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

Avatar MIA

sightband wrote: »

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.

You were flashing a potential €100k increase in prices, when it actually meant much less when challenged. And, LOTS of people thought they'd huge equity in their houses and price corrections more than wiped them out. So, less with the pointless crowing.

sightband

Avatar MIA wrote: »

You were flashing a potential €100k increase in prices, when it actually meant much less when challenged. And, LOTS of people thought they'd huge equity in their houses and price corrections more than wiped them out. So, less with the pointless crowing.

Not much less, and there are houses way over the €100k as I mentioned, look them up. I feel I’ve already addressed how dysfunctional the market is, I take any gain with a grain of salt the way things are here. All of my claims since the outset have been to highlight as much, not pointless crowing, sling yer hook elsewhere.

Pussyhands

Hey.

So was thinking of getting a mortgage and buying an apartment, moving in and renting out a room.

Any chance I could be refused a mortgage by two banks on the below figures?

Salary - base 40k.

Savings of approx 16k a year (all in current account)

No loans etc.

Apartment valued at 200-220k

Current savings of 60k.

The rebuilding Ireland scheme would be better.

Avatar MIA

sightband wrote: »

not pointless crowing, sling yer hook elsewhere.

Your unrealised gain is purely down to factors TOTALLY out of your control. Well done, the next George Soros no doubt. People should really take your advice.

Avatar MIA

Pussyhands wrote: »

Hey.

So was thinking of getting a mortgage and buying an apartment, moving in and renting out a room.

Any chance I could be refused a mortgage by two banks on the below figures?

Salary - base 40k.

Savings of approx 16k a year (all in current account)

No loans etc.


Apartment valued at 200-220k

Current savings of 60k.

The rebuilding Ireland scheme would be better.

Going on the regular rules you could borrow €140k, with your plus €60k you'll very likely get approved for an apartment at the lower level.

However, banks have a leeway to increase the loan ratio to over 3.5 times. You seem like a good bet for that to happen. So, go talk to your bank. Good luck.

Coinsguy

Pussyhands wrote: »

Hey.

So was thinking of getting a mortgage and buying an apartment, moving in and renting out a room.

Any chance I could be refused a mortgage by two banks on the below figures?

Salary - base 40k.

Savings of approx 16k a year (all in current account)

No loans etc.

Apartment valued at 200-220k

Current savings of 60k.

The rebuilding Ireland scheme would be better.

Would you be better off getting a place for say 270k for example to qualify for the scheme?

Pussyhands

Coinsguy wrote: »

Would you be better off getting a place for say 270k for example to qualify for the scheme?

Could be. But I am looking to have it paid off in 10 years.

Coinsguy

Pussyhands wrote: »

Could be. But I am looking to have it paid off in 10 years.

Such a mess of a system that it makes people even think that you should borrow more than you need. But I'm in a similar position to you and that's what I was thinking.

Then I realised some shares I have would take me over the limit

AlmightyCushion

Coinsguy wrote: »

Such a mess of a system that it makes people even think that you should borrow more than you need. But I'm in a similar position to you and that's what I was thinking.

Then I realised some shares I have would take me over the limit

What limit are you talking about?

Tipsy McSwagger

Avatar MIA wrote: »

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

sightband wrote: »

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

Jesus cop on to fcuk, this thread is for people who are desperate or need advice to get a home of their own, which is becoming increasingly impossible nowadays.

Coinsguy

AlmightyCushion wrote: »

What limit are you talking about?

Sorry, limit wasn't really a good word to use. I mean that if I sold all my cryptocurrency (or shares to make it easier to follow) then I'd just about get a mortgage for the amount that I want from a bank.

In the long term I'd be better off without those "shares" so I could get 2% interest rates forever. Plus the fact that I don't want to sell these "shares" in the first place. It's pretty annoying but I assume the rebuilding Ireland scheme would want to know all the financial savings you have (including the likes of shares)

Mickiemcfist

Coinsguy wrote: »

Sorry, limit wasn't really a good word to use. I mean that if I sold all my cryptocurrency (or shares to make it easier to follow) then I'd just about get a mortgage for the amount that I want from a bank.

In the long term I'd be better off without those "shares" so I could get 2% interest rates forever. Plus the fact that I don't want to sell these "shares" in the first place. It's pretty annoying but I assume the rebuilding Ireland scheme would want to know all the financial savings you have (including the likes of shares)

It's 2018, my granny knows what cryptocurrencies are, it's not that hard to follow

Coinsguy

Mickiemcfist wrote: »

It's 2018, my granny knows what cryptocurrencies are, it's not that hard to follow

Ha ha. It makes things tougher though. One day it could be worth 10k,the next it could be 5k or 20k.

autumnbelle

Coinsguy wrote: »

Ha ha. It makes things tougher though. One day it could be worth 10k,the next it could be 5k or 20k.

If you have you deposit in a bank I’d imagine that they wouldn’t care about the shares

Coinsguy

autumnbelle wrote: »

If you have you deposit in a bank I’d imagine that they wouldn’t care about the shares

For the rebuilding Ireland scheme? I'm pretty sure they need to know about other money you have from the likes of shares, cryptocurrency etc?

sightband

Tipsy McSwagger wrote: »

Jesus cop on to fcuk, this thread is for people who are desperate or need advice to get a home of their own, which is becoming increasingly impossible nowadays.

be quiet and pipe down peasant, don’t you know that i am rich as f*ck now after my investment a year ago.

Avatar MIA

Coinsguy wrote: »

Ha ha. It makes things tougher though. One day it could be worth 10k,the next it could be 5k or 20k.

http://rebuildingirelandhomeloan.ie/eligibility/

I don't see where having assets would preclude you. As long as you can prove you've been rejected by two financial institutions.

TheShow

Teddyisbold wrote: »

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.

It doesn’t make sense that they offer you a loan that is more than double what a mortgage would cost, particularly when they told you to clear your existing loans and then decline you for a mortgage. Make a formal complaint and if it doesn’t get resolved go to the financial ombudsman.

GingerLily

TheShow wrote: »

Teddyisbold wrote: »

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.

It doesn’t make sense that they offer you a loan that is more than double what a mortgage would cost, particularly when they told you to clear your existing loans and then decline you for a mortgage. Make a formal complaint and if it doesn’t get resolved go to the financial ombudsman.

Banks have different criteria to lend Loans compared to mortgages, I'd be very surprised if the loan and mortgage was over the same term.

Coinsguy

Avatar MIA wrote: »

http://rebuildingirelandhomeloan.ie/eligibility/

I don't see where having assets would preclude you. As long as you can prove you've been rejected by two financial institutions.

Okay here's an example that I've made up:

House for 200k
Savings of 20k
Banks will give 150k mortgage

(which means I've 170k to buy somewhere but I need 200k)

However, cryptocurrency and shares worth 30k at the moment so technically you could argue that the savings is actually 50k rather than 20k like above, which then means you have enough money for your 200k property.

I would have assumed it's wrong / not allowed to say that I have 20k savings in this case considering you could argue it is actually 50k savings and therefore you don't need to use the rebuilding Ireland scheme.

I'd be happy to be proven wrong in what I think though.

Avatar MIA

Coinsguy wrote: »

Okay here's an example that I've made up:

House for 200k
Savings of 20k
Banks will give 150k mortgage

(which means I've 170k to buy somewhere but I need 200k)

However, cryptocurrency and shares worth 30k at the moment so technically you could argue that the savings is actually 50k rather than 20k like above, which then means you have enough money for your 200k property.

I would have assumed it's wrong / not allowed to say that I have 20k savings in this case considering you could argue it is actually 50k savings and therefore you don't need to use the rebuilding Ireland scheme.

I'd be happy to be proven wrong in what I think though.

Ah, I get you - you think a bank will give you a mortgage because if you sold the crypto and shares you would have enough.

But, you're under no obligation to sell your shares when applying for a mortgage with a bank. You can put down that you have the shares as assets, but that you wont be selling them. They'll then say something like 'riiiiiight, cheerio' you then politely ask them for a rejection letter and go to the second bank and repeat. You're under no obligation to sell the shares. The bank might say to you if you sell the shares we'd give you a mortgage for the difference, but you don't have to.

Coinsguy

Avatar MIA wrote: »

Ah, I get you - you think a bank will give you a mortgage because if you sold the crypto and shares you would have enough.

But, you're under no obligation to sell your shares when applying for a mortgage with a bank. You can put down that you have the shares as assets, but that you wont be selling them. They'll then say something like 'riiiiiight, cheerio' you then politely ask them for a rejection letter and go to the second bank and repeat. You're under no obligation to sell the shares. The bank might say to you if you sell the shares we'd give you a mortgage for the difference, but you don't have to.

Spot on, sorry - it's hard enough to explain but glad that you got me.

Applying for a bank without telling them about shares / cryptocurrency that you have seens okay to me, but I'd be a bit worried trying to use the rebuilding Ireland scheme on the basis of it. Maybe I'm overthinking the whole thing though.

It just seems a bit like you'd be saying "I've only x amount of money" when in reality you have more.

Teddyisbold

GingerLily wrote: »

Banks have different criteria to lend Loans compared to mortgages, I'd be very surprised if the loan and mortgage was over the same term.

The mortgage was over 15yrs,the loan was offered over 5yrs.

Lolle06

Coinsguy wrote: »

Spot on, sorry - it's hard enough to explain but glad that you got me.

Applying for a bank without telling them about shares / cryptocurrency that you have seens okay to me, but I'd be a bit worried trying to use the rebuilding Ireland scheme on the basis of it. Maybe I'm overthinking the whole thing though.

It just seems a bit like you'd be saying "I've only x amount of money" when in reality you have more.

Why do you want to apply for the RI scheme, if you could get a mortgage from the banks?
The application process for the RI scheme is rather long and daunting - and the mandatory MPI would almost cancel out the savings on the low interest rate.

I understand that you are reluctant to sell your cryptos/shares, but unfortunately that is what other ppl have to do, too in order to raise enough money to buy a property.

TheShow

GingerLily wrote: »

Banks have different criteria to lend Loans compared to mortgages, I'd be very surprised if the loan and mortgage was over the same term.

Yes, but still not right. Particularly when they told op to clear loans, which was done. Now savings are gone presumably. Rates on a loan much higher than a mortgage too.
The mtg officer should know from the outset if an application will be approved or not. They should not make you jump through hoops and then turn around and say “computer says no”.
Like I said, make a formal complaint and go to the ombudsman if it’s not resolved to your satisfaction. If they say you are good to repay €1000 pm then you are good to make repayments of €450 pm on a mortgage.

N.b. I’m assuming age and mortgage amount ( minimum requirement) are not factors here.

Coinsguy

Lolle06 wrote: »

Why do you want to apply for the RI scheme, if you could get a mortgage from the banks?
The application process for the RI scheme is rather long and daunting - and the mandatory MPI would almost cancel out the savings on the low interest rate.

I understand that you are reluctant to sell your cryptos/shares, but unfortunately that is what other ppl have to do, too in order to raise enough money to buy a property.

Would MPI really wipe out the savings of a 2% rate? The thoughts of 2% guaranteed for the entire length of the mortgage seems much better to me than say 3-4% fixed for a few years and then never knowing what it could jump up to.

djan

Coinsguy wrote: »

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?

BoI were okay with cryptocurrency eventually after providing account statements of money going in and then screenshots of balances through an exchange/hardware wallet and proving ownership.

As you're worried about your crypto assets and their impact on securing a mortgage, you are under no obligation to sell and tbh to even disclose ownership. You come to the bank/RI with the deposit that you have or are willing to put in and apply for the rest. No need to overthink it!

bri007

Sorry quick question just on cryptocurrency, I have some invested in a online walllet, currently lost some of its value but I plan on holding longer.

A friend of mine told me not to inform lenders about this when alllying for a mortgage as it could be perceived as gambling?

Can any one advise or has experience of this? It’s not a huge investment and it doesn’t affect my deposit for a mortgage as we have that and are currently saving each month.

Thanks

ELM327

bri007 wrote: »

Sorry quick question just on cryptocurrency, I have some invested in a online walllet, currently lost some of its value but I plan on holding longer.

A friend of mine told me not to inform lenders about this when alllying for a mortgage as it could be perceived as gambling?

Can any one advise or has experience of this? It’s not a huge investment and it doesn’t affect my deposit for a mortgage as we have that and are currently saving each month.

Thanks

If you're not relying on it for savings and it doesnt show up as a direct debit each month then there's no reason to explain it to them


The banks didnt like my share brokerage account, i'd shudder to think what Generic Jane in the bank will think of "dem crytic currency thingies"

Coinsguy

djan wrote: »

BoI were okay with cryptocurrency eventually after providing account statements of money going in and then screenshots of balances through an exchange/hardware wallet and proving ownership.

As you're worried about your crypto assets and their impact on securing a mortgage, you are under no obligation to sell and tbh to even disclose ownership. You come to the bank/RI with the deposit that you have or are willing to put in and apply for the rest. No need to overthink it!

My issue isn't really a bank being put off because of cryptocurrency. It's that without my cryptocurrency holdings I could easily get accepted for the rebuilding Ireland scheme I reckon. If I sold all my cryptocurrency I could probably just about get a mortgage with a bank but then miss out on the 2% rates and the other benefits associated with it.

I reckon I'd be better off without holding any cryptocurrency at all surely. I couldn't use the rebuilding Ireland scheme while holding cryptocurrency that could have helped get a mortgage with a bank surely?