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

keane2097 · 17-05-2018 1:45pm

We got the keys to our new house yesterday. I would think this is strong evidence that being an inveterate gambler is not the mortgage killer we are all lead to believe.

djan · 17-05-2018 2:53pm

awec wrote: »

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.

Not to be pedantic but couples have significantly lower costs due to, in essence, economies of scale. Bills/utilities etc. are halved and it doesn't cost 2x more to cook for two rather than one.

I agree that the biggest issue is the risk associated with a single applicant's reliability in making repayments. Although one could argue that with the cost of childcare a single applicant who won't have kids will be better able to repay.

TheShow · 17-05-2018 2:53pm

pampootie wrote: »

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?

You can pull out at sale agreed stage and get full booking deposit back.

The surveyor would need access to carry out a survey so unless there is a "Sale Agreed" scenario I can't see the EA permitting access to carry out a survey.

Bluefoam · 17-05-2018 5:40pm

how strict are lenders about the 6 months saving requirement... im just back in the country and hoping to get a mortgage in three months, following my probation in the new job... ive had a couple of mortgages in the past that were fully paid off, so i would have thought that is reasonable proof of saving. i also have a good record while living abroad, but they dont accept that, has to be proof of saving in ireland. The lady in the bank said she will submit after 3 months, but cant guarantee it will be acceptable.

cloneslad · 17-05-2018 6:00pm

Bluefoam wrote: »

how strict are lenders about the 6 months saving requirement... im just back in the country and hoping to get a mortgage in three months, following my probation in the new job... ive had a couple of mortgages in the past that were fully paid off, so i would have thought that is reasonable proof of saving. i also have a good record while living abroad, but they dont accept that, has to be proof of saving in ireland. The lady in the bank said she will submit after 3 months, but cant guarantee it will be acceptable.

Our savings over the 6 months leading up to applying for the mortgage weren't great. We hadn't been intending on buying at all so I had gotten laser eye surgery, we had been on holidays and we had moved into a new apartment and all the expenses that brings with it.

Our rent costs covered the mortgage payments we'd need though and we had savings accumulated that covered over 20% of the house price. It was a new build and we were entitled to the help to buy scheme so that also helped us.

I'd say apply after your probation is up and see what they say, sure all they can do is say yes / no.

Creamy Goodness · 18-05-2018 9:16am

Wondering can anyone help me out, my head is fried.

I have AIP for 282k and received a cancellation notice for a new build, the house is €358k (deposit savings of 69k + 17.9k HTB). The estate agent has mentioned the house would be ready roughly August - October time, so I put down €7k as a booking deposit and have 21 working days to give 10%. Can the HTB be used as part of this 10%, I've already given the Estate Agent my HTB access code and etc.

I went to the bank yesterday to get the "final details for mortgage sanction" letter. I dropped in unannounced and the mortgage advisor took me for 10 minutes before their next appointment (I know, entirely my fault). She mentioned that once their write their mortgage sanction letter, it's valid for 6 months only. I feel like this might be cutting it too fine. what happens if the house isn't ready by then? Do I lose my 10% deposit (which I've to put down within 21 working days)? If I apply again I won't qualify for an exemption due to the bank's new discretionary income rules for single applicants (€3,300) after the mortgage payment is taken and I'm afraid I'll lose the 10% and more importantly the house.

Is it true that I have to be at the key exchange stage within the six months or is it just that my solicitor has to finalise the sale within that six months? I haven't been talking to my solicitor yet outside of the "yep I'll be your solicitor for this new build" introductory phone call.

Also when I was in with the advisor they asked me if I'm availing of the Help to Buy scheme, I am. she then made my deposit calculations based on me only getting €15k of this rebate whereas 5% of the purchase price is €17900, is there anything that could stop me getting the full 5%? or was the advisor just using 15k for simpler arithmetic.

awec · 18-05-2018 10:46am

Creamy Goodness wrote: »

Wondering can anyone help me out, my head is fried.

I have AIP for 282k and received a cancellation notice for a new build, the house is €358k (deposit savings of 69k + 17.9k HTB). The estate agent has mentioned the house would be ready roughly August - October time, so I put down €7k as a booking deposit and have 21 working days to give 10%. Can the HTB be used as part of this 10%, I've already given the Estate Agent my HTB access code and etc.

I went to the bank yesterday to get the "final details for mortgage sanction" letter. I dropped in unannounced and the mortgage advisor took me for 10 minutes before their next appointment (I know, entirely my fault). She mentioned that once their write their mortgage sanction letter, it's valid for 6 months only. I feel like this might be cutting it too fine. what happens if the house isn't ready by then? Do I lose my 10% deposit (which I've to put down within 21 working days)? If I apply again I won't qualify for an exemption due to the bank's new discretionary income rules for single applicants (€3,300) after the mortgage payment is taken and I'm afraid I'll lose the 10% and more importantly the house.

Is it true that I have to be at the key exchange stage within the six months or is it just that my solicitor has to finalise the sale within that six months? I haven't been talking to my solicitor yet outside of the "yep I'll be your solicitor for this new build" introductory phone call.

Also when I was in with the advisor they asked me if I'm availing of the Help to Buy scheme, I am. she then made my deposit calculations based on me only getting €15k of this rebate whereas 5% of the purchase price is €17900, is there anything that could stop me getting the full 5%? or was the advisor just using 15k for simpler arithmetic.

1. Help to buy can be used as part of the 10%

2. It's usually 21 days from the date contracts are issued, not 21 days after you pay the booking deposit (even though they may say this on their promo materials). It could take them a week or two to get you contracts.

3. You need to ask the mortgage advisor in the bank about the exemption when re-applying.

4. I believe you need to draw down the mortgage within six months.

5. Nothing to stop you getting the full 5% if you have paid enough tax.

Creamy Goodness · 18-05-2018 10:59am

awec wrote: »

1. Help to buy can be used as part of the 10%

Perfect, even if it's goes pear shaped this gives fills me with hope that I'm not losing everything.

awec wrote: »

2. It's usually 21 days from the date contracts are issued, not 21 days after you pay the booking deposit (even though they may say this on their promo materials). It could take them a week or two to get you contracts.

Sorry I didn't make that clear, I know it's 21 days from contract issued, the EA said they were ready to go for me (they're moving it fast as the previous couple cancelled and they want me to be in the same batch). I'm guessing I'm notified when the contracts are issued. I assume that will be either today or Monday.

awec wrote: »

3. You need to ask the mortgage advisor in the bank about the exemption when re-applying.

I agree, I've asked them for an appointment on monday. Hopefully I'll get more clarity on it then.

awec wrote: »

4. I believe you need to draw down the mortgage within six months.

I'm guessing I can't draw down (or my solicitor draws down) for me if I'm about a week or two from the 6 month deadline?

awec wrote: »

5. Nothing to stop you getting the full 5% if you have paid enough tax.

No chance I haven't paid enough tax, guessing by enough it means I just have to had paid €17900 in tax in the last 4 years?

sightband · 18-05-2018 12:21pm

Creamy Goodness wrote: »

If I apply again I won't qualify for an exemption due to the bank's new discretionary income rules for single applicants (€3,300) after the mortgage payment is taken and I'm afraid I'll lose the 10% and more importantly the house.

-If your loan offer expires and is turned down for whatever reason upon reapplication its at the developer and agents discretion to keep or return your deposit and sell the house on as per terms of contract UNLESS they agree to what was once standard, "subject to loan clause" that your solicitor would include in the the terms. However, the last two years or so the developers are not agreeing to include this. The Times were doing a bit a while ago looking for people who fell foul of this, I didn't see any follow up. I don't know if its as sinister as it sounds, I'd be very surprised if they kept it as they know the house will be snapped up immediately. It's just my opinion but I think the reasoning behind not allowing for the clause is that it shows full commitment to the purchase without any messing them about. In theory, you could have a few new builds on the go and then just choose whichever one you want and not lose out on any deposit. All that said it's definitely a risk and agreeing to these terms are not at all comforting.

Creamy Goodness wrote: »

Is it true that I have to be at the key exchange stage within the six months or is it just that my solicitor has to finalise the sale within that six months?

-In order to drawdown you are supposed to have the house snagged and all that taken care of, then you get it valued by a bank approved valuer, they will send this on to the bank and then cheque/funds will be issued to your solicitor.

I think I heard an ad a while back for a lender offering a one year instead of 6 months, could be wrong though.

Pelvis · 18-05-2018 10:46pm

I'm just gathering documents to apply for a mortgage, and I've been asked for various bank statements going back 6 months, but it says "must be dated within the last 4 weeks". What does this mean? Obviously if I get a statement from 6 months ago it's not gonna be dated within the last 4 weeks.

kippy · 18-05-2018 10:58pm

Pelvis wrote: »

I'm just gathering documents to apply for a mortgage, and I've been asked for various bank statements going back 6 months, but it says "must be dated within the last 4 weeks". What does this mean? Obviously if I get a statement from 6 months ago it's not gonna be dated within the last 4 weeks.

They want a statement printed/posted within the last four weeks that has the last 6 months transactions on it.
The statement wont be "from" six months ago, is will be "from" the sometime in the past 4 weeks, with six months transactions on it.
Sorry that may not be too well explained.

Pelvis · 18-05-2018 11:01pm

Ahhh, well that makes more sense!

TheShow · 18-05-2018 11:21pm

Pelvis wrote: »

I'm just gathering documents to apply for a mortgage, and I've been asked for various bank statements going back 6 months, but it says "must be dated within the last 4 weeks". What does this mean? Obviously if I get a statement from 6 months ago it's not gonna be dated within the last 4 weeks.

Statements for a 6 month period up to a date not less than 4 weeks ago. I.e. the last 6 months statements.

adriaaaan · 19-05-2018 8:26am

Hey all. Looking for a bit of advice. We were late to the party to get an LTI exemption with the major banks. We're approved and deposited up to house value ~490k. We've found a house we like that will sell for ~540k. A broker advised that smaller banks have exemptions left and we are good candidates for one but must go sale agreed before they assess it whether they would grant the exemption.
My question is: how many people do this, bid up and go sale agreed absent AIP and is it worth it the risk? I know the deposit is refundable but it doesn't seem like the right thing to do

kippy · 19-05-2018 8:29am

adriaaaan wrote: »

Hey all. Looking for a bit of advice. We were late to the party to get an LTI exemption with the major banks. We're approved and deposited up to house value ~490k. We've found a house we like that will sell for ~540k. A broker advised that smaller banks have exemptions left and we are good candidates for one but must go sale agreed before they assess it whether they would grant the exemption.
My question is: how many people do this, bid up and go sale agreed absent AIP and is it worth it the risk? I know the deposit is refundable but it doesn't seem like the right thing to do

Its unlikely the estate agent would accept a bid without proof of funds. Although that may be changing/depend on the EA. Other s who have been involved in bidding more recently may have better info.

Catmologen · 19-05-2018 10:02am

adriaaaan wrote: »

Hey all. Looking for a bit of advice. We were late to the party to get an LTI exemption with the major banks. We're approved and deposited up to house value ~490k. We've found a house we like that will sell for ~540k. A broker advised that smaller banks have exemptions left and we are good candidates for one but must go sale agreed before they assess it whether they would grant the exemption.
My question is: how many people do this, bid up and go sale agreed absent AIP and is it worth it the risk? I know the deposit is refundable but it doesn't seem like the right thing to do

Lots of people get involved in bidding wars and go above their budgets but manage to find the extra cash somewhere. If the EA wants proof of funds then send them a screenshot of the email with the 490k approval with the amount redacted. If it's really what you want then go for it.

sightband · 19-05-2018 10:58am

Catmologen wrote: »

Lots of people get involved in bidding wars and go above their budgets but manage to find the extra cash somewhere.

Precisely the problem with the market here, out of control. Have purchased two properties in the UK, when it came down to the wire bidding went up in hundreds. I was bidding on a house here with supposedly two of us left and the other party countered with a €20k over my offer, to put it into context the asking was €480k and we were at €510k, I laughed at the agent and said why would someone be so stupid to counter with that, she showed me the log and said they often do this to blow the other party out of the water, exact words. €1000 would’ve been enough, well done on blowing €19k was the only thing I could think of. We can blame banks, agents, regulation but I firmly blame the absolute idiocy of the people bidding/buying on why the market is out of control...again.

wally79 · 19-05-2018 2:03pm

sightband wrote: »

Precisely the problem with the market here, out of control. Have purchased two properties in the UK, when it came down to the wire bidding went up in hundreds. I was bidding on a house here with supposedly two of us left and the other party countered with a €20k over my offer, to put it into context the asking was €480k and we were at €510k, I laughed at the agent and said why would someone be so stupid to counter with that, she showed me the log and said they often do this to blow the other party out of the water, exact words. €1000 would’ve been enough, well done on blowing €19k was the only thing I could think of. We can blame banks, agents, regulation but I firmly blame the absolute idiocy of the people bidding/buying on why the market is out of control...again.

How would they know 1k was enough. They wouldn’t. If they go 1k at a time it might be easier for you to rationalise going with them and it may give time for another bidder to enter

sightband · 19-05-2018 2:21pm

wally79 wrote: »

How would they know 1k was enough. They wouldn’t. If they go 1k at a time it might be easier for you to rationalise going with them and it may give time for another bidder to enter

They wouldn’t, but bidding near 5% of the value of the house over the asking when it came down to the crunch either suggests they were lied to by agents or they were idiots, it was Sherry fitz and the agent seemed baffled by it themselves, it was some spluttering snot nosed agent out of their depth with no real understanding of what I was talking about. I believe they were idiots.

If they go 1k at a time? Go for it, that’s how a normal market functions, understand the value of 1k, espceically versus the property.

it was on sale for a long time and this sold 18 months ago, according to the property price register it sold for the over 20k bid they put in. The house was not worth this, it needed work, but who knows now as things are nuts.

The problem is, that house that sold for that impacts any house in the area with similar spec within a certain radius, there’s the bubble, my house is definitely worth that now cos some idiot paid that for the one down the road.

Catmologen · 19-05-2018 3:34pm

sightband wrote: »

Catmologen wrote: »

Lots of people get involved in bidding wars and go above their budgets but manage to find the extra cash somewhere.

Precisely the problem with the market here, out of control. Have purchased two properties in the UK, when it came down to the wire bidding went up in hundreds. I was bidding on a house here with supposedly two of us left and the other party countered with a €20k over my offer, to put it into context the asking was €480k and we were at €510k, I laughed at the agent and said why would someone be so stupid to counter with that, she showed me the log and said they often do this to blow the other party out of the water, exact words. €1000 would’ve been enough, well done on blowing €19k was the only thing I could think of. We can blame banks, agents, regulation but I firmly blame the absolute idiocy of the people bidding/buying on why the market is out of control...again.

I've been in similar situations myself. We just had to accept that the price is what someone is willing to pay and move on. We ended up going for a new build in the end to avoid bidding wars.

Fol20 · 19-05-2018 5:14pm

sightband wrote: »

They wouldn’t, but bidding near 5% of the value of the house over the asking when it came down to the crunch either suggests they were lied to by agents or they were idiots, it was Sherry fitz and the agent seemed baffled by it themselves, it was some spluttering snot nosed agent out of their depth with no real understanding of what I was talking about. I believe they were idiots.

If they go 1k at a time? Go for it, that’s how a normal market functions, understand the value of 1k, espceically versus the property.

it was on sale for a long time and this sold 18 months ago, according to the property price register it sold for the over 20k bid they put in. The house was not worth this, it needed work, but who knows now as things are nuts.

The problem is, that house that sold for that impacts any house in the area with similar spec within a certain radius, there’s the bubble, my house is definitely worth that now cos some idiot paid that for the one down the road.

Your really bring your emotions into it. Some people might be ok upping the price by 1k at a time but as others have indicated. It’s another type of tactic that can work for some people. No point judging the “snot nosed” ea because at the end of the day. The tactic worked. You now don’t own the house and someone else got it.

Teddyisbold · 19-05-2018 10:34pm

Hi,can someone give me some advice please.Applied to aib for an equity release to build extension to my house.I don't have a mortgage.Married with 2 kids.Initially told that I would qualify if I cleared 2 existing loans,using my savings(15k).
After doing this was then told I still didn't qualify,apparently couldn't afford the repayments(450/month).
Kicked up a fuss and was offered a personal loan(1000/month).
Something seems very suspicious.

sightband · 20-05-2018 10:04am

Fol20 wrote: »

Your really bring your emotions into it. Some people might be ok upping the price by 1k at a time but as others have indicated. It’s another type of tactic that can work for some people. No point judging the “snot nosed” ea because at the end of the day. The tactic worked. You now don’t own the house and someone else got it.

eh? i laughed at the other person, is that getting emotional? its hard not to at some of the carry on of late. I have purchased a new build which I am relatively sure would sell for €100k over what I paid for it, I would be surprised if the house I was bidding on would sell for same now even with the price hikes they’d be lucky to break even. who has been prudent? you seem to think overpaying for something that isn’t worth it to get rid of other competitors is some kind of tactic, it may be for those with a bottomless pit of money, but that doesn’t make it value for money. I had plenty more to bid with but asked myself was the property worth it and it wasn’t, so who kept their emotions in check?...people lose sight of the value of money in these situations. I have experience of buying in the UK, they do not lose the run of themselves over there with bidding. you are right though, they got the house and I didnt...a house that I didn’t want for the price they paid for it.

Avatar MIA · 20-05-2018 10:09am

sightband wrote: »

I have purchased a new build which I am relatively sure would sell for €100k over what I paid for it,

You out smarted the market by €100k? Either very well done, or hope you enjoyed your daydream.

sightband · 20-05-2018 11:40am

Avatar MIA wrote: »

You out smarted the market by €100k? Either very well done, or hope you enjoyed your daydream.

Did you read the new build bit?...they require a significant investment once built, I put roughly 35k in when I got the keys. I’d say at the moment I’m about 65k+ up if I was to sell now.

I didn’t buy here but check out sea green in Greystones, people there bought 24 months ago for 395k, with htb 375k, newer estates in worse areas nearby with a similar house are going for close to 500k now, that’s pre all the required finishing of floors, carpets and all other minor fittings which can be expensive. Do I think all this is great or do I think the market is functioning properly, no, but that’s how it is. Some very fortunate buyers over a year ago, I was one of them. I dodged a bullet by someone adding a hefty sum of money and interest on to their mortgage.

Avatar MIA · 20-05-2018 11:46am

sightband wrote: »

Did you read the new build bit?...they require a significant investment once built, I put roughly 35k in when I got the keys. I’d say at the moment I’m about 65k+ up if I was to sell now.

I didn’t buy here but check out sea green in Greystones, people there bought 24 months ago for 395k, with htb 375k, newer estates in worse areas nearby with a similar house are going for close to 500k now, that’s pre all the required finishing of floors, carpets and all other minor fittings which can be expensive. Do I think all this is great or do I think the market is functioning properly, no, but that’s how it is. Some very fortunate buyers over a year ago, I was one of them. I dodged a bullet by someone adding a hefty sum of money and interest on to their mortgage.

First of all you also paid the €35k, so potential profit is €65k not €100k. You also need to factor in the opportunity cost that you incurred by spending your time on this.

It looks like you've done well and have a decent paper profit, but the €100k more than you paid for it comment didn't sit right.

sightband · 20-05-2018 11:53am

Avatar MIA wrote: »

First of all you also paid the €35k, so potential profit is €65k not €100k. You also need to factor in the opportunity cost that you incurred by spending your time on this.

It looks like you've done well and have a decent paper profit, but the €100k more than you paid for it comment didn't sit right.

Read back, I said it would sell for €100k more than I paid for it. I never mentioned anything about profit, . Irrespective of me, there are people in that seagreen estate looking at potentially near €120k profit in the space of two years. Dysfunctional doesn’t come close to describing it. Putting things into perspective my claims are not that outlandish, and being honest I couldn’t really give a toss either way....I’m probably going to spend the day daydreaming on the sofa of my wonderfully positive equity home.

Coinsguy · 20-05-2018 11:54am

Ugh. Where do I start. I have enough saved for a deposit but because I've some shares (it's actually cryptocurrency but we'll say shares to make it easier to follow) I wouldn't qualify for the rebuilding Ireland scheme.

So, I'd be in a better position probably to not own any of these "shares". I don't want to sell these "shares" any time soon, but it's looking like I might have to and then get a mortgage from a bank at a much higher interest rate. Such a mess of a system.

I doubt it, but anyone else in a similar position?

Avatar MIA · 20-05-2018 11:58am

sightband wrote: »

I’m probably going to spend the day daydreaming on the sofa of my wonderfully positive equity home.

I'll join you on my couch in my mortgage free home decrying how low deposit interest rates are now :pac:

sightband · 20-05-2018 12:04pm

Avatar MIA wrote: »

I'll join you on my couch in my mortgage free home decrying how low deposit interest rates are now :pac:

Your situation was never called into question or doubted, mine was by you. Congratulations but it’s not really got a whole lot to do with this conversation.

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

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