mention that they took a loan from the bank.

For the legal costs, stamp duty is 1%, so around 2k in your case. Solicitor can be anything from 1 - 3k, shop around, we paid 1500 for the whole lot. You also need to pay for the land registry which was a bit under 1k I think. So 5k in Legal should definitely cover you. Also factor in you need furniture, a moving van etc.

As long as you can repay the mortgage (they'll also stress test your repayment ability) they don't care much about the loan, especially when it's paid off soon. It can make sense though clearing the loan first but I don't think it's a problem.

Good luck with the hunt!

Thanks a million for the advice, oh we are steering clear of Dublin for sure, we are looking in Louth, and will be getting a modest enough house, for our first home. Rent is killing us so we both decided small house, small mortgage. (Hopefully)

Cuddlesworth

If your both in full time employement, you have the deposit plus fees and your within the 3.5 rule it shouldn't be a issue getting approval.

GaGa21

Having been approved in principle, we have come to realise we cannot afford to buy in Dublin in current market.
One option is to buy my partners homeplace and commute. We will have to buy out a sibling and cost in a refurb of property.
Will banks be open to this or what is the best route to take on getting mortgage to do this? Anyone experience of it? Thanks.

Bubbaclaus

Does anyone know if banks will accept 3 unrelated individuals together on a mortgage application as first time buyers? Calculators online seem to typically be 1 or 2.

If yes, can they go 3.5 times combined base salary of the 3?

Cuddlesworth

Bubbaclaus wrote: »

Does anyone know if banks will accept 3 unrelated individuals together on a mortgage application as first time buyers? Calculators online seem to typically be 1 or 2.

If yes, can they go 3.5 times combined base salary of the 3?

http://www.irishstatutebook.ie/eli/2015/si/47/made/en/pdf

“borrower” means a person, or where there is more than one person, each of
such persons, to whom a lender advances a housing loan;

“high loan-to-income housing loan” means a housing loan advanced by a lender
in respect of a residential property under which the total amount advanced is
greater than a multiple of 3.5 times the borrower’s income;

5. A lender shall ensure that the total aggregate monetary amounts advanced to borrowers under high loan-to-income housing loans made for principal home purposes in a relevant period shall not exceed 20 per cent of the total aggregate monetary amounts advanced to borrowers under housing loans made for principal home purposes by the lender in that relevant period.

No restriction on the number of people, though the bank will ask questions to see if your trying to skirt the 3.5 times rule.

donald500

mloc123 wrote: »

To close out my original question.. went sale agreed today. 10k booking deposit.

Does anyone actually care about how much a house costs anymore or is just oh yes the bank gave us enough to buy a house. The crash was only eight years ago and yet people in Dublin are back paying the same prices as they paid back then.

Maybe some expert can tell me why its different this time.

Cuddlesworth

donald500 wrote: »

Does anyone actually care about how much a house costs anymore or is just oh yes the bank gave us enough to buy a house. The crash was only eight years ago and yet people in Dublin are back paying the same prices as they paid back then.

Maybe some expert can tell me why its different this time.

The banks are less exposed this time.

donald500

Cuddlesworth wrote: »

The banks are less exposed this time.

Thats a pretty flimsy reason they still have loads of arrears from the last crash how many is about 50 thousands or something. If a recession hits which it will at some stage prices will crash regardless of how exposed banks are. Are all these people who are buying in dublin now holding on to the hope that the banks are not as exposed as last time as something that will save them this time.

There is an element of people lying to themselves when they know deep down the truth and then are other people buiyng in cash who are fine either way.

TheShow

Powerfairy wrote: »

Hi There,

I was wondering if I could get some advice here, Myself and my partner are starting the process of properly saving for a mortgage, my partner has been saving for years, but I have not, at all (i know this is terrible so no judgement please) as I was on a n extremely low training salary for years, and paying for college (accountant), We are finally earning an OK income, and really want to buy a house, as our rent in dublin is colossal. (1500)

My questions are:
1. Will the fact that my partner has done the majority of the saving (not me) work against us?

2. We are moving in with his family soon for 6 months to try and save the final 9k that we would have spent on rent. (We are hoping to save more than 9k ideally 1.8k per month so 11k) Will this in a way work against us as in we had to move home in order to drastically save?

3. We have got help from a parent who has taken a small loan for us to boost our current savings (They wanted to help we did not ask for this at all and were against it but it is much appreciated) is this something that the banks would have a problem with?

4. The current savings including parent loan is 18k. We would be looking for houses for 200k so we are comfortable paying it back, and still able to save and live, so 10% of that is 20k, then we need along with that Stamp duty 2k, sols fees guessing 2k ?? & all the other hidden bits, and bobs.


5. We have no major debt (credit cards have balances on them nothing major, about 500 euro, at any given time and we do pay them back, and my partner small car loan of 1.5k which he will clear in the next few months)

6. Would you advise waiting the 6 months to have our full deposit ready to go before approaching a mortgage advisor?

Any advice is welcome, Thanks a million

1. It doesn't matter who has the savings, as long as you can demonstrate some period of saving.

2. Will have no negative impact whatsoever.

3. Should not be an issue. Parents will need to complete a deed of waiver and possibly seek independent legal advise. Also, banks do normally insist that at least 5% of the contribution is from your own saved funds, i.e. not gifted. but from what you're saying above, you seem to have this covered.

4. Solicitors fees can vary by a great margin. Ring around for quotes. on top of the fees will be VAT of 23% and then any outlay costs involved in the conveyancing, such as land registry search fees etc.

5. Most banks have a mortgage calculator on their websites, that you can play around with to get an idea of what you can afford with what expenditure you are carrying. Having loans or credit cards is not a negative thing, however they can impact on how much you can borrow. If they are small balances and you can afford to clear them in full, that would be your best option. The less outgoings you have, the more you will qualify for on affordability, all within the bounds of the central bank rules...

6. If you have zero savings now, then its better to wait so you can demonstrate ability to save. If you're most of the way there, then no harm to start talking to advisors at this stage.

donald500

TheShow wrote: »

1. It doesn't matter who has the savings, as long as you can demonstrate some period of saving.

2. Will have no negative impact whatsoever.

3. Should not be an issue. Parents will need to complete a deed of waiver and possibly seek independent legal advise. Also, banks do normally insist that at least 5% of the contribution is from your own saved funds, i.e. not gifted. but from what you're saying above, you seem to have this covered.

4. Solicitors fees can vary by a great margin. Ring around for quotes. on top of the fees will be VAT of 23% and then any outlay costs involved in the conveyancing, such as land registry search fees etc.

5. Most banks have a mortgage calculator on their websites, that you can play around with to get an idea of what you can afford with what expenditure you are carrying. Having loans or credit cards is not a negative thing, however they can impact on how much you can borrow. If they are small balances and you can afford to clear them in full, that would be your best option. The less outgoings you have, the more you will qualify for on affordability, all within the bounds of the central bank rules...

6. If you have zero savings now, then its better to wait so you can demonstrate ability to save. If you're most of the way there, then no harm to start talking to advisors at this stage.

If your in dublin id advise you not to buy as houses are overpriced but up to yourself your mortage

TheShow

donald500 wrote: »

If your in dublin id advise you not to buy as houses are overpriced but up to yourself your mortage

Fair point, but if you can buy a house with loan repayments that are less than you pay in rent, aren't you better off. At least you'll have an asset to back it up, in an appreciating market.

Dublin house prices are indeed ridiculous, which is largely due to the high demand and lack of supply, about which the govt are doing absolutely nothing.

donald500

TheShow wrote: »

Fair point, but if you can buy a house with loan repayments that are less than you pay in rent, aren't you better off. At least you'll have an asset to back it up, in an appreciating market.

Dublin house prices are indeed ridiculous, which is largely due to the high demand and lack of supply, about which the govt are doing absolutely nothing.

Everyone buying says that id prefer to be renting and not stuck to a overpriced house and mortage with renting you can move around your not trapped but thats just me.

There are houses being built just look on boards new eastes coming on stream all the time it will take time to match demand goverement are to blame for a lot like that stupid buy to help but its not normally their role to be building private houses in fairness.

They should cpo land around dublin and get developers to build and put a cap on what they can be sold for this is what two devolpers told me anyway but they will never do that they want high prices.

Didnt think you could get a house for 200k in dubin unless it was a dump in a rough area so at least the mortage isnt huge if you can

TheShow

donald500 wrote: »

Everyone buying says that id prefer to be renting and not stuck to a overpriced house and mortage with renting you can move around your not trapped but thats just me.

There are houses being built just look on boards new eastes coming on stream all the time it will take time to match demand goverement are to blame for a lot like that stupid buy to help but its not normally their role to be building private houses in fairness.

They should cpo land around dublin and get developers to build and put a cap on what they can be sold for this is what two devolpers told me anyway but they will never do that they want high prices.

Didnt think you could get a house for 200k in dubin unless it was a dump in a rough area so at least the mortage isnt huge if you can

You can't. That person was looking in Louth.

mloc123

donald500 wrote: »

Does anyone actually care about how much a house costs anymore or is just oh yes the bank gave us enough to buy a house. The crash was only eight years ago and yet people in Dublin are back paying the same prices as they paid back then.

Maybe some expert can tell me why its different this time.

Bank were willing to lend us considerably more than what we have just gone sale agreed on.

So what do you recommend? Lets "wait 8 years for the next crash"? For us, we are happy with the monthly repayments, can easily cover them and will stay in the house for the next 30 years...

If anything people are too obsessed with the 'number' that a price is.

Find a house you like, you can live in for the next 10+ years and that the mortgage payments are within your means... after that what does it matter how much the number is or how much it is worth in 5 years time.

zedhead

donald500 wrote: »

Everyone buying says that id prefer to be renting and not stuck to a overpriced house and mortage with renting you can move around your not trapped but thats just me.

There are houses being built just look on boards new eastes coming on stream all the time it will take time to match demand goverement are to blame for a lot like that stupid buy to help but its not normally their role to be building private houses in fairness.

They should cpo land around dublin and get developers to build and put a cap on what they can be sold for this is what two devolpers told me anyway but they will never do that they want high prices.

Didnt think you could get a house for 200k in dubin unless it was a dump in a rough area so at least the mortage isnt huge if you can

So what do you propose people do? If I wait until possibly the prices drop, I am older and my mortgage will be over less years so even if I borrow less money my repayments may be the same. I may put myself under more pressure to get a mortgage at that stage in my life.

You say renting means you aren't 'trapped' but it also offers no level of security. If you want to move on with your life, have a family, pets etc....it becomes trickier. With the rental market as it is in ireland a rental is never really your own. They are mostly furnished with someone elses tastes, you cannot get quality furniture, decorate how you like and it can feel like living in limbo.

At this stage in my life I have no desire to move around, I want to set down roots and have a long term home. If the rental market was different this may be possible but unfortunately it is not the reality.

I cannot speak for everyone but we have chosen to borrow an amount we can comfortably afford the repayments on, even should one of us lose our job or something unforseen happened. We have hopefully chosen a home that will accomodate us no matter what path we choose to take and so we will not be looking to 'profit' or 'upgrade' in a couple of years time. Yes we bought in Dublin but the house is worth what we are paying to us. We can afford it and it will be our home. Even if house prices drop, it is irrelevent if we can continue to afford our repayments.

Villa05

Duplicate

Villa05

TheShow wrote:

Dublin house prices are indeed ridiculous, which is largely due to the high demand and lack of supply, about which the govt are doing absolutely nothing.

The Government are doing something. There implementing policies that drive up prices and restrict supply ie they are a major part of the problem

Caliden

TheShow wrote: »

Fair point, but if you can buy a house with loan repayments that are less than you pay in rent, aren't you better off. At least you'll have an asset to back it up, in an appreciating market.

Dublin house prices are indeed ridiculous, which is largely due to the high demand and lack of supply, about which the govt are doing absolutely nothing.

Add property tax, home insurance, life assurance, repairs and maybe management fees to the rental cost and see if there's much of a difference.

awec

Caliden wrote: »

Add property tax, home insurance, life assurance, repairs and maybe management fees to the rental cost and see if there's much of a difference.

Pretty unlikely in today's market that you'd be better off financially if you owned a property rather than rented it, in Dublin at least. Buying a house or apartment to save money on a month-to-month basis is probably not going to happen at the moment unless you get very lucky or seriously downgrade on the standard of property you are willing to live in.

awec

We are looking at buying at the moment and could afford it but we are also seriously considering to wait a year or two more. The current prices are artificially high and simply cannot last, they will come down and supply will increase.

We have the mortgage approval in place, the life insurance etc sorted out and could pull the trigger tomorrow if we saw one that took our fancy, but if we do buy one now it will have to be a house we are happy to live in for a very long time because there is a decent chance it's value is going to decrease in the not too distant future.

godtabh

awec wrote: »

We are looking at buying at the moment and could afford it but we are also seriously considering to wait a year or two more. The current prices are artificially high and simply cannot last, they will come down and supply will increase.

We have the mortgage approval in place, the life insurance etc sorted out and could pull the trigger tomorrow if we saw one that took our fancy, but if we do buy one now it will have to be a house we are happy to live in for a very long time because there is a decent chance it's value is going to decrease in the not too distant future.

Be careful how you proceed. If your circumstances change I.e a kid on the way your offer may change a lot!

awec

godtabh wrote: »

Be careful how you proceed. If your circumstances change I.e a kid on the way your offer may change a lot!

Yep that's one risk you take with waiting. Waiting it out is certainly far from being risk-free, nobody really knows what the story will be in the future. There are other risks like the mortgage rules changing for example.

If you see something now you'd be happy to live in forever then go for it, the only thing I'd be really wary of is buying somewhere you'd only want to live for 3 or 4 years. That's when the problems arise.