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

djan

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

Depends on the bank tbh, BoI raised some eyebrows but were fine with it in the end. Especially as it's not a part of your deposit I wouldn't mention it. If there is a monthly outgoing from your current account then it will have to be explained and proof of the assets being there and not spent in order for it to be considered as savings.

Coinsguy wrote: »

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?

In that case there is no need to disclose your crypto when applying for a mortgage of any sort. Just because you have assets doesn't mean they all have to go into a deposit. AFAIK the RI scheme puts no obligation on you to disclose every single asset. Especially with crypto which is extremely easy to keep under the radar.

Coinsguy

djan wrote: »

In that case there is no need to disclose your crypto when applying for a mortgage of any sort. Just because you have assets doesn't mean they all have to go into a deposit. AFAIK the RI scheme puts no obligation on you to disclose every single asset. Especially with crypto which is extremely easy to keep under the radar.

True. This would mean that someone could technically have millions of euro worth of shares or crypto and still use this scheme. But I know what you mean.

radharc

I see a lot of talk about the LTI exemptions but not nearly as much about the 20% deposit exemption, are they less common? We have around 16% of a deposit but coming in around 3:1 on Loan to Income.

anon16052018

Hi all - long time lurker of this thread.

My partner and I are in our 30s and are hoping to start the process of buying a house. She owned an apartment with a previous partner, so we are not eligible for any first time buyers grants/perks.

Our gross income is 150k and we're also eligible for 25k in bonuses. We'd quite like to buy in really nice part of Dublin 4 or 6. Unfortunately we only have 60k in savings, so to buy a 600-700k house we would need to have 120-140k in savings for the 20% deposit rule. Right now, we are still 3-4 years away from hitting that.

I'm finding it hard to find information on exactly what exemptions we'd be able to get, if any.

1st question: I understand that some FTBs are able to dodge deposit rules if they're high enough earners. Are those exemptions also available for non-FTBs? If it was possible for people like us to get an exemption for a 10% deposit then we could actually start looking at places.

2nd question: Do bonuses get taken into account in the x3.5 rule or do you need a history of getting it regularly before they'll allow it?

izzyflusky

anon16052018 wrote: »

Hi all - long time lurker of this thread.

My partner and I are in our 30s and are hoping to start the process of buying a house. She owned an apartment with a previous partner, so we are not eligible for any first time buyers grants/perks.

Our gross income is 150k and we're also eligible for 25k in bonuses. We'd quite like to buy in really nice part of Dublin 4 or 6. Unfortunately we only have 60k in savings, so to buy a 600-700k house we would need to have 120-140k in savings for the 20% deposit rule. Right now, we are still 3-4 years away from hitting that.

I'm finding it hard to find information on exactly what exemptions we'd be able to get, if any.

1st question: I understand that some FTBs are able to dodge deposit rules if they're high enough earners. Are those exemptions also available for non-FTBs? If it was possible for people like us to get an exemption for a 10% deposit then we could actually start looking at places.

2nd question: Do bonuses get taken into account in the x3.5 rule or do you need a history of getting it regularly before they'll allow it?

Non-FTB can get a LTV exemption. I know someone who did, but I'm not sure of the criteria.

If they are regular bonuses you might. They might ask you for p60s for the past 3 years to prove it though, but it depends.
You can only get one exemption though, either LTV or LTI, not both.

Frilly Knickers

anon16052018 wrote: »

Hi all - long time lurker of this thread.

My partner and I are in our 30s and are hoping to start the process of buying a house. She owned an apartment with a previous partner, so we are not eligible for any first time buyers grants/perks.

Our gross income is 150k and we're also eligible for 25k in bonuses. We'd quite like to buy in really nice part of Dublin 4 or 6. Unfortunately we only have 60k in savings, so to buy a 600-700k house we would need to have 120-140k in savings for the 20% deposit rule. Right now, we are still 3-4 years away from hitting that.

I'm finding it hard to find information on exactly what exemptions we'd be able to get, if any.

1st question: I understand that some FTBs are able to dodge deposit rules if they're high enough earners. Are those exemptions also available for non-FTBs? If it was possible for people like us to get an exemption for a 10% deposit then we could actually start looking at places.

2nd question: Do bonuses get taken into account in the x3.5 rule or do you need a history of getting it regularly before they'll allow it?

I'm a non ftb on about your income and with same deposit. We also have a previous property we aren't selling.

I got a deposit exemption from kbc. They also took my bonus into account as they are yearly and treated as 'guaranteed'

With a deposit exemption, 3.5 times your income taking even half your bonus into account gets you to about e620k to spend?

Might be a stretch to get a bank to give you both a deposit exemption AND an lti exemption but you should be in a good position to get close to what you want

GingerLily

I don't know the LTV exemption criteria but first time buyers are using up the LTI exemptions and a lot have a much lower LTV to get it so I'd imagine the banks would be flexible. Talk to a bank now about what you'll qualify for.

Creamy Goodness

Has anyone been through the Help to Buy scheme recently? My mortgage provider are looking for a particular letter that I can't find on revenue.ie portal (right now I have an application code, access code, max relief available and an expiry date).

I've asked them which letter they want but getting radio silence so far :P

hanaimai

Is there any worth in seriously looking at houses before you have AIP? For example, there are some new builds I’m interested in launching soon, but I won’t be able to apply for the mortgage for another 2-3 months. How soon after reserving a new build do you need to show AIP?

GingerLily

hanaimai wrote: »

Is there any worth in seriously looking at houses before you have AIP? For example, there are some new builds I’m interested in launching soon, but I won’t be able to apply for the mortgage for another 2-3 months. How soon after reserving a new build do you need to show AIP?

They asked for my proof of funds right away, you can definitely delay it by a few weeks but they won't issue contracts without it.
They'll give the house to someone else if you can't show AIP.

aloooof

GingerLily wrote: »

They asked for my proof of funds right away, you can definitely delay it by a few weeks but they won't issue contracts without it.
They'll give the house to someone else if you can't show AIP.

We've gone Sale Agreed on a house but the Estate Agent hasn't yet looked for proof of funds / AIP. Should we be concerned?

GingerLily

aloooof wrote: »

GingerLily wrote: »

They asked for my proof of funds right away, you can definitely delay it by a few weeks but they won't issue contracts without it.
They'll give the house to someone else if you can't show AIP.

We've gone Sale Agreed on a house but the Estate Agent hasn't yet looked for proof of funds / AIP. Should we be concerned?

I'm talking about new builds - I would be worried though in your case if you don't have AIP/POF or aren't close to it.

aloooof

GingerLily wrote: »

I'm talking about new builds - I would be worried though in your case if you don't have AIP/POF or aren't close to it.

Ah ok; we have AIP sorted, and now have the wheels in motion with everything else, just the EA hadn't looked for AIP/POF. Hoping there won't be any issue, but I've heard so many horror stories.

drinkingwater

We paid deposit for a new build end of March, contracts received by our solicitor middle of April... EA rang me yesterday looking for proof of funds for they records...

Coinsguy

Someone on boards recently mentioned the savings using the rebuilding Ireland scheme isn't that much compared to a "normal mortgage" because of MPI.
Can't remember if it was this thread or the other one dedicated to the rebuilding Ireland scheme. Surely its much cheaper using the scheme?

Anyone do the maths?

djan

Coinsguy wrote: »

Someone on boards recently mentioned the savings using the rebuilding Ireland scheme isn't that much compared to a "normal mortgage" because of MPI.
Can't remember if it was this thread or the other one dedicated to the rebuilding Ireland scheme. Surely its much cheaper using the scheme?

Anyone do the maths?

The MPI works at roughly 10% of the monthly repayment. It may go down with the mortgage depending on the fee breakdown. Personally, the biggest draw of it is the fixed rate and ability to borrow substantially more than the 3.5 income multiple.

GingerLily

Coinsguy wrote: »

Someone on boards recently mentioned the savings using the rebuilding Ireland scheme isn't that much compared to a "normal mortgage" because of MPI.
Can't remember if it was this thread or the other one dedicated to the rebuilding Ireland scheme. Surely its much cheaper using the scheme?

Anyone do the maths?

It'll still be cheaper then the banks but not by much, maybe 50e a month as opposed to 150e a month. Obviously term and interest rate and health status all play a factor (280k 30years 2% v 3% for that calc)

Its ridiculous that people are giving out.

awec

hanaimai wrote: »

Is there any worth in seriously looking at houses before you have AIP? For example, there are some new builds I’m interested in launching soon, but I won’t be able to apply for the mortgage for another 2-3 months. How soon after reserving a new build do you need to show AIP?

In many cases they will ask to see a mortgage AIP letter when taking the booking deposit (i.e. when reserving your house). No letter = no house. Even if they don't check at this point there is no way you are getting to 2 months without needing to show you have the mortgage ready to go.

If you think you are going to be approved in a few months then I would still start looking. Go to viewings to see what you like, what you don't like. Just don't expect to be able to buy anything.

Coinsguy

GingerLily wrote: »

It'll still be cheaper then the banks but not by much, maybe 50e a month as opposed to 150e a month. Obviously term and interest rate and health status all play a factor (280k 30years 2% v 3% for that calc)

Its ridiculous that people are giving out.

I'm not giving out, I agree. As the poster above you said, the main good thing about it is being able to borrow more and the interest rate that's set in stone.

I expected the monthly difference to be bigger to be honest but its still a great deal.

cloneslad

hanaimai wrote: »

Is there any worth in seriously looking at houses before you have AIP? For example, there are some new builds I’m interested in launching soon, but I won’t be able to apply for the mortgage for another 2-3 months. How soon after reserving a new build do you need to show AIP?

I hadn't even spoken to a bank before putting the holding deposit down on mine but they were clear with me that they wanted the 10% deposit and proof of funds within 21 days.

We got this sorted a good bit before then so there was no issue our end but a broker we had spoken to said he could prob string them out for 5 weeks or so as he knew people in the estate agents and he'd vouch that the mortgage would be confirmed without any issues based on our salaries/savings.

GingerLily

cloneslad wrote: »

I hadn't even spoken to a bank before putting the holding deposit down on mine but they were clear with me that they wanted the 10% deposit and proof of funds within 21 days.

We got this sorted a good bit before then so there was no issue our end but a broker we had spoken to said he could prob string them out for 5 weeks or so as he knew people in the estate agents and he'd vouch that the mortgage would be confirmed without any issues based on our salaries/savings.

It usually takes a week or two for contracts, then you have 21days to sign to get your white goods, or 52 days without. If you don't sign within 52 days of contracts being issued then they can return the booking deposit and go to the wait list.
Our EA wanted some POF before contracts were issued.
We actually delayed the contracts being issued because we had issues with our HTB application number, and they wanted this before contracts issued.

TheShow

radharc wrote: »

I see a lot of talk about the LTI exemptions but not nearly as much about the 20% deposit exemption, are they less common? We have around 16% of a deposit but coming in around 3:1 on Loan to Income.

Just as common, I’m not a ftb and I got 90% LTV.

Coinsguy

GingerLily wrote: »

It'll still be cheaper then the banks but not by much, maybe 50e a month as opposed to 150e a month. Obviously term and interest rate and health status all play a factor (280k 30years 2% v 3% for that calc)

Its ridiculous that people are giving out.

Actually. Isn't the difference larger considering you won't be getting 3% for more than a year or two usually from what I've seen?

myshirt

Coinsguy wrote: »

Actually. Isn't the difference larger considering you won't be getting 3% for more than a year or two usually from what I've seen?

I'm surprised that you hold up to 30k in cryptocurrency, but don't know how to financially assess alternatives. That's why I will weigh in behind others telling you to sell, sell, sell.

GingerLily

Coinsguy wrote: »

Actually. Isn't the difference larger considering you won't be getting 3% for more than a year or two usually from what I've seen?

You shouldn't be able to get a mortgage with the council that you could have gotten with the bank so it makes no sense to break it down any further.

Also - yes I'm also surprised you cannot calculate this yourself......

raheny red

Hoping to apply for the Rebuilding Ireland Loan Scheme on Monday. My partner and I have a good chunk saved over the past 30 months. I also have a smaller amount in a building society that I mustered up before meeting her. She's aware of it obviously. We don't plan on using this smaller amount for our deposit. Nothing comes out of my current account or our joint savings into this building society one. It'll be used for small bits and bobs around the house, and maybe a holiday too. Is there a need to declare this for when going for a mortgage with the councils or banks? Thanks.

Graham

raheny red wrote: »

Hoping to apply for the Rebuilding Ireland Loan Scheme on Monday. My partner and I have a good chunk saved over the past 30 months. I also have a smaller amount in a building society that I mustered up before meeting her. She's aware of it obviously. We don't plan on using this smaller amount for our deposit. Nothing comes out of my current account or our joint savings into this building society one. It'll be used for small bits and bobs around the house, and maybe a holiday too. Is there a need to declare this for when going for a mortgage with the councils or banks? Thanks.

If you're asked to declare your savings it is probably safe to assume they expect you to declare all your savings.

raheny red

Graham wrote: »

If you're asked to declare your savings it is probably safe to assume they expect you to declare all your savings.

Sound, have the statements printed out for the smaller account too, just wondering.

TheShow

raheny red wrote: »

Hoping to apply for the Rebuilding Ireland Loan Scheme on Monday. My partner and I have a good chunk saved over the past 30 months. I also have a smaller amount in a building society that I mustered up before meeting her. She's aware of it obviously. We don't plan on using this smaller amount for our deposit. Nothing comes out of my current account or our joint savings into this building society one. It'll be used for small bits and bobs around the house, and maybe a holiday too. Is there a need to declare this for when going for a mortgage with the councils or banks? Thanks.

If they have no way of tracing it then no need to declare. How would they know unless you tell them.

bri007

Anyone know if you it has to be two mortgage rejection letters from a bank/building society or does one refusal and one mortgage approval but for not enough to purchase a place you want, is this enough to get the rebuilding Ireland scheme or has it to be two out and out refusals?

Are they strict on permanent employment, say if one partner has a permanent job and the other is working continuously but not permanent.

Thanks

Coinsguy wrote: »

Someone on boards recently mentioned the savings using the rebuilding Ireland scheme isn't that much compared to a "normal mortgage" because of MPI.
Can't remember if it was this thread or the other one dedicated to the rebuilding Ireland scheme. Surely its much cheaper using the scheme?

Anyone do the maths?