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

jbryc04

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

Tipsy McSwagger

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

In fairness a savings account is for saving money not dipping into. I have a savings account that I do not touch, all bills and rent and disposable income come from my current account. No offense but the way you are going about things looks very unorganized.

ozbackineire

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

The bank advised us on several occasions that if you are dipping into your savings account they will not give mortgage approval. you have to show for 6 consecutive months that you can save and not dip into the savings. Maybe lessen the amount you are putting into your savings by €200 and put it in a credit union, then you have access to that money should you need it and you aren't dipping into your bank savings.

I was paying my parents rent from my account into their account on the 1st of every month, i did not need to show a letter to the bank, they accepted it as they could see it. we got our mortgage through BOI and got keys 2 weeks ago so it is do able if you are rigid for 6 months.

skywayavenue

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

KBC wouldn’t accept our rent to parents either, paid on the same day, every month for a year and a half but they were having none of it. Said they couldn’t be sure they weren’t handing it straight back to us in cash.

Ciarawera

I’ve been lurking here since mid January and couldn’t get a clear answer, so I thought I’d post in case someone was in the same situation.

Myself and my husband applied for mortgage approval last Wednesday with BOI and received mortgage approval today. My husband is on a fixed term contract. He has passed probation but is only there 7 months, contract end date is Jan 2020. This was causing me all sorts of stress, but it seems every application is different, and it didn’t hold us back.

Also, I have a car loan with the CU. We pay city centre rent and saved for over a year.

So, moral of the story...fixed term contracts aren’t the end of the line.

messy tessy

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

amcalester

messy tessy wrote: »

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

I would go for the longer term and overpay instead of the shorter term loan, not necessarily 35 years if you're aiming for 10-15 but whatever is comfortable for you.

Also worth considering is whether the bank allows over payments and how much. It might be worth your splitting your mortgage between fixed and a variable to allow you make larger payments off the capital.

myshirt

messy tessy wrote: »

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

What is the family take home pay and how much does the house cost?

Try manage your mortgage payment at 25% to 30%, preferably 25%. If you can do that over 15 years, great. If you can't, then go longer. Certainly don't fool yourself into thinking a 35 year mortgage is cheaper. It's not. By a long mile. The money you save, unless you invest it smartly (and the likelihood is you won't, you'll just spend it on discretionary items), is only going to end up back in the pocket of the bank along with more with it.

messy tessy

myshirt wrote: »

What is the family take home pay and how much does the house cost?

Try manage your mortgage payment at 25% to 30%, preferably 25%. If you can do that over 15 years, great. If you can't, then go longer. Certainly don't fool yourself into thinking a 35 year mortgage is cheaper. It's not. By a long mile. The money you save, unless you invest it smartly (and the likelihood is you won't, you'll just spend it on discretionary items), is only going to end up back in the pocket of the bank along with more with it.

Yes I have worked out the interest with the various terms on the mortgage calculators.

The family is just me, single, no kids and no plans to have any. I could get a mortgage of 200k at current salary but don't want to take this much debt on. Its a three bed house I am looking at. Have a (relatively) large deposit saved.

scheister

Hi Everyone,

I have been saving more a mortgage for the last year. Hope to start looking come next June 2020.

At that stage i should have 20k in deposit savings and 3k in other savings. Based on current wages i can get a mortgage of €133k.

I will be a FTB and single so wont be looking for much in the way housing a cheap 2 bed apartment in North Kildare is my aim.

I am trying to get a rough calculation on what other costs i will need. Thinking 5k would cover my for legal fees, SD and associated costs. Anyone have an idea if this is a fair estimate. Sorry if this is the wrong thread to ask.

ozbackineire

scheister wrote: »

Hi Everyone,

I have been saving more a mortgage for the last year. Hope to start looking come next June 2020.

At that stage i should have 20k in deposit savings and 3k in other savings. Based on current wages i can get a mortgage of €133k.

I will be a FTB and single so wont be looking for much in the way housing a cheap 2 bed apartment in North Kildare is my aim.

I am trying to get a rough calculation on what other costs i will need. Thinking 5k would cover my for legal fees, SD and associated costs. Anyone have an idea if this is a fair estimate. Sorry if this is the wrong thread to ask.

Our solicitor cost €5,200, this was a family friend rate. we had originally gotten a quote for €6,500. There was €500 on top of that at the end for property tax. the bank surveyor was €150, our surveyor was €350. i would say we spent close to €6.500-7000 on all the extra bits. we bought a house in Dublin though so it might be different on an apartment in Kildare.

gwakamoley

ozbackineire wrote: »

Our solicitor cost €5,200, this was a family friend rate. we had originally gotten a quote for €6,500. There was €500 on top of that at the end for property tax. the bank surveyor was €150, our surveyor was €350. i would say we spent close to €6.500-7000 on all the extra bits. we bought a house in Dublin though so it might be different on an apartment in Kildare.

That solicitor price is about double most estimates I'm seeing?

Prospector1989

gwakamoley wrote: »

That solicitor price is about double most estimates I'm seeing?

Was thinking that myself. Maybe that's including stamp duty as I don't see it mentioned?

GingerLily

Prospector1989 wrote: »

gwakamoley wrote: »

That solicitor price is about double most estimates I'm seeing?

Was thinking that myself. Maybe that's including stamp duty as I don't see it mentioned?

Must be, otherwise its extortionate,

Fees were about 1k for me, but all other costs added, searches, stamp duty etc

messy tessy

messy tessy wrote: »

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

It depends on your circumstances but I would take the longer term and over pay and save the difference to clear it earlier.
Circumstances can change and it is easier to go down to the repayment you agreed at the start rather than to as to extend your term.

Things to consider. Spare cash, age, kids, income, illness, suitability.

scheister

GingerLily wrote: »

Must be, otherwise its extortionate,

Fees were about 1k for me, but all other costs added, searches, stamp duty etc

This is a sample i found on the money guide website. Stamp to be added on top of that

1. Purchase of house priced at €200,000

Typical Solicitor’s Fees €1250 plus VAT = €1537

Fees payable to Government Agencies

Land Registry fee €600
Land Registry fee (Certified Copy Folio) €40
Land Registry fee (mortgage) €175
Commissioner for Oaths €44
Search fees (estimate) €150
GRAND TOTAL including VAT €2546

GingerLily

Deleted User wrote: »

It depends on your circumstances but I would take the longer term and over pay and save the difference to clear it earlier.
Circumstances can change and it is easier to go down to the repayment you agreed at the start rather than to as to extend your term.

Things to consider. Spare cash, age, kids, income, illness, suitability.

Its particularly hard to extend your term if your having finance troubles, unless you want a treatment, that'll give you a black mark.

Longer term and overpay is the safer commitment!

sarahzxe

Hi all,

Im looking for some info on applying for mortgage we are currently aiming to apply early 2020.

We are a guard and nurse public sector earning €80,881 basic salary's and we both earn about 10k extra each for allowances, night and weekend work no overtime was just wondering if this is taking into consideration when working out how much we can borrow?

We pay rent €850 per month and save €1100 per month and no kids. Hoping to speak with banks in next few weeks. Thanks x

Prospector1989

sarahzxe wrote: »

Hi all,

Im looking for some info on applying for mortgage we are currently aiming to apply early 2020.

We are a guard and nurse public sector earning €80,881 basic salary's and we both earn about 10k extra each for allowances, night and weekend work no overtime was just wondering if this is taking into consideration when working out how much we can borrow?

We pay rent €850 per month and save €1100 per month and no kids. Hoping to speak with banks in next few weeks. Thanks x

I get a bonus every year. This is being taken into account by the banks. They may not be taking the full amount into account but it definitely helped. They required proof of the bonus. I was able to show my bonus in my payslip two years running.

GingerLily

scheister wrote: »

GingerLily wrote: »

Must be, otherwise its extortionate,

Fees were about 1k for me, but all other costs added, searches, stamp duty etc

This is a sample i found on the money guide website. Stamp to be added on top of that

1. Purchase of house priced at €200,000

Typical Solicitor’s Fees €1250 plus VAT = €1537

Fees payable to Government Agencies

Land Registry fee €600
Land Registry fee (Certified Copy Folio) €40
Land Registry fee (mortgage) €175
Commissioner for Oaths €44
Search fees (estimate) €150
GRAND TOTAL including VAT €2546

So you agree that 5/6k likely include stamp duty?

averagejoe123

Have you seen any properties/areas that you would like? How much are they?

You should have no issue getting 3.5 times your current combined salaries (including your allowances) if you have a clean ICB and no other debt.

ozbackineire

Prospector1989 wrote: »

Was thinking that myself. Maybe that's including stamp duty as I don't see it mentioned?

sorry yes included Stamp duty, should have clarified that!

sarahzxe

averagejoe123 wrote: »

Have you seen any properties/areas that you would like? How much are they?

You should have no issue getting 3.5 times your current combined salaries (including your allowances) if you have a clean ICB and no other debt.

Yes clear ICB ,we both have car loans 350 per month combined. We saw house we love for 340k but not sure if we would get approved that much. Bit early for us too look 😲Any idea in what circumstances to banks approve 4 times salary?

bri007

Garda and nurse is safe job and I wouldn’t see a problem getting an exemption, again every application is different but if your combined income is 80k plus I would imagine you would get one based on similar circumstances to ours.

sarahzxe wrote: »

Yes clear ICB ,we both have car loans 350 per month combined. We saw house we love for 340k but not sure if we would get approved that much. Bit early for us too look 😲Any idea in what circumstances to banks approve 4 times salary?

averagejoe123

sarahzxe wrote: »

Yes clear ICB ,we both have car loans 350 per month combined. We saw house we love for 340k but not sure if we would get approved that much. Bit early for us too look ��Any idea in what circumstances to banks approve 4 times salary?

No harm in having a chat with the banks now. All can be done over the phone in the preliminary stages before submitting a mortgage application.

Each banks have different criteria for how they deal with non standard earnings. I found Ulster Bank the most flexible in my process but others may be willing to consider the extra 10k each p/a as earnings provided you have proof from previous years. The mortgage market is competitive at the moment which is good for borrowers so there is no need at all to be reluctant to talk to them.

A 340k mortgage over 30 years will cost you roughly €1,450 a month. You are showing repayment capacity of €1,950 via rent and savings so even when stress tested you should be fine.

Ghetofarmulous

averagejoe123 wrote: »

Fair play on doing up the table. What term are you looking at for these calculations?

I did these calculations on a 23 year term if I remember. But my calculator can be changed to suit.

Monife wrote: »

This is extremely helpful. Have you got the Excel file?

I do have the excel File. How do I share a file on Boards?

Monife

Ghetofarmulous wrote: »

I do have the excel File. How do I share a file on Boards?

There is a button to attach files when you post, that might work, or possibly PM? Thanks

Ghetofarmulous

Monife wrote: »

There is a button to attach files when you post, that might work, or possibly PM? Thanks

Thats sound. give me a day as I am not on my personal computer which has the file. The only thing is you might have to check for the latest interest rates however, this doesn't take that long and I might just update the spreadsheet myself before I send it too you.

Thargor

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

AlmightyCushion

Thargor wrote: »

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

You could certainly do it better. You're better off having a set amount leave your account every month and into a separate savings account. The amount shouldn't change and you should never dip into this savings account. You want to make it as easy as possible for the bank to give you a mortgage and your savings history and affordability is a big part of that. Having a set amount going in to a savings account at the same time every month and leaving it there makes that a lot easier for them.