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

NearlyForty

Samuel T. Cogley wrote: »

Why wouldn't they? The only issue you'll have is the 3.5 rule but depending on where you are that may not be an issue. And the deposit of course.

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

GaGa21

NearlyForty wrote:

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess! AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

We dont earn 75k but were approved by 3 banks. But like previously said, we could only borrow 3.5 times salary and had to have deposit and proof of savings.

optogirl

My husband has 2 jobs - BOI have told us they can only take 3.5 x (my salary + 1 of his salaries) & 3.5 times x ( half the salary of his second salary). Is this the case with all lenders or is this a BOI specific rule?

ELM327

NearlyForty wrote: »

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

Generally it's €250 income disregard per child, after daycare etc, per month.


Just apply, the banks will tell you what they need you to change if they give you a no initially.

sheroman01

I'm gonna ask a very basic question here, but would just like clarification on how mortgages work exactly! (Have never even considered buying until recently). Lets say there's a house for sale for 300k and gross salary is 50k. So for a first time buyer, you'd need 10% deposit, so 30k. Then a loan of 270k over x number of years. However I've heard that the loan minus deposit is usually 3.5 times your salary. So in this case you'd only be able to get a loan of 175k. Have I got this right? If so, what if I wanted a loan of more than 3.5 times my salary, is that possible?

el Fenomeno

sheroman01 wrote: »

I'm gonna ask a very basic question here, but would just like clarification on how mortgages work exactly! (Have never even considered buying until recently). Lets say there's a house for sale for 300k and gross salary is 50k. So for a first time buyer, you'd need 10% deposit, so 30k. Then a loan of 270k over x number of years. However I've heard that the loan minus deposit is usually 3.5 times your salary. So in this case you'd only be able to get a loan of 175k. Have I got this right? If so, what if I wanted a loan of more than 3.5 times my salary, is that possible?

The limit is 3.5 times your salary.

Banks are allowed make exceptions on this up to 4.5x your salary, but it's on a case-by-case basis and obviously your ability to repay the larger mortgage is taken into account. The higher your salary (or joint salaries) and the lower your other commitments, the better chance you have. The banks have a limit on how much of their loan book can be made up of these "exception" based mortgages, and the consensus is that they are more liberal giving them out early in the year and then come April/May, they need to start balancing their loan book and are less likely to give them out.

Julez

NearlyForty wrote: »

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

Myself and my partner applied and are earning around the same as you, though we have no children. We used a broker, he brought our details to a few banks and came back with what they were willing to offer. We can now purchase up to 350k which isn't terrible.

sheroman01

el Fenomeno wrote: »

The limit is 3.5 times your salary.

Banks are allowed make exceptions on this up to 4.5x your salary, but it's on a case-by-case basis and obviously your ability to repay the larger mortgage is taken into account. The higher your salary (or joint salaries) and the lower your other commitments, the better chance you have. The banks have a limit on how much of their loan book can be made up of these "exception" based mortgages, and the consensus is that they are more liberal giving them out early in the year and then come April/May, they need to start balancing their loan book and are less likely to give them out.

Thanks! I had never even heard of this x3.5 salary limit before. Will meet with some banks and see how I get on. Cheers

NearlyForty

Thanks all..!! The feed back is much appreciated..
Even though I know your offer tends to be 3.5 your income, but some banks seem to be tighter with regards how much they’ll quote you when you have kids. I think that was the part that was worrying me more. When we multiply ours by 3.5 it comes out at 265k and take say 50k off that with 5 kids, that leaves us with roughly 215k.. So AIB and BOI came back with those quotes, yet PTSB and a few others came back with 105k or 150k, like that’s a huge chunk gone..crazy?!! Why do they differ so much

dudara

The bank will test your ability to meet the monthly repayments. They look at your monthly income, then deduct for any existing loans etc. They then deduct a fixed amount per child. With 5 children, that deduction is going to be large enough.

Once that’s done, they have a number that they are confident you can repay each month. The offer you receive will be asked on that number.

So while you may on paper qualify for €250k, if you have a lot of monthly putgoings (which impact your ability to repay), they may only offer €105k.

Obviously I don’t know what’s going on in your particular case, but this could be one explanation.

charlietheminxx

Myself and my partner saved our asses off for the last 3 years and got mortgage approved a couple of weeks ago, with an exception of up to 4.5 times our salaries. We don't need to borrow quite that much (we were looking for 4 times our salaries) but it was great news all the same.

Put a booking deposit down on a new build last week, exciting times!

prettyboy81

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

Tipsy McSwagger

prettyboy81 wrote: »

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

Talking to a mortgage advisor during the week and he told me everyone is fixing nowadays. I will defo be fixing.

myshirt

Tipsy McSwagger wrote: »

Talking to a mortgage advisor during the week and he told me everyone is fixing nowadays. I will defo be fixing.

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

Interested Observer

prettyboy81 wrote: »

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

I'm fixing for 5 years, currently sale agreed.

awec

Also fixing for 5.

prettyboy81

Cheers for replies, like I said 5 years seems to offer best value at moment.

charlietheminxx

I chose 3 years fixed.

myshirt

charlietheminxx wrote: »

I chose 3 years fixed.

Nothing wrong with that. But in my opinion it would be the minimum I'd fix for.

5 is a good number. 3 is not bad. Always take advice as it applies to your own situation.

Crunchy Friends

We also fixed for 5 with UB!

Tipsy McSwagger

myshirt wrote: »

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

No he didn’t say fix for 2 years just nearly everyone is fixing. I do like the idea of 5 years tbh, cheers.

charlietheminxx

myshirt wrote: »

Nothing wrong with that. But in my opinion it would be the minimum I'd fix for.

5 is a good number. 3 is not bad. Always take advice as it applies to your own situation.

Yeah that’s solid advice! I think the best option really varies from bank to bank. With AIB, the five year fixed rate was 3.5% and I didn’t think that was great.

GaGa21

Sale closed and finally got our keys! I never want to have to do that again. This will be our forever home for sure. Best of luck to everyone here!

Charlie

Question for anyone who might know. We are sale agreed and have received our loan offer. Term on the loan offer is 35 years, as we agreed with the advisor at the time of meeting that we would apply for the maximum and could always reduce before drawdown.

Our preference is for a 32 year term, however, due to multiple delays with paperwork already, i'm minded not to request the bank change from 35 to 32 if it requires the loan offer packs to reissue, as I think we can overpay the monthy amount ourselves to effect this change (need to confirm this with the bank though).

Does anyone know if we were to request the change, would the bank do it via a branch/advisor request without any need for re-issuing of loan offer packs?

dubrov

No need to request any reduction. Just overpay if you like and you'll be done in 32 years anyway

amcalester

No harm in leaving it as is and overpaying (assuming you can). Then if your circumstances ever change you can stop the overpayments without any difficulties.

Charlie

Cheers guys, this was the option that I was leaning towards.

dudara

If the change the term, the calculations will have to be redone and the loan pack re-issued. It’s probably easier for you to overpay, subject to whatever Ts&Cs are in your contract.

Abbey127

Hi I'm just wondering myself and my partner are looking to buy are first house for around 200k or less if possible .we have also have land available to us to build on . I know how land is expensive but we are not sure if we should get a loan to build are own home on it or just buy a new build house to save the hassle of having to build one . I know I would be paying way over the price for a new build but my partner doesn't want the hassle of building are own home . I think we would be better to build as we would save alot more and out house would be are own designs and not be the same as every house. Any help would be much appreciated thanks.

Tipsy McSwagger

myshirt wrote: »

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

Just looking at UB. There 2 year fixed rate is by far the best option for me, savings of around €63 per month compared to 5 years fixed. I’m very tempted tbh but understand there is a risk in 2 years.