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

DubJJ

I don't think it's something they need to discuss with you, I think they just google your name and have a look through your social media etc.

ELM327

DubJJ wrote: »

I don't think it's something they need to discuss with you, I think they just google your name and have a look through your social media etc.

They probably did it already
Shows why you need to have everything set to private.

eoghan104

I have a small loan with a Credit Union. <€3k outstanding.

Do I need to inform the bank of this when applying for a mortgage?

ELM327

eoghan104 wrote: »

I have a small loan with a Credit Union. <€3k outstanding.

Do I need to inform the bank of this when applying for a mortgage?

Yes
They will see the outgoing payments from your payslip or bank acc so best to tell them rather than have them find out.

eoghan104

OK great thanks a lot.

I can't say it is just a small savings account?

ELM327

eoghan104 wrote: »

OK great thanks a lot.

I can't say it is just a small savings account?

They will ask you for statements then.
Trust me, it's better to tell them up front, then have them find out.

keane2097

Pretty sure they will find it when they do a credit check anyway.

Pelvis

eoghan104 wrote: »

OK great thanks a lot.

I can't say it is just a small savings account?

Well that would be fraud, so no.

TheShow

There is no exception rule for Net Disposable income.
Central bank rules only relate to LTV & Income multiples.
Any other requirements are banks own credit policy and vary from bank to bank.

http://www.citizensinformation.ie/en/housing/owning_a_home/help_with_buying_a_home/paying_for_a_home.html

wally79

eoghan104 wrote: »

I have a small loan with a Credit Union. <€3k outstanding.

Do I need to inform the bank of this when applying for a mortgage?

I think credit unions have started reporting to the central credit register now so all loans will show up when bank checks credit

Wouldn’t worry about it For that amount. They may just say you have to pay it down as one of the conditions on your application

wardides

Looking for a bit of advice on a left field thought. Been renting for a few years now, and decided to push ahead and look for a mortgage. However, we want to buy before HTB scheme finishes (end of 2019). Sights on a new build for 270K so deposit needed would be €13.5K with the scheme. That's still a chunky deposit which we could save up to, but not sure if we would have it before the scheme finishes.

Here's the bit I know won't make sense to most, but in my head does. I'm just wondering what the banks view on it would be (in your opinion). I got a car loan 2 years ago, of which around 10K is left. Recently got a company car so will be selling my car, which is now worth more or less 10K. I was thinking of putting the proceeds of the sale into savings and using that as deposit, as alongside what we have currently saved this would probably hit our target deposit. And just keep paying off the loan as normal.

Combined income is around 90K, and current rent is 1K a month. Would expect repayments on a mortgage to be more or less around that figure for a 30yr term so repayments clearly won't be an issue (as we have been paying the same amount in rent over the past few years).

I worked out, in terms of cost of doing the above I'll probably pay around 2K in interest (over the course of repaying the loan over 4 years which would be worst case scenario, would expect to pay it off over the next 2 years) that I would not be paying if I just cleared it. Which, when you think we're paying 1K a month in rent, isn't a major factor.

Any idea on what the banks view on this would be?

GingerLily

wardides wrote: »

Looking for a bit of advice on a left field thought. Been renting for a few years now, and decided to push ahead and look for a mortgage. However, we want to buy before HTB scheme finishes (end of 2019). Sights on a new build for 270K so deposit needed would be €13.5K with the scheme. That's still a chunky deposit which we could save up to, but not sure if we would have it before the scheme finishes.

Here's the bit I know won't make sense to most, but in my head does. I'm just wondering what the banks view on it would be (in your opinion). I got a car loan 2 years ago, of which around 10K is left. Recently got a company car so will be selling my car, which is now worth more or less 10K. I was thinking of putting the proceeds of the sale into savings and using that as deposit, as alongside what we have currently saved this would probably hit our target deposit. And just keep paying off the loan as normal.

Combined income is around 90K, and current rent is 1K a month. Would expect repayments on a mortgage to be more or less around that figure for a 30yr term so repayments clearly won't be an issue (as we have been paying the same amount in rent over the past few years).

I worked out, in terms of cost of doing the above I'll probably pay around 2K in interest (over the course of repaying the loan over 4 years which would be worst case scenario, would expect to pay it off over the next 2 years) that I would not be paying if I just cleared it. Which, when you think we're paying 1K a month in rent, isn't a major factor.

Any idea on what the banks view on this would be?

90k income, 1k rent and no significant track record of saving? I don't think the banks will like the look of that. You have to demonstrate that you can save and handle finances.

heebusjeebus

wardides wrote: »

Looking for a bit of advice on a left field thought. Been renting for a few years now, and decided to push ahead and look for a mortgage. However, we want to buy before HTB scheme finishes (end of 2019). Sights on a new build for 270K so deposit needed would be €13.5K with the scheme. That's still a chunky deposit which we could save up to, but not sure if we would have it before the scheme finishes.

Here's the bit I know won't make sense to most, but in my head does. I'm just wondering what the banks view on it would be (in your opinion). I got a car loan 2 years ago, of which around 10K is left. Recently got a company car so will be selling my car, which is now worth more or less 10K. I was thinking of putting the proceeds of the sale into savings and using that as deposit, as alongside what we have currently saved this would probably hit our target deposit. And just keep paying off the loan as normal.

Combined income is around 90K, and current rent is 1K a month. Would expect repayments on a mortgage to be more or less around that figure for a 30yr term so repayments clearly won't be an issue (as we have been paying the same amount in rent over the past few years).

I worked out, in terms of cost of doing the above I'll probably pay around 2K in interest (over the course of repaying the loan over 4 years which would be worst case scenario, would expect to pay it off over the next 2 years) that I would not be paying if I just cleared it. Which, when you think we're paying 1K a month in rent, isn't a major factor.

Any idea on what the banks view on this would be?

You'll also need to budget extra for stamp duty & surveyors & solicitors fees.

Frisbee

wardides wrote: »

Sights on a new build for 270K so deposit needed would be €13.5K with the scheme. That's still a chunky deposit which we could save up to, but not sure if we would have it before the scheme finishes.

I don't get this. You are on a similar joint income to ourselves and are paying nearly half of what I am in rent but wouldn't be able to save €13.5k in the next 18 months? Do you have other huge outgoings aside from the car loan?

With those rent & income figures I'd be expecting to have at least double that saved by then.

Pelvis

These schemes really do piss me off, everything is stacked in favour of couples (or just single exceptionally high earners). Just by virtue of the fact that I'm a single buyer on a good but not a crazy good income, I have to settle for a lesser mortgage (even though I could comfortably afford more) and I have to save more for it just because a new build is out of my price range.

Why does a couple earning 90k total (or a single person earning 90k) a year need a scheme to help them raise a deposit?? What ****ed up logic is that? Of all people, if they can't raise the deposit with this income then they're the ones who shouldn't be given the mortgage in the first place!!

Same with the rebuilding Ireland crap, oh you're earning less than 50k? Oh well here you go, here's a mortgage that no bank would give you. But if you're earning 50,000.01 you're ****ed between a rock and a hard place. You're earning too much to be given a helping hand of any kind and you're earning too little to be given a mortgage worth a damn. What a joke of a country.

End rant.

conf101

wardides wrote: »

Looking for a bit of advice on a left field thought. Been renting for a few years now, and decided to push ahead and look for a mortgage. However, we want to buy before HTB scheme finishes (end of 2019). Sights on a new build for 270K so deposit needed would be €13.5K with the scheme. That's still a chunky deposit which we could save up to, but not sure if we would have it before the scheme finishes.

Here's the bit I know won't make sense to most, but in my head does. I'm just wondering what the banks view on it would be (in your opinion). I got a car loan 2 years ago, of which around 10K is left. Recently got a company car so will be selling my car, which is now worth more or less 10K. I was thinking of putting the proceeds of the sale into savings and using that as deposit, as alongside what we have currently saved this would probably hit our target deposit. And just keep paying off the loan as normal.

Combined income is around 90K, and current rent is 1K a month. Would expect repayments on a mortgage to be more or less around that figure for a 30yr term so repayments clearly won't be an issue (as we have been paying the same amount in rent over the past few years).

I worked out, in terms of cost of doing the above I'll probably pay around 2K in interest (over the course of repaying the loan over 4 years which would be worst case scenario, would expect to pay it off over the next 2 years) that I would not be paying if I just cleared it. Which, when you think we're paying 1K a month in rent, isn't a major factor.

Any idea on what the banks view on this would be?

With an income and rent of that level I really think you should be looking at trying to save the deposit. Have you any dependants? If not, you should be able to save a 13.5k deposit before the end of 2019. That's 19 months away, which works out at a little over €700 savings a month.

If you can't save that with a combined salary of 90k and 1k rent then, as someone said above, I don't know how attractive you are to a bank.

That is, unless you have other financial commitments you haven't mentioned above, such as kids, etc.

Also bear in mind that the bank will take your monthly loan repayments off your capacity to repay, which will reduce the amount of a mortgage they'll give you. You might be better off selling the car and clearing the loan.

TheShow

eoghan104 wrote: »

OK great thanks a lot.

I can't say it is just a small savings account?

it will show up on a credit search.

TheShow

shamrock55 wrote: »

I already have a mortgage but if I wanted to buy a property to do up and sell would I need a buy to let mortgage or would I need 20% deposited as a second time buyer

You wouldnt get a mortgage for property development, you would need a commercial loan.

Cuddlesworth

conf101 wrote: »

If you can't save that with a combined salary of 90k and 1k rent then, as someone said above, I don't know how attractive you are to a bank.

Very unattractive. Living paycheck to paycheck does not go down well with underwriters. Even having a long term established savings record and high income, they don't exactly make it easy.

wardides

Frisbee wrote: »

I don't get this. You are on a similar joint income to ourselves and are paying nearly half of what I am in rent but wouldn't be able to save €13.5k in the next 18 months? Do you have other huge outgoings aside from the car loan?

With those rent & income figures I'd be expecting to have at least double that saved by then.

That's not really the issue.

Firstly I'm the bulk of that income, which is quite a significant jump on my previous earnings (roughly 20K or so). Didn't exactly walk out of college and into a well paying job. And before anyone else jumps in, it will be Christmas before we apply so any probation period in the role will be finished.

We would easily be able to save that in 18 months, the issue is the number of new builds in our location fall far below the level of demand and in 18 months time the property (or set of new builds) we would like will be pretty much gone. Tie this into a change in circumstances which mean our current rental property does not suit anymore & an increase in rent, it was somewhat of a sudden decision to move sooner into buying (plan was always to rent for 3-4 more years and then buy).

I wasn't exactly looking for a life review of my finances (should have expected it on boards however), but was looking to see if anyone had any experience in terms of using lump sums (such as selling a car etc) for a deposit and how this was viewed.

ELM327

wardides wrote: »

I wasn't exactly looking for a life review of my finances (should have expected it on boards however), but was looking to see if anyone had any experience in terms of using lump sums (such as selling a car etc) for a deposit and how this was viewed.

Dimly is how it is viewed.
I got a mortgage as a single applicant in Q2 this year.
I partially funded my deposit from selling a car that I still had a 9k personal loan on.
I also had approx 6k credit card debt, but it was less than 50% of the card limit.

I got approval from BOI on the following basis:
Loan amount was reduced based on the monthly loan repayment and the credit card repayment. Credit card was included as 6% of the outstanding amount. So if I was qualified for a 1k per month mortgage on the basis of the CB rules, that 1k was reduced by the loan and the 6% of CC balance.

I also earned a lot of overtime and bonuses (approx 20-25k per year gross) over my annual salary. Since I had these for the last 3 years on my P60 the bank regarded them as likely to continue and included 66% of them in my "annual salary" figure.

I also do a lot of share dealing, so had to provide statements from that.

As it happens I received the amount which I applied for, which was 1.8 times my combined income. But it was a slog, and the loans etc made it more difficult.

TLDR: I did what you wanted, used car as deposit. It is possible but it is difficult.

wardides

Pelvis wrote: »

These schemes really do piss me off, everything is stacked in favour of couples (or just single exceptionally high earners). Just by virtue of the fact that I'm a single buyer on a good but not a crazy good income, I have to settle for a lesser mortgage (even though I could comfortably afford more) and I have to save more for it just because a new build is out of my price range.

Why does a couple earning 90k total (or a single person earning 90k) a year need a scheme to help them raise a deposit?? What ****ed up logic is that? Of all people, if they can't raise the deposit with this income then they're the ones who shouldn't be given the mortgage in the first place!!

Same with the rebuilding Ireland crap, oh you're earning less than 50k? Oh well here you go, here's a mortgage that no bank would give you. But if you're earning 50,000.01 you're ****ed between a rock and a hard place. You're earning too much to be given a helping hand of any kind and you're earning too little to be given a mortgage worth a damn. What a joke of a country.

End rant.

If I was a single applicant I would not be able to get near a new build. But i'm not, so therefore my partners income allows us to purchase a new build and apply for the scheme.

If you were a joint applicant, you would also be able to apply for the scheme providing you were looking for a new build, and I would assume you would apply. So your rant doesn't really have any points, beside you being a single applicant and me being a joint.

*Just to further this I get your point around not enough being done for single applicants though. Especially when you're caught in that middle ground of their income thresholds.

wardides

ELM327 wrote: »

Dimly is how it is viewed.
I got a mortgage as a single applicant in Q2 this year.
I partially funded my deposit from selling a car that I still had a 9k personal loan on.
I also had approx 6k credit card debt, but it was less than 50% of the card limit.

I got approval from BOI on the following basis:
Loan amount was reduced based on the monthly loan repayment and the credit card repayment. Credit card was included as 6% of the outstanding amount. So if I was qualified for a 1k per month mortgage on the basis of the CB rules, that 1k was reduced by the loan and the 6% of CC balance.

I also earned a lot of overtime and bonuses (approx 20-25k per year gross) over my annual salary. Since I had these for the last 3 years on my P60 the bank regarded them as likely to continue and included 66% of them in my "annual salary" figure.

I also do a lot of share dealing, so had to provide statements from that.

As it happens I received the amount which I applied for, which was 1.8 times my combined income. But it was a slog, and the loans etc made it more difficult.

TLDR: I did what you wanted, used car as deposit. It is possible but it is difficult

Thanks for the feedback.

On another side note, do they tend to look back further than 6 months? In peoples experience obviously, as I know it’s not possible to say for definite or not whether they do.

TheShow

wardides wrote: »

That's not really the issue.

Firstly I'm the bulk of that income, which is quite a significant jump on my previous earnings (roughly 20K or so). Didn't exactly walk out of college and into a well paying job. And before anyone else jumps in, it will be Christmas before we apply so any probation period in the role will be finished.

We would easily be able to save that in 18 months, the issue is the number of new builds in our location fall far below the level of demand and in 18 months time the property (or set of new builds) we would like will be pretty much gone. Tie this into a change in circumstances which mean our current rental property does not suit anymore & an increase in rent, it was somewhat of a sudden decision to move sooner into buying (plan was always to rent for 3-4 more years and then buy).

I wasn't exactly looking for a life review of my finances (should have expected it on boards however), but was looking to see if anyone had any experience in terms of using lump sums (such as selling a car etc) for a deposit and how this was viewed.

It depends on the circumstances really, we had a small level of savings - less than 10k (bloody hard to save that). and I came into a lump sum (redundancy). Had been paying rent for a prolonged period and childcare, got my approval with no issues. I guess it boils down to each individual scenario.

heebusjeebus

wardides wrote: »

Thanks for the feedback.

On another side note, do they tend to look back further than 6 months? In peoples experience obviously, as I know it’s not possible to say for definite or not whether they do.

6 months is the norm but they might ask for P60's for the last 3-5 years.

ELM327

wardides wrote: »

Thanks for the feedback.

On another side note, do they tend to look back further than 6 months? In peoples experience obviously, as I know it’s not possible to say for definite or not whether they do.

I had to give 3 years P60
and sufficient statements that showed where the savings (the rest of it) came from. So a 6 months statement of savings that showed an opening balance of 20k say, wouldnt be sufficient.

I also had to (as the adviser told me on the phone) sign a gift letter from my parents to account for the cash lodgemnt from the car sale.

wardides

ELM327 wrote: »

I had to give 3 years P60
and sufficient statements that showed where the savings (the rest of it) came from. So a 6 months statement of savings that showed an opening balance of 20k say, wouldnt be sufficient.

I also had to (as the adviser told me on the phone) sign a gift letter from my parents to account for the cash lodgemnt from the car sale.

How does this work? You had to pretend the cash lodgment didn't come from your car sale, but came as a "gift" from your parents?!

ELM327

wardides wrote: »

How does this work? You had to pretend the cash lodgment didn't come from your car sale, but came as a "gift" from your parents?!

That's exactly it.
I was a little surprised but that's what the rep advised me to do.

pampootie

Has anybody ever had a survey done prior to going sale agreed?

Have gone sale agreed on a house and the survey has thrown up more issues than I was expecting, which means more money needed to fix them. I've seen another house nearby with a higher asking price but on the face of it looks to have less issues-would love to have a survey done to see as I think it could work out better value than the first house. Would an EA allow this?

awec

Pelvis wrote: »

These schemes really do piss me off, everything is stacked in favour of couples (or just single exceptionally high earners). Just by virtue of the fact that I'm a single buyer on a good but not a crazy good income, I have to settle for a lesser mortgage (even though I could comfortably afford more) and I have to save more for it just because a new build is out of my price range.

Why does a couple earning 90k total (or a single person earning 90k) a year need a scheme to help them raise a deposit?? What ****ed up logic is that? Of all people, if they can't raise the deposit with this income then they're the ones who shouldn't be given the mortgage in the first place!!

Same with the rebuilding Ireland crap, oh you're earning less than 50k? Oh well here you go, here's a mortgage that no bank would give you. But if you're earning 50,000.01 you're ****ed between a rock and a hard place. You're earning too much to be given a helping hand of any kind and you're earning too little to be given a mortgage worth a damn. What a joke of a country.

End rant.

You do realise that couples have higher incomes but also higher costs, right?

It is not as if they are loaded in comparison.

Single applicants have a tougher time because they are a much higher risk. You are one job loss away from the dole being your only income.