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

skippy123!

Hey guys, buying a new build in North Dublin area and looking for a solicitor if you can recommend someone in PM you have worked with?

Hollybeg

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.

Pepper Finance used to lend to people in situations like yourself (probably still do). They will charge you a higher interest rate. The loan will eventually fall off the Credit register but for the moment it could cause you some issues.

myshirt

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?

You will never get a loan with the bank you stung. Ever. And if another bank gets a sniff of a default anywhere, you are goosed there too. Literally forever. It's actually that serious when people have loans written off and they are always shocked to find that out.

The lenders are not concerned about the amount or how long ago it was, it's the credit risk that they are worried about. Even if you were a saint in the last 3 years, recent credit behavior great, you are looking for less than 3 times income, you have 24 months of savings showing you can pay the mortgage payment with an extra 500 to spare, etc etc, i.e ticking all the boxes, a dream for the mortgage sales provider with his lovely QFA qualification and you even supplied a picture of you with the pope, What will happen is it will get to the real decision makers, and they don't have a Mickey mouse qualification like a QFA, and when it does collections will clash with underwriting. And collections win. A marker is put on you and that's it. No mortgage ever. And no way back.


So what do you do?

1. Don't apply for any secured credit with any bank you want to target until everything is gone off your credit report. If you do they have that report on file for 7 years. Wait until it's gone off your credit report.

2. Improve your credit behavior (clear no brainer)

3. Go to a good broker

4. Plan your house search in the 2.5 to 3 times income multiple, and 3 to 3.5% interest rate bucket.

5. And target Finance Ireland as people said. They are more forgiving if you've only that one incident of default.


There's a question on every application that will also ask you if you ever defaulted which is a way they try get info even if it's not on your credit report. You can be snookered by that too.


TLDR: If you default on a loan, ever, then you are in the wing and a prayer category and are very unlikely to ever get a mortgage, ever, but it is possible with the right plan over a couple of years.

The Mig

myshirt wrote: »

You will never get a loan with the bank you stung. Ever. And if another bank gets a sniff of a default anywhere, you are goosed there too. Literally forever. It's actually that serious when people have loans written off and they are always shocked to find that out.

The lenders are not concerned about the amount or how long ago it was, it's the credit risk that they are worried about. Even if you were a saint in the last 3 years, recent credit behavior great, you are looking for less than 3 times income, you have 24 months of savings showing you can pay the mortgage payment with an extra 500 to spare, etc etc, i.e ticking all the boxes, a dream for the mortgage sales provider with his lovely QFA qualification and you even supplied a picture of you with the pope, What will happen is it will get to the real decision makers, and they don't have a Mickey mouse qualification like a QFA, and when it does collections will clash with underwriting. And collections win. A marker is put on you and that's it. No mortgage ever. And no way back.

I defaulted on a student loan with AIB 11 years ago from my local branch. Guess where I drew down my mortgage from at the end of May?

duffman13

The Mig wrote: »

I defaulted on a student loan with AIB 11 years ago from my local branch. Guess where I drew down my mortgage from at the end of May?

Most banks will literally check your ICB report and your statements etc. I'm pretty sure going back 11 years would be somewhat dodgy ground based on GDPR and retention periods.

3 years though, yeah you've been away which means it'll be front and centre on your ICB report for the foreseeable future OP.

The Mig

duffman13 wrote: »

Most banks will literally check your ICB report and your statements etc. I'm pretty sure going back 11 years would be somewhat dodgy ground based on GDPR and retention periods.

3 years though, yeah you've been away which means it'll be front and centre on your ICB report for the foreseeable future OP.

Yeah I was more making the point about the never ever ever ever bit. Total boll*x!

el Fenomeno

The Mig wrote: »

I defaulted on a student loan with AIB 11 years ago from my local branch. Guess where I drew down my mortgage from at the end of May?

There's a big difference between a student of 11 years ago versus the OPs situation.

Though I will admit the post you quoted is overkill. There's great information on Boards, but the difficulty in getting a mortgage is really overhyped here.

I had many of the red flags that get mentioned here - missed CC payment on my recent history, probationary period at work, inconsistent savings, dipping into savings for living expenses etc. Got a mortgage first time of asking with zero hassle.

I would go as far as to say that your capacity to repay the stressed monthly repayment is by far and away the number one criteria. As long as you're not defaulting on loans all over the place or unemployed, the rest is easily explainable and any broker worth their salt will take care of it for you if you don't do it yourself.

Jess2019

My partner and I are saving €1200 per month since Christmas. We have moved into his parent's home to save and pay €200 each to his parents. I save the quarterly bonuses I get and we were approved for the full 20k for the HTB. So we are saving away and keeping our eyes open regarding new builds within our price range, and tbh there is not a lot. So we have pretty much scrapped the idea of using the HTB and going for a new build.
We now have our sights set on a more affordable second hand house. So I've a few questions: at what point should we be looking into getting mortgage approval? When we have 30k or so saved?
Are we mad to scrap the HTB money? (we were looking at new builds in citywest and elder heath, but are not fans of the areas).
I feel like we will just end up living in his parents and saving for ages

Atomic Pineapple

Personally I don't think you're mad. We got sucked in with the help to buy money and only focused on new builds. We ended up buying a new build but upon reflection we could have got better value for money by discounting the help to buy and looking at some second hand homes. It's worth remembering that the HTB is inflating the price of new builds as builders build for the max they can get out it. At the same time it is slightly depressing the price of second hand houses. For us, after looking back, we've realised that we could have got something better if we didn't use the HTB and buy a new house. But this is different for everyone, it might be that a new build is exactly what you want/need, making the HTB very valuable.

* worth noting that we've had a change in family circumstances after buying the new house that makes it even less desirable for us. Which may be pushing my judgement towards the above narrative.

Paul_Mc1988

Jess2019 wrote:

My partner and I are saving €1200 per month since Christmas. We have moved into his parent's home to save and pay €200 each to his parents. I save the quarterly bonuses I get and we were approved for the full 20k for the HTB. So we are saving away and keeping our eyes open regarding new builds within our price range, and tbh there is not a lot. So we have pretty much scrapped the idea of using the HTB and going for a new build. We now have our sights set on a more affordable second hand house. So I've a few questions: at what point should we be looking into getting mortgage approval? When we have 30k or so saved? Are we mad to scrap the HTB money? (we were looking at new builds in citywest and elder heath, but are not fans of the areas). I feel like we will just end up living in his parents and saving for ages

Hard to give you advise without knowing the areas you would like and your combined income/max approval amount and savings amount

Corruptedmorals

Some areas where there's a lot of new builds have a slow second-hand market because the demand has dropped off. One such is Fingal. Keep trawling daft and see if there are second-hand houses in the reach of your approval plus savings. Especially ones that have upgraded BER as one massive advantage new builds have is the A rating. It's not madness to discount the HTB if you can't find what you want and find yourself priced out as there are the furnishing/decorating costs to consider too. Location first!

Jess2019

Paul_Mc1988 wrote: »

Hard to give you advise without knowing the areas you would like and your combined income/max approval amount and savings amount

Hey our combined income plus bonuses is a bit over 80k. We are both from Tallaght so have been looking around that area. This is why we considered Citywest and Elder Heath.

charlietheminxx

Something to consider if you've focused on new build until now is that the advertised price on a second-hand means very little.

We initially wanted a second-hand house, but at several viewings we arrived to be told "there is an existing offer in for asking price/over the asking price". It was mad, we couldn't get a foot in the door anywhere, even when we went to ones which were a bit under our budget. One house we went to see sold for €45k over the asking price.

We ended up getting a new build in the end, we liked the houses and knew that the prices were fixed.

Star Lord

charlietheminxx wrote: »

We initially wanted a second-hand house, but at several viewings we arrived to be told "there is an existing offer in for asking price/over the asking price". It was mad, we couldn't get a foot in the door anywhere, even when we went to ones which were a bit under our budget. One house we went to see sold for €45k over the asking price.

The asking price on a second hand house can be a strategic thing. It would be very rarely be pitched at the price the sellers will accept for the property. Often it'll be pitched low to generate interest and a bidding war, and sometimes it'll be pitched high in an effort to deter low-ball bids, and hope to get something near the asking.

charlietheminxx

Star Lord wrote: »

The asking price on a second hand house can be a strategic thing. It would be very rarely be pitched at the price the sellers will accept for the property. Often it'll be pitched low to generate interest and a bidding war, and sometimes it'll be pitched high in an effort to deter low-ball bids, and hope to get something near the asking.

Oh yeah, that's what I mean about asking price meaning very little! To me, what the houses were actually selling for in the end, coupled with no HTB, meant that second hand houses were worse value for the area I was interested in. I also couldn't take the stress of the bidding wars etc. but to each their own.

Sunrise_Sunset

Does anyone know how long after closing will the the solicitor send their invoice?

swarmberg

Have the second snag of a new build at the end of next week. Is it usually ok for the buyer to attend and have a look alongside the snagger?

Jess2019

charlietheminxx wrote: »

Something to consider if you've focused on new build until now is that the advertised price on a second-hand means very little.

We initially wanted a second-hand house, but at several viewings we arrived to be told "there is an existing offer in for asking price/over the asking price". It was mad, we couldn't get a foot in the door anywhere, even when we went to ones which were a bit under our budget. One house we went to see sold for €45k over the asking price.

We ended up getting a new build in the end, we liked the houses and knew that the prices were fixed.

This worries me, as the second hand houses in the more attractive locations would be within our budget, but if they are expected to sell for any higher we are screwed. I have a feeling we may have to just settle for what we can get.

swarmberg

swarmberg wrote: »

Have the second snag of a new build at the end of next week. Is it usually ok for the buyer to attend and have a look alongside the snagger?

Absolutely! You need to be there. You might find things the snagger missed. You’re paying big money for the house, you need to be happy with it.

Jess2019

Jess2019 wrote: »

This worries me, as the second hand houses in the more attractive locations would be within our budget, but if they are expected to sell for any higher we are screwed. I have a feeling we may have to just settle for what we can get.

I wouldn’t just settle. Look out further if necessary.
Plenty of places are not as far away as people often think.

awec

Sunrise_Sunset wrote: »

Does anyone know how long after closing will the the solicitor send their invoice?

Solicitor will probably want to be paid before they send your mortgage money to the vendor's solicitor. You won't get the keys until your solicitor is fully paid up.

Sunrise_Sunset

awec wrote: »

Solicitor will probably want to be paid before they send your mortgage money to the vendor's solicitor. You won't get the keys until your solicitor is fully paid up.

Perfect, thank you. Am I to assume the same for the estate agents fees?

awec

Sunrise_Sunset wrote: »

Perfect, thank you. Am I to assume the same for the estate agents fees?

No idea about those, since we didn't have a house to sell. I'd guess they just invoice you at some point since they wouldn't be involved to stall the process until you pay, unlike solicitors.

Sunrise_Sunset

awec wrote: »

No idea about those, since we didn't have a house to sell. I'd guess they just invoice you at some point since they wouldn't be involved to stall the process until you pay, unlike solicitors.

Yes, that makes sense. Thanks. I have all of the funds there obviously. But unsure as to when they'd all expect to be paid, and when I can start buying furniture with whatever is left over, which isn't a lot.

kitten_k

Sunrise_Sunset wrote: »

Perfect, thank you. Am I to assume the same for the estate agents fees?

Our estate agent took their fees from the booking deposit they receive from our buyer before transferring the balance to our solicitor.

Our solicitor then took his fees for the sale of our property from balance of the money (after mortgage etc were settled) before transferring whatever was left to us. In relation to his fees for the purchase of our new property I think we paid this by bank transfer before we closed.

Sunrise_Sunset

kitten_k wrote: »

Our estate agent took their fees from the booking deposit they receive from our buyer before transferring the balance to our solicitor.

Our solicitor then took his fees for the sale of our property from balance of the money (after mortgage etc were settled) before transferring whatever was left to us. In relation to his fees for the purchase of our new property I think we paid this by bank transfer before we closed.

That's great info, thanks. Our situation is a bit complicated. We have 2 solicitors, as there was a conflict of interest.

Dolbhad

Sunrise_Sunset wrote: »

That's great info, thanks. Our situation is a bit complicated. We have 2 solicitors, as there was a conflict of interest.

I’m assuming you have to sell your house first to buy the other house. The auctioneer will take their fee from the booking deposit and return any balance to you. Usually the solicitor takes their fee out of the sale proceeds after they pay off mortgage. If the sale proceeds after the mortgage is paid off is enough to pay the solicitors and stamp duty, you could ask the selling solicitor to pay the purchasing solicitor their fee and stamp duty. Even your short, the auctioneer could give the balance of funds to selling solicitors.

Just something to think about to free up cash you have now to buy the items for the house.

Dolbhad

Jess2019 wrote: »

This worries me, as the second hand houses in the more attractive locations would be within our budget, but if they are expected to sell for any higher we are screwed. I have a feeling we may have to just settle for what we can get.

The bonus of a new build is you know the purchase price. Second houses are a mix bag. We’d prefer second hand house to new build but the bidding and waiting can wear you down. The main thing is know your limit and after a while you can an idea of an area (and auctioneer).

Some auctioneers I’ve learnt now always mark the asking at least 20k under the value of house. And I know if I’m looking at that auctioneer what to expect.

Some tend to overvalue a house by a lot. I’ve recently placed a bid on house going under asking and being told they want over asking. I get the asking price alone was a bit much but there isn't anything you can do unless you want to pay what seller wants. Which we didn’t. I was also bidding on a house that took 4 weeks to get to asking cause the first bidder went under asking by 20k so we all followed suit and no one was bidding more than 1k at a time.

But depends on location. I’m seeing houses in some Cork areas now dropping abit from original asking after sitting there for a few months. But also seeing some houses that are very overpriced. It’s made me look at other areas. But I am finding if new builds have gone into an area, there is some price correction for second hand houses. But if there hadn’t been any new builds, it’s a guessing game on price.

myshirt

The Mig wrote: »

Yeah I was more making the point about the never ever ever ever bit. Total boll*x!

It's not total bollox.

Someone has ballsed it up there with that guy if he's telling the truth and he got the mortgage. Internal Audit will be all over that if it's discovered. Abject failure in preventative controls and within AIB which shocked on.

Blanco100

kitten_k wrote: »

Our estate agent took their fees from the booking deposit they receive from our buyer before transferring the balance to our solicitor.

Our solicitor then took his fees for the sale of our property from balance of the money (after mortgage etc were settled) before transferring whatever was left to us. In relation to his fees for the purchase of our new property I think we paid this by bank transfer before we closed.

Does the buyer pay the estate agent out of their booking deposit?

Was my understanding the agent is engaged by seller and they pay the agents fees.