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

Bananaleaf

CoconutSky wrote: »

Thanks - I have three letters from three separate companies. It’s at the banks discretion if they grant me a waiver. If they don’t give me a waiver, am I totally f**ked?

I didn't reply to you earlier, because I don't know anything so couldnt help you, so take this with the knowledge in your head that I don't know what I'm on about.

I guess if life cover is being declined, this means that you are at risk of not being able to fulfil the terms of your mortgage.

Given that all the bank really care about is their money, you should have options open to you, like some of the following possibly?:

1. Some kind of guarantor or collateral situation, where someone else will legally agree to continue the term if you are not able to.
2. Shortening the term by raising your monthly instalments
3. Taking a smaller loan by having a larger deposit and buying a cheaper home

Apologies, I don't have any knowledge of the situation, but I doubt you are f*cked.
Best of luck

Vetch

Call me Al wrote: »

Do banks actually ask for 8 years worth of statements? Unless you have an account with them already and the manager would be able to see these statements anyway.
But transactions from 8 years previous would appear to be excessive.

I'm a longtime BOI customer so the mortgage manager would have had access to all my accounts. I'd agree with you that it's excessive. Given that they only ask for six months from non-customers if this transaction had gone against me it would surely be procedurally unfair.

sightband

ELM327 wrote: »

I would suggest contacting KBC if you are looking for an exception and including unguaranteed overtime as income because they included mine (even though I didnt ask nor need it). I'd be in a similar position to yourself, single applicant, base of 40k but I normally earn 50-60k with overtime and bonuses. BOI didnt count the additional salary but KBC were. If I were "on the cusp" it could make a difference.

They wont consider it as regular income but can include some of it (50%) if they see it's regular earning on multiple p60s

+1
most banks have a standard gift letter and all state that the money is not due to be repaid. Whether you actually repay is between you and your brother, the bank want it documented that no one else has recourse to the asset (house) except their lien.

Some are and some arent, it depends which one, what bank, your profile, area of purchase, etc etc. How long is a piece of string.

all of this is rubbish. each lending institution has a borrower exception limit per annum. BOI vs KBC is no different. I’ve banked 20 years with AIB with good record and wasn’t offered an exception because of their limit and my timing application, went to BOI, whom I had never banked or had dealings with and got 4.5 LTI

some of the advice offered on this needs to be moderated by somebody, it’s hearsay for the most part.

ebayissues

ELM327 wrote: »

I would suggest contacting KBC if you are looking for an exception and including unguaranteed overtime as income because they included mine (even though I didnt ask nor need it). I'd be in a similar position to yourself, single applicant, base of 40k but I normally earn 50-60k with overtime and bonuses. BOI didnt count the additional salary but KBC were. If I were "on the cusp" it could make a difference.

They wont consider it as regular income but can include some of it (50%) if they see it's regular earning on multiple p60s

+1
most banks have a standard gift letter and all state that the money is not due to be repaid. Whether you actually repay is between you and your brother, the bank want it documented that no one else has recourse to the asset (house) except their lien.

Some are and some arent, it depends which one, what bank, your profile, area of purchase, etc etc. How long is a piece of string.

Thanks for the detaled response. I'll give KBC a call.

Is there anythng that I can do now apart from saving ?

Interested Observer

ebayissues wrote: »

Thanks for the detaled response. I'll give KBC a call.

Is there anythng that I can do now apart from saving ?

Not really sure, one thing that the banks repeated to us again and again and again is you have to demonstrate your capacity to repay so that means recording all your rent (if you pay in cash then get the landlord to sign a rent book) and then just putting money away every month and not touching it. They'll also stress test the amount you want to borrow in case of interest rate rises so if (making up numbers) your mortgage payments were going to be €1000 p/m they'll be looking for you to demonstrate a capacity to pay ~€1200 per month.

Sorry I'm not sure if you've stated this in one of your previous posts but it could be well worth going to meet a mortgage advisor from one of the banks, they'll run through all the numbers with you and tell you exactly what they want to see from an applicant. Even if you're not in position to apply yet. Just always remember they aren't particularly your friend, they act for the bank, but you'll get a good idea of what you need to be saving every month for example.

ELM327

sightband wrote: »

all of this is rubbish. each lending institution has a borrower exception limit per annum. BOI vs KBC is no different. I’ve banked 20 years with AIB with good record and wasn’t offered an exception because of their limit and my timing application, went to BOI, whom I had never banked or had dealings with and got 4.5 LTI

some of the advice offered on this needs to be moderated by somebody, it’s hearsay for the most part.

Well considering I wasn't talking about LTI/ICB rules exceptions at all, perhaps you need to moderate your own " rubbish ".

I was talking about their exceptions to their own rules from their underwriters, nothing to do with the ICB at all.

Someone needs to moderate people responding to my posts without reading them!

ebayissues wrote: »

Thanks for the detaled response. I'll give KBC a call.

Is there anythng that I can do now apart from saving ?

Other than saving, clearing any debts if possible, and getting ready to explain (with documentation) any large transactions on your account there's not much you can really do until you contact the bank.

Tuhula

Just moved into our new build at the weekend, no better feeling! It was worth all the sacrifices.

-The cleaner you can have your bank accounts the easier it will be. 6 months was what the banks were looking for from us.
We went with BOI. Have your credit cards in a healthy position and clear all loans.
We bought a new build so from putting down deposit to moving in was just under 9 months. Loan offer expired in that time as it only lasts 6 months so make sure your financial situation doesn't change in those months between applying and drawing down, try to keep your accounts healthy so that it is extended without any heartache.
- Ring Ring Ring...we found the bank worked a day behind on mails. So if you mail them this morning they wont pick it up until tomorrow morning. Highly frustrating. So anytime we sent a mail with information or documents, we rang straight away to ask them to pick it up. Also found that helped with solicitor too.

Powerfairy

Vetch wrote: »

When I was applying for a BOI mortgage earlier this year I was asked by the mortgage manager about a deposit of 15,000 or so made into my account in 2009. It was actually my own money coming back to me as I'd lent it to someone. I told her this and she accepted it, but not exactly straightaway. I was also able to say that if she checked the same amount would have gone out of the account some time earlier. I thought it was interesting she went back so far in the account but maybe my bank account isn't very interesting. I don't know about gifts, but the best option is to tell the truth!

Thanks a million for the information. Our file is gone to the underwriters now, and i told her everything, / provided back up for everything we submitted so hopefully now please god, we get the approval. They said its normally 5-7 working days but with Christmas we won't hear back realistically until mid January.
The worry of it all is so stressful. I am currently trying not to touch my current account and using a revolut card, so its in the best shape it can be in! Its going to be a very modest Christmas Thanks again for all the info.

Powerfairy

ELM327 wrote: »

In my experience:
They will query any and all large incomings and outgoings.
If it's a gift there is a standard gift letter to complete.
You will have to provide a minimum of 25% of the deposit amount yourself, show a track record of savings, and they will probably also question your decision to move to a different county without renting there first.

Thanks ELM327, you were spot on about moving to another county, the mortgage advisor asked me that immediately. Best of luck with your "moving in" journey hope it goes well for you.

readyletsgo

Thought I'd jump in and ask some advice. Looking to saving over the next year. I can save about 230 per week string to a total I have of €15k so far. My gross earnings are €30k with job security.

Would banks look at me for a mortgage?

ELM327

readyletsgo wrote: »

Thought I'd jump in and ask some advice. Looking to saving over the next year. I can save about 230 per week string to a total I have of €15k so far. My gross earnings are €30k with job security.

Would banks look at me for a mortgage?

30k*3.5 is 105k so the max value house you could purchase would be 105k.
They'd look at you but there isnt much out there for that, IMO. Depending on your location of course.

readyletsgo

ELM327 wrote: »

readyletsgo wrote: »

Thought I'd jump in and ask some advice. Looking to saving over the next year. I can save about 230 per week string to a total I have of €15k so far. My gross earnings are €30k with job security.

Would banks look at me for a mortgage?

30k*3.5 is 105k so the max value house you could purchase would be 105k.
They'd look at you but there isnt much out there for that, IMO. Depending on your location of course.

Ok cool. Best get a partner so.
Thanks for the reply!

keane2097

ELM327 wrote: »

30k*3.5 is 105k so the max value house you could purchase would be 105k.
They'd look at you but there isnt much out there for that, IMO. Depending on your location of course.

Max you could borrow is 105k. You can buy a house worth however much you want depending on how much cash you have to go with it.

If you are borrowing 105k the house needs to be worth at least 116,667 as you must have at least 10% deposit.

myshirt

Are the banks even lending to single applicants on 30k? Anyone on this forum know of examples?

Yes it is technically possible, but in practice have we ever seen someone on less than 35k get a mortgage?

30 is a very low salary, well done for saving 230 a week, that shows the right financial discipline there which can only help you.

ELM327

keane2097 wrote: »

Max you could borrow is 105k. You can buy a house worth however much you want depending on how much cash you have to go with it.

If you are borrowing 105k the house needs to be worth at least 116,667 as you must have at least 10% deposit.

The way the banks explained it to me was the max mortgage amount for an FTB was (90%*(salary*3.5). You could then supplement this with additional cash.

myshirt wrote: »

Are the banks even lending to single applicants on 30k? Anyone on this forum know of examples?

Yes it is technically possible, but in practice have we ever seen someone on less than 35k get a mortgage?

30 is a very low salary, well done for saving 230 a week, that shows the right financial discipline there which can only help you.

The banks really look for repayment capacity and good credit histroy. If s/he has that then they have all the possibility of getting a mortgage within the CB constraints.

I was a single applicant and the banks look more suspiciously on you for that, I find.

Bananaleaf

Bank released funds late yesterday. Should be with the solicitor tomorrow AM, so all going well I should have keys in hand by tomorrow afternoon!

ELM327

Congratulations! Always good to hear a happy resolution!

tigerbanana

Is it possible to sign contracts with just an approval in principle? I understand it’s probably not advisable given you then go on-risk for your deposit, but I’m waiting for a probation completion letter to come though before being issued a loan offer from the bank and I am incentivized by developer (they’ll fit out the kitchen for free) if I close within a certain number of days.

Bananaleaf

tigerbanana wrote: »

Is it possible to sign contracts with just an approval in principle? I understand it’s probably not advisable given you then go on-risk for your deposit, but I’m waiting for a probation completion letter to come though before being issued a loan offer from the bank and I am incentivized by developer (they’ll fit out the kitchen for free) if I close within a certain number of days.

From my experience of the situation this is the case:

You can't sign your contract until you sign your loan agreement (which is the stage after approval in principle)

And you can't sign the loan agreement without the contracts.

So, no. You can't sign either doc until both are present in front of your solicitor

tigerbanana

Bananaleaf wrote: »

From my experience of the situation this is the case:

You can't sign your contract until you sign your loan agreement (which is the stage after approval in principle)

And you can't sign the loan agreement without the contracts.

So, no. You can't sign either doc until both are present in front of your solicitor

Ok - Thanks. I’ve been trying to argue that over the Christmas period, solicitors/banks are likely slower than they might be at other times of the year, so asked for some leeway. But to no avail thus far.

Bananaleaf

tigerbanana wrote: »

Ok - Thanks. I’ve been trying to argue that over the Christmas period, solicitors/banks are likely slower than they might be at other times of the year, so asked for some leeway. But to no avail thus far.

I see the incentive alright. I wonder if you asked developer nicely would they extend the offer? No harm in asking!

mloc123

Bananaleaf wrote: »

Bank released funds late yesterday. Should be with the solicitor tomorrow AM, so all going well I should have keys in hand by tomorrow afternoon!

Funds landed with ours on Tuesday and we should be selling/buying tomorrow... fingerscrossed

conf101

tigerbanana wrote: »

Is it possible to sign contracts with just an approval in principle? I understand it’s probably not advisable given you then go on-risk for your deposit, but I’m waiting for a probation completion letter to come though before being issued a loan offer from the bank and I am incentivized by developer (they’ll fit out the kitchen for free) if I close within a certain number of days.

Bananaleaf wrote: »

From my experience of the situation this is the case:

You can't sign your contract until you sign your loan agreement (which is the stage after approval in principle)

And you can't sign the loan agreement without the contracts.

So, no. You can't sign either doc until both are present in front of your solicitor

We actually did this only a couple of weeks ago with our own contracts. Your solicitor will most likely advise against it (as they should), but there's nothing stopping you signing contracts without having the loan offer.

We were in the same boat as you, the developer offered kitchen appliances if we signed contracts within 21 days. The bank made a slight balls up with the loan offer and it wouldn't be issued in time. We discussed it with our solicitor and decided to sign contracts anyway, as we were certain the offer would be issued.

There was nothing stopping us signing the contracts, but obviously if something went wrong last minute with the loan offer, we were in trouble with the deposit. In our case we knew the risk was minimal as we spoke to the bank beforehand who confirmed that the offer had been approved by the underwriter and was being processed by the legal team.

Talk to your solicitor about the level of risk, because you don't want to lose your deposit, but there is nothing legal or technical on the bank's side preventing you from doing it.

ArtyC

myshirt wrote: »

Are the banks even lending to single applicants on 30k? Anyone on this forum know of examples?

Yes it is technically possible, but in practice have we ever seen someone on less than 35k get a mortgage?

30 is a very low salary, well done for saving 230 a week, that shows the right financial discipline there which can only help you.

I'm in the middle of a sale . Single buyer on less than 30,000. I have significant deposit from saving. It can be done. Should be in by Feb!

Bananaleaf

Can I ask about this please? From Revenue website:

Who is liable to pay LPT for 2018?
If you are the liable person for a residential property on 1 November 2017 you must pay LPT for 2018. If you (as an owner) sell your residential property after 1 November 2017 you will be liable to pay LPT on the property for 2018, even if it is sold before the end of 2017.

If your property was exempt from LPT for 2017 the exemption will be carried forward to 2018. You must ensure that the criteria for the exemption have been met as Revenue may verify the exemption at a later date.

Further information is available on deferrals and exemptions. If you require any assistance with your payment you can contact the LPT helpdesk.



Does this mean that if we close a sale today, we don't have to pay the seller for LPT she paid for 2018?

myshirt

The person who owns it on the liability date is the person liable, but I have never, and I mean ever, seen a case where the cost is not shared out pro rata.

Bananaleaf

myshirt wrote: »

The person who owns it on the liability date is the person liable, but I have never, and I mean ever, seen a case where the cost is not shared out pro rata.

Oh yes, I meant to add that we paid it. In fact, we closed yesterday and we also paid for the last ten days in 2017.

I'm more surprised that revenue don't say that we have to. But now that I've had time to think about it, I guess that is just because it would be a headache for them to enforce/chase up

izzyflusky

I'm not sure if I'm asking in the right thread.

If I were to buy a new build, at what stage is the mortgage drawn down? I'm assuming that it is when the house it's finished, so in that time mortgage approval is likely to expire. Would the bank require a brand new application? If they had an exception, would they be guaranteed the same exception the second time around? and are they expected to have the same level of monthly savings?

I'm just considering the risks involved in a new build, when a contract is signed so early on...

Bananaleaf

mloc123 wrote: »

Funds landed with ours on Tuesday and we should be selling/buying tomorrow... fingerscrossed

Well, how did you get on?

izzyflusky wrote: »

I'm not sure if I'm asking in the right thread.

If I were to buy a new build, at what stage is the mortgage drawn down? I'm assuming that it is when the house it's finished, so in that time mortgage approval is likely to expire. Would the bank require a brand new application? If they had an exception, would they be guaranteed the same exception the second time around? and are they expected to have the same level of monthly savings?

I'm just considering the risks involved in a new build, when a contract is signed so early on...

When we applied we were told that you get the 6months and that they can extend that for another 6 without the need to reapply. This was with BOI and this was househunter mortgage approval in principle (which has gone to the underwriters already) I would presume that this is not the case with all banks.

mloc123

Bananaleaf wrote: »

Well, how did you get on?



When we applied we were told that you get the 6months and that they can extend that for another 6 without the need to reapply. This was with BOI and this was househunter mortgage approval in principle (which has gone to the underwriters already) I would presume that this is not the case with all banks.

We got moved on Thursday. Manic day. Can't praise our solicitor enough for having everything lined up perfectly. We packed all remaining contents of our old house, cleaned it and dropped the keys. Then walked up to the other agent and collected the new keys.

No nervous sitting in a van waiting as I expected.

Did you get closed too? Have not had time to follow the thread in the last few days.