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

amcalester

Glen_Quagmire wrote: »

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

Fixed for 5 years with BOI, considered UB fixing for 4 years but preferred the longer certainty with BOI.

Wasn’t much between the 2 in terms of value.

I’m ignoring the follow on rate, too much can change between now and then.

Glen_Quagmire

amcalester wrote:

Fixed for 5 years with BOI, considered UB fixing for 4 years but preferred the longer certainty with BOI.

As a matter of interest, why didn't you get the fixed rate for 10 years?

Creamy Goodness

Glen_Quagmire wrote: »

As a matter of interest, why didn't you get the fixed rate for 10 years?

Ten years is a long time in terms of a mortgage. Things could go down just as much as up. 5 years would be the most I’d be willing to fix a mortgage at personally.

It’s a bit of a gamble both ways.

dudara

Glen_Quagmire wrote: »

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

We’ve decided to go fixed for 5 years with KBC. Our broker gave us a spreadsheet with all the current rates loaded in, and we could vary our mortgage amount and term. Very helpful.

kippy

dudara wrote: »

We’ve decided to go fixed for 5 years with KBC. Our broker gave us a spreadsheet with all the current rates loaded in, and we could vary our mortgage amount and term. Very helpful.

Invaluable tool here for anyone looking at the figures:
https://m.drcalculator.com/mortgage/

amcalester

Glen_Quagmire wrote: »

As a matter of interest, why didn't you get the fixed rate for 10 years?

10 years just felt too long, more a gut decision than a financial one.

Glen_Quagmire

When you get AIP off a bank, what's the chances of things going pear shaped when it's gets to the underwriters?

Glen_Quagmire

kippy wrote:

Invaluable tool here for anyone looking at the figures:

Very useful little tool that is

bleary

Glen_Quagmire wrote: »

When you get AIP off a bank, what's the chances of things going pear shaped when it's gets to the underwriters?

If it hasn't gone to the underwriters yet then all is not really much use. Branch aip is sales basically
Getting the business in. Until underwriter approves you have no approval

TheShow

Glen_Quagmire wrote: »

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

Rates are low and they will eventually go up, but when that happens is anyone’s guess. Fixed rates are cheap now too, so makes sense to take advantage of a medium term fixed rate option if you can get it at the right price. It will give you certainty and peace of mind if the rates do start to climb.

If you only have gotten AIP from the mortgage advisor, all that’s happened is that he/she has put your figure into a calculator and based on the inputs everything looks good. This should translate to a standard approval with the underwriters if it is a very straight forward case: 20%+ deposit, evidence of savings for FTB, meets income multiple and bank affordability criteria and bank profile is good with no excess fees of unpaid items occurring, it should translate to an easy approval.
If you have issues with any or all of the above then the underwriters might not be so positive towards it.
If you have gotten AIP through the underwriting process then you should be ok as long as it has not expired and no material changes to your financial position since AIP was given.

tigger123

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

wally79

tigger123 wrote: »

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

In my experience when you go sale agreed the agent will want proof of funds usually your formal approval letter from bank

tigger123

wally79 wrote: »

In my experience when you go sale agreed the agent will want proof of funds usually your formal approval letter from bank

Cheers for the response, much appreciated!

I'm just wondering generally how long the faffing about between Sale Agreed and the mortgage drawdown takes- is it a month? Or more likely to be 6 months?

GingerLily

tigger123 wrote: »

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

You'll likely need approval at your current salary once your sale agreed, so you won't be able to benefit from your future wage increase, even if it happens before drawdown.

We fought tooth and nail for an exemption but 6 months on we're well below the 3.5 LTI, timing is a weird one!

wally79

tigger123 wrote: »

Cheers for the response, much appreciated!

I'm just wondering generally how long the faffing about between Sale Agreed and the mortgage drawdown takes- is it a month? Or more likely to be 6 months?

How long is a piece of string. Is it a new build, are you buying in a chain, are there legal issues with the property. Can be anything from weeks to months

wally79

tigger123 wrote: »

Cheers for the response, much appreciated!

I'm just wondering generally how long the faffing about between Sale Agreed and the mortgage drawdown takes- is it a month? Or more likely to be 6 months?

I guess the question is why you are asking?

Some context would help

As ginger lily says you will be asked for proof of funds by way of approval which will be based on current salary. Unless it’s a very unusual situation the vendor won’t accept an offer more than you have approval for based on a hypothetical wage rise. The risk is all on them

ArtyC

Anyone draw down with boi recently? The money request was with them Friday .


Trying to swing my days off to suit

amcalester

tigger123 wrote: »

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

I was in the same boat as you, was applying around the time I was due a bump in salary, BOI said I could apply with the higher salary but would need to provide at least 1 pay slip showing he higher salary before draw down.

Ended up just going with the lower salary because I was due to draw down the same month as the increase and I didn't want any hiccups.

2 months later I've received the increase and still no draw down.

ArtyC

amcalester wrote: »

I was in the same boat as you, was applying around the time I was due a bump in salary, BOI said I could apply with the higher salary but would need to provide at least 1 pay slip showing he higher salary before draw down.

Ended up just going with the lower salary because I was due to draw down the same month as the increase and I didn't want any hiccups.

2 months later I've received the increase and still no draw down.

Can I intrude on ye here , is the drawdown delay on the banks side ?
I've been delayed a year now , need to finish this

Bargain_Hound

Waiting to drawdown with BOI in the coming week or two, does anybody know do BOI typically request the most recent payslip or salary cert before drawdown? (I just signed the 6 month re-approval loan offer 3 weeks ago providing these at the time). There is nothing in the conditions except to produce the property valuation.

amcalester

ArtyC wrote: »

Can I intrude on ye here , is the draw down delay on the banks side ?
I've been delayed a year now , need to finish this

All down to the builder, was supposed to be the end of August but that got pushed to mid-September which got pushed to end of September and now it's been pushed to mid-October.

Hopefully it'll be straightforward from here on in. I've everything sorted with the bank bar the valuation which should be done this week so hopefully once the solicitor sends the cheque request the bank will remit the funds.

TheShow

Bargain_Hound wrote: »

Waiting to drawdown with BOI in the coming week or two, does anybody know do BOI typically request the most recent payslip or salary cert before drawdown? (I just signed the 6 month re-approval loan offer 3 weeks ago providing these at the time). There is nothing in the conditions except to produce the property valuation.

shouldn't be any further requirements other than whats stated on the current loan offer.

chrismon

Has anyone been asked by estate agents what your AIP is?
Lady in the bank told me to not to disclose it to them.
Anyone had experience here?

sunshinew

chrismon wrote: »

Has anyone been asked by estate agents what your AIP is?
Lady in the bank told me to not to disclose it to them.
Anyone had experience here?

Yeah, don't disclose how much money you have to spend with an estate agent. Besides AIP just covers what you plan to borrow, not how much cash deposit you are putting towards the property. I think I got a letter from the bank that just said "we've reviewed so and so's finances and we believe she can afford this property at the price agreed".

dudara

chrismon wrote: »

Has anyone been asked by estate agents what your AIP is?
Lady in the bank told me to not to disclose it to them.
Anyone had experience here?

You can share a copy of the AIP letter, but blank out the approved amount. It’s literally none of their business how much exactly you’ve been approved for.

I was asked verbally many times if I had approval, but I was never asked to furnish any evidence.

Purple Sheep

dudara wrote: »

You can share a copy of the AIP letter, but blank out the approved amount. It’s literally none of their business how much exactly you’ve been approved for.

I was asked verbally many times if I had approval, but I was never asked to furnish any evidence.

Interesting. I was always told to attach AIP proof when bidding by email, and even had an agent silently ignore a bid when I forgot to do that after the first bid.

chrismon

Thanks all, these tips are very handy.

Gavin "shels"

Myself and herself are planning for a mortgage in 12 months time.

Few quick questions:
1) We currently have our own individual bank accounts with savings accounts, a joint bank account (all AIB) and I've Credit Union account - does it matter which we save into, etc...? We've money in all currently.

2) Both of us pay rent at home by cash, is it best to use Bank Transfer going forward for traceability to the banks? Do they take this into account?

3) My parents also will be contributing some money on top of our savings when we do go to apply, how does that work with regards to a mortgage application? It will be a fraction (maybe 15-20%) of what we'll have saved up in total? Is it frowned upon these days?

limnam

Gavin shels wrote: »

Myself and herself are planning for a mortgage in 12 months time.

Few quick questions:
1) We currently have our own individual bank accounts with savings accounts, a joint bank account (all AIB) and I've Credit Union account - does it matter which we save into, etc...? We've money in all currently.

Nope, just provide statments for all accounts at applicaton.

Gavin shels wrote: »

2) Both of us pay rent at home by cash, is it best to use Bank Transfer going forward for traceability to the banks? Do they take this into account?

The "clearer" your statements are the quicker and easier things tend to move so I'd say yes it would be better

Gavin shels wrote: »

3) My parents also will be contributing some money on top of our savings when we do go to apply, how does that work with regards to a mortgage application? It will be a fraction (maybe 15-20%) of what we'll have saved up in total? Is it frowned upon these days?

Should be fine.

GingerLily

Banks do not like rent paid to your parents in cash. Set up a standing order ASAP so you can prove in a year's time that you've been paying rent the whole time.