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

purpleisafruit

z0oT wrote: »

I take it you obviously would have to switch over your current account at some point though?

Nope, though several banks offer you an incentive to do so

zedhead

z0oT wrote: »

I take it you obviously would have to switch over your current account at some point though?

Nope, we were offered a small reduction on the rate if we had one account with the bank of our mortgage that wages were deposited into. My partner is self employed so it would have been my account that got switched but in terms of difference in banking fee's it didn't really make overall sense to do it.

awec

D3V!L wrote: »

Its from a parent, so technically it could be cut off but this would never happen. Yes the payment can be confirmed for 2+ years through monthly bank statements.

I would be very surprised if this was taken into account. It's basically pocket money, it's not guaranteed. Depending on what you're doing with this money it could actually hinder your application if you are seen to be reliant on money from parents to get by each month.

jc11 wrote: »

I aso have a q re guaranteed income.. im a nurse and get extra pay for nights and weekends..have heard different things from people whether its seen as guaranteed extra income.

Id make up to 400 extra monthly from my basic salary doing out of hours shifts. Would always have to do these shifts but the amount vary monthly. Would the banks consider it as part of my applicantion? Wages not great without it (not really great with it either but better lol)
Cheers

They may take some of this into account, it's basically overtime. They will want to see that this income is very regular and then they may take a percentage of it.

TheShow

z0oT wrote: »

How does it work with getting a mortgage from a bank who your daily current account is not with? You obviously have to change the current account over to them?

Just curious if anyone else here has done it and how it worked.

We're with BOI and their variable rates are the highest at the moment. It seems a bit of a no brainer to get the mortgage from a bank with a lower rate to be honest.

no requirement to switch your bank account to the mortgage lender.
Some banks offer reduced rates if you switch, but legally they cant make you switch your bank account.

TheShow

D3V!L wrote: »

Its from a parent, so technically it could be cut off but this would never happen. Yes the payment can be confirmed for 2+ years through monthly bank statements.

unless there was a legal agreement confirming payment for life or whatever then i dont think it would be included.

TheShow

jc11 wrote: »

I aso have a q re guaranteed income.. im a nurse and get extra pay for nights and weekends..have heard different things from people whether its seen as guaranteed extra income.

Id make up to 400 extra monthly from my basic salary doing out of hours shifts. Would always have to do these shifts but the amount vary monthly. Would the banks consider it as part of my applicantion? Wages not great without it (not really great with it either but better lol)
Cheers

they do allow it but probably discounted by up to 50% as it is not guaranteed that you will always have those extra hours.

D3V!L

TheShow wrote: »

unless there was a legal agreement confirming payment for life or whatever then i dont think it would be included.

I suggested a notarized letter but that didn't cut it. What other legal agreement would be considered ?

TheShow

D3V!L wrote: »

I suggested a notarized letter but that didn't cut it. What other legal agreement would be considered ?

it depends really, if its just pocket money, then I don't think anything would cut it.
without knowing more about the allowance its difficult to say.

A trust for example would have a deed of trust which is a legal document.

D3V!L

TheShow wrote: »

it depends really, if its just pocket money, then I don't think anything would cut it.
without knowing more about the allowance its difficult to say.

A trust for example would have a deed of trust which is a legal document.

It's enough to cover half the mortgage on its own. So not a small sum.

GingerLily

D3V!L wrote: »

TheShow wrote: »

it depends really, if its just pocket money, then I don't think anything would cut it.
without knowing more about the allowance its difficult to say.

A trust for example would have a deed of trust which is a legal document.

It's enough to cover half the mortgage on its own. So not a small sum.

Yes but it's not secured, your parents can cut you off you at any time.

D3V!L

GingerLily wrote: »

Yes but it's not secured, your parents can cut you off you at any time.

Very true. I may have way around it to get it nice and legal. How long does it take before they recognise self employed earnings ?

TheShow

D3V!L wrote: »

Very true. I may have way around it to get it nice and legal. How long does it take before they recognise self employed earnings ?

You normally need two years accounts and confirmation that all your taxes are up to date.

Bubbaclaus

D3V!L wrote: »

It's enough to cover half the mortgage on its own. So not a small sum.

Sounds like you are eating through the Group A inheritance tax exemption at some rate of knots.

alwald

I am thinking to apply for a mortgage and I have 2 questions:
- What documents do banks ask for when you put a single application for a mortgage while going through a separation (not married and not in a civil partnership either)?
- Do I have to be in my current job for 6 months or is it sufficient to show continuous employment?

Cuddlesworth

alwald wrote: »

I am thinking to apply for a mortgage and I have 2 questions:
- What documents do banks ask for when you put a single application for a mortgage while going through a separation (not married and not in a civil partnership either)?

Proof of income and saving, salary certs, bank statements, payslips, etc.

alwald wrote: »

- Do I have to be in my current job for 6 months or is it sufficient to show continuous employment?

6 Months is required.

bri007

We were told 12 months employment in current position today by our broker

Cuddlesworth wrote: »

Proof of income and saving, salary certs, bank statements, payslips, etc.



6 Months is required.

cloneslad

bri007 wrote: »

We were told 12 months employment in current position today by our broker

Got mine with 6 from BOI a few months ago, just needed confirmation I was permanent.

bigronnie9

jc11 wrote: »

I aso have a q re guaranteed income.. im a nurse and get extra pay for nights and weekends..have heard different things from people whether its seen as guaranteed extra income.

Id make up to 400 extra monthly from my basic salary doing out of hours shifts. Would always have to do these shifts but the amount vary monthly. Would the banks consider it as part of my applicantion? Wages not great without it (not really great with it either but better lol)
Cheers

My friend and his girlfriend were talking to PTSB two weeks ago and they were very accommodating in taking into account the fact she is nurse and gets more than just her basic salary so might be worth talking to them.
I have no idea if their rates are competitive at the moment though

Bubbaclaus

What are banks allowed deem as income for the 3.5 loan to income condition? Is it purely base salary or can they factor in all guaranteed income?

I read the legislation but it wasn't clear on what the definition of income is.

The reason I ask is that I have a couple of guaranteed allowances on top of my base salary. These are a fixed amount and 100% guaranteed each year.

Cuddlesworth

Bubbaclaus wrote: »

What are banks allowed deem as income for the 3.5 loan to income condition? Is it purely base salary or can they factor in all guaranteed income?

I read the legislation but it wasn't clear on what the definition of income is.

The reason I ask is that I have a couple of guaranteed allowances on top of my base salary. These are a fixed amount and 100% guaranteed each year.

If they are guaranteed and you can show that, they will be classed as income.

Rfrip

Bubbaclaus wrote: »

What are banks allowed deem as income for the 3.5 loan to income condition? Is it purely base salary or can they factor in all guaranteed income?

I read the legislation but it wasn't clear on what the definition of income is.

The reason I ask is that I have a couple of guaranteed allowances on top of my base salary. These are a fixed amount and 100% guaranteed each year.

When I started my application with BOI they gave me 3.5 times my salary. But when I gave them my salary cert which had my yearly bonus they increased it. Bonus is not guaranteed and does vary year on year
Also submitted my application on Tuesday and had mortgage approval on the Friday

Tipsy McSwagger

If you get AIP from one bank and you go to another bank do you have to go through the whole process again?

kippy

Tipsy McSwagger wrote: »

If you get AIP from one bank and you go to another bank do you have to go through the whole process again?

Yes.

myshirt

You'd want to have gotten a bonus for 3 years. They can include it in the income multiple, but not the ability to afford the monthly mortgage payments.

del23

Anybody could answer for me,does often bank valuation comes lower than sale agreed price? Or it has to be much over the average prices in the area?

TheShow

del23 wrote: »

Anybody could answer for me,does often bank valuation comes lower than sale agreed price? Or it has to be much over the average prices in the area?

It’s not uncommon. If it’s formally valued at less than what you’re paying for it, would you not be concerned that you’re paying too much?

From a LTV perspective the banks will work off LTV or purchase price, whichever is lower.
So if you’re happy that you’re paying over the odds, then you’ll need to make sure that you have the spare cash too.

heldel00

Asking on behalf of a sibling - she's thinking of getting new car but is also applying fot mortgage.
Will the smallish loan reduce the overall amount she can borrow or is ut just the usual 3 times salary regardless of car?

Creamy Goodness

heldel00 wrote: »

Asking on behalf of a sibling - she's thinking of getting new car but is also applying fot mortgage.
Will the smallish loan reduce the overall amount she can borrow or is ut just the usual 3 times salary regardless of car?

yes it will, all regular outgoings (loans, creche fees, etc.) will affect the amount the bank are willing to give you.

GingerLily

heldel00 wrote: »

Asking on behalf of a sibling - she's thinking of getting new car but is also applying fot mortgage.
Will the smallish loan reduce the overall amount she can borrow or is ut just the usual 3 times salary regardless of car?

The LTI will not be affected but the affordability calculation will be a affected.

It depends on her specific finances but even just 200e a month loan could significantly affect your net income, which would bring your mortgage affordability above the threshold.

If she can avoid it I think she should hold off on buying a car or buy a banger.

Liam McPoyle

We had our place valued last night and we are going to be selling in the coming months and the agent that valued it said their rate is 1.25%, how does that compare to the market average?