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

bush

I applied to ulster Bank, aib, boi, and ptsb and all of them only needed the latest p60

TheShow

bri007 wrote: »

Do you mind me asking which bank that was with?

EBS

hanaimai

For those of you who applied to banks directly - did you go into a branch to apply or did you apply by post/online? Did you apply to all around the same time? Just wondering what the best way to approach applying without a broker is.

Bargain_Hound

Tried applying with BOI through the phone, a waste of two weeks. Had approval within 3 days of walking into their branch. The same with PTSB, in branch was very quick.

Rfrip

hanaimai wrote: »

For those of you who applied to banks directly - did you go into a branch to apply or did you apply by post/online? Did you apply to all around the same time? Just wondering what the best way to approach applying without a broker is.

I met in person with BOI, filled out the application with them on the Tuesday, along with 3 months payslips, 3 years of p60's , photocopy of my passport and got approval on the Friday. Its been seemless with them so far tbh

chrismon

TheShow wrote: »

6 months bank statements for all bank accounts held.
Evidence of savings over past 6/12 months
Loan statements
6 months credit card statements
3 months payslips
A Salary Certificate completed by your employer (they will provide you with one)
ID & Address verification
Some banks need P60's, some don't. I didn't have to produce one.

Thanks for that.
May get onto the banks soon.

Iv been using bonkers to find the best rates for banks, any tips on choosing a bank?

Coinsguy

Would a pension count as monthly outgoings? I assume it would but want to make sure. I'm going to pause my pension plan if that's the case!

awec

Coinsguy wrote: »

Would a pension count as monthly outgoings? I assume it would but want to make sure. I'm going to pause my pension plan if that's the case!

It shows on your pay slip so yes it is, but it is an outgoing you're going to want to pay so pausing it makes no sense at all.

Coinsguy

awec wrote: »

It shows on your pay slip so yes it is, but it is an outgoing you're going to want to pay so pausing it makes no sense at all.

In general I agree. But I need to wait until I get an increase to start it again if I'm to get a mortgage.

hanaimai

Apologies for another question! Myself and partner are applying for mortgage soon and we have well over the 10% deposit on the house price range we are considering. Some of the houses we are looking at are a bit over our budget (25-40k over). My parents have offered to gift us the remaining amount if we wish to go for one of these houses. I am wondering do I have to have this money in my account now when applying for AIP or can it wait until drawing down the mortgage?

For example - we want to borrow 280k now. We have 70k towards deposit (and more put aside for legal fees, furniture, rainy day fund etc.) already. Is this enough for the banks? If we purchase a house that costs 380k in the end and my parents gift us thr remaining 30k, will this be an issue when we drawdown?

I hope that's clear, for a variety of reasons it would be less than ideal for me to take the additional money from my parents now and I would prefer to wait until we know exactly how much the house we are buying costs.

EDIT: I suppose another way of saying it is, is it possible to receive a gift after getting AIP and then purchasing a house over the expected budget when you applied for AIP? We would not be looking for a bigger mortgage, would just have more cash towards buying a more expensive house.

TheShow

I think it should be ok for now.
maybe get you parents to put it in writing that they intend on giving you a gift of €x amount.

when you get formal approval there will a condition that they sign a deed of waiver - essentially waiving any rights to the property on foot of the gift.

aloooof

hanaimai wrote: »

Apologies for another question! Myself and partner are applying for mortgage soon and we have well over the 10% deposit on the house price range we are considering. Some of the houses we are looking at are a bit over our budget (25-40k over). My parents have offered to gift us the remaining amount if we wish to go for one of these houses. I am wondering do I have to have this money in my account now when applying for AIP or can it wait until drawing down the mortgage?

For example - we want to borrow 280k now. We have 70k towards deposit already. Is this enough for the banks? If we purchase a house that costs 380k in the end and my parents gift us thr remaining 30k, will this be an issue when we drawdown?

I hope that's clear, for a variety of reasons it would be less than ideal for me to take the additional money from my parents now and I would prefer to wait until we know exactly how much the house we are buying costs.

For us, we had to get a signed letter from my partners parents, stating they would gift us X amount towards the house, so didn't need it in the accounts immediately.

One other thing I'll mention in relation to the bolded part is that, depending on where you are looking, houses generally seem to be going above the asking price in the current market. So if you're looking at houses that have an asking price of your mortgage amount + 10% deposit + the the 25-40k gift, then they may end up still being out of your budget. i.e. they may go for Asking Price + 10%, say.

hanaimai

aloooof wrote: »

For us, we had to get a signed letter from my partners parents, stating they would gift us X amount towards the house, so didn't need it in the accounts immediately.

One other thing I'll mention in relation to the bolded part is that, depending on where you are looking, houses generally seem to be going above the asking price in the current market. So if you're looking at houses that have an asking price of the 25-40k gift above your mortgage amount, then they may end up still being out of your budget. i.e. they may go for Asking Price + 10%, say.

Thanks. If you don't mind me asking, was that gift money you needed for the deposit (i.e. your own savings were below the 10%), or was it in addition to the deposit? I suppose it's no harm to get a letter anyway, but I'm wondering if the banks will even care about seeing it at AIP stage when the gift would be on top of the deposit we already have?

Yes, I've been following threads on here for quite a few months and have come to realise that's the reality alright! We're mostly looking at new builds where the price is more certain, but we'll definitely be keeping to a tight upper limit if bidding on any other houses.

aloooof

hanaimai wrote: »

Thanks. If you don't mind me asking, was that gift money you needed for the deposit (i.e. your own savings were below the 10%), or was it in addition to the deposit? I suppose it's no harm to get a letter anyway, but I'm wondering if the banks will even care about seeing it at AIP stage when the gift would be on top of the deposit we already have?

Yes, I've been following threads on here for quite a few months and have come to realise that's the reality alright! We're mostly looking at new builds where the price is more certain, but we'll definitely be keeping to a tight upper limit if bidding on any other houses.

The gift was in addition to the deposit, we had the 10% but I think they asked us during the process if we expected to get a gift towards the house, so we mentioned it then.

cruizer101

You shouldn't need to have it in your account.
We recently applied to 3 different banks and all they required was a gift letter.
That said when it came to looking for full approval we actually had just enough to cover deposit, stamp duty and 1500 for solicitors so adviser said would probably be better to base the application on that rather than include the gift as it would look better and be simpler for underwriters.

TheShow

hanaimai wrote: »

Thanks. If you don't mind me asking, was that gift money you needed for the deposit (i.e. your own savings were below the 10%), or was it in addition to the deposit? I suppose it's no harm to get a letter anyway, but I'm wondering if the banks will even care about seeing it at AIP stage when the gift would be on top of the deposit we already have?

Yes, I've been following threads on here for quite a few months and have come to realise that's the reality alright! We're mostly looking at new builds where the price is more certain, but we'll definitely be keeping to a tight upper limit if bidding on any other houses.

if you have 70k saved, don't be worrying about how getting a gift will be perceived. well done for being able to save 70k. I dont think that banks will have an issue with a small portion of your contribution coming from a gift.

hanaimai

Thank you all for such speedy replies and putting my mind at ease! I think I'm just finding new things to worry about for little reason the closer we get to applying!

aloooof wrote: »

The gift was in addition to the deposit, we had the 10% but I think they asked us during the process if we expected to get a gift towards the house, so we mentioned it then.

Okay, gotcha. Sounds like we should just be upfront about it from the start and see what the bank says.

cruizer101 wrote: »

You shouldn't need to have it in your account.
We recently applied to 3 different banks and all they required was a gift letter.
That said when it came to looking for full approval we actually had just enough to cover deposit, stamp duty and 1500 for solicitors so adviser said would probably be better to base the application on that rather than include the gift as it would look better and be simpler for underwriters.

Great! If there ends up being a big gap between applying for AIP and full approval, we may just end up in a situation similar to yours, and just take a smaller gift afterwards for furniture etc. if we need it. That would be the best case I think, but I want to be prepared in the event we're a little short.

TheShow wrote: »

if you have 70k saved, don't be worrying about how getting a gift will be perceived. well done for being able to save 70k. I dont think that banks will have an issue with a small portion of your contribution coming from a gift.

Well, not quite 70k saved - part of our savings is an older gift that wasn't specifically for a deposit, but it's what we're ending up using it for. Not entirely sure how that's going to work with the banks, but I guess I'll just cross that bridge when we come to it!

goofy141

Thanks goodness after a very long drawn out process we have finally signed contracts to sell and buy whilst in negative equity. It has been a battle and such an awkward process but hopefully plain sailing from here.

TheShow

hanaimai wrote: »

Well, not quite 70k saved - part of our savings is an older gift that wasn't specifically for a deposit, but it's what we're ending up using it for. Not entirely sure how that's going to work with the banks, but I guess I'll just cross that bridge when we come to it!

if that lump sum is not on the 6/12 months savings statements you will be supplying, don't mention that it was a gift, they don't need to know.
You just need to say you accumulated savings over a long period and 12 months statements is sufficient evidence to support that. otherwise you'll have to get letters & waivers et all for that too.

woollyworth

For a new build, when is the 10% deposit paid? A big chunk of my savings is in a 35 day notice account so I'm wondering should I have it out of the account when I'm house searching or is it okay to leave it until house is completed?

Creamy Goodness

woollyworth wrote: »

For a new build, when is the 10% deposit paid? A big chunk of my savings is in a 35 day notice account so I'm wondering should I have it out of the account when I'm house searching or is it okay to leave it until house is completed?

Usually 21 working days after contract issued but can vary based on estate agent. I had mine in a low interest instant access account

awec

woollyworth wrote: »

For a new build, when is the 10% deposit paid? A big chunk of my savings is in a 35 day notice account so I'm wondering should I have it out of the account when I'm house searching or is it okay to leave it until house is completed?

Roughly within a month of you putting down the booking deposit when buying the house.



If you know you're going to be buying soon I'd see about moving it from a 35 day to a 7 day if you still want decent interest, or else just to an instant account.

shamrock55

Is there a certain percentage of your gross monthly income that banks don't want your monthly debts including your mortgage to be over?

Tipsy McSwagger

Anyone else with mortgage approval can’t find anything suitable? I haven’t even viewed any houses yet.

toby2111

Tipsy McSwagger wrote: »

Anyone else with mortgage approval can’t find anything suitable? I haven’t even viewed any houses yet.

Why haven't you viewed? Don't fully rely on pictures on daft. While they give you a good idea of how a house looks, you should go along and view some that might appeal to you. You might see potential or something might surprise you. You've nothing to lose.... And potentially a house to gain.

Bluefoam

Tipsy McSwagger wrote: »

Anyone else with mortgage approval can’t find anything suitable? I haven’t even viewed any houses yet.

Iven been waiting for a place to come up in dalkey for around 250k... Haven't found anything suitable yet.

Tipsy McSwagger

toby2111 wrote: »

Why haven't you viewed? Don't fully rely on pictures on daft. While they give you a good idea of how a house looks, you should go along and view some that might appeal to you. You might see potential or something might surprise you. You've nothing to lose.... And potentially a house to gain.

Nothing affordable yet in the area I want to buy

adriaaaan

Tipsy McSwagger wrote: »

Nothing affordable yet in the area I want to buy

Either get a new area or get more money

Tipsy McSwagger

adriaaaan wrote: »

Either get a new area or get more money

Ye sure I’ll pull another 50 grand out of my arse

Wesser

No need to be smart.
Reality is most if us can't get what we want for the price we want.
Adrian is right. If you haven't even viewed a property yet then you need to change something in your plan....