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

Kyta

Mine was 2,800 euro including all the land registry and other fees/charges.
The solicitors professional fee was 1,000 euro of that sum.

Interested Observer

Thoughts on this please -

We have AIP with an exception of 4.2x our combined salaries, we set this value based on what we decided our max house price would be rather than the bank saying this is the max you can have. We've identified a property that has an asking price of €25k below our current max purchase price, which I guess is almost certain to go over our max when the bidding starts on it.

Has anyone here experience of going back to the bank and asking for an increase in the amount approved for? I would say if we were approved for another €20-25k then that's as high as we'd go. Is this feasible at all? I think I'll ask the bank regardless, all they can say is no, but just wondering if it ever happens. We have funds in place to cover the deposit and stamp duty on a more expensive property if it was approved.

shamrock55

Why do most people opt for longest term mortgage,i mean who the hell wants to be paying a mortgage at 69/70 years old it's madness

Aaron15

shamrock55 wrote: »

Why do most people opt for longest term mortgage,i mean who the hell wants to be paying a mortgage at 69/70 years old it's madness

Cheaper monthly repayments, a lot of people can’t offered the monthly repayments on a 20-25 year mortgage , don’t be so judgmental, I’m sure they don’t just spread it over 35 years cause they want to be paying it off at 70 years old

GingerLily

shamrock55 wrote: »

Why do most people opt for longest term mortgage,i mean who the hell wants to be paying a mortgage at 69/70 years old it's madness

You can reduce your term in a number of ways and pay off your loan early, but to increase your term you need to either get reapproved for your mortgage or be in arrears, the first option is unlikely if you're applying because your going through a difficult time, and the second is obviously not desirable!

Losty Dublin

cruizer101 wrote: »

Do you mean you have gone sale agreed without any approval from banks? Did ea not look for confirmation of funds?
Would you not have been better seeing how much they would approve for before making offers on houses?
Or do you mean you have approval in principle and just looking for full approval?

I had two AIP to hand. Of course AIP and full approval are two different beasts but EA's should be well aware of this, whether or not they adhere

Bubbaclaus

shamrock55 wrote: »

Why do most people opt for longest term mortgage,i mean who the hell wants to be paying a mortgage at 69/70 years old it's madness

You should always ask for the longest term available. That way you can overpay it to make the mortgage whatever length you want it to be (e.g. 20 years), but if things go financially down hill for you unexpectedly you can just revert back to the lower repayments over 35 years.

If you ask for a 20 year mortgage you are stuck to that repayment plan unless you apply to the bank to restructure your mortgage.

izzyflusky

sunshine and showers wrote: »

Looking for advice/opinion on this. I am hoping to be in a position to apply for a mortgage in the next 2 years. I have never taken a loan out/had a credit card etc so I don't think I have any credit history to show. Will this be important for my application or will having sufficient income and deposit be enough? I have been considering taking out a small loan from my credit union over the next year just to show that I can/will pay back money owed. Is that a smart move or unnecessary?

Not necessary, Ireland doesn't work like other countries in this area. I have never taken out a loan or had a credit card and it was fine.

I know someone with 3 credit cards (always paid on time) and a loan (with several previous other loans paid off) and the broker told them that it wasn't ideal. But in their country having a lot of loans and credit cards was a good thing.

Monife

On the issue of max mortgage term and age, has anyone gone through the process where their husband/wife was older? For example, joint applicants, one is 44 and the other is 32. What term would the bank offer?

TheShow

Monife wrote: »

On the issue of max mortgage term and age, has anyone gone through the process where their husband/wife was older? For example, joint applicants, one is 44 and the other is 32. What term would the bank offer?

Term will be the difference between the oldest person and age 65 - 21 years in this case.

Unreg0909

We applied for approval in principle last Thursday and haven't heard anything yet- would this be the norm? Have a house we really want to put a booking deposit on but don't want to until we get AIP

chases0102

You should put the Booking Deposit down anyway, it is completely refundable.

Unreg0909

Thanks- yes I think we will. I'm just such a sceptic! Suppose I'm wondering as well if we don't go ahead will we be liable to any solicitors fees etc as once we pay the booking deposit they then send the docs to the solicitor - I guess that's one to ask them! Thanks

Bargain_Hound

Unreg0909 wrote: »

We applied for approval in principle last Thursday and haven't heard anything yet- would this be the norm? Have a house we really want to put a booking deposit on but don't want to until we get AIP

What bank? What impression did you get from who you dealt with in the bank, for eg. did they give the impression you were in a good position for approval for the amount required? I found PTSB the quickest, 24-hour turnaround from within branch. U.B. and BOI returned within a week, Other banks seemed to take forever to get approvals from, most delayed due to slow communication between the underwriters and the mortgage advisors asking questions / looking for extra paperwork.

I'd go ahead and put the booking deposit down anyway if its a new build and the auctioneer doesn't request proof of AIP. They may want to move fast though once you pay the BD, asking for solicitor details etc. I went down this route and luckily approval came in just after I put the BD down on a new build, last house left in the phase too.

izzyflusky

Unreg0909 wrote: »

We applied for approval in principle last Thursday and haven't heard anything yet- would this be the norm? Have a house we really want to put a booking deposit on but don't want to until we get AIP

It took us 10 working days but I have friend who have applied recently (with another bank) and it is taking them longer as they seem to have a backlog.

Unreg0909

Bargain_Hound wrote: »

Unreg0909 wrote: »

We applied for approval in principle last Thursday and haven't heard anything yet- would this be the norm? Have a house we really want to put a booking deposit on but don't want to until we get AIP

What bank? What impression did you get from who you dealt with in the bank, for eg. did they give the impression you were in a good position for approval for the amount required? I found PTSB the quickest, 24-hour turnaround from within branch. U.B. and BOI returned within a week, Other banks seemed to take forever to get approvals from, most delayed due to slow communication between the underwriters and the mortgage advisors asking questions / looking for extra paperwork.

I'd go ahead and put the booking deposit down anyway if its a new build and the auctioneer doesn't request proof of AIP. They may want to move fast though once you pay the BD, asking for solicitor details etc. I went down this route and luckily approval came in just after I put the BD down on a new build, last house left in the phase too.

Thanks for this! It's with BOI, mortgage adviser seemed happy/confident - I think I'm just being impatient and would like the security of knowing before putting down the cash - but we are similiar in that it's the last house in a development we really want, so may chance it and keep fingers crossed on AIP approval - thanks again

Monife

TheShow wrote: »

Term will be the difference between the oldest person and age 65 - 21 years in this case.

Would the bank ever use discretion and give a longer term due to the other person being younger? Would it help if either was in a pensionable job? Thanks.

Mantis Toboggan

Some banks will give up to 70 years of age.

izzyflusky

Monife wrote: »

Would the bank ever use discretion and give a longer term due to the other person being younger? Would it help if either was in a pensionable job? Thanks.

I'm 10 years younger than my husband and we were given a 28 years term max. He is 40 and I'm 29 but turning 30 this year. BOI offered 29.

Pelvis

Excuse the silly question. I will be looking to apply for a mortgage in the next couple of months. Will I need to provide a figure that I want to borrow or can I just say I'd like a mortgage and what's the max you'll give me etc? (edit I realise there's a 3.5x rule, but ya never know!)

Michael D Not Higgins

Pelvis wrote: »

Excuse the silly question. I will be looking to apply for a mortgage in the next couple of months. Will I need to provide a figure that I want to borrow or can I just say I'd like a mortgage and what's the max you'll give me etc? (edit I realise there's a 3.5x rule, but ya never know!)

You can apply for mortgage approval in principle which will let you know the max they will lend you based on your income. When you find somewhere you want to buy, you apply for a mortgage offer for that property where they will do the underwriting and take into account your ability to pay.

Mantis Toboggan

Is the bank of Ireland fixed rate of 3% along with the bonus and cashback the best offer to go for or is it worth shopping around?

izzyflusky

Michael D Not Higgins wrote: »

You can apply for mortgage approval in principle which will let you know the max they will lend you based on your income. When you find somewhere you want to buy, you apply for a mortgage offer for that property where they will do the underwriting and take into account your ability to pay.

Depending on the bank. BOI doed this, otherd like kbc go through your finances when applying for AIP, so when you go sale agreed you just need a valuation for a formal offer.
I much prefer that because there are surprises.

TheShow

Unreg0909 wrote: »

We applied for approval in principle last Thursday and haven't heard anything yet- would this be the norm? Have a house we really want to put a booking deposit on but don't want to until we get AIP

could take anything up to a week, or even longer with the easter break....

cruizer101

I'm waiting since before the snow for AIP from KBC.
AIB took near weeks that includes the snow.
UB less than a week

So just depends on bank

TheShow

Monife wrote: »

Would the bank ever use discretion and give a longer term due to the other person being younger? Would it help if either was in a pensionable job? Thanks.

some banks will do up to age 70, but it varies and depends on some factors.
Potentially, in theory, you could make a case to look at a term based on the younger party, however in my own opinion, the younger party would need to be providing the lions share of the income to service the mortgage as serviceability beyond the older parties "retirement" will then be totally dependent on the younger persons income.
Thats my assessment of it though, bank policy may be just limited to the term based on the oldest person. Best thing to do is ask your bank to find out.

Interested Observer

Pelvis wrote: »

Excuse the silly question. I will be looking to apply for a mortgage in the next couple of months. Will I need to provide a figure that I want to borrow or can I just say I'd like a mortgage and what's the max you'll give me etc? (edit I realise there's a 3.5x rule, but ya never know!)

We stated the max value of house we thought we could bear, and worked to that. This required an exception which we were granted.

GaGa21

Michellenman wrote:

We used a solicitor that offered a flat rate rather than an itemised bill. €2300 all in (including professional fess, searches, land registry etc) and then stamp duty paid separately. Was really good to know exactly how much it was going to cost right from the outset rather than waiting on a bill at the end and hoping for the best. He's based in dublin 15, I can pm you if you like.

Can you pm me details too please? Thanks.

skywayavenue

Anyone else caught out with the updated exception rules? We are 200 euro short of the new disposable income threshold for 4.5 times exception. So disappointing.

GingerLily

skywayavenue wrote: »

Anyone else caught out with the updated exception rules? We are 200 euro short of the new disposable income threshold for 4.5 times exception. So disappointing.

What updated exception rules?