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

Compak

Dupont wrote: »

We’ve got our mortage accepted and there sending the letter of offer to our solicitor. What rates are people choosing.
1 and 2 year fixed at 2.9%
3 and 5 year fixed at 3%
10 year rate at 3.5%
Variable rate at 4.5%

We’re thinking of 2 year

Sounds like you are going with Bank of Ireland. We are same rates with 0.2% reduction for new Green Initiative.

We also chose 2 year rates. Central banks around the worlds are in a process cutting interest rates with ECB also expected to drop. So the pressure is on now for further reductions from Irish Banks.
Denmark is even doing zero mortgage rates now!
Our expectation is Irish mortgage rates will drop so we want shortest term for changing at 2 years or even breaking the term in say one year if big enoigh drop and penalties not bad.

Dolbhad

Compak wrote: »

Sounds like you are going with Bank of Ireland. We are same rates with 0.2% reduction for new Green Initiative.

We also chose 2 year rates. Central banks around the worlds are in a process cutting interest rates with ECB also expected to drop. So the pressure is on now for further reductions from Irish Banks.
Denmark is even doing zero mortgage rates now!
Our expectation is Irish mortgage rates will drop so we want shortest term for changing at 2 years or even breaking the term in say one year if big enoigh drop and penalties not bad.

It does seem AIB and BOI’s penalties for breaking fixed rate are low and would be offset against a better rate of remortgage. Whereas Ulster Bank and KBC seem to be more punitive and may not be worth breaking.

Thanks for peoples advice on the cashback!

topmanamillion

thomasdylan wrote: »

Bit of a beginners question here.

Say for example if I make 100k a year and get a mortgage for 3.5 my salary - so 350k.
My deposit is is 40k. Is my maximum purchase 350k or 390k (350+40)?

It's €350,000

The mortgage is given against 90% of the property price.

A mortgage for a house worth €350,000 would be €315,000 plus a €35000 deposit.

Worth remembering that a mortgage that size could cost around €80,000 in interest alone over 20 years. Obviously a very rough figure as term length, interest rates, tracker or variable rates over that time will effect it too.

Paul_Mc1988

topmanamillion wrote:

It's €350,000

topmanamillion wrote:

The mortgage is given against 90% of the property price.

No its 390k. The house is 390k he puts down the 40k and borrows 3.5 times his salary of 350k. Leaving him with an 89% mortgage. Dont spread bad information

Star Lord

topmanamillion wrote: »

The mortgage is given against 90% of the property price.

Up to 90%.
If they got mortgage approval of 350k, then they can go as far above that as they wish, so long as they have the funds to cover that difference. If they can afford a 40k deposit, then they could get a house of 390k value.

ELM327

topmanamillion wrote: »

It's €350,000

The mortgage is given against 90% of the property price.

A mortgage for a house worth €350,000 would be €315,000 plus a €35000 deposit.

Worth remembering that a mortgage that size could cost around €80,000 in interest alone over 20 years. Obviously a very rough figure as term length, interest rates, tracker or variable rates over that time will effect it too.

Nope


Currently in the mortgage process again and both times the LTV % requirement was against the mortgage amount not the purchase amount

Interested Observer

Question for anyone who has switched mortgage.

I am on the 5 year fixed with BOI that came with the cashback, rate is 3.2%. There are definitely better rates on the market, such as KBC are 2.8% I think. We only took the mortgage recently enough, is there anything stopping us just going and switching to KBC (for example) very soon?

We went through a broker, there was a provision in the contract that the broker would be informed if we switched within 36 months of drawdown, would it impact the broker fee? Could they come looking for it from us or something?

topmanamillion wrote: »

It's €350,000

As mentioned, this is wrong.

Atomic Pineapple

Interested Observer wrote: »

Question for anyone who has switched mortgage.

I am on the 5 year fixed with BOI that came with the cashback, rate is 3.2%. There are definitely better rates on the market, such as KBC are 2.8% I think. We only took the mortgage recently enough, is there anything stopping us just going and switching to KBC (for example) very soon?

We went through a broker, there was a provision in the contract that the broker would be informed if we switched within 36 months of drawdown, would it impact the broker fee? Could they come looking for it from us or something?

There will be a fee for breaking your fixed rate anyway. And then I think it costs a substantial enough sum of money to switch mortgage providers with solicitor fees etc..

ELM327

Atomic Pineapple wrote: »

There will be a fee for breaking your fixed rate anyway. And then I think it costs a substantial enough sum of money to switch mortgage providers with solicitor fees etc..

1.5 years into a 3year fixed with BOI my break fee was the equivalent of 2 monthly mortgage payments

Interested Observer

Atomic Pineapple wrote: »

There will be a fee for breaking your fixed rate anyway. And then I think it costs a substantial enough sum of money to switch mortgage providers with solicitor fees etc..

The break fee can be quite cheap these days, the banks are limited in what they can charge. And yeah aware of the fees but again a lot of banks will pay or contribute towards your legal fees if you switch to them.

I would save over 100eur per month on 2.8% compared to 3.2% which is a lot.

ILikeBoats

We had zero break out fee from our fixed term with PTSB. 2 years into the mortgage.
Even just buy asking they offered us a lower rate, we switched anyway

heebusjeebus

Interested Observer wrote: »

Question for anyone who has switched mortgage.

I am on the 5 year fixed with BOI that came with the cashback, rate is 3.2%. There are definitely better rates on the market, such as KBC are 2.8% I think. We only took the mortgage recently enough, is there anything stopping us just going and switching to KBC (for example) very soon?

We broke with BoI after 18 months (of a 3 year fixed rate). Breakage fee costed us 2/3rds of a monthly payment.
The breakage fee changes by the day (interbank rate or something) so you get get screwed or lucky.

Dolbhad

Interested Observer wrote: »

Question for anyone who has switched mortgage.

I am on the 5 year fixed with BOI that came with the cashback, rate is 3.2%. There are definitely better rates on the market, such as KBC are 2.8% I think. We only took the mortgage recently enough, is there anything stopping us just going and switching to KBC (for example) very soon?

We went through a broker, there was a provision in the contract that the broker would be informed if we switched within 36 months of drawdown, would it impact the broker fee? Could they come looking for it from us or something?

As mentioned, this is wrong.

We had this with our broker. I asked why and she said it’s the claw back. The bank paid her fee which was 1% of the mortgage amount but if we switch within 3 years the bank could claw back their fee from the broker, and broker would claw back their fee from me.

So on top of the mortgage breakage clause, you can get caught for broker fee.

It never occurred to me to ask but the week we got our loan offer, the Irish times had an article about switching and highlight this with those who went with a broker.

ELM327

Dolbhad wrote: »

We had this with our broker. I asked why and she said it’s the claw back. The bank paid her fee which was 1% of the mortgage amount but if we switch within 3 years the bank could claw back their fee from the broker, and broker would claw back their fee from me.

So on top of the mortgage breakage clause, you can get caught for broker fee.

It never occurred to me to ask but the week we got our loan offer, the Irish times had an article about switching and highlight this with those who went with a broker.

I'd love to see any form that gives them jurisdiction to do so?

Interested Observer

Dolbhad wrote: »

We had this with our broker. I asked why and she said it’s the claw back. The bank paid her fee which was 1% of the mortgage amount but if we switch within 3 years the bank could claw back their fee from the broker, and broker would claw back their fee from me.

So on top of the mortgage breakage clause, you can get caught for broker fee.

It never occurred to me to ask but the week we got our loan offer, the Irish times had an article about switching and highlight this with those who went with a broker.

Thanks, this is exactly the situation I was thinking of. We got 2% back already and get another 1% at the end of the 5 year term so I might just wait until then, don't really want the hassle and tbh our broker did a fantastic job so she deserves her fee anyway.

Graham

ELM327 wrote: »

I'd love to see any form that gives them jurisdiction to do so?

If someone has taken a mortgage via the services of a broker, I would well imagine they've signed an agreement to do so.

Dolbhad

Graham wrote: »

If someone has taken a mortgage via the services of a broker, I would well imagine they've signed an agreement to do so.

Exactly it’s in the terms and conditions which you sign with broker. She was very upfront about it. I don’t know in reality would the bank claw the funds back or would it be a lot of hassle for them.

Graham

Dolbhad wrote: »

I don’t know in reality would the bank claw the funds back or would it be a lot of hassle for them.

I'd be surprised if the banks didn't claw-back.

charlietheminxx

FINALLY got a snag date for our new build - I'm dancing around the place!

TheShow

ELM327 wrote: »

Nope


Currently in the mortgage process again and both times the LTV % requirement was against the mortgage amount not the purchase amount

not correct;/

LTV is loan to value. Loan amount vs the value of the property.

LTV is of the purchase price.
Say a house costs 350,000
If you borrow 350k thats 100%, if you borrow 315k thats 90% if you borrow 280k thats 80% and so on.

Losty Dublin

Something of a quandary here.

I went sale agreed on an apartment a few months ago. I had a pre approval from the bank, and upon valuation they issued me with a loan pack. So far so good.

Now here comes the snag; after kicking their heels my solicitor eventually received the MUD info etc from the seller. The common areas weren't signed over to the management company before the developer was liquidated. Upon a few enquires from the bank's legal team in the Completion's section, their take is that they will forward the loan once we are satisfied that all is in order. The management company itself is grand; today I've just found out that the local council have taken on the common areas.

With this in mind, how does one got about getting a formal confirmation from a CoCo to confirm same? And if so, how long are we talking?

Dolbhad

Losty Dublin wrote: »

Something of a quandary here.

I went sale agreed on an apartment a few months ago. I had a pre approval from the bank, and upon valuation they issued me with a loan pack. So far so good.

Now here comes the snag; after kicking their heels my solicitor eventually received the MUD info etc from the seller. The common areas weren't signed over to the management company before the developer was liquidated. Upon a few enquires from the bank's legal team in the Completion's section, their take is that they will forward the loan once we are satisfied that all is in order. The management company itself is grand; today I've just found out that the local council have taken on the common areas.

With this in mind, how does one got about getting a formal confirmation from a CoCo to confirm same? And if so, how long are we talking?

The sellers solicitor can get a letter from council confirming the road and services abutting the apartment building are in charge by the council. Every council is different in how long it takes but the council charge for that latter so shouldn’t take long.

That was a very lucky outcome!

Losty Dublin

Dolbhad wrote: »

The sellers solicitor can get a letter from council confirming the road and services abutting the apartment building are in charge by the council. Every council is different in how long it takes but the council charge for that latter so shouldn’t take long.

That was a very lucky outcome!

Sounds easier that I thought. Will this include their confirming charge on the common areas in the building itself?

guppy

Losty Dublin wrote: »

Sounds easier that I thought. Will this include their confirming charge on the common areas in the building itself?

Although I bought a house, I had the same issue - the estate was management company run for a few years before Dublin city council took it over, and the previous owner bought off plans. We also had to wait for the confirmation letter, even though I knew DCC look after the estate. The sellers solicitors requested it and took about 5 weeks to get. Don't know the content, just that our solicitor was satisfied with it.

DelBoy Trotter

If I was to apply for a mortgage this week without a specific property in mind, how does it work? Is it only approval in principle? I can then put in offers on houses based on the approval in principal plus my deposit. When I go sale agreed on the house, the full application is submitted and signed off. Is that the way things work?

Sunrise_Sunset

DelBoy Trotter wrote: »

If I was to apply for a mortgage this week without a specific property in mind, how does it work? Is it only approval in principle? I can then put in offers on houses based on the approval in principal. When I go sale agreed on the house, the full application is submitted and signed off. Is that the way things work?

From my recent experience, yep that's pretty much it.

Dolbhad

Losty Dublin wrote: »

Sounds easier that I thought. Will this include their confirming charge on the common areas in the building itself?

Usually you send a map in of whatever area you want confirmation of is in charge. At least in Cork that’s what I’ve seen as the letter from council would say the road marked on the map is in charge. So they would have to mark out Common areas. Sometimes I think the council may send an engineer out to check the area for confirmation and that can delay things by weeks if there is a backlog.

Sunrise_Sunset

Our solicitor told us the property we're buying is ready to close in a few days, but the property we're selling won't be ready to close until a few days later. Should we wait until they are both ready to close or go for it when the one we're buying is ready. It'll give us a few days to move things. The solicitor said we'll be paying more interest though during these days, and I'm worried it could go on longer than anticipated.

drunkmonkey

Personally I'd wait until the one your selling closes. Does the whole thing go pear shaped if the one your selling doesn't close for some reason. If so sight tight before closing the one your buying just in case.

swarmberg

Stamp duty question - Is this 1% of the property purchase price less VAT for a new build? Or 1% of the property price?