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

r93kaey5p2izun

Thanks so much for that Corruptedmorals. I'm quite an anxious person and the not knowing is stressful for me. Having an idea what to expect makes me feel a lot better. I don't want to look like an idiot.

prettyboy81

Signed on the dotted line yesterday for our new home & sale of our existing home. We went sale agreed beginning of May, so approx 12 weeks from start to finish. It's not so much the stress of the process, it's how little control you have even though you are footing the bills. My solicitor has been excellent to date handling both sale and purchase with linking them for closing dates, pre contract queries, etc.

Lucky we have family to move into for short time whilst we transition into our new home. It will be all done before the rugrats are back in school.

Gachla

I searched but couldn't find the answer to this. What if a couple applied for a mortgage with one of them in a full time, permanent position but the other was not in a permanent position but worked full time. Do you have to be permanent before you can apply?

Interested Observer

Gachla wrote: »

I searched but couldn't find the answer to this. What if a couple applied for a mortgage with one of them in a full time, permanent position but the other was not in a permanent position but worked full time. Do you have to be permanent before you can apply?

Yeah pretty much, was in this situation, I had to wait until I'd passed probation before we could draw down.

Gachla

Interested Observer wrote: »

Yeah pretty much, was in this situation, I had to wait until I'd passed probation before we could draw down.

Ok thanks, you had a 6 month probation?

Interested Observer

Gachla wrote: »

Ok thanks, you had a 6 month probation?

Yep 6 months. You can do everything, get full approval etc etc, just as long as drawdown comes after. Knowing it takes a long time to buy a house, we went sale agreed when I was about 4 months in my job knowing that drawdown would come after the 6 month mark.

Atomic Pineapple

prettyboy81 wrote: »

Signed on the dotted line yesterday for our new home & sale of our existing home. We went sale agreed beginning of May, so approx 12 weeks from start to finish. It's not so much the stress of the process, it's how little control you have even though you are footing the bills. My solicitor has been excellent to date handling both sale and purchase with linking them for closing dates, pre contract queries, etc.

Lucky we have family to move into for short time whilst we transition into our new home. It will be all done before the rugrats are back in school.

Can I ask how you went about the process of getting a new mortgage for the new house purchase and settling your current mortgage?

We've recently bought a new house and have quickly realised we've made a huge mistake! We want to see how we go about getting our current mortgage sorted as quickly as possible so that we get a new mortgage to build our own house. I assume you needed to go sale agreed on your current house before you could get a mortgage for another? So in our case, we'd be looking at having to move out of our current house to be able to get the funds for a build?

Kiwi5449

Interested Observer wrote: »

Yep 6 months. You can do everything, get full approval etc etc, just as long as drawdown comes after. Knowing it takes a long time to buy a house, we went sale agreed when I was about 4 months in my job knowing that drawdown would come after the 6 month mark.

Can I ask what bank you were with for mortgage? We have AIP with AIB but seems to be no leeway on full approval until I get probation signed off in Dec and with the property we are looking at (new build) we wouldn’t be drawing down until Feb 2020

Interested Observer

Kiwi5449 wrote: »

Can I ask what bank you were with for mortgage? We have AIP with AIB but seems to be no leeway on full approval until I get probation signed off in Dec and with the property we are looking at (new build) we wouldn’t be drawing down until Feb 2020

Was with BOI through a broker. Also had approval from KBC on similar terms.

swarmberg

Have an issue where my mortgage has been drawndown before the initial snag has been completed? Is this normal? The solicitor is also talking about transferring these funds to the builders solictor? Am I going mad or should it not be us who give authorisation for this? I don't want the builder getting any more funds until we are happy with the snag

TheShow

swarmberg wrote: »

Have an issue where my mortgage has been drawndown before the initial snag has been completed? Is this normal? The solicitor is also talking about transferring these funds to the builders solictor? Am I going mad or should it not be us who give authorisation for this? I don't want the builder getting any more funds until we are happy with the snag

tis normal, just make sure all the snag list is complete before the funds are transferred

Uglysoik1

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

Star Lord

Uglysoik1 wrote: »

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

Yeah absolutely, that's a fairly reasonable time frame tbh.

wally79

Uglysoik1 wrote: »

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

It’s holiday season too so that could add to it

Misssally

Uglysoik1 wrote: »

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

Ours took over 6 weeks from PTSB even though they had all the documentation! Blamed system issues/holidays.

Uglysoik1

wally79 wrote: »

It’s holiday season too so that could add to it

Great stuff - thanks guys!

Papa_Lazarou

Have been following this thread for quite a while trying to gather as much info as possible. 29 and currently saving 825 a month plus rent of 475 which combined will hopefully be able to show the required ability for paying back.

Hoping to pull the trigger around April/May next year if the FTB gets extended. With savings/deposit, FTB, cashing in shares and a small loan from the parents I'm hoping to have upwards of 60k towards a new build.

What's people's experience with getting over the 3.5 as a single applicant. On about 63/64k PA with bonus included (can show annual bonus has been stable for years) would only need to stretch it a small bit to get what I think I'll need.

el Fenomeno

Papa_Lazarou wrote: »

Have been following this thread for quite a while trying to gather as much info as possible. 29 and currently saving 825 a month plus rent of 475 which combined will hopefully be able to show the required ability for paying back.

Hoping to pull the trigger around April/May next year if the FTB gets extended. With savings/deposit, FTB, cashing in shares and a small loan from the parents I'm hoping to have upwards of 60k towards a new build.

What's people's experience with getting over the 3.5 as a single applicant. On about 63/64k PA with bonus included (can show annual bonus has been stable for years) would only need to stretch it a small bit to get what I think I'll need.

€64,000 salary would leave you with approve €3,600 net salary per month.

If your savings + rent is €1,300 in total, where is the other €2,600 going? I would have thought you'd be able to save comfortably more than €1,000 per month on that salary, but I have no idea if you have other loans, children etc.

Regardless, not sure exactly how much you're looking for but when you say that you only need to stretch the 3.5x limit a small bit, I'm assuming around 3.75x would suffice. That's a mortgage of around €240,000 on your salary.

Over 30 years you'd be looking at about €1,000 monthly repayments, or around €900 if taking on a 35 year mortgage.

You easily have the capacity to repay it on your current salary if there's no other factors you haven't mentioned, and I imagine you'd have no problem with their stressed repayment forecasts either.

The figures are all fine for you IMO, so it really just comes down to credit history, clean statements, employment status etc. and obviously whether the LTI exceptions are still available from the bank you're applying with.

Papa_Lazarou

el Fenomeno wrote: »

€64,000 salary would leave you with approve €3,600 net salary per month.

If your savings + rent is €1,300 in total, where is the other €2,600 going? I would have thought you'd be able to save comfortably more than €1,000 per month on that salary, but I have no idea if you have other loans, children etc.

Regardless, not sure exactly how much you're looking for but when you say that you only need to stretch the 3.5x limit a small bit, I'm assuming around 3.75x would suffice. That's a mortgage of around €240,000 on your salary.

Over 30 years you'd be looking at about €1,000 monthly repayments, or around €900 if taking on a 35 year mortgage.

You easily have the capacity to repay it on your current salary if there's no other factors you haven't mentioned, and I imagine you'd have no problem with their stressed repayment forecasts either.

Hey EL Fenomeno
Thanks for the breakdown. Part of that 64k is end of year bonus (6-7k) which I drop into company shares each year and can show that for the last 4-5 years so in theory I guess that's an extra 500 euro saving per month if you averaged it out. Can cash out at any time but has the tax benefit after 3 years. Only repayment I have is a €250 per month car loan which has 2 years left on it. Might start reaching out to brokers to see how I'd fair out with them.

Atomic Pineapple

Get advice from mortgage suppliers as soon as you can if you plan to start looking next year. A €250 a month car loan could put a big dent in what you will be offered, and it's better know that now rather than later. If it has too big an impact you will have time to sell the car and clear the loan before applying properly.

ronoc4

Hello,

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Has anyone else been in this position?

Tokyo

Mod: Moved to Accommodation & Property.

Graham

Mod Note

Threads merged

Paul_Mc1988

ronoc4 wrote:

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Get a credit check done it only costs a couple of euro. If its showing on there you can pretty much kiss your chances of getting a mortgage goodbye.

Creamy Goodness

Also avoid asking the bank where you defaulted on the loan for a mortgage. It’ll be a flat no, in their eyes if you can’t handle a small loan of 1000 theres no way they’ll give you many multiples of that.

My advice is go to a broker and explain your situation.

el Fenomeno

ronoc4 wrote: »

Hello,

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Has anyone else been in this position?

It's not the end of the world, but it will make things trickier for you and you might have to bide your time.

You're very unlikely (some would say there's zero chance) to get a mortgage from the same institution with which the loan was written off. The best thing you can do is cross them off your list completely and never apply for any loan with them again.

An ICB credit check goes back 5 years if I'm correct. This is where you need to bide your time - do not apply for a mortgage with any institution until the bad loan drops off your credit history. You can request your own credit history here: http://www.icb.ie/cr_options.php

The reason being, let's just say 4 years and 11 months have passed since the loan was written off and you apply for a mortgage with Ulster Bank. They run a credit check, and they see that 4 years and 11 months ago you defaulted on a loan and had it written off. Even though that will drop off your credit report in 1 month's time, Ulster Bank now have it on their internal records which they may retain a lot longer (5 years, 7 years etc). This pretty much rules them out for you for the duration they have a loan write-off on file under your name.

You can consult a broker, but bear in mind the last paragraph - if they encourage you to apply as a "no harm trying" tactic, this isn't true. There's lots of harm in trying - so just be aware that if you try apply for a mortgage with Bank XYZ now, there's a good chance that they might refuse and you might scupper any chance of a mortgage with them for another 5,6,7 years etc. Be aware that this impacts not just your initial mortgage aplication, but any prospects at switching mortgage down the line too.

ronoc4

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

Corruptedmorals

Well a mortgage is a huge risk for a bank considering the size of the loan so it would be natural for them to be at the very least hesitant if they see a defaulted loan. Definitely apply for your credit history while you wait for feedback from the broker.

Just about to go 6 weeks now with no contracts yet post sale agreed. Our solicitor has written to the vendor's solicitor and the estate agent is also checking into it. The only thing left to be done is the contracts so at least once they are finally through there will be nothing that we should have done earlier in the way. The deeds are EBS who seem to have a reputation as being slow to release them so with that and the time of year, no panicking. Just eager to sign really.

Paul_Mc1988

ronoc4 wrote:

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

Seems harsh that banks wont want to give you a big loan when you couldn't even pay back a small one. Yeah that makes sense

Dolbhad

ronoc4 wrote: »

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

I’ve heard of them. My broker had said steer clear unless you couldn’t get a mortgage elsewhere. Someone in work recently got their loan offer with them. That being said they got a 3% fixed interest rate which was good but they said Finance Ireland don’t seem to know what their doing. They were about a month waiting for loan offer to issue and said the mortgage team can’t answer any questions. However it seems to be only through a broker so least your broker can help move things along.