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

GingerLily

We had our mortgage credit checked for affordability, and when the property was valued we were then told to lock down our rate and term, it wasn't final for until that stage.

I would recommend to anyone getting a loan to get the longest term possible and splitting your mortgage, with most (80%-95%) as the lowest fixed rate you can get, and having the rest variable. Keep the variable amount to what you think you might be able over to pay in the fixed term. So that might be 20k for a 5 year fixed term.

There will be no penalties on paying back the variable portion early.

Mark1916

GingerLily wrote: »

We had our mortgage credit checked for affordability, and when the property was valued we were then told to lock down our rate and term, it wasn't final for until that stage.

I would recommend to anyone getting a loan to get the longest term possible and splitting your mortgage, with most (80%-95%) as the lowest fixed rate you can get, and having the rest variable. Keep the variable amount to what you think you might be able over to pay in the fixed term. So that might be 20k for a 5 year fixed term.

There will be no penalties on paying back the variable portion early.

Bank of Ireland allow you overpay on a fixed up to 10% of your monthly repayments (or 65EUR whichever is higher).

AppleBottle

z0oT wrote: »

It all comes down to circumstances.

If you're looking for less than the 3.5 times income rule, have your 10% (first time buyer) and funds for legal fees & stamp duty already saved, have permanent jobs, have no debt, and have no children, and you're not looking for a low term time that would make repayments crazy high, it should be straightforward then.

This would describe my situation exactly so we are very hopeful!

Natashaw88x

Hey guys, what’s the average turn around time for AIP with haven? I know it goes through the full underwriting process but just wanted an idea!

limnam

Natashaw88x wrote: »

Hey guys, what’s the average turn around time for AIP with haven? I know it goes through the full underwriting process but just wanted an idea!

It depends. some hours, some days, some weeks.

Natashaw88x

limnam wrote: »

It depends. some hours, some days, some weeks.

We’re nearing 5 weeks in and losing the will to live!!

limnam

Natashaw88x wrote: »

We’re nearing 5 weeks in and losing the will to live!!

5 weeks sounds a tad excessive


who with?

TheShow

Natashaw88x wrote: »

We’re nearing 5 weeks in and losing the will to live!!

5 weeks? Get back onto them ASAP, might have lost your application (it happens) no way it should take that long.

hanaimai

Natashaw88x wrote: »

limnam wrote: »

It depends. some hours, some days, some weeks.

We’re nearing 5 weeks in and losing the will to live!!

That's ridiculous. We had our first fully assessed AIP back in about 4 working days. Other banks are 2 weeks and counting, but 5 weeks is definitely daft.

From January they have to make a decision within 10 working days so nobody should be waiting longer than 2 weeks from then on!

GingerLily

hanaimai wrote: »

From January they have to make a decision within 10 working days so nobody should be waiting longer than 2 weeks from then on!

Where did you see that?

That might mean they just reject more people!

hanaimai

GingerLily wrote: »

hanaimai wrote: »

From January they have to make a decision within 10 working days so nobody should be waiting longer than 2 weeks from then on!

Where did you see that?

That might mean they just reject more people!

It's a new requirement, see point 4 here: https://www.centralbank.ie/news-media/press-releases/mortgage-switching-20-June-2018

I think the full rule says something like if they can't make the decision within 10 days they have to tell the borrower why and how much longer it's going to take. So I suppose technically it could take longer than 2 weeks but they will at least have to engage with you by then.

ArtyC

Seller has just signed contracts, how long is the average time to get done at this stage ?

jaffa20

ArtyC wrote: »

Seller has just signed contracts, how long is the average time to get done at this stage ?

There should be an agreed completion date on the contracts i thought?

ArtyC

jaffa20 wrote: »

There should be an agreed completion date on the contracts i thought?

I know the buyer so he informed me he signed them today
-I missed my solicitors call yesterday and now he's off
Just a ball park - it's been dragging on and my nerves are shot

TheShow

ArtyC wrote: »

I know the buyer so he informed me he signed them today
-I missed my solicitors call yesterday and now he's off
Just a ball park - it's been dragging on and my nerves are shot

There’s no ball park, should be a date to close in the contracts.

catrionanic

Does anyone know how it works if you sell your house while in the middle of a fixed rate period? We are halfway through a three year fixed period. I'm assuming we will have to pay a significant fee for paying off the mortgage in this period?

We aren't staying with the same bank (BOI) for our next mortgage.

GaGa21

Natashaw88x wrote:

We’re nearing 5 weeks in and losing the will to live!!

Haven only works with brokers I thought? Can you not contact him/her to ask?

TheShow

catrionanic wrote: »

Does anyone know how it works if you sell your house while in the middle of a fixed rate period? We are halfway through a three year fixed period. I'm assuming we will have to pay a significant fee for paying off the mortgage in this period?

We aren't staying with the same bank (BOI) for our next mortgage.

There will be a fee, but it might not be that big as the rates haven't really moved up over the last few years. best thing to do is ask your bank.
I've seen posts from people who have broken fixed rate agreements and only incurred nominal fees, so it looks promising.

Brock Turnpike

Hi, looking for some advice on my situation.

Couple, both working full time
We had been renting for 2.5 years until a couple of months ago
Moved in with the parents until the end of this year in order to save a deposit
First child on the way
Good credit history

Spoke to an advisor before baby was on the way and he said we should be good for a mortgage. Will the baby being on the way make it more difficult for a mortgage? Anything else we need to be wary of?

Creamy Goodness

Brock Turnpike wrote: »

Spoke to an advisor before baby was on the way and he said we should be good for a mortgage. Will the baby being on the way make it more difficult for a mortgage? Anything else we need to be wary of?

not more difficult but it will affect your affordability in the calculations that the banks will do.

Brock Turnpike

Creamy Goodness wrote: »

not more difficult but it will affect your affordability in the calculations that the banks will do.

By affordability, you mean the amount we can borrow?

tobsey

Brock Turnpike wrote: »

By affordability, you mean the amount we can borrow?

Affordability is how easily you can afford the monthly repayments. The Central Bank hoave the 3.5 times income rule. The banks have their own rules which are that you must have a certain amount of money left over each month for a family of your size, after paying your mortgage if the interest rate rises (stress tested).

Rough figures are 2300 for the couple, plus 250 per child, plus childcare, plus any other mandatory expenditure, e.g. loans, maintenance payments etc. The banks will look at your net income and subtract all those amounts, what's left is the amount you can afford per month, they multiply that by the term and factor in the interest payable and that tells them how much you can borrow for the term you've chosen.

The amount you can borrow is supposed to be the smaller of the CBI's 3.5 limit and the banks affordability limit. However banks will allow some exceptions to the CBI limit if you have the affordablity

TheShow

Brock Turnpike wrote: »

Hi, looking for some advice on my situation.

Couple, both working full time
We had been renting for 2.5 years until a couple of months ago
Moved in with the parents until the end of this year in order to save a deposit
First child on the way
Good credit history

Spoke to an advisor before baby was on the way and he said we should be good for a mortgage. Will the baby being on the way make it more difficult for a mortgage? Anything else we need to be wary of?

how pregnant is your partner, if only a recent occurrence, don't tell the bank.
If she is showing and you have to go to meet the person on the bank then obviously its a factor that they will need to consider.
But if not showing yet, go meet the bank people asap, say nothing and get your approval.

catrionanic

TheShow wrote: »

how pregnant is your partner, if only a recent occurrence, don't tell the bank.
If she is showing and you have to go to meet the person on the bank then obviously its a factor that they will need to consider.
But if not showing yet, go meet the bank people asap, say nothing and get your approval.

I'm 8 months pregnant and we've recently got mortgage approval from two banks through a broker. It meant that we didn't have to go into branch at all, so bump not an issue.

Creamy Goodness

A bump is not the issue. It just affects the calculations the bank does. You obviously were well above it for it not to have an effect on your AIP. but if you were on the line of what you wanted vs what the bank will give you it’s a different story.

If the bank ask, don’t lie, if you’re pregnant, you’re pregnant. They’ll suss it out sooner rather than later via statements.

GingerLily

Creamy Goodness wrote: »

A bump is not the issue. It just affects the calculations the bank does. You obviously were well above it for it not to have an effect on your AIP. but if you were on the line of what you wanted vs what the bank will give you it’s a different story.

If the bank ask, don’t lie, if you’re pregnant, you’re pregnant. They’ll suss it out sooner rather than later via statements.

Can the bank include costs for a baby before the baby is born? I don't know that they can

Creamy Goodness

GingerLily wrote: »

Can the bank include costs for a baby before the baby is born? I don't know that they can

Luckily enough to not be in the situation but I don’t see why they can’t. These are bank rules not central bank rules.

Brock Turnpike

tobsey wrote: »

Affordability is how easily you can afford the monthly repayments. The Central Bank hoave the 3.5 times income rule. The banks have their own rules which are that you must have a certain amount of money left over each month for a family of your size, after paying your mortgage if the interest rate rises (stress tested).

Rough figures are 2300 for the couple, plus 250 per child, plus childcare, plus any other mandatory expenditure, e.g. loans, maintenance payments etc. The banks will look at your net income and subtract all those amounts, what's left is the amount you can afford per month, they multiply that by the term and factor in the interest payable and that tells them how much you can borrow for the term you've chosen.

The amount you can borrow is supposed to be the smaller of the CBI's 3.5 limit and the banks affordability limit. However banks will allow some exceptions to the CBI limit if you have the affordablity

Thanks very much. Based on the rough figures you supplied there, we should be good.

Brock Turnpike

TheShow wrote: »

how pregnant is your partner, if only a recent occurrence, don't tell the bank.
If she is showing and you have to go to meet the person on the bank then obviously its a factor that they will need to consider.
But if not showing yet, go meet the bank people asap, say nothing and get your approval.

She's not showing just yet, however we won't be meeting the bank for another couple of months at least.

wally79

Brock Turnpike wrote: »

She's not showing just yet, however we won't be meeting the bank for another couple of months at least.

We were waiting in baby 2 when applying. Told advisor in bank and she said to come back to her if baby arrived before drawdown

It did and we just needed to provide an updated childcare quote from creche

It affects the offer but we weren’t planning on going near max anyway