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

Samuel T. Cogley

myshirt wrote: »

No. Definitely not.

A friend has just got a similar approval on a similar salary - it all depends on the surrounding circumstances. There is no harm in asking.

RachBrissie

Hi all, been following this thread with interest over the past few months. Partner and I have received AIP and have found property we are interested in and intend to place an offer. Thinking it's time to get a solicitor in place, we are based in North Dublin.

Any suggestions for good solicitors would be very welcome, please PM me!

An Ri rua

Does anyone know, apart from a self build if there's any way to leverage the ownership of agricultural land in improving your mortgage application? E.g. bank uses it as collateral?

L1011

An Ri rua wrote: »

Does anyone know, apart from a self build if there's any way to leverage the ownership of agricultural land in improving your mortgage application? E.g. bank uses it as collateral?

No standard mortgages work on that basis anymore. Central Bank LTI and LTV rules cannot either so you'd be looking at an exemption on one/both even if you found a bank willing to.

tweety123456

I am looking for help regarding buying a house. Me and my partner are hoping to purchase in 2020. We will have a deposit of circa 350k and will hopefully buy a house for approx 450k. We are FTB, in our early 30s adn do not have children but hopefully in the future.

Should we spend all our savings on the house or take out a bigger mortgage and keep some money back?

Thanks in advance.

Interested Observer

tweety123456 wrote: »

I am looking for help regarding buying a house. Me and my partner are hoping to purchase in 2020. We will have a deposit of circa 350k and will hopefully buy a house for approx 450k. We are FTB, in our early 30s adn do not have children but hopefully in the future.

Should we spend all our savings on the house or take out a bigger mortgage and keep some money back?

Thanks in advance.

I don't really think anyone can answer this for you, it's down to your own circumstances.

Do you need to keep some of the money in reserve for anything, if you do are you happy to pay the extra on your mortgage, do you want to extend the house, do you plan to have kids soon etc etc. Personally if I had a deposit that size I wouldn't be putting all of it into the house but that's just me.

The_Fitz

We aren't considered first time buyers are we? I know FF tried to lobby for a change to this for folk returning home (sometime last year).

We own a house in England, and are both returning home to Dublin this month. We will be renting and saving for a deposit. We can't take advantage of FTB can we?

Frank Castle

The_Fitz wrote: »

We aren't considered first time buyers are we? I know FF tried to lobby for a change to this for folk returning home (sometime last year).

We own a house in England, and are both returning home to Dublin this month. We will be renting and saving for a deposit. We can't take advantage of FTB can we?

Depends on your timeline.
If you rent and save for over a year (maybe more even) then the odds are the bank will not go that far back in your history.

If you look to buy quickly, then they will also want to see your UK history and that might affect your eligibility for FTB. (Probably will affect it tbh)

My friend did the same as you, but it took them 2 years to save the deposit and then they applied. They were never asked about their UK background so it never came up that they already owned a house. And they purchased as a FTB.

Edit: they also used revolut for all their UK transactions. Don't know if this made a difference, but it did mean that the bank couldn't see a flow of money cross border from their account.

GingerLily

The_Fitz wrote: »

We aren't considered first time buyers are we? I know FF tried to lobby for a change to this for folk returning home (sometime last year).

We own a house in England, and are both returning home to Dublin this month. We will be renting and saving for a deposit. We can't take advantage of FTB can we?

"What is the definition of a first-time buyer (FTB)?
A first time buyer is defined as a borrower to whom no housing loan has ever before been advanced.
Where the borrower under a housing loan is more than one person and one or more of those
persons has previously been advanced a housing loan, none of those persons is a first-time buyer.
This definition of FTB is aligned to the Revenue definition. The flexibility given by the proportionate
limits is in place to allow lenders to make decisions based on an individual borrower’s circumstances
up to a specific limit. "
-CBI

It doesn't sound like you qualify if you had bought a property with a Mortgage in the UK

KingCong

tweety123456 wrote: »

I am looking for help regarding buying a house. Me and my partner are hoping to purchase in 2020. We will have a deposit of circa 350k and will hopefully buy a house for approx 450k. We are FTB, in our early 30s adn do not have children but hopefully in the future.

Should we spend all our savings on the house or take out a bigger mortgage and keep some money back?

Thanks in advance.

Assuming you're going for same price house with either option, go with BOI/EBS/PTSB for cashback, get as large a mortgage as bank will give to maximise the cashback, go variable, after a month or two when you get the 2% cashback, pay off a lump sum with your savings to whatever level you're comfortable with, either fix for better rate or switch to bank like UB or KBC for an even better rate. I'd keep at least 50k back personally for rainy day fund etc.

Well done you're in an excellent position!

The_Fitz

GingerLily wrote: »

"What is the definition of a first-time buyer (FTB)?
A first time buyer is defined as a borrower to whom no housing loan has ever before been advanced.
Where the borrower under a housing loan is more than one person and one or more of those
persons has previously been advanced a housing loan, none of those persons is a first-time buyer.
This definition of FTB is aligned to the Revenue definition. The flexibility given by the proportionate
limits is in place to allow lenders to make decisions based on an individual borrower’s circumstances
up to a specific limit. "
-CBI

It doesn't sound like you qualify if you had bought a property with a Mortgage in the UK

Thanks for that - looks like we're out of luck.

GingerLily

The_Fitz wrote: »

Thanks for that - looks like we're out of luck.

Are you looking for the lower deposit threshold? You might get away with it, and banks can offer exemptions to the LTV thresholds anyway, I think the LTI exemptions are harder to get then the LTV exemptions for non-FTB, provided you've a 10% deposit

The_Fitz

GingerLily wrote: »

Are you looking for the lower deposit threshold? You might get away with it, and banks can offer exemptions to the LTV thresholds anyway, I think the LTI exemptions are harder to get then the LTV exemptions for non-FTB, provided you've a 10% deposit

Yeah, we'd be looking for a 10% LTV, after saving for 18-24 months.

If that's the case then it provides a bit of hope for us. Viewed a couple of places to rent at the weekend, Jesus the price. Never thought I'd look back at what I paid in rent in London fondly.

GingerLily

The_Fitz wrote: »

GingerLily wrote: »

Are you looking for the lower deposit threshold? You might get away with it, and banks can offer exemptions to the LTV thresholds anyway, I think the LTI exemptions are harder to get then the LTV exemptions for non-FTB, provided you've a 10% deposit

Yeah, we'd be looking for a 10% LTV, after saving for 18-24 months.

If that's the case then it provides a bit of hope for us. Viewed a couple of places to rent at the weekend, Jesus the price. Never thought I'd look back at what I paid in rent in London fondly.

If you're a good credit risk the bank will make an exemption for you.

Renting is extortionate, it was cheaper to buy a three bed semi D than rent a one bed for us, that's just ridiculous!

The_Fitz

GingerLily wrote: »

If you're a good credit risk the bank will make an exemption for you.

Renting is extortionate, it was cheaper to buy a three bed semi D than rent a one bed for us, that's just ridiculous!

Crazy.

What you've said is something I should maybe look into. It would save a fortune even in the first three years if we were able to purchase now.

mur223

Has anyone been approved a mortgage and within the 6months changed jobs? I am wondering when you go to drawdown the mortgage will the banks ask me to resubmit all my current accounts/payslips?

Has Anyone been in a similar situation? What do they look for when drawing down the mortgage?

thanks

anonymous11111

Has anyone experience with getting a mortgage for two people while one of them operates a cash business? This means that while revenue shows tax payments on income declared, the cash does not actually show on said person's bank account.

GingerLily

mur223 wrote: »

Has anyone been approved a mortgage and within the 6months changed jobs? I am wondering when you go to drawdown the mortgage will the banks ask me to resubmit all my current accounts/payslips?

Has Anyone been in a similar situation? What do they look for when drawing down the mortgage?

thanks

You can loose approval if they find out, it's a big gamble

tweety123456

KingCong wrote: »

Assuming you're going for same price house with either option, go with BOI/EBS/PTSB for cashback, get as large a mortgage as bank will give to maximise the cashback, go variable, after a month or two when you get the 2% cashback, pay off a lump sum with your savings to whatever level you're comfortable with, either fix for better rate or switch to bank like UB or KBC for an even better rate. I'd keep at least 50k back personally for rainy day fund etc.

Well done you're in an excellent position!

This sounds like a great idea! Will check it out! Thank you!

mur223

GingerLily wrote: »

You can loose approval if they find out, it's a big gamble

Hi Gingerlily, Yes that's true, that's the issue I would lose it either way by the sounds of it! If I was to declare I had a new job the probation period would be an problem for them!

TheShow

mur223 wrote: »

Has anyone been approved a mortgage and within the 6months changed jobs? I am wondering when you go to drawdown the mortgage will the banks ask me to resubmit all my current accounts/payslips?

Has Anyone been in a similar situation? What do they look for when drawing down the mortgage?

thanks

You will only need to provide up to date documents if it is a condition on you letter of offer from the bank. If you drawdown the mortgage within the 6 months from offer letter issue then there should be no requirement for any further documents unless there are conditions requiring same.

If your approval expires, you will need to go for reapproval and you will then have to supply up to date documents, at which point the fact that you've changed jobs will then become a problem and you may lose your mortgage approval altogether as most banks will require you to have probation period completed. But there has been instances posted here where the probation has not been an issue.

TheShow

anonymous11111 wrote: »

Has anyone experience with getting a mortgage for two people while one of them operates a cash business? This means that while revenue shows tax payments on income declared, the cash does not actually show on said person's bank account.

The bank will require at least 2 years financial accounts for the business along with bank statements.

it could raise an eyebrow if there is very little activity on the bank statements.

laserlad2010

Contracts signed and exchanged with 10% deposit paid.

Had hoped for a drawdown date of this coming Friday but might be pushed to next week as bank get their act together.

Almost there!! Went sale agreed 21st December...

benjamin d

If I have full use of a company vehicle (and pay no tax, insurance, or diesel) will banks take this into account using the revenue calculation of the benefit being worth 30% of the original market value of the vehicle, therefore adding a few thousand euro to my eligible salary?

Use of the vehicle is not declared as BIK as far as I'm aware...

Natashaw88x

benjamin d wrote: »

If I have full use of a company vehicle (and pay no tax, insurance, or diesel) will banks take this into account using the revenue calculation of the benefit being worth 30% of the original market value of the vehicle, therefore adding a few thousand euro to my eligible salary?

Use of the vehicle is not declared as BIK as far as I'm aware...

PTSB wouldn’t take this into account for my partner. He has the exact same set up and it wasn’t taking into consideration at all.

el Fenomeno

benjamin d wrote: »

If I have full use of a company vehicle (and pay no tax, insurance, or diesel) will banks take this into account using the revenue calculation of the benefit being worth 30% of the original market value of the vehicle, therefore adding a few thousand euro to my eligible salary?

Use of the vehicle is not declared as BIK as far as I'm aware...

I very much doubt it.

Salary is considered in order to assess your ability to meet your mortgage repayments.

Having a company car has no impact on your ability to make these payment (apart from the money you save on tax/insurance etc).

Open to correction though.

TheShow

benjamin d wrote: »

If I have full use of a company vehicle (and pay no tax, insurance, or diesel) will banks take this into account using the revenue calculation of the benefit being worth 30% of the original market value of the vehicle, therefore adding a few thousand euro to my eligible salary?

Use of the vehicle is not declared as BIK as far as I'm aware...

doubtful, why would they. its not an additional income.

benjamin d

KBC have also just told me it's not eligible, thanks all.

big syke

el Fenomeno wrote: »

I very much doubt it.

Salary is considered in order to assess your ability to meet your mortgage repayments.

Having a company car has no impact on your ability to make these payment (apart from the money you save on tax/insurance etc).

Open to correction though.

Exactly.

I suppose it's the same idea of owning a car worth 35k with no finance on it.

Sure the asset is worth 35k but it wont help with mortgage affordability.

ELM327

TheShow wrote: »

doubtful, why would they. its not an additional income.

However it will show in your P60, the notional income, that you pay BIK on.