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

kippy

tusk wrote: »

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.

What was the cost excluding stamp duty as a matter of interest (that cost is variable depending on house cost so the full fee including stamp duty doesn't really reflect the cost of the conveyancing and associated (relatively fixed) fees.

Cuddlesworth

kippy wrote: »

What was the cost excluding stamp duty as a matter of interest (that cost is variable depending on house cost so the full fee including stamp duty doesn't really reflect the cost of the conveyancing and associated (relatively fixed) fees.

We paid 1400 plus fees of around 1200. Depends on the property though and its selling price.

tusk

kippy wrote: »

What was the cost excluding stamp duty as a matter of interest (that cost is variable depending on house cost so the full fee including stamp duty doesn't really reflect the cost of the conveyancing and associated (relatively fixed) fees.

Good point, just rechecked and the fee is only 1700ish.

BTW, this is for a new build

Powerfairy

tusk wrote: »

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.

Wow, That's a lot!

Our stamp duty is 2000 euro, so I was hoping the solicitor wouldn't be muc more than that also.

Jacinta086

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 are paying €2,400 incl VAT and land register (which is €800 / depends on value of the property you are buying).
Stamp duty @ 1% is extra.

We are paying on an all-in basis, to ensure there are no surprises for us down the line.

Powerfairy

Jacinta086 wrote: »

We are paying €2,400 incl VAT and land register (which is €800 / depends on value of the property you are buying).
Stamp duty @ 1% is extra.

We are paying on an all-in basis, to ensure there are no surprises for us down the line.

Thanks Jacinta086, i didn't realise land register was a thing! another surprise for us

GingerLily

Stamp duty on a new build is 1% less Vat, so divide the purchase price by 113.5.

Our solicitors fees are about the 2k mark, this includes the land registration fee (new build).

conf101

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

ASide from the contract job, you sound to be in a strong position, but if you get made permanent in the Summer then you're definitely in a good place. Bank will want to see at least 6 months evidence of savings though. We went to the bank a good 9 months before we were actually ready to apply, just to make sure we had all our ducks in a row. I'd definitely recommend it

LirW

If you're being made permanent and have a probation then banks usually don't let you draw down the mortgage until probation is over, maybe something to keep in mind.

bush

Probably a stupid question but do all banks use the same stress test formula? AIB told me it was 2% added onto the rate and that you must have 1400 euros left over per month after that. Ive never heard of that 1400 number until today.

UsBus

Just got off the phone from the banks this evening.
I'm on rolling 12 month contracts so they won't entertain me..
Apart from that, with 85K savings they told me I can borrow 130K......even if I can get made permanent, and plough all my life savings into a house purchase, I still won't be able to buy...What's the point....😒

LirW

Move to the sticks and buy in cash to live mortgage free, happy days.

No on a more serious note, I feel you. We were in the same position of having a huge load of cash yet wouldn't get a mortgage because of certain circumstances. We did the above and are very happy with it, it's amazing not having to worry about a mortgage.

Would changing job be an option for you?

Losty Dublin

UsBus wrote: »

Just got off the phone from the banks this evening.
I'm on rolling 12 month contracts so they won't entertain me..
Apart from that, with 85K savings they told me I can borrow 130K......even if I can get made permanent, and plough all my life savings into a house purchase, I still won't be able to buy...What's the point....��

Did you try Pepper?

UsBus

LirW wrote: »

Move to the sticks and buy in cash to live mortgage free, happy days.

No on a more serious note, I feel you. We were in the same position of having a huge load of cash yet wouldn't get a mortgage because of certain circumstances. We did the above and are very happy with it, it's amazing not having to worry about a mortgage.

Would changing job be an option for you?

Yep, my contract is being renewed at the mo so am going to ask for a permanent one specifically because of the mortgage situation. If it's not a goer, then I'm leaving the job. I already have my eye on some properties which would leave me a very cheap mortgage. Could commute for an hour each way until I get work closer to that area. I know prices will come back in a couple of years with some sort of economic correction but am not willing to wait. At the price I will be looking to buy at, it won't bother me.

Am fed up of the rat race...and I'm not even in Dublin...!

UsBus

Losty Dublin wrote: »

Did you try Pepper?

I must give them a ring. Don't know much about them to be honest. Worth a try at this stage, thanks.

Losty Dublin

UsBus wrote: »

I must give them a ring. Don't know much about them to be honest. Worth a try at this stage, thanks.

See what they say. They are the only ones who are close to the dreaded Sub Prime market but they aren't that bad, well not yet at least

stargazer 68

Just got the call that our Solicitor has our contracts!! Anything we should be looking out for before we sign?

sightband

Dovies wrote: »

Just got the call that our Solicitor has our contracts!! Anything we should be looking out for before we sign?

your solicitor should go through it in detail with you/both before signing.

if its a new build a lot of developers are refusing to consent to the 'subject to loan' clause your solicitor may request, might be worth asking if its part of their agreement.

GingerLily

sightband wrote: »

Dovies wrote: »

Just got the call that our Solicitor has our contracts!! Anything we should be looking out for before we sign?

your solicitor should go through it in detail with you/both before signing.

if its a new build a lot of developers are refusing to consent to the 'subject to loan' clause your solicitor may request, might be worth asking if its part of their agreement.

Our developers refused to allow it, but I would recommend everyone to try get it added in!

izzyflusky

Meeting today with a broker and applying. I'm assuming he'll be able to give us an idea of how much we can expect to be approved for, right? Was anyone surprised with a much lower offer than what they were expecting? And finally, once applying, how long does it usually take for them to get back?

stargazer 68

sightband wrote: »

your solicitor should go through it in detail with you/both before signing.

if its a new build a lot of developers are refusing to consent to the 'subject to loan' clause your solicitor may request, might be worth asking if its part of their agreement.

Yeah our Solicitor seems to be on the ball. Its not a new build

GaGa21

izzyflusky wrote:

Was anyone surprised with a much lower offer than what they were expecting? And finally, once applying, how long does it usually take for them to get back?

As long as you're not expecting 3.5 times salary, you won't be surprised by a low offer. We heard back in a couple of weeks once all paperwork was in order.

GingerLily

izzyflusky wrote: »

Meeting today with a broker and applying. I'm assuming he'll be able to give us an idea of how much we can expect to be approved for, right? Was anyone surprised with a much lower offer than what they were expecting? And finally, once applying, how long does it usually take for them to get back?

I know a friend was shocked at how low they could borrow but they had a HP car, a child in creche and an apartment in negative equity.

We asked to borrow more than the 3.5 times limit but I had calculated (in excel) what we could afford based on our rent plus savings (and I stressed the interest rate). We have no loans or outgoings other then regular bills and we asked for an amount we could afford.

Our application took a while because our accounts were a mess as we applied straight after our wedding, we had applied before the wedding to another bank and it took only a few days.

Mickiemcfist

GaGa21 wrote: »

As long as you're not expecting 3.5 times salary, you won't be surprised by a low offer. We heard back in a couple of weeks once all paperwork was in order.

Do they typically offer less than 3.5?! Was banking on that as a minimum!

izzyflusky

GingerLily wrote: »

I know a friend was shocked at how low they could borrow but they had a HP car, a child in creche and an apartment in negative equity.

We asked to borrow more than the 3.5 times limit but I had calculated (in excel) what we could afford based on our rent plus savings (and I stressed the interest rate). We have no loans or outgoings other then regular bills and we asked for an amount we could afford.

Our application took a while because our accounts were a mess as we applied straight after our wedding, we had applied before the wedding to another bank and it took only a few days.

We don't have loans, childcare costs (we do have children though), etc. We did buy a car a few months ago which will show in the statements. I didnt think it would have an impact on our application if we didnt take a loan but just read otherwise here. I'm also worried about some home improvements made in the house we are renting because it went through our account (eventhough the full amount was refunded to us). I guess I'll have to wait and see.
The broker was confident that we would be good candidates for an exeption (I'm hoping not to need one in tge first place) but he didn't have the paperwork in front of him at that stage, just new salary figures, amount saved per month and rent.

ELM327

Mickiemcfist wrote: »

Do they typically offer less than 3.5?! Was banking on that as a minimum!

3.5 is the general maximum. Not minimum.
Banks have a small quota of exceptions to offer but they can't give them to the majority.

GingerLily

ELM327 wrote: »

3.5 is the general maximum. Not minimum.
Banks have a small quota of exceptions to offer but they can't give them to the majority.

All the first time buyers I know got 3.5 minimum. They would have a strong history of paying rent higher then the mortgage repayments etc.

ELM327

3.5 is easy to get if you have no other outgoings and good icb report.
You can't exceed 3.5 every application, I think the excepti0n rate is 1 in 7? I stand to be corrected on that.

Mickiemcfist

ELM327 wrote: »

3.5 is easy to get if you have no other outgoings and good icb report.
You can't exceed 3.5 every application, I think the excepti0n rate is 1 in 7? I stand to be corrected on that.

Afaik the bank can have 20% of it's mortgage book above the 3.5x. (that is 20% of € value, rather than number of mortgages)

tusk

We're approved by one bank for 3.5 and a second bank is offering us an exception.

It seems they all have different exception criteria. For example, aib said after stressed mortgage repayment and all liabilities, to be eligible for an exception you need at least 2850 left out of your net monthly wages for a couple.