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

shamrock55

If for example the mortgage your looking for comes to 1000 pm, would 6-12 mths of saving 1000 pm be ok or is there a certain percentage over that that I should be saving just to be on the safe side

fg1406

Mickiemcfist wrote: »

What effect did the ten days have? I'd have similar

I disclosed I had an ovarian cyst which lead to me being out of work for 10 days. I disclosed anxiety too but I’ve never taken sick leave for that.

ILikeBoats

shamrock55 wrote: »

If for example the mortgage your looking for comes to 1000 pm, would 6-12 mths of saving 1000 pm be ok or is there a certain percentage over that that I should be saving just to be on the safe side

Just save the max you can.
They will stress test you with a 2% increase to see if you can still pay even if the interest rates rise

Cuddlesworth

Interested Observer wrote: »

As long as you're demonstrating your capacity to repay a stress-tested mortgage payment on top of your car loan, no this shouldn't be a problem. I have two personal loans (repayments combined are less than €300 per month so very small) but they don't seem to be an issue, having said that I'm waiting for approval at the moment so could all go wrong for me! But the mortgage advisor we have dealt with in the bank hasn't seemed concerned by the loans at all.

They are are not concerned by loans but they do go into the equation.

(combinedincome*3.5)-loan value=Mortgage amount usually.

Mickiemcfist

fg1406 wrote: »

I disclosed I had an ovarian cyst which lead to me being out of work for 10 days. I disclosed anxiety too but I’ve never taken sick leave for that.

Sorry I meant what effect did the ten sick days have on your mortgage application? Sorry to hear!

sightband

Cuddlesworth wrote: »

They are are not concerned by loans but they do go into the equation.

(combinedincome*3.5)-loan value=Mortgage amount usually.

this is not how it works...at all. more outstanding loans, dependencies etc. your borrowing capabilities will diminish. just like your age at the time of borrowing, spending habits etc. it’s a huge equation of complicated variables and not anything like the above. if you’ve an outstanding loan it is not simply deducted for your repayment capabilities.

Werty00

Hi All,

Just looking for some clarity, if anyone can advise. I've bought a new build house, scheduled for completion in October 2018. In November, I signed contracts and handed over the 10% deposit in my solictor's. My bank told me however, that their letter of loan offer would only be valid for six months, and to wait until April 2018 for them to issue it so that it would still be valid in October when the house is completed.

My solicitor however, has not given the signed contracts to the developers' solicitor because she wants the letter of loan offer before we sign contracts. The bank are telling me that I will have to reapply when this letter of loan offer runs out in six months time.

I'm wondering what to do really. the solicitor is putting pressure on me for the letter of loan offer, the bank is saying wait until April, and the developers' solicitors are pressurising the solicitor looking for signed contracts. I am thinking of applying for the mortgage with a different bank, where they will give me a letter of loan offer valid for 12 months until I move into the house.

Many thanks!

tusk

Werty00 wrote: »

Hi All,

Just looking for some clarity, if anyone can advise. I've bought a new build house, scheduled for completion in October 2018. In November, I signed contracts and handed over the 10% deposit in my solictor's. My bank told me however, that their letter of loan offer would only be valid for six months, and to wait until April 2018 for them to issue it so that it would still be valid in October when the house is completed.

My solicitor however, has not given the signed contracts to the developers' solicitor because she wants the letter of loan offer before we sign contracts. The bank are telling me that I will have to reapply when this letter of loan offer runs out in six months time.

I'm wondering what to do really. the solicitor is putting pressure on me for the letter of loan offer, the bank is saying wait until April, and the developers' solicitors are pressurising the solicitor looking for signed contracts. I am thinking of applying for the mortgage with a different bank, where they will give me a letter of loan offer valid for 12 months until I move into the house.

Many thanks!

Anything I've read or heard from the banks says that as long as you keep them in the loop and well aware of the time frame you expect, they will be happy to try to accommodate longer terms. However a full year does sound fairly long. I would suggest talking to them directly about the specifics.

fg1406

Mickiemcfist wrote: »

Sorry I meant what effect did the ten sick days have on your mortgage application? Sorry to hear!

No impact on the mortgage itself ie with the bank but my life assurance was declined because I had disclosed my illness re cyst. I was out of work for 10 days with that in 2015.

emc87

Werty00 wrote: »

Hi All,

Just looking for some clarity, if anyone can advise. I've bought a new build house, scheduled for completion in October 2018. In November, I signed contracts and handed over the 10% deposit in my solictor's. My bank told me however, that their letter of loan offer would only be valid for six months, and to wait until April 2018 for them to issue it so that it would still be valid in October when the house is completed.

My solicitor however, has not given the signed contracts to the developers' solicitor because she wants the letter of loan offer before we sign contracts. The bank are telling me that I will have to reapply when this letter of loan offer runs out in six months time.

I'm wondering what to do really. the solicitor is putting pressure on me for the letter of loan offer, the bank is saying wait until April, and the developers' solicitors are pressurising the solicitor looking for signed contracts. I am thinking of applying for the mortgage with a different bank, where they will give me a letter of loan offer valid for 12 months until I move into the house.

Many thanks!

I was thinking about this issue over the last few days. I haven't put a deposit on a new build yet, but plan to over the next few weeks. I raised the same query as this with the estate agent and they told me I would need a full loan offer when I sign a contract and then to reapply for a mortgage once the loan offer runs out. This must be the same for anyone buying a new build from plans. I'd be interested to hear from someone else who has gone through that process.

ELM327

Question regarding mortgage protection/life insurance

Can you just automatically take these out with the bank that you are taking the mortgage with?

westsider

emc87 wrote: »

I was thinking about this issue over the last few days. I haven't put a deposit on a new build yet, but plan to over the next few weeks. I raised the same query as this with the estate agent and they told me I would need a full loan offer when I sign a contract and then to reapply for a mortgage once the loan offer runs out. This must be the same for anyone buying a new build from plans. I'd be interested to hear from someone else who has gone through that process.

This has happened to us signed contracts with full loan offer in April- loan offer expired in October- house delayed until following April. Got an extension on loan offer until March but now have to reapply to ensure valid in April. As long as your circumstances don’t change then bank have advised they don’t foresee any problems. If you had been granted an exemption etc you may not be granted it on the reapplication.
This process of reapplying seems to happen for a lot of people buying new builds so the banks are fully experienced in dealing with this. As far as I know you cannot sign contract without full loan offer. Hope this helps

whatever76

Prob a silly question - AIP approved up to March ( 2nd time) and been looking last year but no joy.
Am 42 this year - should i have life insurance in place now ( I am covered in work but I understand this does not qualify ) or OK to wait till I actually go through the draw down process ?

UsBus

Another one of the questions, hopefully someone will be able to advise..?
Am 12 months with my current employer, my 12 month contract has just been extended for another 12 months. Apparently what they normally do is give people a couple of contracts before making them permanent.

Anyway, I'm wondering if I will have any difficulty getting a mortgage.?
Will be looking to borrow 150K approx and I have 80K savings.
Single applicant, with no loans, dependents etc.
My repayment history is good as well. I had 3 mortgages in the past from properties bought and sold on with no payment issues.

ACCAman

Hello,
I am hoping someone can shed some light on applying for a mortgage on an exception basis, ie we can borrow more than 3.5 times our gross salaries.
We are both early to mid thirties with permanent jobs, our salaries together total about 60k before any add ons. We were approved last year for 210k which wasn't enough for what we are looking for. We made the application in the 2nd half of the year so all the banks I tried had already maxed out their exception borrowing.

I tried again at the start of this year last week to see if they were offering them again and the bank advised that we may be able to get an exception if we have a particular property in mind.
We viewed a property that we may be interested in for 275k and are now putting together an application. We have 35k deposit but I'm slightly worried we won't be able to borrow enough for the property. We'll definitely need a few quid to get things done if we are successful in purchasing it. How much are we likely to be able to borrow if they do agree to give us an exception?

I don't know how the bidding will go if any but we may need about 265k from the bank. Anyone know if they would be likely to give us that much?

Thanks

XsApollo

I have question or 2 if anybody can shed some light before I go asking banks and stuff.

So have a house already and am looking to buy another.
Mortgage on current house owing is around 83k ,house is probably worth 185k. Paying 350 a month at present.

Looking to maybe buy a small house or apartment in and around the 110k to 130k range.
So will need 20% deposit because its our second purchase.

Is it possible to remortgage the first house to get the deposit for the second place and get a mortgage for the second place then.?

Total income is around 70k with no other debt and 2 kids.
Is doing something like that even possible?

Thanks.

Michellenman

ACCAman wrote: »

Hello,
I am hoping someone can shed some light on applying for a mortgage on an exception basis, ie we can borrow more than 3.5 times our gross salaries.
We are both early to mid thirties with permanent jobs, our salaries together total about 60k before any add ons. We were approved last year for 210k which wasn't enough for what we are looking for. We made the application in the 2nd half of the year so all the banks I tried had already maxed out their exception borrowing.

I tried again at the start of this year last week to see if they were offering them again and the bank advised that we may be able to get an exception if we have a particular property in mind.
We viewed a property that we may be interested in for 275k and are now putting together an application. We have 35k deposit but I'm slightly worried we won't be able to borrow enough for the property. We'll definitely need a few quid to get things done if we are successful in purchasing it. How much are we likely to be able to borrow if they do agree to give us an exception?

I don't know how the bidding will go if any but we may need about 265k from the bank. Anyone know if they would be likely to give us that much?

Thanks

55k increase is quite large, nearly 25% more than the original approval. We reapplied in jan and were granted and exemption, combined salaries of 90k and got increased exemption of 34k. We are sale agreed already so exemption was given for that specific house. Only using 8k of the exemption though. Banks will approve based on what you can afford to repay, keep that in mind. Maybe you need to choose a different location to get the type of house you want? We compromised by going for a slightly smaller house in an area we love.

Cuddlesworth

XsApollo wrote: »

I have question or 2 if anybody can shed some light before I go asking banks and stuff.

So have a house already and am looking to buy another.
Mortgage on current house owing is around 83k ,house is probably worth 185k. Paying 350 a month at present.

Looking to maybe buy a small house or apartment in and around the 110k to 130k range.
So will need 20% deposit because its our second purchase.

Is it possible to remortgage the first house to get the deposit for the second place and get a mortgage for the second place then.?

Total income is around 70k with no other debt and 2 kids.
Is doing something like that even possible?

Thanks.

Should be fine. Your total debt would still be under the 3.5 times rule.

Does your current expenditure show that you would have no problem with affording the increased payments?

XsApollo

Cuddlesworth wrote: »

Should be fine. Your total debt would still be under the 3.5 times rule.

Does your current expenditure show that you would have no problem with affording the increased payments?

I have no idea.
Credit card balance is zero, always paid when due.
I have a car loan that I will be clearing this month which is 450euro for the last 4 years never missed a payment.
Other than that just the usual utility bills which are quite low.

Jacinta086

ACCAman wrote: »

Hello,
I am hoping someone can shed some light on applying for a mortgage on an exception basis, ie we can borrow more than 3.5 times our gross salaries.
We are both early to mid thirties with permanent jobs, our salaries together total about 60k before any add ons. We were approved last year for 210k which wasn't enough for what we are looking for. We made the application in the 2nd half of the year so all the banks I tried had already maxed out their exception borrowing.

I tried again at the start of this year last week to see if they were offering them again and the bank advised that we may be able to get an exception if we have a particular property in mind.
We viewed a property that we may be interested in for 275k and are now putting together an application. We have 35k deposit but I'm slightly worried we won't be able to borrow enough for the property. We'll definitely need a few quid to get things done if we are successful in purchasing it. How much are we likely to be able to borrow if they do agree to give us an exception?

I don't know how the bidding will go if any but we may need about 265k from the bank. Anyone know if they would be likely to give us that much?

Thanks

I really don't know if its likely to get that big of an exception.
We got an exception of 3.7%, which i was happy with as any more and we would have struggled to pay back.
Percentage wise what you need is 4.4%, and i cant see that being offered on your earnings. I think that is the very max and that would only be offered in exception cases.

I'm so sorry, must be hard when you find your dream house and its out of reach. Definitely talk to your bank though, some maybe more flexible than others.
There is also stamp duty, solicitor fees, land register, engineer fees, valuation fees to consider. The banks will deduct that off your savings also.

XsApollo

XsApollo wrote: »

I have question or 2 if anybody can shed some light before I go asking banks and stuff.

So have a house already and am looking to buy another.
Mortgage on current house owing is around 83k ,house is probably worth 185k. Paying 350 a month at present.

Looking to maybe buy a small house or apartment in and around the 110k to 130k range.
So will need 20% deposit because its our second purchase.

Is it possible to remortgage the first house to get the deposit for the second place and get a mortgage for the second place then.?

Total income is around 70k with no other debt and 2 kids.
Is doing something like that even possible?

Thanks.

Just been to bank of Ireland.
And they don’t release equity in a house to be used to purchase another.

Cuddlesworth

XsApollo wrote: »

Just been to bank of Ireland.
And they don’t release equity in a house to be used to purchase another.

You can move your mortgage to one that does.

XsApollo

Cuddlesworth wrote: »

You can move your mortgage to one that does.

Any idea which ones do?
Was on to pepper there and they say they can do something and will get back to me.

So will be going to them all anyway.

toptix

Hi guys hoping for some advise here.
currently i have a mortagage with approx 155k left to pay and am probably in neg equity of approx 30k due to overborrowing in the boom years. i have just sold some land and have some savings. Total 90k. Mrs works part time and i work full time. gross income total 48.5k.
we have 3 kids and have outgrown our current property. easily making current mort payment of 700 per month. we have a property in mind that we would like to purchase which will cost 160k.
when we approached our bank to see about a mortgage we were turned down flat. we can sell our property and pay off the 30k neg equity and still have a 30% deposit for new place. our mortgage repayments would be lower than what they currently. we can transfer the neg equity to a new mortgage and still have lower repayments than we do currently. i would have thought we were in a strong position but according to the calculator in the bank we wouldnt be able to repay a lower amount than we are currently paying! sorry about no paragraphs but between auto correct and stuff on my phone its been a task to even write this.
i dont want to go down the route of renting our current property as a month or two of it not rented would seriously impact us.
Advise please

bri007

Hi all, looking for some advise.

Myself and my partner are hoping to buy a house in 2018, probably near end of the year.

Quick question, we just opened a joint savings account before Christmas and are saving €2000 a month.

My girlfriend is in a permanent job.
I went back to college to study last year so recently took up a job(contract) last October it's in health sector so always will have continuous work just not permanent at present but should get perm position by the summer.

We have a full deposit for a house already.

My question is; are we wasting out time going to a broker or bank now, or should we wait for 6 months of saving 2,000 euro and go talk to someone then? Or is my job not being permanent a big no no?

Sorry for all the questions just confused about it all.

We are probably a bit unrealistic to expect to get a place this year but we have no idea on all this.

Thanks

Brian

ArtyC

Anyone have any experience with boundary issues . Hit another wall and seems a sliver of land is commanage

tusk

bri007 wrote: »

Hi all, looking for some advise.

Myself and my partner are hoping to buy a house in 2018, probably near end of the year.

Quick question, we just opened a joint savings account before Christmas and are saving €2000 a month.

My girlfriend is in a permanent job.
I went back to college to study last year so recently took up a job(contract) last October it's in health sector so always will have continuous work just not permanent at present but should get perm position by the summer.

We have a full deposit for a house already.

My question is; are we wasting out time going to a broker or bank now, or should we wait for 6 months of saving 2,000 euro and go talk to someone then? Or is my job not being permanent a big no no?

Sorry for all the questions just confused about it all.

We are probably a bit unrealistic to expect to get a place this year but we have no idea on all this.

Thanks

Brian

I would say the lack of permanent job right now is the biggest blocker. But either way, the bank will want to see 6 months off clear repayability, which would be your savings in this case.

Can't hurt to go to a broker or bank for a chat to see what they say, but I think waiting till you've the six months in the bag would be best.

Powerfairy

Hi all

On average how much do you pay over to the solicitor? Ballpark figure? 2000-3000 euro? Or is it 1% of propery cost? Our solicitor has never actually clearly told us how much we will need to pay him.
We need to get out an engineer also to check over the property before we sign contracts and he's 500 euro, just getting all the random costs factored in and ready so we can drawdown soon, the bank also want our credit cards cleared too before they allow us to drawdown. I think we've to pay LPT too, it's a Long old process!!

Bubbaclaus

Would banks be more likely to give a LTI exemption if you have >20% deposit as a first time buyer? Anyone with any experience of this?

tusk

Powerfairy wrote: »

Hi all

On average how much do you pay over to the solicitor? Ballpark figure? 2000-3000 euro? Or is it 1% of propery cost? Our solicitor has never actually clearly told us how much we will need to pay him.
We need to get out an engineer also to check over the property before we sign contracts and he's 500 euro, just getting all the random costs factored in and ready so we can drawdown soon, the bank also want our credit cards cleared too before they allow us to drawdown. I think we've to pay LPT too, it's a Long old process!!

We asked ours for a cost estimate and he was happy to provide it at around 6k -7k including all fees and stamp duty.

We're a while away from draw down tho so it's still just an estimate.