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

Bawnmore

Just to add to that - we had approval for a mortgage, and I recently moved to another job with a different company. Exact same role but more money. Before I moved our bank needed to submit all information to the underwriter, who reviewed the case (old role vs new role etc.) and approved the mortgage without any requirement for a probation.

TheShow

makes sense to me, why would you penalise someone with an established career.
If you meet all the other criteria, then the risk is low. No more than you could get fired tomorrow from your existing job.

ELM327

Bawnmore wrote: »

Just to add to that - we had approval for a mortgage, and I recently moved to another job with a different company. Exact same role but more money. Before I moved our bank needed to submit all information to the underwriter, who reviewed the case (old role vs new role etc.) and approved the mortgage without any requirement for a probation.

To be clear, no one has stated that it is not possible, the discussion has been centered around the associated risk for the banks and the perhaps reduced level of risk averse lending policy from the banks.

TheShow

ELM327 wrote: »

To be clear, no one has stated that it is not possible, the discussion has been centered around the associated risk for the banks and the perhaps reduced level of risk averse lending policy from the banks.

Agreed.
Some have expressed an opinion that they view this to be reckless lending which will land us back into a banking crisis.

I believe it is a sensible interpretation of a policy that comes with a calculated risk, but ultimately does more good than harm.

catrionanic

Any banks with LTI exemptions left? We meet criteria, but have applied to PTSB and UB and they're all out of exemptions.

Humour Me

Spoke to bank of Ireland during the week they are out of LTI exemptions for the year.

Lleyn elec

I am going looking for a mortgage for self building on my own land on the west coast
I have a permanent employment but the work contract states my official work base location is Dublin, will this be an issue when applying for a mortgage?
I work full time travelling around the country.

I have a fairly low salary of 35k but due to the travelling etc I have saved 70k in the last two years, this was accumulated in my current account rather than regular savings
I have been paying rent of 500 for the last two years this will also stop when I get the house built.
I expect the house cost to be approximatly 165000.

Interested Observer

Lleyn elec wrote: »

I am going looking for a mortgage for self building on my own land on the west coast
I have a permanent employment but the work contract states my official work base location is Dublin, will this be an issue when applying for a mortgage?
I work full time travelling around the country.

I have a fairly low salary of 35k but due to the travelling etc I have saved 70k in the last two years, this was accumulated in my current account rather than regular savings
I have been paying rent of 500 for the last two years this will also stop when I get the house built.
I expect the house cost to be approximatly 165000.

I don't think they'll ask for your contract so should be fine.

Captain Flaps

Lleyn elec wrote: »

I am going looking for a mortgage for self building on my own land on the west coast
I have a permanent employment but the work contract states my official work base location is Dublin, will this be an issue when applying for a mortgage?
I work full time travelling around the country.

I have a fairly low salary of 35k but due to the travelling etc I have saved 70k in the last two years, this was accumulated in my current account rather than regular savings
I have been paying rent of 500 for the last two years this will also stop when I get the house built.
I expect the house cost to be approximatly 165000.

Unless I'm missing something obvious I'm really keen to hear how you managed to save 70k in two years on a 35k salary. Teach me your ways!

CIP4

Anyone have any info on the stress test amount never heard of it until this thread is it the same €1400 amount for everyone applying. When they say you need that amount left over after your mortgage repayment and expenses what do they include in expenses is it just relating to the house i.e. House insurance, Property tax, Electricity, Gas bills etc. Or do they mean everything like motoring costs, Food, socialising, Health insurance in which case it doesn't make much sense to me as if you have covered all cost and spending for the month €1400 is a lot to have left over for savings / as a buffer ? Also how do the bank work out your expenses do you give figures when applying or is it generic amounts used ?

hanaimai

So we have approval in principle and are bidding on a house – I just wanted to check what happens in terms of the mortgage when we go sale agreed? Do we apply for a loan offer at that stage? Can we apply for a loan offer from a few banks or is this the stage where we are meant to stick with only one application? Are contracts signed before or after the loan offer comes?

Apologies if this seems super obvious, but I was so focused on the AIP stage, I just realised I’m not 100% clear on the next steps!

EDIT: Sorry, one other question! At what stage do you arrange mortgage protection insurance? After receipt of loan offer?

Captain Flaps

CIP4 wrote: »

Anyone have any info on the stress test amount never heard of it until this thread is it the same €1400 amount for everyone applying. When they say you need that amount left over after your mortgage repayment and expenses what do they include in expenses is it just relating to the house i.e. House insurance, Property tax, Electricity, Gas bills etc. Or do they mean everything like motoring costs, Food, socialising, Health insurance in which case it doesn't make much sense to me as if you have covered all cost and spending for the month €1400 is a lot to have left over for savings / as a buffer ? Also how do the bank work out your expenses do you give figures when applying or is it generic amounts used ?

Quoting another reply of mine, but when I sat down with our broker to work out the stress test I was told our bank used the following calculation:

Current monthly rent + current monthly savings must equal or exceed bank's current variable rate + 2%

If you're paying off a loan or anything like that which will be cleared by the time you draw down this can be factored in. For example, we had a car loan that was nearly done, paying 200/mo off that and our rent + savings was 150 short of the stressed threshold, so we were given the all clear (as the money from the car loan would be redirected into savings instead)

TheShow

CIP4 wrote: »

Anyone have any info on the stress test amount never heard of it until this thread is it the same €1400 amount for everyone applying. When they say you need that amount left over after your mortgage repayment and expenses what do they include in expenses is it just relating to the house i.e. House insurance, Property tax, Electricity, Gas bills etc. Or do they mean everything like motoring costs, Food, socialising, Health insurance in which case it doesn't make much sense to me as if you have covered all cost and spending for the month €1400 is a lot to have left over for savings / as a buffer ? Also how do the bank work out your expenses do you give figures when applying or is it generic amounts used ?

The bank assesses your repayment capacity by using a mortgage repayment on a rate 2% higher than the rate you've chosen. then it looks at your other commitments such as loans, cost of mortgage protection, childcare, property tax. Motoring costs, food bills and other day to day expenses are not included.

After these deductions, you must have a minimum Net Disposable Income as referred to above which varies from bank to bank as it is not a CBI rule, also the commitments above cannot be over a certain percentage of your net income. Generally 40%, but can go higher depending on gross income levels, again this is a bank policy not a CBI rule so it will vary from bank to bank.

If you're borderline on these figures then they will look at what you are currently paying out, if you are paying rent etc and how you are managing that.

Bawnmore

Might be a silly question - but is there any point in trying to get a better price from solicitors for professional fees, or is the price they say initially pretty set?

TheShow

Bawnmore wrote: »

Might be a silly question - but is there any point in trying to get a better price from solicitors for professional fees, or is the price they say initially pretty set?

No harm in asking I guess. they vary from firm to firm so might be some wiggle room, although its doubtful.

Lleyn elec

Captain Flaps wrote: »

Unless I'm missing something obvious I'm really keen to hear how you managed to save 70k in two years on a 35k salary. Teach me your ways!

Hard work and good negotiation of a few bonuses!

aloooof

I've recently purchased a house and started paying the mortgage, went with a BOI Fixed Rate of 3% for 5 years.

A quick google is showing me that Ulster Bank are offering 2.6% Fixed for 4 years, and €1,500 towards the legal fees for changing.

I'm tempted by this as it would save ~€80 month. Is it worth talking to BOI before I go ahead with this? If BOI could offer closer to this rate, I'd stay with them for convenience sake, but I don't know if they're open to negotiation, especially so early into the mortgage?

Is the answer as simple as "give them a ring"?

TheShow

aloooof wrote: »

I've recently purchased a house and started paying the mortgage, went with a BOI Fixed Rate of 3% for 5 years.

A quick google is showing me that Ulster Bank are offering 2.6% Fixed for 4 years, and €1,500 towards the legal fees for changing.

I'm tempted by this as it would save ~€80 month. Is it worth talking to BOI before I go ahead with this? If BOI could offer closer to this rate, I'd stay with them for convenience sake, but I don't know if they're open to negotiation, especially so early into the mortgage?

Is the answer as simple as "give them a ring"?

You cant just chop and change on a fixed rate.
You are locked into the fixed rate with BOI for 5 years. Once you draw it down there is no changing it unless you want to pay hefty break fee charges.

TheShow

TheShow wrote: »

You cant just chop and change on a fixed rate.
You are locked into the fixed rate with BOI for 5 years. Once you draw it down there is no changing it unless you want to pay hefty break fee charges.

Not true we changed with nominal breakage fee! Contact your bank OP.

aloooof

TheShow wrote: »

You cant just chop and change on a fixed rate.
You are locked into the fixed rate with BOI for 5 years. Once you draw it down there is no changing it unless you want to pay hefty break fee charges.

My understanding was break-fees weren't as hefty as they used to be? We'd be likely to save in the region of 4-5k over the course of the 4 years so it may still be worth it.

TheShow

Deleted User wrote: »

Not true we changed with nominal breakage fee! Contact your bank OP.

There you have it. Another myth busted. Go talk to your bank then.
I don't think BOI will agree to reduce the fixed rate though, so you will be looking at a switcher mortgage.

Mark1916

aloooof wrote: »

I've recently purchased a house and started paying the mortgage, went with a BOI Fixed Rate of 3% for 5 years.

A quick google is showing me that Ulster Bank are offering 2.6% Fixed for 4 years, and €1,500 towards the legal fees for changing.

I'm tempted by this as it would save ~€80 month. Is it worth talking to BOI before I go ahead with this? If BOI could offer closer to this rate, I'd stay with them for convenience sake, but I don't know if they're open to negotiation, especially so early into the mortgage?

Is the answer as simple as "give them a ring"?

You'd be labile for a breakage fee on your fixed term, you'd need to offset the potential savings of interest against the cost of breaking out of your fixed (based on market rates on the day you break). Also you'd need to go through the full approval process again and update your insurances etc and that will require new forms.

aloooof

Deleted User wrote: »

Not true we changed with nominal breakage fee! Contact your bank OP.

Brilliant, I'll give them a call. Did you happen to be with BOI too, by any chance?

TheShow

aloooof wrote: »

My understanding was break-fees weren't as hefty as they used to be? We'd be likely to save in the region of 4-5k over the course of the 4 years so it may still be worth it.

yep, probably little or no movement in the rates since you've drawn down, so break fee might not be much then.

aloooof

aloooof wrote: »

Brilliant, I'll give them a call. Did you happen to be with BOI too, by any chance?

We have changed twice in the past. BOI was nominal was was 100% worth changing when you worked it out - there is some European law that came into affect in recent years and most banks (AIB excluded) follow that and so breakage is less than it used to be and is usually still a way better bet financially than waiting in a higher interest rate. AIB is only bank whose breakage fee is very steep as they are interpreting that European law differently.

kala85

Did you get cashback on this boi mortgage that you have fixed for five years.

Sarn

kala85 wrote: »

Did you get cashback on this boi mortgage that you have fixed for five years.

There’s no clawback on the cashback.

kala85

Sarn wrote: »

There’s no clawback on the cashback.

Are you sure.

There is another one per cent due in five years time.

marvin80

Recently applied for a mortgage but was turned down because half of my savings were gifted to me by my partner - the bank said unless it's a blood relative this money won't be taken into account.

I had letter signed from my partner saying it wasn't a loan and was not expecting it to be repaid.

Has anyone encountered a scenario like this?
The bank was TSB - do all banks apply the same rule?

Sarn

kala85 wrote: »

Are you sure.

There is another one per cent due in five years time.

Positive. The 2% can’t be clawed back, that clause when cashback first started was removed as it wasn’t considered to be legal. The extra 1% after 5 years will be lost. There’s someone over on askaboutmoney that has gotten several cashbacks in a short period of time by switching.