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

amcalester

yaboya1 wrote: »

Not quite nothing. She'll own half the house!

More like she’ll owe half the debt.

yaboya1

amcalester wrote: »

More like she’ll owe half the debt.

That's the gamble

I don't think a deal like this is good for either party though. Try find another way to do this of possible.

Humour Me

The bank is very unlikely to allow you to move the mortgage to your own name. Why take the risk on one person making repayments when the mortgage contract is with two people?

Phileas Frog

Your friend has a thread already... https://touch.boards.ie/thread/2057965932/

Spleerbun

Phileas Frog wrote: »

Your friend has a thread already... https://touch.boards.ie/thread/2057965932/

Wow, not her but interesting to see others having similar enquiries. Also interesting that all the replies to that seem to think that only one party in the hypothetical arrangement is taking any risk.

Either way don't think there was a single positive response to the idea so doesn't look like a runner anyway

SpaceRocket

Went to an open viewing last week of a house newly for sale. The next day received a phone call from the selling agent asking if we would like to make an offer, apparently an offer of the asking price had already been made. Just wondering if this is common practice? Why would they be phoning everyone who viewed the house if an offer of asking price had already been made? The skeptical side of me thinks it is a ploy to get offers in. For context, it is only up for about two weeks, is overpriced compared to similar properties in the area, and the viewing was not busy. Thanks!

zreba

Estate Agents are making up fake offers to create an urgency feeling and to put a pressure on the buyer. Nothing new here.

Sarn

Houses often go up with asking prices below what the seller will accept. The idea is to create interest and a bidding war. I’ve seen this tactic work very well for some houses that went up asking at least 10% below recent selling prices end up going for 20% over asking. The asking tends in some cases tend to be unrealistic, creating queues of interested buyers out the door.

Interested Observer

SpaceRocket wrote: »

Went to an open viewing last week of a house newly for sale. The next day received a phone call from the selling agent asking if we would like to make an offer, apparently an offer of the asking price had already been made. Just wondering if this is common practice? Why would they be phoning everyone who viewed the house if an offer of asking price had already been made? The skeptical side of me thinks it is a ploy to get offers in. For context, it is only up for about two weeks, is overpriced compared to similar properties in the area, and the viewing was not busy. Thanks!

Because someone might be willing to pay more than the asking price clearly. Lots of second hand houses sell for above asking. Yes it is common practice to ring around people who attend viewings, and of course they're trying to get offers in, that's their job. I don't see what the issue is tbh.

zreba wrote: »

Estate Agents are making up fake offers to create an urgency feeling and to put a pressure on the buyer. Nothing new here.

There's nothing in the post above to suggest this might have happened.

el Fenomeno

Say there's 2 providers, and you're comparing their Fixed Rate offers:

Bank 1:
5 Years Fixed @ €1400
Remainder Variable @ €1700

Bank 2:
5 Years Fixed @ €1500
Remainder Variable @ €1600

How much weight do you give the Variable Rate that you revert to after the fixed term, given the different factors at play? (not knowing what IRs will be in 5 years, not knowing whether Bank 2 will still be better than Bank 1, knowing that you can switch providers and fix again, but also knowing that if there's a crash then switching might not be easy etc.)

Just wondering what the important criteria for others is? Is it a safe middle ground to look for someone who has good combination of fixed and variable rates (but not necessarily the best in one or the other)?

awec

el Fenomeno wrote: »

Say there's 2 providers, and you're comparing their Fixed Rate offers:

Bank 1:
5 Years Fixed @ €1400
Remainder Variable @ €1700

Bank 2:
5 Years Fixed @ €1500
Remainder Variable @ €1600

How much weight do you give the Variable Rate that you revert to after the fixed term, given the different factors at play? (not knowing what IRs will be in 5 years, not knowing whether Bank 2 will still be better than Bank 1, knowing that you can switch providers and fix again, but also knowing that if there's a crash then switching might not be easy etc.)

Just wondering what the important criteria for others is? Is it a safe middle ground to look for someone who has good combination of fixed and variable rates (but not necessarily the best in one or the other)?

I wouldn't give much weight to what the variable will be when the fixed expires when you're talking about a 5 year term.

1. We have no idea what variable rates will be in 5 years
2. You can change banks if there are lower rates elsewhere, if there aren't lower rates elsewhere then you're already on the best deal you can get.
3. You can fix again at that point if you want

TheShow

Spleerbun wrote: »

Not sure if this is the best place to ask this but here goes:

In the near future I'll likely start looking to buy a property - house/apt, not looked into it in any huge detail yet.

While i wont have an issue with a deposit, i will almost certainly need to double up salary wise with another person. I'm currently single.

One idea i have considered is buying a house with a close friend. The deposit will be 100% my money, as would all mortgage repayments, she would be involved simply for the wage multiplier - no other involvement.

My friend is not irish but is from the EU. She wont be in Ireland forever and doesnt want to buy here, so on her end there won't be an issue down the line of wanting to buy herself and suddenly needing a 20% deposit as a STB instead of 10%. However on my end I'm wondering what specific risks im exposing myself to.

Obviously theres the small chance we have a falling out (unlikely but stranger things have happened) and she decides to claim a stake in the house. Does anyone have any idea how this would this play out legally? Her name would be on the mortgage but she wouldn't have contributed at all - what would she be entitled to here? Would i risk having to actually buy her out of a property she put nothing in to?

On a similar line of thought, once the mortgage is taken out and the house brought, can it be transferred into one name? Would that have to wait until the mortgage was paid off? Are there any tax implications or and other pitfalls or complications in terms or transferring deeds from joint names into one?

Apologies as im sure most if not all of these are very basic and maybe naive questions, but sure gotta start somewhere! Thanks

This is not really a workable solution.

The other party would be jointly and severally liable for the mortgage and also have a 50% share in the title of the property.
The bank will not agree to amend the mortgage to a sole mortgage after payout as based on your current income, I assume meeting the banks affordability criteria will be an issue.

They may be willing to amend the title of the property to sole names, but why would your friend agree to this when she would be jointly & severally liable for the mortgage debt without the benefit of having recourse to the asset.
If the bank did agree to this, it would be subject to her receiving independent legal advice on the matter, and no solicitor in their right mind would advise anyone to go along with this.

el Fenomeno

Does anyone know if the PTSB 2% cashback offer (the lump sum 2% on drawdown, not the 2% monthly) is refundable if you switch provider after your fixed term?

ILikeBoats

el Fenomeno wrote: »

Does anyone know if the PTSB 2% cashback offer (the lump sum 2% on drawdown, not the 2% monthly) is refundable if you switch provider after your fixed term?

No, they can't claw that back

big syke

Anyone have a surveyor recommendation in South Dublin? Have a few names but all are busy for the next 2-3 weeks !

averagejoe123

big syke wrote: »

Anyone have a surveyor recommendation in South Dublin? Have a few names but all are busy for the next 2-3 weeks !

PM sent

Woshy

Has anybody any experience as a second time buyer? We are selling our first house and then later in the year we're hoping to buy another property (we're living with family atm). We should get about 140k equity from the sale of the house.

How strict do the banks look at your saving history etc if you are not a FTB? Obviously we are also saving but the bulk of the money for the new house is from the equity from the house we're currently selling. We have a big trip later in the year for a family wedding and that will be paid for using our savings and I'm concerned that will cause issues with getting a mortgage

averagejoe123

Woshy wrote: »

Has anybody any experience as a second time buyer? We are selling our first house and then later in the year we're hoping to buy another property (we're living with family atm). We should get about 140k equity from the sale of the house.

How strict do the banks look at your saving history etc if you are not a FTB? Obviously we are also saving but the bulk of the money for the new house is from the equity from the house we're currently selling. We have a big trip later in the year for a family wedding and that will be paid for using our savings and I'm concerned that will cause issues with getting a mortgage

You could withdraw the money for the holiday today and carry on saving a regular amount for the next 6 months. Come September you can submit a mortgage application and the drop in savings wont be on it.

Woshy

averagejoe123 wrote: »

You could withdraw the money for the holiday today and carry on saving a regular amount for the next 6 months. Come September you can submit a mortgage application and the drop in savings wont be on it.

We don't have enough saved currently so it will require a couple more months of putting money away. I was hoping they may be less strict on the savings thing if you are not a ftb

TheShow

Woshy wrote: »

Has anybody any experience as a second time buyer? We are selling our first house and then later in the year we're hoping to buy another property (we're living with family atm). We should get about 140k equity from the sale of the house.

How strict do the banks look at your saving history etc if you are not a FTB? Obviously we are also saving but the bulk of the money for the new house is from the equity from the house we're currently selling. We have a big trip later in the year for a family wedding and that will be paid for using our savings and I'm concerned that will cause issues with getting a mortgage

will be fine.
most STB are in the same boat, in that most of your contribution will be from the equity in the house you are selling. If you are saving ontop of that, should be a no brainer, as a long as you meet the usual criteria.

Wbd1989

Anyone come across a bank requesting a PCP loan to be cleared before the mortgage can be drawn down? Just received our mortgage and one of the conditions is that the PCP loan is cleared in advance?

Julez

Wbd1989 wrote: »

Anyone come across a bank requesting a PCP loan to be cleared before the mortgage can be drawn down? Just received our mortgage and one of the conditions is that the PCP loan is cleared in advance?

Is it KBC? They asked the same of me. I am getting an exception to 3.5, so maybe that's why they wanted it cleared.

Wbd1989

Julez wrote: »

Is it KBC? They asked the same of me. I am getting an exception to 3.5, so maybe that's why they wanted it cleared.

No PTSB. Also have an exception so may be why. Trying to get it removed as it doesn't make sense to clear it and we are also saving well above the stress tested amounts so it's not an issue of repayment ability.

wally79

Woshy wrote: »

We don't have enough saved currently so it will require a couple more months of putting money away. I was hoping they may be less strict on the savings thing if you are not a ftb

Put the holiday money in a separate account each month so that you don’t look like you are dipping into your main savings account

Frank Castle

Wbd1989 wrote: »

No PTSB. Also have an exception so may be why. Trying to get it removed as it doesn't make sense to clear it and we are also saving well above the stress tested amounts so it's not an issue of repayment ability.

Went with PTSB myself and they gave us a mortgage even though we had just taken out a PCP 2 months previously (and a personal loan a few months prior to that). Not sure why they would require this if you pass the affordability tests

Edit: we did get an exception but did not use it, so that may be the reason I guess

Julez

Guess it all depends on the level of your exception, how much your repayments will be and how much their calculations require you to have in terms of repayability. Lets just say they expect you to have repayment capacity of €2000, your currently at €1800 but have a 3 year car loan of €300 a month. They would want you to drop that and bring your repayment capacity up to €2100 before mortgage drawdown. I may be completely wrong, but I'm guessing thats the case.

Julez

Guess it all depends on the level of your exception, how much your repayments will be and how much their calculations require you to have in terms of repayability. Lets just say they expect you to have repayment capacity of €2000, your currently at €1800 but have a 3 year car loan of €300 a month. They would want you to drop that and bring your repayment capacity up to €2100 before mortgage drawdown. I may be completely wrong, but I'm guessing that's the case.

Interested Observer

Some questions about mortgage switching:

Does the ratio of interest vs capital change with the new lender, i.e. interest gets front-loaded again with the new lender?
How does the 3.5x income rule work, is it still on the original amount initially borrowed or on the balance of the mortgage?
Can you renegotiate your term with the new lender or do you stick to whatever term you had before?
Roughly how much does it cost in legal fees etc?
Anything else in general to look out for?

Woshy

wally79 wrote: »

Put the holiday money in a separate account each month so that you don’t look like you are dipping into your main savings account

That could be a good idea - thanks!

TheShow wrote: »

will be fine.
most STB are in the same boat, in that most of your contribution will be from the equity in the house you are selling. If you are saving ontop of that, should be a no brainer, as a long as you meet the usual criteria.

Thank you. I'm presuming we are good candidates for another mortgage. A decent combined income (well over 100K) and no other loans or monthly costs apart from childcare and the usual bills. Just not looking forward to going through the whole process again tbh so starting to think about it now!

TheShow

Interested Observer wrote: »

Some questions about mortgage switching:

Does the ratio of interest vs capital change with the new lender, i.e. interest gets front-loaded again with the new lender?
How does the 3.5x income rule work, is it still on the original amount initially borrowed or on the balance of the mortgage?
Can you renegotiate your term with the new lender or do you stick to whatever term you had before?
Roughly how much does it cost in legal fees etc?
Anything else in general to look out for?

Interest does not get front loaded on a mortgage, it is compounded on a monthly basis.
Afaik, central bank rules are not applicable to switcher mortgages.
The term of the mortgage can be amended depending on the parameters of the new lenders.
Not 100% sure on the legal fees, but some banks offer to pay them on switchers.