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

GingerLily

Creamy Goodness wrote: »

I've got AIP with AIB (recently promoted so I'll have to go back and show new earnings and savings) however there's a new build upcoming that I think I'm going to go for. My question is if I put down a booking deposit (€7000) it's going to be out of my savings, bringing me down from 52k total to 45k and then wanting 10% of house price by 21 days. Will this affect my ability to get the mortgage? I'm just a little bit weary paying things out of the savings only for the bank to refuse the mortgage.

My plan was to buy a house for €350k, have 52k savings and hoping for €17.5K with Help To Buy. The AIP is for €282k (before new earnings). Do these figures work out or am I pushing myself too much?

The deposits on the house will count towards your deposit required for the mortgage.
We weren't paying rent between putting down a deposit and closing on our new build. When we applied we had about 5k for stamp duty, legal fees and moving in costs. We applied to PTSB to get the 2% cash back.
The 5 months it took us to close also helped us save a good amount so we were much more comfortable when we were closing on our house.
If you can save 1/2k a month, I think you can realistically afford to get the new build, but also consider going for a 2% cashback deal if your that tight (it will take a month or so after closing so you cannot use it for any of the purchasing costs)

Creamy Goodness

Thanks all, very informative. Plan is to head to the bank anyways (as they want to see the new payslip etc.) just wanted to have a clearer head before going in .

mloc123

Creamy Goodness wrote: »

the houses will be sold off plan, I'd have the solicitor fees and stamp duty and surveyors etc. covered by the time it comes to signing. Currently saving 1.5k a month. the houses aren't due to be finished by september/october. would that satisfy the bank?

No, the bank will generally only look at what you have now, not in 3-4 months time. They want to see you have enough to cover the deposit, stamp duty and solicitor fees. You can fudge the numbers a bit perhaps, tell them your family plan to gift you the shortfall etc..

Interested Observer

mloc123 wrote: »

No, the bank will generally only look at what you have now, not in 3-4 months time. They want to see you have enough to cover the deposit, stamp duty and solicitor fees. You can fudge the numbers a bit perhaps, tell them your family plan to gift you the shortfall etc..

This is what we did with BOI, in fact the mortgage advisor from BOI hinted in not-so-many words that it's what we should do. Got a letter from my parents saying they would gift us a certain amount, that just coincidentally happened to be the exact amount we'd save in the next 3 months. The bank seemed happy enough.

Creamy Goodness

mloc123 wrote: »

No, the bank will generally only look at what you have now, not in 3-4 months time. They want to see you have enough to cover the deposit, stamp duty and solicitor fees. You can fudge the numbers a bit perhaps, tell them your family plan to gift you the shortfall etc..

That's a possibility, I'm hoping anyways with the bump in salary and the knock on effect it'll have on what I can borrow that I won't have to borrow from family, they've done enough for me as is .

It seems a little convoluted to downsize the type of house (even if there were any in the area for less than what we're looking at atm), just cause we're a few grand short that we'd more than make up in 1-2 months. I guess rules are rules .

Bargain_Hound

I dont think it will be an issue putting down the booking deposit, at least it wasn't in my case. I used a receiept for the deposit when applying for my mortgage as proof. I was in a similar situation and went on the assumption I would get the mortgage after getting AIP from several banks. I didn't wait around as all houses sold off plans the same day I put my deposit down. Full approval based on the property I put a deposit down came in the following week.

If you are a few k off for stamp/legal, it might be a possibility to show a family can gift you the shortage. Take it or leave it, the banks own suggestion to me.

mloc123

Creamy Goodness wrote: »

That's a possibility, I'm hoping anyways with the bump in salary I won't have to borrow from family, they've done enough for me as is .

But... you should not need to borrow.. what I am saying is, you can tell the bank that they will gift you the shortfall (which you will then have saved before you need the money).

Creamy Goodness

Oh yeah I got that. My parent's have said that they could make up the shortfall to me last night, but I was saying no in my head as they're into their 70's and got better things to be doing.

I'll get on to AIB and see what they say. Cheers again.

lemontart

Hi all, stumbled across this thread and some really great info thanks for that. We are hopefully eligible for the rebuilding ireland scheme. I was delighted to read that we will still also qualify for the help to buy scheme which will help us out with our deposit.
We have recently moved in with my parents in order to save hard, we had been renting but needs must and thankfully we have this option.
We are hoping to build our own house in the next couple of years- we have no site so need to buy this as well.

My question is on the rebuilding ireland scheme, we need to be rejected by two lending institutions, at the moment we would have zero problem being rejected lol but as we are self building its a huge process to go about applying for a mortgage. I am wondering if we need to apply for a self build mortgage at all and just apply for a regular house sale mortgage? I suppose I don't really know at what stage is counted as "rejection" by the banks for the scheme approval criteria?

I have just read that all back and I really hope it makes sense?!

goofy141

Can anyone recommend someone to carry out a structural survey in Dublin?

Thanks.

Mantis Toboggan

Can someone give an estimation of legal fees, stamp duty (1%?) mortgage protection cover and home insurance?

Michael D Not Higgins

Tyson Fury wrote: »

Can someone give an estimation of legal fees, stamp duty (1%?) mortgage protection cover and home insurance?

Legal fees will be somewhere from 1-2k, stamp duty 1% of purchase price (not including VAT if a new build).

Mortgage protection and home insurance would be dependent on circumstances like value of the mortgage. Mortgage protection could be about 200 per year without serious illness cover. Home insurance could be 500-600 per year.

Creamy Goodness

Michael D Not Higgins wrote: »

Legal fees will be somewhere from 1-2k, stamp duty 1% of purchase price (not including VAT if a new build).

Mortgage protection and home insurance would be dependent on circumstances like value of the mortgage. Mortgage protection could be about 200 per year without serious illness cover. Home insurance could be 500-600 per year.

so for new builds is it 1% of the purchase price - VAT? is VAT on new builds 23%. For example stamp duty on a 350k new build is 3.5k or is is 2,695?

Trying to work this out as I was talking to my advisor in the bank and he thinks that I'd be in for roughly 10k of extras (stamp duty, solicitor fees, etc.).

I was hoping it'd be 3.5k stamp duty (350k house price), 2.5k solicitor (factoring in a bit more there just in case) but I'm struggling to see where the extra 4k he has in mind is going?

chrismon

Creamy Goodness wrote: »

so for new builds is it 1% of the purchase price - VAT? is VAT on new builds 23%. For example stamp duty on a 350k new build is 3.5k or is is 2,695?

Trying to work this out as I was talking to my advisor in the bank and he thinks that I'd be in for roughly 10k of extras (stamp duty, solicitor fees, etc.).

I was hoping it'd be 3.5k stamp duty (350k house price), 2.5k solicitor (factoring in a bit more there just in case) but I'm struggling to see where the extra 4k he has in mind is going?

10k seems like alot alright!

Mantis Toboggan

13.5% vat on houses afaik.

cloneslad

Creamy Goodness wrote: »

so for new builds is it 1% of the purchase price - VAT? is VAT on new builds 23%. For example stamp duty on a 350k new build is 3.5k or is is 2,695?

Trying to work this out as I was talking to my advisor in the bank and he thinks that I'd be in for roughly 10k of extras (stamp duty, solicitor fees, etc.).

I was hoping it'd be 3.5k stamp duty (350k house price), 2.5k solicitor (factoring in a bit more there just in case) but I'm struggling to see where the extra 4k he has in mind is going?

We paid just over €6k in fees for a 420k new build.

purpleisafruit

Creamy Goodness wrote: »

so for new builds is it 1% of the purchase price - VAT? is VAT on new builds 23%. For example stamp duty on a 350k new build is 3.5k or is is 2,695?

Trying to work this out as I was talking to my advisor in the bank and he thinks that I'd be in for roughly 10k of extras (stamp duty, solicitor fees, etc.).

I was hoping it'd be 3.5k stamp duty (350k house price), 2.5k solicitor (factoring in a bit more there just in case) but I'm struggling to see where the extra 4k he has in mind is going?

Stamp duty on a 350k new build is 3100ish. VAT is 13.5% on a new build.
Source: I'm buying at this price and this is the stamp duty I'm paying

http://www.daft.ie/blog/stamp-duty/

cruizer101

purpleisafruit wrote: »

Stamp duty on a 350k new build is 3100ish. VAT is 13.5% on a new build.
Source: I'm buying at this price and this is the stamp duty I'm paying

Stamp Duty is 1% of purchase price, doesn't make sense that you are paying 3100 on 350000, it should be 3500.

tailgunner

cruizer101 wrote: »

Stamp Duty is 1% of purchase price, doesn't make sense that you are paying 3100 on 350000, it should be 3500.

For a new build, it's 1% of the purchase price minus VAT.

beazee

it's less VAT for new builds

Peanut99

Could someone please tell me if the 13.5% VAT on a new build is usually included in the asking price or is it 13.5% VAT on top of the asking price?

izzyflusky

Peanut99 wrote: »

Could someone please tell me if the 13.5% VAT on a new build is usually included in the asking price or is it 13.5% VAT on top of the asking price?

Included

dev_ire

Creamy Goodness wrote: »

so for new builds is it 1% of the purchase price - VAT? is VAT on new builds 23%. For example stamp duty on a 350k new build is 3.5k or is is 2,695?

Trying to work this out as I was talking to my advisor in the bank and he thinks that I'd be in for roughly 10k of extras (stamp duty, solicitor fees, etc.).

I was hoping it'd be 3.5k stamp duty (350k house price), 2.5k solicitor (factoring in a bit more there just in case) but I'm struggling to see where the extra 4k he has in mind is going?

BOI reckon I would needed something similar as a cushion, can't remember the amount but 4k seems plausible considering your house is valued higher and you are missing valuer and structural survey?

Mantis Toboggan

What's the cut off age for a 35 year mortgage?

Sarn

Tyson Fury wrote: »

What's the cut off age for a 35 year mortgage?

Depends on the bank. EBS from what I remember will give a mortgage up to age 65, whereas BOI goes up to 70.

theboringfox

Tyson Fury wrote: »

What's the cut off age for a 35 year mortgage?

My understanding is they want you to have mortgage repaid by pension age of 65 so by that it is 30 but I got mine at 32 as 35 year mortgage. Joint mortgage and my partner is same age.

dmm82

What do people think the chances are of getting a mortgage at approximately 42 years of age. It would be a single application with no existing debts and savings of around 25k?

Or would i be insane to even consider taking on a mortgage at that age? I would be looking for a 20 year mortgage.

Dickvandyk

dmm82 wrote: »

What do people think the chances are of getting a mortgage at approximately 42 years of age. It would be a single application with no existing debts and savings of around 25k?

Or would i be insane to even consider taking on a mortgage at that age? I would be looking for a 20 year mortgage.

Depends a lot on your salary and what your looking for pal, lad in my job just got one and he's in his 50s. So it all depends how much your looking for versus how much you earn.

Cuddlesworth

theboringfox wrote: »

My understanding is they want you to have mortgage repaid by pension age of 65 so by that it is 30 but I got mine at 32 as 35 year mortgage. Joint mortgage and my partner is same age.

We were allowed up to 67, but I'm pretty sure its a given that the pension age will be much later then that for my generation.

shamrock55

I imagine if your 42 you would get a 23yr mortgage,it might cost a bit more but if the bank are happy enough that you can pay it back I don't see the problem