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

Phileas Frog

swarmberg wrote: »

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

Ex Vat

Sunrise_Sunset

drunkmonkey wrote: »

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.

I think so too. Obviously we want to move as soon as we can. But the idea of not closing on the same say makes me feel nervous. What if there were further delays that the solicitors hadn't anticipated? He said we'd be paying interest, I have no idea how much this would be either.

drunkmonkey

Sunrise_Sunset wrote: »

I think so too. Obviously we want to move as soon as we can. But the idea of not closing on the same say makes me feel nervous. What if there were further delays that the solicitors hadn't anticipated? He said we'd be paying interest, I have no idea how much this would be either.

What if they pull out, 1 in 4 sales collapse. You don't want to get caught out. The interest can't be much, I presume there on about mortgage interest.
I assume you still only have the initial deposit from the buyer at this stage.

Dolbhad

Sunrise_Sunset wrote: »

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.

It’s near impossible to close on the same day. For you to have funds for your bank that morning to be transferred to the seller solicitors, then funds in that day from your purchaser solicitors to your solicitor and have it all cleared and closed is a fine balancing act. And also, I think you’ve sent it’s two different solicitors so I don’t think they can coordinate that either??

What does your solicitor say acting for you in the purchase. Does your loan offer to purchase say you just had to have contracts in place to request funds? Or do they want you to have sold the house and paid off that mortgage before funds issued? That might be the determining factor.

Interest would be minimal I would expect if it’s a only a few days. It would be easier to buy first and then sell but how is your seller about pushing it back a few days?

Sunrise_Sunset

Dolbhad wrote: »

It’s near impossible to close on the same day. For you to have funds for your bank that morning to be transferred to the seller solicitors, then funds in that day from your purchaser solicitors to your solicitor and have it all cleared and closed is a fine balancing act. And also, I think you’ve sent it’s two different solicitors so I don’t think they can coordinate that either??

What does your solicitor say acting for you in the purchase. Does your loan offer to purchase say you just had to have contracts in place to request funds? Or do they want you to have sold the house and paid off that mortgage before funds issued? That might be the determining factor.

Interest would be minimal I would expect if it’s a only a few days. It would be easier to buy first and then sell but how is your seller about pushing it back a few days?

Yes, you've a good memory, I have 2 solicitors.
The solicitor of the buyer that's purchasing our property is waiting on one further document from their mortgage provider.
Our solicitor for selling this property is also the solicitor for the people that are selling the other property to us. I don't always feel that he's working with our best interests.
I have tried calling our other solicitor dealing with our purchase for his advice but he was unavailable and I'm waiting on a call back.

Sunrise_Sunset

drunkmonkey wrote: »

What if they pull out, 1 in 4 sales collapse. You don't want to get caught out. The interest can't be much, I presume there on about mortgage interest.
I assume you still only have the initial deposit from the buyer at this stage.

I don't believe that statistic is correct once contracts have been signed.

drunkmonkey

Sunrise_Sunset wrote: »

I don't believe that statistic is correct once contracts have been signed.

If the contacts are signed and you have the second payment very unlikely they'll pull put as you don't have to refund them. Buy away in that case.

Corruptedmorals

Finally after 7 weeks contracts have issued! Such a relief. Signing in 2 weeks. It's such a relief to finally have a timeline and tangible proof of the sale going ahead. Can't wait to have it binding now.

Dolbhad

Sunrise_Sunset wrote: »

Yes, you've a good memory, I have 2 solicitors.
The solicitor of the buyer that's purchasing our property is waiting on one further document from their mortgage provider.
Our solicitor for selling this property is also the solicitor for the people that are selling the other property to us. I don't always feel that he's working with our best interests.
I have tried calling our other solicitor dealing with our purchase for his advice but he was unavailable and I'm waiting on a call back.

Ah I was curious why you had two solicitors. I would chat to the purchasing solicitor and check with them that there is no issue if you had to buy first. See if they can push the put as much as they can to try for it closer together. But you would need a firm date from the person buying your house.

At least the selling solicitor gets two fees so in their best interest to have both go through. If you don’t sell your house, you can’t buy that house. I would expect that solicitor to be more involved smoothing things over. You often hear that with auctioneers when people are selling and buying. If they found the house first they wanted to buy, they use that auctioneer to sell as with two sales, it’s in auctioneers interest to manage both so it all goes ahead.

Also I would try find out what mortgage document is missing. Is it something small or something that could be an issue like life insurance. As it may be a subject to loan clause it in both set of contracts so that’s the only way the purchaser could back out.

Sunrise_Sunset

Dolbhad wrote: »

Ah I was curious why you had two solicitors. I would chat to the purchasing solicitor and check with them that there is no issue if you had to buy first. See if they can push the put as much as they can to try for it closer together. But you would need a firm date from the person buying your house.

At least the selling solicitor gets two fees so in their best interest to have both go through. If you don’t sell your house, you can’t buy that house. I would expect that solicitor to be more involved smoothing things over. You often hear that with auctioneers when people are selling and buying. If they found the house first they wanted to buy, they use that auctioneer to sell as with two sales, it’s in auctioneers interest to manage both so it all goes ahead.

Also I would try find out what mortgage document is missing. Is it something small or something that could be an issue like life insurance. As it may be a subject to loan clause it in both set of contracts so that’s the only way the purchaser could back out.

We hired solicitor #1 before we put our property up for sale. He got the title deeds from the bank. Then when we found the property we were buying and notified him, he said he couldn't do the purchase because he was acting as solicitor for the vendors of the house we're buying. As he already had the deeds, and we didn't want to delay things by 3 weeks by having to send them back and have solicitor #2 request them again, we decided to stick with him for the sale and hire another solicitor for the purchase. Tbh I still feel like there is a conflict of interest with solicitor #1 though, and that maybe he has the best interests of his other clients, that we're buying from, more than ours.

I received a call back from our purchasing solicitor this evening and he said he wasn't sure if this was possible anyway, as we need the funds from our sale in order to make our purchase. He'll discuss with our selling solicitor and revert back. The document that's missing is something that was agreed by the bank and the solicitor just wants to get it in writing, which is fair enough. We were told it should only be a day or two after we close the purchase, but I still feel concerned about it. I will speak with my purchasing solicitor again tomorrow for further information. I just really feel that our selling solicitor wants the sale to go through on X date more so to satisfy his other clients, who we are buying from. We want to close asap too, but as long as everything is a-ok and nothing to worry about.

Apologies for the long winded reply.

Dolbhad

Sunrise_Sunset wrote: »

We hired solicitor #1 before we put our property up for sale. He got the title deeds from the bank. Then when we found the property we were buying and notified him, he said he couldn't do the purchase because he was acting as solicitor for the vendors of the house we're buying. As he already had the deeds, and we didn't want to delay things by 3 weeks by having to send them back and have solicitor #2 request them again, we decided to stick with him for the sale and hire another solicitor for the purchase. Tbh I still feel like there is a conflict of interest with solicitor #1 though, and that maybe he has the best interests of his other clients, that we're buying from, more than ours.

I received a call back from our purchasing solicitor this evening and he said he wasn't sure if this was possible anyway, as we need the funds from our sale in order to make our purchase. He'll discuss with our selling solicitor and revert back. The document that's missing is something that was agreed by the bank and the solicitor just wants to get it in writing, which is fair enough. We were told it should only be a day or two after we close the purchase, but I still feel concerned about it. I will speak with my purchasing solicitor again tomorrow for further information. I just really feel that our selling solicitor wants the sale to go through on X date more so to satisfy his other clients, who we are buying from. We want to close asap too, but as long as everything is a-ok and nothing to worry about.

Apologies for the long winded reply.

I think the sale of your house has to come first then if you need that money for the purchase. It seems like it’s only a few days you need so I would expect no issues with other parties. There is no need for people to be unreasonable and it’s not like the people you are buying from don’t know you need to sell a house to buy theirs. Your in a chain and sometimes things beyond your control happen.

Mickiemcfist

Slightly odd one here, I'm looking at a house (regular 3 bed semi) which is being sold by receivers, their insurance means the water & electricity is disconnected - is that as simple as turning it off at the stopcock or will it involve significant costs to Irish water or the council etc to reconnect?

drunkmonkey

Hardly disconnected, I'd assume just turn it back on outside or inside. In the same boat with a receiever, was told to have a plumber with me when turning it back on just in case.

Mickiemcfist

drunkmonkey wrote: »

Hardly disconnected, I'd assume just turn it back on outside or inside. In the same boat with a receiever, was told to have a plumber with me when turning it back on just in case.

Great thanks for that. I read an article online saying buying from a receiver could have substantial costs reconnecting water & elec.

voluntary

ESB website says they charge €70 to reconnect.

ELM327

Having previously worked in both electricity and gas supply industry, there is no/minimal charge to reconnect.

A caveat to the above is, after a few weeks/months of inactivity, networks will disconnect in a more permanent manner, and this incurs significant 4 figure sums to reconnect from.

I'm not sure how to determine what needs to be done to reconnect - Networks or the supply company is unlikely to give you any info as you aren't named on the account

drunkmonkey

I called them about that 4 figure sum they said I wouldn't be charged to turn it back on I've a few accounts with them, maybe it's because I'm an existing customer...
I can say for definite in a couple of weeks I should have the keys.

Sunrise_Sunset

Dolbhad wrote: »

I think the sale of your house has to come first then if you need that money for the purchase. It seems like it’s only a few days you need so I would expect no issues with other parties. There is no need for people to be unreasonable and it’s not like the people you are buying from don’t know you need to sell a house to buy theirs. Your in a chain and sometimes things beyond your control happen.

I agree. Let's see what the solicitors have to say today.
As long as we're in before the kids schools starts back we're happy. Even the end of next week is fine.

mrincredible

Mods, please move if this is in the wrong thread..

We're currently talking to banks about different mortgage options and are very tempted by the cashback offers. The Boi site is telling me on a €200k mortgage is €4k cash back (and an extra €2k after five years.) Is the cashback taxed or would we get the full amount? I've heard contrasting answers to the same question among friends

TheShow

tax free

srsly78

mrincredible wrote: »

Mods, please move if this is in the wrong thread..

We're currently talking to banks about different mortgage options and are very tempted by the cashback offers. The Boi site is telling me on a €200k mortgage is €4k cash back (and an extra €2k after five years.) Is the cashback taxed or would we get the full amount? I've heard contrasting answers to the same question among friends

The cashback is basically a scam to cover up for the bad interest rate.

drunkmonkey

srsly78 wrote: »

The cashback is basically a scam to cover up for the bad interest rate.

How do you make that out....people paying bad interest rates with no cashback.

Star Lord

srsly78 wrote: »

The cashback is basically a scam to cover up for the bad interest rate.

We're getting 3% APR fixed for 5 years, with 3% cashback, 2% in the first year, and 1% at year 5.

3% isn't a bad rate here.

drunkmonkey

That's exactly what were going for. Can't find a better deal.

mrincredible

Star Lord wrote: »

We're getting 3% APR fixed for 5 years, with 3% cashback, 2% in the first year, and 1% at year 5.

3% isn't a bad rate here.

That's what we're planing on.. but trying to decide if we should fix for 3 or 5. 3% is a low rate for a BOI product, and with all the doom and gloom coming down the track I'm thinking there's a bit of certainty in it.

srsly78

drunkmonkey wrote: »

That's exactly what were going for. Can't find a better deal.

Bonkers.ie shows several options with less than 3% APR fixed for 5 years. 2.6% is best.

There was talk of banning this cash-back stuff because it makes it difficult to compare the actual cost of borrowing. Why can't they just factor it into the APR?

Star Lord

srsly78 wrote: »

Bonkers.ie shows several options with less than 3% APR fixed for 5 years. 2.6% is best.

There was talk of banning this cash-back stuff because it makes it difficult to compare the actual cost of borrowing. Why can't they just factor it into the APR?

When we'd calculated how much a lower rate would save us over the 5 years, the cashback was worth more.

srsly78

Star Lord wrote: »

When we'd calculated how much a lower rate would save us over the 5 years, the cashback was worth more.

The calculation changes depending on the term etc, it's not easy to compare. In some cases it may be worth not, but not for others. Another point is they now add a claw-back policy to stop people moving.

TheShow

srsly78 wrote: »

Bonkers.ie shows several options with less than 3% APR fixed for 5 years. 2.6% is best.

There was talk of banning this cash-back stuff because it makes it difficult to compare the actual cost of borrowing. Why can't they just factor it into the APR?

what LTV do those rates relate to?

voluntary

Don't lock yourself at 3% for 5 years. The ECB rates are negative, irish mortgage rates will be going down. Banks give you fat cash back to lock you in because you're basically a cash cow to them.