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

Geuze

Business Cat wrote: »

Soz, I'm having trouble understanding.



In simple terms

Mortgage payment is €100

Interest on that is €40

75% of that is €30 So we wouldnt have any liability for that €30.

The remaining €70 would be subject to 52% tax.

Is that right?

You pay tax on the net rental profit.

When calculating the net rental profit, you can deduct 75% of the mortgage INTEREST from your gross rental income.

There are also other allowable deductions.

TheShow

z0oT wrote: »

Just heard from our solicitor today, contracts are to arrive from the developer's solicitor in the next 1-2 weeks. The Bank and the Agent have been in touch with their office just now.

The Bank has issued our Letter of Offer too, it'll probably be in the post when I get back home today.

Question - What has to be done with the Letter of Offer in order to be ready to sign the contracts? You obviously have to sign it to accept it I'm guessing, do they request any additional documents at the Letter of Offer stage?

I know Mortgage Protection and Home Insurance will be required, but I'm assuming they have to be in place by draw down not immediately?

You will sign contracts and offer letter together with the solicitor. Once you have a closing date, aim to get all conditions satisfied before that so you can draw down.
Should be any additional documents required, but everything will be detailed on the offer letter.

chrismon

GaGa21 wrote: »

So just heard from broker today that bank has decided no mortgage due to location of the house....the commute deemed unsustainable.
What can we do....so far in the process.....i can't believe it. To have to start from scratch again....i don't know how to tell the sellers...

This is the second time I heard this, what bank are you with?
How far are you from work?
You could try another bank.

GaGa21

chrismon wrote:

This is the second time I heard this, what bank are you with? How far are you from work? You could try another bank.

With a broker. Was turned down by KBC, first choice initially for same reason but at least it was early on in the process. Haven now and we have had their valuer out, solicitor contracts signed and we were just waiting for builders quotes for the mortgage pack to sign when they pulled out. Lucky we had clause in our contract so can get deposit back. Going to try a local bank directly ourselves as we know plenty of people who commute from same area to Dublin.
Obviously we' rather not have a 1.5 hr commute but we are priced out of the Dublin market so what do they expect people to do! So disappointing.

Wesser

I was told no greater than 100km commute.
Otherwise I think they suspect a buy to let.
Sounds like a dodged a bullet to be honest. 1.5 hours sounds like hell.

myshirt

Geuze wrote: »

Income tax rates in Ireland are 20% and 40%.

USC may also apply to net rental profits.

+ Prsi

GaGa21

Wesser wrote:

Sounds like a dodged a bullet to be honest. 1.5 hours sounds like hell.

Don't plan on doing it long term though.

chrismon

GaGa21 wrote: »

With a broker. Was turned down by KBC, first choice initially for same reason but at least it was early on in the process. Haven now and we have had their valuer out, solicitor contracts signed and we were just waiting for builders quotes for the mortgage pack to sign when they pulled out. Lucky we had clause in our contract so can get deposit back. Going to try a local bank directly ourselves as we know plenty of people who commute from same area to Dublin.
Obviously we' rather not have a 1.5 hr commute but we are priced out of the Dublin market so what do they expect people to do! So disappointing.

Hopefully you have more luck with a bank directly.
Once the schools start my commute will be back up to 1hr 20mins.
Really hoping it won't affect us when applying.

GaGa21

chrismon wrote:

Hopefully you have more luck with a bank directly. Once the schools start my commute will be back up to 1hr 20mins. Really hoping it won't affect us when applying.

Thing is you will get the approval in principal but it's only when the formal offer is going in to be made that they make their decision. And that is when you have outlayed money on a bank valuer, surveyor and solicitor.
Money wasted. I am just glad solicitor had the clause in contract for our deposit.

_feedback_

Had a positive meeting with our broker yesterday and all the paperwork ready to go. Exciting!

Hello thread, my new friend! :-)

AppleBottle

GaGa21 wrote: »

Thing is you will get the approval in principal but it's only when the formal offer is going in to be made that they make their decision. And that is when you have outlayed money on a bank valuer, surveyor and solicitor.
Money wasted. I am just glad solicitor had the clause in contract for our deposit.

I didn’t realise the commute would be something that would effect an application!

Must make sure that a clause is included with the contract on the deposit if anything were to go wrong.

Plan of meeting AIB in the next week to start the application process

L1011

Commute being taken in to account in the face of potential changes to motor taxation, likely fuel price rises etc is very sensible. People who bought in Mohill (for example) to commute to Dublin were always a severe risk of default. However, it does depend on what they bank think is unsustainable really - they may be perfectly sensible or they may be insane.

GaGa21

I think it comes down to the location of the property. They seem to be ok with a 2+ hour city to city commute like Cork to Dublin or Limerick to Dublin. But if the house is a 1.5 hr in rural Laois, Tipperary....they don't see the resale value if needed.

L1011

GaGa21 wrote: »

I think it comes down to the location of the property. They seem to be ok with a 2+ hour city to city commute like Cork to Dublin or Limerick to Dublin. But if the house is a 1.5 hr in rural Laois, Tipperary....they don't see the resale value if needed.

A house in another city is of value to those working there - remember part of the calculation is whether they will ever be able to recover the value should there be another crash. Those houses in Letrim etc are still unsaleable now after half a decade of recovery *and* fairly stable personal motoring costs.

chrismon

GaGa21 wrote: »

Thing is you will get the approval in principal but it's only when the formal offer is going in to be made that they make their decision. And that is when you have outlayed money on a bank valuer, surveyor and solicitor.
Money wasted. I am just glad solicitor had the clause in contract for our deposit.

Hope you get sorted soon, what bank was it with?
When you said 1.5hr do you mean 1 hour 50 minutes or 1 hour 30 minutes?

GaGa21

chrismon wrote:

Hope you get sorted soon, what bank was it with? When you said 1.5hr do you mean 1 hour 50 minutes or 1 hour 30 minutes?

Through a broker so KBC and Haven.
Just going to try our own local bank and see do we fare out any better.
It's a 1hr 40 commute.

This is not a house on a ghost estate. It's a house on its own 1 acre site 10 mins from motorway and 2 big towns either side so I really can't understand it.

hanaimai

How often do both applicants need to go to the solicitor's office for a joint mortgage application? Is it just for signing contracts or is there any other time it would be necessary?

Michellenman

hanaimai wrote: »

How often do both applicants need to go to the solicitor's office for a joint mortgage application? Is it just for signing contracts or is there any other time it would be necessary?

We just had to go the once to sign the contracts.

jaffa20

GaGa21 wrote: »

Through a broker so KBC and Haven.
Just going to try our own local bank and see do we fare out any better.
It's a 1hr 40 commute.

This is not a house on a ghost estate. It's a house on its own 1 acre site 10 mins from motorway and 2 big towns either side so I really can't understand it.

1 hour and 40 mins each way ?:eek: Seriously you will probably regret it anyway. I have a 50mins to 1 hour commute each way at moment without traffic and i'm selling after 3 years because it's very tiring. I'd like to keep it within 30 mins/40kms if at all possible on motorway.

TheShow

hanaimai wrote: »

How often do both applicants need to go to the solicitor's office for a joint mortgage application? Is it just for signing contracts or is there any other time it would be necessary?

A decent solicitor will have everything lined up for everyone to sign in one go. We had to sign some transfer forms afterwards also but could do that individually.

purple hands

Looking for advice on cost of a boundary check in Dublin? Getting quoted 215 euro for a "cursory look" at the boundary, which doesn't fill me with confidence!

z0oT

After one signs the Letter of Offer from the Bank are you locked into drawing down the amount that's specified on it?

We're buying a new build so we'll likely have a long while to wait before we're ready to draw down, and we should have scope to increase our savings a good bit more in that period.

Just to put numbers on it - Lets say you sign a Letter of Offer with an amount of 250k on it along with the contracts, and you can get another 20k in savings before you're ready to draw down, can you just draw down 230k instead?

Mantis Toboggan

z0oT wrote: »

After one signs the Letter of Offer from the Bank are you locked into drawing down the amount that's specified on it?

We're buying a new build so we'll likely have a long while to wait before we're ready to draw down, and we should have scope to increase our savings a good bit more in that period.

Just to put numbers on it - Lets say you sign a Letter of Offer with an amount of 250k on it along with the contracts, and you can get another 20k in savings before you're ready to draw down, can you just draw down 230k instead?

You would need to renogotiate with the bank and get a new offer letter and a return trip to the solicitor's.

z0oT

Tyson Fury wrote: »

You would need to renogotiate with the bank and get a new offer letter and a return trip to the solicitor's.

Thanks for your answer.

The bank have told me that issuing a new offer letter can be done in just a few days and decreasing the amount is no problem either. I'd be very curious to hear if anyone else here has done that.

We heard from our solicitor late last week, saying the agent has been in touch and the contracts are to come in within 1-2 weeks. I'm not 100% sure whether we can get the Help to Buy amount or not, hence why I'm wondering about tweaking the draw down amount at a later date.

Mantis Toboggan

z0oT wrote: »

Thanks for your answer.

The bank have told me that issuing a new offer letter can be done in just a few days and decreasing the amount is no problem either. I'd be very curious to hear if anyone else here has done that.

We heard from our solicitor late last week, saying the agent has been in touch and the contracts are to come in within 1-2 weeks. I'm not 100% sure whether we can get the Help to Buy amount or not, hence why I'm wondering about tweaking the draw down amount at a later date.

I did this, it's very straight forward process really and just took a couple of days. Just a bit of a pain having to meet with the solicitor again.

z0oT

Tyson Fury wrote: »

I did this, it's very straight forward process really and just took a couple of days. Just a bit of a pain having to meet with the solicitor again.

Excellent - Thanks.


I would most certainly live with the inconvenience of taking time off work and making another trip to the solicitor, it would be definitely worth the interest savings!

Mickiemcfist

Anyone know if the banks will take future rent a room earnings into consideration for the 3.5x multiplier? Planning on buying & will be renting a room to a friend so was thinking that could assist?

Thanks in advance

GingerLily

Mickiemcfist wrote: »

Anyone know if the banks will take future rent a room earnings into consideration for the 3.5x multiplier? Planning on buying & will be renting a room to a friend so was thinking that could assist?

Thanks in advance

They won't no.

Natashaw88x

Hi all, I’m currently applying for a mortgage. I have a revoked credit card which is on my icb. I’ve written a letter explaining why it happened, and the bank has come back asking for a stronger letter. They want more details etc. Anyone any experience with this and did you get approved in the end?

Bawnmore

We're renting at the moment and are sale agreed on a house. Our rental has just rolled on with no fixed contract and our landlord knows we're looking to buy for quite awhile. When's an appropriate time to let them know? We've been up to the point of contract signing on another house when the other party pulled out so we know anything can happen, but don't want to just spring it on our landord at the last minute either.