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

myshirt

marvin80 wrote: »

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?

You could end up with a "purchase money resulting trust" or similar, regardless of what you write down.

GingerLily

If you switch your mortgage, do you need to be under 80% LTV of have an exemption because you can't be a FTB anymore?

hanaimai

GingerLily wrote: »

If you switch your mortgage, do you need to be under 80% LTV of have an exemption because you can't be a FTB anymore?

Switching mortgages are exempt from the LTI/LTV rules. You just need to meet whatever other affordability criteria the bank has.

bored_newbie

marvin80 wrote: »

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?

Bank of Ireland told me the same, needs to be a blood relative.

limnam

bored_newbie wrote: »

Bank of Ireland told me the same, needs to be a blood relative.

Partner to blood relative > get blood relative to give it you? :pac:

bored_newbie

Det. Lester Freamon: You follow drugs, you get drug addicts and drug dealers. But you start to follow the money, and you don't know where the f*ck it's gonna take you.

_feedback_

Hi all,

In the process of gathering our stuff together for an application. After reading the last few comments there, I'm wondering do I need any extra paperwork.

My savings are partly made up of funds from insurance and a house sale following the passing of a parent. I wonder if they'll need any paper trail for this? If so, what do you think they would want?

ILikeBoats

Deleted User wrote: »

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

Just rang PTSB to find out how much it would be but they couldn't give the information over the phone :rolleyes: have to wait for it to be posted out.

Could save a lot by moving to BoI

hanaimai

hanaimai wrote: »

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?

Anyone able to help with the above? I just really want to be sure I know what's coming next.

I am a little concerned about issues that might arise with getting mortgage protection cover. Is it possible to go through the application process before we've sake agreed a property or is that just a waste of everyone's time?

awec

hanaimai wrote: »

Anyone able to help with the above? I just really want to be sure I know what's coming next.

I am a little concerned about issues that might arise with getting mortgage protection cover. Is it possible to go through the application process before we've sake agreed a property or is that just a waste of everyone's time?

You pay your booking deposit, then the contracts are issued by the developers solicitor and sent to your solicitor. At the same time you notify your bank that you have found a house, and they'll send you a form to fill in asking for the address, what mortgage rate you want etc.

You sign the contract and pay your 10/20% deposit (minus HTB amount if you are claiming it) to your solicitor at the same time, who will forward it to the developer. Ideally you don't sign the contract until you have the loan offer, but your solicitor may be able to include a clause saying you're signing it subject to getting an official offer of the desired amount on the property.

I think you can arrange mortgage protection at any time, they will just put it on hold until you are ready to draw down. You can ring your bank and ask, I believe they will have someone who can arrange it for you if you want.

Bawnmore

Another question - might not be the right place for it, but not sure it needs it's own thread. The house we'e gone sale agreed on comes with around 10 acres of land (mix of bog and grazing type land). If this isn't fenced off fully currently, should we be looking for the seller to fence off?

aloooof

Sarn wrote: »

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.

So in theory I could switch to PTSB for the switcher mortgage, pocket the 2% cashback there and then switch again to Ulster Bank to get the desired 2.6% fixed over 4 years? And both the cashback deals from PTSB and BOI couldn't be clawed back?

Is there any catch this? What if I want to change back to BOI in, say, 10 years? Would they be entitled to claw it back then?

Humour Me

aloooof wrote: »

So in theory I could switch to PTSB for the switcher mortgage, pocket the 2% cashback there and then switch again to Ulster Bank to get the desired 2.6% fixed over 4 years? And both the cashback deals from PTSB and BOI couldn't be clawed back?

Is there any catch this? What if I want to change back to BOI in, say, 10 years? Would they be entitled to claw it back then?

Don’t forget you will incur legal fees when you switch which will eat into the cashback you obtain.

Also check the conditions for the cashback offers, they may not be available for switches.

TheShow

hanaimai wrote: »

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?

If you go sale agreed on the property, go back to the bank that gave you AIP and get formal approval, if AIP was recent then you shouldn't need any additional supporting documents. You can go to different bank but you will need to go through the whole process all over again.

You will need your loan offer letter before you sign contracts for the house.

to secure the houe at sale agred you will pay the agent a booking deposit, normally €5,000 and then you will need the balance of 10% of the cost of the property for signing contracts.

You can arrange life cover & home insurance closer to the closing date - only take a phonecall and normally sorted quickly, unless there is an underlying medical condition which may require a medical report from a doctor.


The offer letter will have any other conditions that may need to be satisfied.

TheShow

Bawnmore wrote: »

Another question - might not be the right place for it, but not sure it needs it's own thread. The house we'e gone sale agreed on comes with around 10 acres of land (mix of bog and grazing type land). If this isn't fenced off fully currently, should we be looking for the seller to fence off?

ideally yes, otherwise how do you know where the boundry line is?

hanaimai

Thank you awec and TheShow, very helpful information. Just one further point I want to clarify - say I only applied to one bank for AIP and was in the process of applying to others when I go sale agreed on a property. Can I still apply to all banks for a loan offer (i.e. with the property address) or will I just have to pick one at this stage and hope they have no issues? I know the ideal is to have all your AIPs in order before purchasing but we have found a property we are very interested in and just trying to understand our options in the event we go sale agreed before getting all the AIPs!

I suppose the key question is - is a loan offer binding i.e. do I HAVE to drawdown with that bank or is it still 'change your mind' territory?

GingerLily

hanaimai wrote: »

Thank you awec and TheShow, very helpful information. Just one further point I want to clarify - say I only applied to one bank for AIP and was in the process of applying to others when I go sale agreed on a property. Can I still apply to all banks for a loan offer (i.e. with the property address) or will I just have to pick one at this stage and hope they have no issues? I know the ideal is to have all your AIPs in order before purchasing but we have found a property we are very interested in and just trying to understand our options in the event we go sale agreed before getting all the AIPs!

We were sale agreed (well deposit on a new build) with AIP from one bank (it was full credit approval actually), used that to satisfy the EA that we would get full mortgage approval, but changed bank to get our loan offer. I don't know if I'd recommend going to more than one bank for your loan offer, it's A LOT of annoying paperwork. The loan offer is needed within 3 weeks for new builds btw so I imagine the time lines aren't too dissimilar.

TheShow

You can get approval from as many banks as you want, nothing is binding until you draw it down.

Instead of all of the hassle of going to every bank, I'd recommend using a broker, let them do all that for you.

Bargain_Hound

I went to multiple banks last minute. I had full approval already which satisfied the EA enough to allow me to put a booking deposit down on a property.

Only when it came to signing with my solicitor (Roughly 4 weeks later in my case) did matter that I had an offer. I had since received a far better interest rate from another bank saving a LOT over the course of a 5 year fixed period. Shop around, just be sure to have at least one loan offer in place so you can sign contracts in time within the builders timeframe (Usually 21-days).

hanaimai

Thank you all, I'm happy that I know what our options are now, no matter what way things end up!

TheShow

hanaimai wrote: »

Thank you all, I'm happy that I know what our options are now, no matter what way things end up!

best of luck with it!

MrStuffins

MrStuffins wrote: »

Guys, when should I seek to see a broker?

We have the vast majority of our deposit saved up. In fact, we'd have enough if we wanted to buy a house on the lower end of the scale.

We're not entirely sure exactly where we want to live yet, so we only have a general idea of how much we actually want to borrow.

Is it advisable to wait until you have an exact figure in mind and the relevant deposit before seeing a broker?

Moved in last Thursday. Thanks for all the advice throughout the thread

Cows Go µ

Bawnmore wrote: »

Another question - might not be the right place for it, but not sure it needs it's own thread. The house we'e gone sale agreed on comes with around 10 acres of land (mix of bog and grazing type land). If this isn't fenced off fully currently, should we be looking for the seller to fence off?

Are the bank aware of the fact that there is that amount of land? I remember that when I was initially looking for approval in principle I mentioned that I wanted land and the tsb said they wouldn't give me a mortgage for a house with more than 2 acres. I only wanted an acre or so, so it made no difference to me

ELM327

Cows Go µ wrote: »

Are the bank aware of the fact that there is that amount of land? I remember that when I was initially looking for approval in principle I mentioned that I wanted land and the tsb said they wouldn't give me a mortgage for a house with more than 2 acres. I only wanted an acre or so, so it made no difference to me

AIB have a 5 acre limit, PTSB is 2, BOI is 1 I think.
You won't get a residential mortgage with 10 acres of land.

TheShow

ELM327 wrote: »

AIB have a 5 acre limit, PTSB is 2, BOI is 1 I think.
You won't get a residential mortgage with 10 acres of land.

UB is 2 acres limit also as far as I know.

Bawnmore

Cows Go µ wrote: »

Are the bank aware of the fact that there is that amount of land? I remember that when I was initially looking for approval in principle I mentioned that I wanted land and the tsb said they wouldn't give me a mortgage for a house with more than 2 acres. I only wanted an acre or so, so it made no difference to me

They're not - and I didn't actually know that - that's not good.

Thanks - I'll follow up with the bank immediately.

ELM327

Bawnmore wrote: »

They're not - and I didn't actually know that - that's not good.

Thanks - I'll follow up with the bank immediately.

I'll wager dollars to doughnuts you'll need a farmland mortgage with 10 acres of land, meaning you'll need to produce accounts etc.


Or if not, please let me know which bank so I can go there next time!!

TheShow

ELM327 wrote: »

I'll wager dollars to doughnuts you'll need a farmland mortgage with 10 acres of land, meaning you'll need to produce accounts etc.


Or if not, please let me know which bank so I can go there next time!!

You wouldn't as you are not a farmer, but you also wouldn't get the remaining 8 acres on a residential mortgage. Could probably look at a variable rate Personal loan for the 8 acres with the land as security, but rates would be a lot more than a mortgage rates and over a shorter term which could make it too expensive to finance.

awec

What's the reason for the limit? The land doesn't provide enough security against the loan from the banks point of view?

TheShow

awec wrote: »

What's the reason for the limit? The land doesn't provide enough security against the loan from the banks point of view?

More to do with not wanting a load of land with questionable value on the resi mortgage books. 8 or 10 acres on its own, while sizable, is a small land holding and is not worth much to anyone else, also could possibly be land locked by the house, rendering no access to the land at the back.