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

D.Q

GingerLily wrote: »

You want to aim for 1.5k between savings and rent to get your max exemption.
It depends on what the stressed rate will be when you apply and what term your going for,if your going for an exemption though you need to be doing more than the bare minimum.

Paying rent to your parents in cash is a big problem.

Amirani wrote: »

You should pay this by bank transfer, on a regular basis, with an indicative name to the transaction. If you do this then the bank will consider it as part of your demonstrated repayment capacity. You need to have been doing it for a minimum of 6 months, same with your savings direct debit.

Paying cash won't cut it.

Ok thanks for the advice, happy I asked now. Again, I know down the line it could all be different, but, for now, change cash to regular bank transfers, and increase the savings to 1.2k a month-ish.

fungie

We put down a booking deposit on a new build at the weekend (woop). It won't be ready for about 6 months (currently only has a foundation). We are told that contracts will be issued in the next 2 weeks.

Do we contact banks now saying buying this house in anticipation of the contracts or what is the procedure?

My partner is also out of the country and won't be able to sign anything until mid May. Has anybody had to deal with anything like this, not sure what to do.

swarmberg

D.Q wrote: »

Hey guys,

Will be a single applicant, earning aprox 45k per year. Doing some preliminary mortgage calculators on the main bank's sites. Is there any reason that permanent tsb seem to offer way more than the other banks? PTSB offering 240k, AIB,BOI offering 180k. This obviously translates to huge differences in the quality of houses I could realistically be thinking about buying.

I was in touch with PTSB recently and told for a joint application you would need a combined income of a minimum of 70k to qualify for an LTI exemption. For a single applicant I'd imagine its in and around 50k to qualify so no harm in getting in contact with them to check exactly.

scheister

swarmberg wrote: »

I was in touch with PTSB recently and told for a joint application you would need a combined income of a minimum of 70k to qualify for an LTI exemption. For a single applicant I'd imagine its in and around 50k to qualify so no harm in getting in contact with them to check exactly.

for no other reason then i am bored i decided to plug my figures into the PTSB calculator. it giving me 4 times my salary for a 25 year plus mortgage. I am a single applicant on 38k per year. But I have no commitments no dependents so that could help as well

averagejoe123

bigslick wrote: »

Would appreciate PM as well please

sent

mur223

hanaimai wrote: »

Banks have to let you know their decision within 10 business days of applying. Have they been in touch at all in that timeframe? The clock does pause if they require extra information etc.

I went with Ulster Bank last year and I don't recall any delays myself. I'd make a complaint if they're going over the timeframe requirements.

They did get back to us about 2 weeks ago regarding one week of my other halfs current account was left out! but our broker keeps saying they are trying to push our application through as we should be accepted no bother! very frustrating as we are in limbo now waiting to sign contracts and our solicitor has to keep pushing the builders off! but I have heard KBC get back to you pretty quickly so fingers crossed we will hear from both banks by the start of next week!

mur223

fungie wrote: »

We put down a booking deposit on a new build at the weekend (woop). It won't be ready for about 6 months (currently only has a foundation). We are told that contracts will be issued in the next 2 weeks.

Do we contact banks now saying buying this house in anticipation of the contracts or what is the procedure?

My partner is also out of the country and won't be able to sign anything until mid May. Has anybody had to deal with anything like this, not sure what to do.

We are in the middle of this process of buying a house off the plans also. The estate agents will require solicitors info etc and once your solicitor receives the contract you will have to sign within 21 days or unfortunately they will put the house back up for sale. I would advise getting in touch with a mortgage broker and they can get all the info you need and push your mortgage application through they know how to deal with the banks better than most! and try get approval asap. we were told by our broker we were an easy case but we hit a few bumps in the road through the application process and now our solicitor is trying to delay the builders solicitor saying we should have proof of mortgage approval shortly!
In the meantime when the final day of signing your contracts is up they will also request you transfer the remaining of the deposit over to your solicitor and your solicitor will transfer it to the builders. And if you havnt done so get your help to buy scheme asap so the builders can use that as part of your deposit! i hope i covered everything. maybe a solicitor could advise you more on the fact your partner wont be available to sign anything until mid may! might be able to delay with the builders solicitors for a few weeks!

mur223

Anyone go with KBC and can help with this question? We submitted the application yday for a new build ready this summer. I can see one of their requirements is that a valuation will have to be done before they give loan approval. We are buying off the plans so we need proof of approval for the builders solicitors. How can we give this if the valuation cant be carried out until the build is finished???

Any ideas?

el Fenomeno

mur223 wrote: »

Anyone go with KBC and can help with this question? We submitted the application yday for a new build ready this summer. I can see one of their requirements is that a valuation will have to be done before they give loan approval. We are buying off the plans so we need proof of approval for the builders solicitors. How can we give this if the valuation cant be carried out until the build is finished???

Any ideas?

Is there other houses already built in the development?

Banks tend to value new builds by looking at the plans, the site itself, similar prices in the area, existing houses in the development etc. They don't have to wait until your specific house is built necessarily.

mur223

el Fenomeno wrote: »

Is there other houses already built in the development?

Banks tend to value new builds by looking at the plans, the site itself, similar prices in the area, existing houses in the development etc. They don't have to wait until your specific house is built necessarily.

Yes other houses in the development are ready, thats good to hear. i was sure there was some way around it alright seeing as it is obviously a common practice for people to be buying off plans.

GingerLily

mur223 wrote: »

Anyone go with KBC and can help with this question? We submitted the application yday for a new build ready this summer. I can see one of their requirements is that a valuation will have to be done before they give loan approval. We are buying off the plans so we need proof of approval for the builders solicitors. How can we give this if the valuation cant be carried out until the build is finished???

Any ideas?

Banks will do two valuations, one will essentially reflect the value of the land and expected value of the house, and then before drawdown there is a second valuation. Banks are used to be builds, so don't worry about it

Glenbhoy

pmb wrote: »

This is fantastic information thank you for all your help.

Our combined income is €201,000 plus bonuses so we kind of thought that this would be enough which seems right. What I'm currently in the process of is cleaning the accounts. Since January I have been focusing on reducing outgoings and ensuring there is consistent savings to demonstrate the propensity to manage a 4k a month.

I suppose what is standing out is that an exemption won't necessarily work. There seems to be NO information of their availability. Last year I understand they were fully exhausted by May but this year there doesn't seem to be any information on when they would be used. Does it look likely to be the same?

Thanks
Paul

U don't need an lti, only ltv and they're relatively easy to come by for non ftb, there's no info on availability, as they are issued based on business done. The volume allowable is related to loans approved and advanced.
You'll need savings and there may be queries around the relatively low level of savings given income, wait the three months, keep accounts clean and you shouldn't have many issues, that's assuming income and jobs are stable etc

Bargain_Hound

Is it difficult to re-fix your mortgage (with the same provider) after the initial fixed period expires? Is it a similar process to re-applying for a mortgage in the first place?

averagejoe123

Very straightforward to do- Ask your bank about their rates and decide on a term

Bargain_Hound

Is it typical to have to go through an affordability check to re-fix? considering I might have changed to a lesser-paid job vs. when I originally took out the mortgage.

GingerLily

Bargain_Hound wrote: »

Is it typical to have to go through an affordability check to re-fix? considering I might have changed to a lesser-paid job vs. when I originally took out the mortgage.

No, they've already issued you the credit so as long as your term is the same you can refix with your bank without a credit assessment.

Cushtie

I havent had time to read the whole psot so apologies if this has been answered already.

We are looking to downsize and have a property in mind.

the property is approx €120,000 but have half of that in savings, so I'm looking for a mortgage of approx 60K. I already have a mortgage on my current house with an LTV of approx 50% 170/340 ish at approx 900 a month.

I have approached both BOI and KBC to get the 60K as a totally separate mortgage. both have come back saying no to a 2nd mortgage of 60K.

I don't want to sell my own house immediately until the other is bought so hoping to buy it outright then concentrate on selling. One I sell the I would be using the proceeds to extend and renovate and would probably end up with 60K Mortgage only or less even.

Am I approaching this all wrong? or is there some way I can get the bridging 60K

Thanks.

voluntary

Cushtie wrote: »

I havent had time to read the whole psot so apologies if this has been answered already.

We are looking to downsize and have a property in mind.

the property is approx €120,000 but have half of that in savings, so I'm looking for a mortgage of approx 60K. I already have a mortgage on my current house with an LTV of approx 50% 170/340 ish at approx 900 a month.

I have approached both BOI and KBC to get the 60K as a totally separate mortgage. both have come back saying no to a 2nd mortgage of 60K.

I don't want to sell my own house immediately until the other is bought so hoping to buy it outright then concentrate on selling. One I sell the I would be using the proceeds to extend and renovate and would probably end up with 60K Mortgage only or less even.

Am I approaching this all wrong? or is there some way I can get the bridging 60K

Thanks.

To meet the current CB rules, the loan can't be higher than 3.5x your income, so to get extra 60k, you'd need a minimum income of 66k and documented regular savings etc. If you meet these criteria then try other banks, but first I'd try the bank which you currently have your mortgage with.

Housebuyer2019

A condition of our AIP is that I complete my probation period, started the job 5 months ago so it will be up by next month, but our lender is pushing for me to ask HR for a probation completion letter before the actual offer - is this common? I don't want to draw attention to myself in work, but I equally don't want to stall the whole thing unnecessarily?

Had anyone else had the same issue?

Prospector1989

Letter of Offer/Loan Pack arrived with the solicitor today. (She's out of the office today unfortunately).
We're sorting Mortgage Protection and House Insurance as we speak.
We're already living in the house we're buying.

Just wondering what should we expect in term of the process over the next few days.
Will we be asked for any more documents etc?

TheShow

Bargain_Hound wrote: »

Is it typical to have to go through an affordability check to re-fix? considering I might have changed to a lesser-paid job vs. when I originally took out the mortgage.

no. just choose at your leisure.

mur223

Ulster bank declined our application as they wanted 5% of own funds towards our deposit. (16250k). We have 11k in savings at the moment. but we have more than enough as we got a gift of 20k off parents and very healthy current accounts with surplus of around 2k per month. plus HTB!! They did advise us we were short a few current statements which we have submitted now and it might rectify the situation! but they are just so slow!!! Our mortgage broker was shocked also they declined us. and wasnt aware 5% of own funds was a necessity. he is fighting our case.

We have now applied with KBC, broker said they wont insist of 5% of own funds. We should hear back monday or tues. Has anyone gone with KBC and needed 5% towards deposit yourself? Very anxious about it really want to get our offer letter over to solicitor soon!

Natashaw88x

mur223 wrote: »

Ulster bank declined our application as they wanted 5% of own funds towards our deposit. (16250k). We have 11k in savings at the moment. but we have more than enough as we got a gift of 20k off parents and very healthy current accounts with surplus of around 2k per month. plus HTB!! They did advise us we were short a few current statements which we have submitted now and it might rectify the situation! but they are just so slow!!! Our mortgage broker was shocked also they declined us. and wasnt aware 5% of own funds was a necessity. he is fighting our case.

We have now applied with KBC, broker said they wont insist of 5% of own funds. We should hear back monday or tues. Has anyone gone with KBC and needed 5% towards deposit yourself? Very anxious about it really want to get our offer letter over to solicitor soon!

I’m not with KBC but we were approved with PTSB with only 6k of our own money. 30k as gift plus 18k HTB. Total deposit needed was 36k, so we had no where near 5%. As far as I’m aware it’s not required once you meet the stress tests!

mur223

Natashaw88x wrote: »

I’m not with KBC but we were approved with PTSB with only 6k of our own money. 30k as gift plus 18k HTB. Total deposit needed was 36k, so we had no where near 5%. As far as I’m aware it’s not required once you meet the stress tests!

Thanks a mill, that eases my mind a bit! I think it all depends on the underwriter, luck of the draw! Our broker said even the mortgage rep he deals with in UB said she was sitting down with the underwriter to fight our corner! Very frustrating as they wont give us a yes or No now and its been 10days now since they came looking for the missing statements. Hopefully we will hear from KBC monday/tuesday! Ive heard they have a fast turnaround time!

Tipsy McSwagger

Anyone else can only dream of a cash gift?

myshirt

Tipsy McSwagger wrote: »

Anyone else can only dream of a cash gift?

Nope.

Roughly 8 out of 10 FTB's are estimated as having a gift, with most getting 20k-ish. Some get less. Some get more. And others have a combination of living at home in a high wage county and also getting a gift. Our CAT system is favourable to this.

All this means is property ownership as we go on is being concentrated into those with familial wealth / those that benefited from direct government intervention in the good times. Others will have to rent (and also pay the bill for the benefits given to the prior generation via direct government intervention / fiscal policy). This irks most ethnically Irish people right back to the famine because we like to carry our wealth in bricks and mortar rather than rent, especially when anyone around 30 now will have zero state pension when they get to 67. Zero. And no one talks about it.

How will they pay their rent?

They won't.

Ireland is changing a lot. We're not falling apart but we're just changing. I have confidence in the youth of this country though and yous will get there. Marriage equality, women's rights, you done it, and you will eventually rise up to take down the gravy train public sector milking you, the cushy transport unions, and the baby boomer / early genxer holding the wealth and patting themselves on the back believing it was all through personal effort. I'm one of them but a lot need to be hit with a heavy economics book in the face.

ruaneg

How are people finding the management fees for new build houses?

We've being told by our solicitor that the 750e annual fee for our new build 3 bed is excessively high. It includes bin charges and is in South Dublin.

Michellenman

myshirt wrote: »

Nope.

Roughly 8 out of 10 FTB's are estimated as having a gift, with most getting 20k-ish. Some get less. Some get more.

This can’t be true?! 80% is massive! In my group of friends I don’t think any of us got a cash gift from parents. All late twenties / early 30s living and working in Dublin.

fungie

Tipsy McSwagger wrote: »

Anyone else can only dream of a cash gift?

I recently put down deposit and I'm so glad we are paying for it fully ourselves with no assistance. Perhaps our folks could of helped us out if we asked but purposefully didn't (I suppose they indirectly helped pay by putting us through school and college etc).

I think that getting a massive hand out from your folks instead of saving yourself shows that you aren't independent. Also, it could come back to haunt you with "Remember when we paid most of your house deposit ...."

Plasmoid

mur223 wrote: »

Thanks a mill, that eases my mind a bit! I think it all depends on the underwriter, luck of the draw! Our broker said even the mortgage rep he deals with in UB said she was sitting down with the underwriter to fight our corner! Very frustrating as they wont give us a yes or No now and its been 10days now since they came looking for the missing statements. Hopefully we will hear from KBC monday/tuesday! Ive heard they have a fast turnaround time!

I had a bit of back and forth with KBC around statements and getting a specifically worded salary statements. After that, even though I expected the application to be quick (things weren't too complicated, at least from my perspective) they did take more than 10 days...
So I'd say for whatever reason, you're not in an unusual situation.