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

JDD

Cuddlesworth wrote: »

That's under the assumption that you sell that house, I believe. Otherwise they are starting to fudge the numbers already.

It did seem surprising to me. We’ve definitely been very clear that we do not want to sell the house. And it was the branch manager in PTSB who suggested this potential avenue nearly three years ago, but told us no go at the time as the house was still in neg equity. So yeah, we’ll wait and see. Do you work for a bank Cuddlesworth?

sullydublin

Hi All, we are currently in the process of putting our house on the market and was wondering how long it takes to get mortgage approval via a mortgage broker as we would like to push for approval as quick as possible?

shamrock55

sullydublin wrote: »

Hi All, we are currently in the process of putting our house on the market and was wondering how long it takes to get mortgage approval via a mortgage broker as we would like to push for approval as quick as possible?

Just a thought but would you not be better off to see if you can actually get mortgage approval before you put your house up for sale

sullydublin

shamrock55 wrote: »

Just a thought but would you not be better off to see if you can actually get mortgage approval before you put your house up for sale

The process is very slow in Ireland in regards to the turn around time of selling homes. I doubt we will have an issue with gaining a mortgage and stated only want information on how long it takes for broker to gain approval from lenders.

I appreciate your concern but as you can imagine any sale of property would be subject to us finding an alternative home and being granted a new mortgage and therefore if we did place our home on the market before approval we'd have no issue taking it back off the market.

ELM327

JDD wrote: »

Apparently not though. EBS told us that first but PTSB said that as long as the house is in positive equity they’ll treat it as an investment property. Our broker wasn’t even aware of this. He approached KBC and they said they’d treat it the same way as will BOI. Of course, this was all initial discussions. Our applications are going through underwriting at the moment so the proof will be in the pudding. I’ll know next week.

I believe that is a fudging of the ICB requirements.
Existing mortgage debt must be included.

izzyflusky

Quick question (just covering all scenarios in my head) as I'm still waiting on AIP, so haven't started house hunting properly yet. Is it possible at all to go sale agreed if at that time you don't have say all the funds for solicitor's fees and stamp duty but you could have it within the next paycheck?

I'm thinking in terms of bidding, if it goes a bit higher than you would have expected but the shortfall could be covered quickly, etc.

stargazer 68

izzyflusky wrote: »

Quick question (just covering all scenarios in my head) as I'm still waiting on AIP, so haven't started house hunting properly yet. Is it possible at all to go sale agreed if at that time you don't have say all the funds for solicitor's fees and stamp duty but you could have it within the next paycheck?

I'm thinking in terms of bidding, if it goes a bit higher than you would have expected but the shortfall could be covered quickly, etc.

We went sale agreed before Christmas and haven't paid solicitors fees etc yet. Paid our deposit which we had. Going half mortgage and half cash - only received the cash this week

Cuddlesworth

JDD wrote: »

It did seem surprising to me. We’ve definitely been very clear that we do not want to sell the house. And it was the branch manager in PTSB who suggested this potential avenue nearly three years ago, but told us no go at the time as the house was still in neg equity. So yeah, we’ll wait and see. Do you work for a bank Cuddlesworth?

No I don't work in a bank. I just read the legislation.

It refers to the customers "total" debt. Which is why if I have 40k left over in cash after the required deposit, I still can't borrow 40k more then 3.5 times income without a exception. I can choose to spend that money myself though.

Which is why what you were told makes no sense. I would wait to see what the underwriters say and see if you get AIP first.

lillycakes2

Hope to get a response please

Hi ,

Its my first time posting in this thread, but have been reading it .
Booking an appointment with banks soon, but just wanted to ask something here first:

Is it possible for the banks to give you a mortgage to help you pay for your site as well as your build?
Our site (which is quite large) is costing 30,000.
We have 30,000 saved between us.
From calculations- we would get a mortgage (with our salaries) for around 225,000.
We are both first time buyers.

Quotes for our build are coming in varying from around 195,000 - 225,000.

Roughly, can anyone tell me here, how things are looking for us? we have saved the amount for the site really, but will this saving be enough for the bank?
If the house quotes are as I said 195,000- 225,000, will they add on the 30,000 for the site cost to calculate our mortgage ?

I hope somebody will have some insight or experience with this here ! thanks in advance!

Cuddlesworth

izzyflusky wrote: »

Quick question (just covering all scenarios in my head) as I'm still waiting on AIP, so haven't started house hunting properly yet. Is it possible at all to go sale agreed if at that time you don't have say all the funds for solicitor's fees and stamp duty but you could have it within the next paycheck?

I'm thinking in terms of bidding, if it goes a bit higher than you would have expected but the shortfall could be covered quickly, etc.

Most EA's will ask for a booking deposit for going Sale Agreed, as well as a property survey and proof of funding for a house value of roughly the amount requested(for example I was 20k short on AIP of the final value during bidding).

Cuddlesworth

lillycakes2 wrote: »

Hope to get a response please

Hi ,

Its my first time posting in this thread, but have been reading it .
Booking an appointment with banks soon, but just wanted to ask something here first:

Is it possible for the banks to give you a mortgage to help you pay for your site as well as your build?
Our site (which is quite large) is costing 30,000.
We have 30,000 saved between us.
From calculations- we would get a mortgage (with our salaries) for around 225,000.
We are both first time buyers.

Quotes for our build are coming in varying from around 195,000 - 225,000.

Roughly, can anyone tell me here, how things are looking for us? we have saved the amount for the site really, but will this saving be enough for the bank?
If the house quotes are as I said 195,000- 225,000, will they add on the 30,000 for the site cost to calculate our mortgage ?

I hope somebody will have some insight or experience with this here ! thanks in advance!

You will need more money.

ainy

lillycakes2 wrote:

Roughly, can anyone tell me here, how things are looking for us? we have saved the amount for the site really, but will this saving be enough for the bank? If the house quotes are as I said 195,000- 225,000, will they add on the 30,000 for the site cost to calculate our mortgage ?

We are in the process of building (slight different set up to you, an extension to parents house but self contained house) so can give you a little insìght.

We went with boi as husband works with them. Our builders quote was 150,000 (to builders finish not including kitchen) and when we went through the details and finishes with engineer another 35,000 needed so our mortgage application was for 185,000, (We were eligible for 225 also). The bank wanted us to have 10% deposit and 10% contingency, we had about 30k too. They didn't consider the existing house (which is in our name) or the site as part of deposit at time of application but they haven't asked us to use our funds yet and we are 2 drawdowns in.

I have heard of other banks accepting a site as the deposit but I would recommend meeting someone in the bank and go through the requirements. We did this nearly a year before we were ready to build so that we could be prepared.
Hope that gives a bit of insight.

bri007

conf101 wrote: »

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

Thanks for the reply,

Yeah we are saving away, would not having a p60 showing full salary from 2017 effect our application as I'm only working since October 2017 so only 2 months will be on my p60?

Yes I am hoping to get made permanent in the summer with the goal of trying to get a place the end of the year or jan the latest.

We have a combined income of €80,000 at present and saving €2,000 a month since December.

If I continue with contract work, would that stop us getting passed on a mortgage altogether does anyone have an idea.

I was thinking of making an appointment with a broker to see where we stand but I wasn't sure if I would be wasting our and their time as we haven't the 6 months savings yet.

Thanks again everyone great forum and helpful

leburg

Got keys today and am currently moving in happy is an understatement. This forum helped so much making decisions and ultimately put me in a position that I knew every step and how to avoid any delays.

sulli

again, another long time creeper and limited poster! Finally after going sale agreed on August 30th, signing contracts November 15th and getting solicitors call Jan 17th to say contracts and deeds have been received....one more bank revaluation due to time lapse on current valuation, should have keys to house by end of next week.

To say a painful process is an understatement but got there in the end! Never want to deal with EA's OR contracts or solicitors again!!! Keep the faith peeps! this thread is invaluable!

JDD

Cuddlesworth wrote: »

No I don't work in a bank. I just read the legislation.

It refers to the customers "total" debt. Which is why if I have 40k left over in cash after the required deposit, I still can't borrow 40k more then 3.5 times income without a exception. I can choose to spend that money myself though.

Which is why what you were told makes no sense. I would wait to see what the underwriters say and see if you get AIP first.

Out of complete curiousity and interest, could you direct me towards the Central Bank guidance? I can't find it on their website and presumably it's not actually contained in an Act or Statutory Instrument?

GingerLily

JDD wrote: »

Out of complete curiousity and interest, could you direct me towards the Central Bank guidance? I can't find it on their website and presumably it's not actually contained in an Act or Statutory Instrument?

Remember that's only one measurement of affordability, they will still require you to pay both mortgage payments in your assessment and it doesn't look like you've made allowances for that.

Cuddlesworth

JDD wrote: »

Out of complete curiousity and interest, could you direct me towards the Central Bank guidance? I can't find it on their website and presumably it's not actually contained in an Act or Statutory Instrument?

http://www.irishstatutebook.ie/eli/2015/si/47/
http://www.irishstatutebook.ie/eli/2016/si/568/

JDD

Cuddlesworth wrote: »

http://www.irishstatutebook.ie/eli/2015/si/47/
http://www.irishstatutebook.ie/eli/2016/si/568/

Now, do correct me if I’m wrong. But the legislation says the lenders can’t advance a monetary amount for the purposes of a principal residence of more than 3.5 times income. If my original mortgage is reclassified as a buy to let mortgage then they don’t have to take into account that outstanding mortgage in the overall amount. How they might calculate affordability otherwise is surely subject to their own internal underwriting requirements?

theboringfox

lillycakes2 wrote: »

Hope to get a response please

Hi ,

Its my first time posting in this thread, but have been reading it .
Booking an appointment with banks soon, but just wanted to ask something here first:

Is it possible for the banks to give you a mortgage to help you pay for your site as well as your build?
Our site (which is quite large) is costing 30,000.
We have 30,000 saved between us.
From calculations- we would get a mortgage (with our salaries) for around 225,000.
We are both first time buyers.

Quotes for our build are coming in varying from around 195,000 - 225,000.

Roughly, can anyone tell me here, how things are looking for us? we have saved the amount for the site really, but will this saving be enough for the bank?
If the house quotes are as I said 195,000- 225,000, will they add on the 30,000 for the site cost to calculate our mortgage ?

I hope somebody will have some insight or experience with this here ! thanks in advance!

You should be fine here. Bank usually treats site as equity. You can borrow 225k on your salaries. The total max cost is 255k. So that's 88% LTV.

The bank would probably like to see uve buffer for fees and furnishings but ball park you seem ok.

That's not advice but simply saying you seem to be within the rules.

kefflin

Me and my partner bought a alsop apartment 3 years ago with savings and inheritance. We've being living in it but are now looking at buying a house. Are we first time buyers? Neither of us have had a mortgage

impr0v

kefflin wrote: »

Me and my partner bought a alsop apartment 3 years ago with savings and inheritance. We've being living in it but are now looking at buying a house. Are we first time buyers? Neither of us have had a mortgage

Yes.

tusk

kefflin wrote: »

Me and my partner bought a alsop apartment 3 years ago with savings and inheritance. We've being living in it but are now looking at buying a house. Are we first time buyers? Neither of us have had a mortgage

From the revenue's htb faq: "To qualify, you must not have previously bought or built a house or apartment, either on your own or jointly with any other person. "

lillycakes2

theboringfox wrote: »

You should be fine here. Bank usually treats site as equity. You can borrow 225k on your salaries. The total max cost is 255k. So that's 88% LTV.

The bank would probably like to see uve buffer for fees and furnishings but ball park you seem ok.

That's not advice but simply saying you seem to be within the rules.

Really appreciate you taking the time to answer my query ! I'm bricking being rejected, so thanks for the positive response !!

Konata

kefflin wrote: »

Me and my partner bought a alsop apartment 3 years ago with savings and inheritance. We've being living in it but are now looking at buying a house. Are we first time buyers? Neither of us have had a mortgage

For the purpose of obtaining a mortgage you are first time buyers (see Central Bank definition of first time buyers).

For the purpose of the help to buy scheme you are not first time buyers (see Revenue definition quoted by a user above).

So you can avail of the FTB mortgage rules (10% deposit) but not of the help to buy scheme.

Cows Go µ

Went sale agreed yesterday and I'm beyond excited! I know there is plenty that could still go wrong but I'm just so happy right now.

TheShow

Application submitted last wednesday, waiting for response. Longest 7 days ever!

izzyflusky

TheShow wrote: »

Application submitted last wednesday, waiting for response. Longest 7 days ever!

I met with the broker last wednesday. Application went in on friday, it's torture!

fg1406

After 7 LONG months after going sale agreed, we are picking up our keys tomorrow!!! We’ve had issues with life cover, a really really bad vendor solicitor, vendors lying to us, is threatening to pull out, right through to having to issue a 28 day notice of completion. This has been the most bruising, stressful experience of my life, which I never ever want to repeat.

TT rainbows

Congrats ! never say never...could be plain sailing next time..well done on you for sticking with it and all those hurdles. Hope the stress levels drops down now and happiness endorphins start to arrive