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

Mushy

Been a fun 5-6 weeks. Saw house (new build), booking deposit down, then juggling mortgage application and Revenue for HTB. Got informed this week that letter of offer will be issued by AIB once some details confirmed (term, rates, address). Solicitor had contracts since last week.

Looking good for July/August move date, don't think much can delay it. Saw house today, kitchen was measured out before we arrived, so it's that, final electrics, painting....and all the bank/solicitor stuff to finalise

Benzino

I've a few questions about looking for an exemption. Once you have AIP, to get an exemption you need to be sale agreed on a house before you can ask for it, right? Would you request the exemption yourself or via the solicitor? And finally, do you mention to the seller that the offer is subject to getting an exemption?

I'm sure it's been asked before so sorry about that but I'm on mobile and searching isn't returning anything.

Creamy Goodness

Differs bank to bank. AIB gave me an non-underwritten AIP with an exemption without knowing the property address. KBC required an address and full AIP to be issued.

No one but the bank and you need to know you’ve got an exemption. The only dealing the solicitor has with your bank is to draw funds they’re not a spokesperson for you to the bank.

Dolbhad

Benzino wrote: »

I've a few questions about looking for an exemption. Once you have AIP, to get an exemption you need to be sale agreed on a house before you can ask for it, right? Would you request the exemption yourself or via the solicitor? And finally, do you mention to the seller that the offer is subject to getting an exemption?

I'm sure it's been asked before so sorry about that but I'm on mobile and searching isn't returning anything.

Think it depends on the bank. AIB gave us the exemption on AIP. Think Ulster bank depends on the House itself but I didn’t get AIP with them as I went straight to loan offer with Ulster Bank.

We applied for exemption with our mortgage broker. Told them I wanted to get as much money as possible and we got it. Solicitor has nothing to do with it. I never told auctioneers as banks told me once AIP issued the funds would be ringfenced unless circumstances change so wasn’t worried about not getting it.

I find exemptions just depend really on the bank. The amount we got varied - AIB gave 3.7 and Ulster Bank 4 times. We have a nice chunk of savings but would be on a combined salary of 60k between us so does show you don’t need to be big earners to get it. But I find it depends on your jobs and if the bank like your roles.

Benzino

Thanks all, I will get in touch with the bank and see what they say.

zweton

I prob know the answer to this already but potentially looking to get a mortgage in 12 months time. I need a car but want something decent, was going to try for a 20k loan. Could I be denied a mortgage because of this loan?

Creamy Goodness

zweton wrote: »

I prob know the answer to this already but potentially looking to get a mortgage in 12 months time. I need a car but want something decent, was going to try for a 20k loan. Could I be denied a mortgage because of this loan?

Depends on your income, however the bank will take whatever the monthly payment of the loan for the car and factor it into your affordability.

20k loan for a car whilst you’re about to make the biggest purchase of your life is a bit worrisome. You can get some real nice comfortable cars for half what you’re thinking of and possibly have it paid off before you go for the mortgage or at least be in there hone stretch of paying off the car loan.

zweton

Creamy Goodness wrote: »

Depends on your income, however the bank will take whatever the monthly payment of the loan for the car and factor it into your affordability.

20k loan for a car whilst you’re about to make the biggest purchase of your life is a bit worrisome. You can get some real nice comfortable cars for half what you’re thinking of and possibly have it paid off before you go for the mortgage or at least be in there hone stretch of paying off the car loan.

Combined income would be 115k, i guess i could ask the question in the bank to see what they would say.

Phileas Frog

zweton wrote: »

Combined income would be 115k, i guess i could ask the question in the bank to see what they would say.

Income doesn't really matter, it's the affordability after the mortgage payments come out is what will decide it

sp00k

zweton wrote: »

Combined income would be 115k, i guess i could ask the question in the bank to see what they would say.

FWIW I had a car loan that had 4k left on it, which I paid €280 per month off. It drastically reduced the amount I could borrow with some lenders, and it didn't with others. Mind you I was a single applicant. I ended up having to clear it.

zweton

sp00k wrote: »

FWIW I had a car loan that had 4k left on it, which I paid €280 per month off. It drastically reduced the amount I could borrow with some lenders, and it didn't with others. Mind you I was a single applicant. I ended up having to clear it.

Mind me asking what lenders were ok with it?

Dolbhad

zweton wrote: »

Combined income would be 115k, i guess i could ask the question in the bank to see what they would say.

We had an existing car loan. Only 2-3k left on it. We got an exemption to policy with AIB who had no problem with then car loan. Ulster Bank wouldn’t give reduced what we could borrow by 32k over the loan so we said we’d pay it off before drawdown and it was a condition in loan offer. I’d take out a small car loan and be prepared to pay it off if needs be.

Interested Observer

I had a car on PCP and a personal loan and neither KBC nor BOI seemed to care.

kilburn

It all comes back to your ability to pay your mortgage, bills and loans shouldn't come to more than 50% of your net income

Not sure if that is the correct figure but there is a rule around it

dudara

End of the day, it’s all about ability to repay without stretching yourself. You could have 5 loans, but if you have cash flow to service them, as well as the mortgage, and have enough left over to live on, then you’ll get the mortgage.

sp00k

zweton wrote: »

Mind me asking what lenders were ok with it?

EBS were fine with the loan. Ulster Bank would not offer the full amount unless I pledged to clear it.

Those are the only 2 I went the distance with but Permanent TSB and AIB didn't seem to care either.

Of course as other posters pointed out it all depends on your own circumstances, but Ulster Bank seem to be a lot stricter than others.

zweton

Thanks folks should be good so

hairyprincess

Am I right in saying that mortgage providers like applicants to be in employment for two years? If so, is that continuous employment with the same company or does it matter if you have changed jobs?

pnecilcaser

hairyprincess wrote: »

Am I right in saying that mortgage providers like applicants to be in employment for two years? If so, is that continuous employment with the same company or does it matter if you have changed jobs?

Continuous employment in the same place would be looked at more favourably because, if you changed jobs, it means there is a P45 rather than a P60 (even though P60's no longer exist from this year onwards) and you need to be in a job for 12 months or have a permanent contract.

Interested Observer

hairyprincess wrote: »

Am I right in saying that mortgage providers like applicants to be in employment for two years? If so, is that continuous employment with the same company or does it matter if you have changed jobs?

I don't think that's the case no. If you're on probation you will probably not be able to draw down, but I got approval from a few banks having been with my company for 6 months.

zweton

Interested Observer wrote: »

I don't think that's the case no. If you're on probation you will probably not be able to draw down, but I got approval from a few banks having been with my company for 6 months.

yip have heard the same, they got one before 6 mths. Said because they worked in i.t theres no problem!

hairyprincess

That’s very positive. Thanks.

Dolbhad

pnecilcaser wrote: »

Continuous employment in the same place would be looked at more favourably because, if you changed jobs, it means there is a P45 rather than a P60 (even though P60's no longer exist from this year onwards) and you need to be in a job for 12 months or have a permanent contract.

I had changed roles in my company and it was no issue. I had a pay increase so I was seeking a mortgage on that. But didn’t have 6 months payslips on the new wage so they just said underwriter may put a condition on the loan offer that I need 6 months payslips at new wage for drawdown. Thinks it’s seem if in probation. They would put a clause in that you have to before past the probation period on drawdown

skippy123!

I am looking into getting a joined mortgage with my "new" (together for years but not married to) partner but I am still not officially divorced. Would a bank issue approval in principle without divorce papers? Was thinking of seeing how much I would be approved for and I wouldn't take it before actual proceedings are completed. Is that possible?

Phileas Frog

skippy123! wrote: »

Would a bank issue approval in principle without divorce papers?

Not unless you have a Deed of Waiver.

Tipsy McSwagger

The bank I’m going with told me they would get a local company to do a valuation of the new build I’m buying. The local company said I have to pay the fee of €150. Is this right? I thought the bank payed it.

el Fenomeno

Tipsy McSwagger wrote: »

The bank I’m going with told me they would get a local company to do a valuation of the new build I’m buying. The local company said I have to pay the fee of €150. Is this right? I thought the bank payed it.

Some do, some don't.

TSB don't as far as I know.

GingerLily

Tipsy McSwagger wrote: »

The bank I’m going with told me they would get a local company to do a valuation of the new build I’m buying. The local company said I have to pay the fee of €150. Is this right? I thought the bank payed it.

I payed!

Tipsy McSwagger

el Fenomeno wrote: »

Some do, some don't.

TSB don't as far as I know.

That’s who I’m with, they never mentioned me paying

MissElle

Tipsy McSwagger wrote: »

The bank I’m going with told me they would get a local company to do a valuation of the new build I’m buying. The local company said I have to pay the fee of €150. Is this right? I thought the bank payed it.

I went with EBS and had to pay for mine. I also had to pay another 60 euro to get it “revalued” as I was buying a new build and it was more than 6 months since the original valuation when I went to draw down.....really annoyed me having to pay again!