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

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ELM327 wrote: »

No, they'd be fools to make it provable.


If they have data suggesting that married couples are less likely to default then you can be sure they will discriminate against non married couples. It just won't be documented in anything as explicitly like that.


I know in previous jobs where I worked as a risk analyst we had to produce risk coefficients , and present a score per customer. If it works like that for the underwriters then it woudl be very easy to bury the married vs unmarried risk increase within that score.

I have built these risk models for financial companies (although not for mortgages - but for financial products with larger liabilities than residential mortgages). The internal compliance department would require documentation of each model, and we were required to perform comprehensive parameter assessments to ensure that none of the parameters selected were analogues for a protected grounds (ie that some parameter or combination of parameters that were used didn't correlate with gender, race, etc).


More than once, we had to justify the output of a model to an expert witness during a legal proceeding. There is no chance that a reputable lender would favour married couples over cohabiting - the bias would become immediately apparent in the loan book.

Uglysoik1

Phileas Frog wrote: »

Contracts signed this morning, another step on the ladder completed!

Well done mate! what's the timeline here?

Phileas Frog

Uglysoik1 wrote: »

Well done mate! what's the timeline here?

First viewed 7 weeks ago, contracts exchanged a week later. Solicitors were on holiday for 2 weeks of that though. Closing in 4 weeks or earlier hopefully

topmanamillion

Star Lord wrote: »

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.

I read the question as the value of the house was 350k. This would be made up of a maximum 90% mortgage plus deposit.

Blanco100

Phileas Frog wrote: »

First viewed 7 weeks ago, contracts exchanged a week later. Solicitors were on holiday for 2 weeks of that though. Closing in 4 weeks or earlier hopefully

at what stage did you get your valuation, organise mandatory home insurance and mortgage protection?

Phileas Frog

Blanco100 wrote: »

at what stage did you get your valuation, organise mandatory home insurance and mortgage protection?

Mortgage provider looked after (and paid for) the valuation prior to issuing loan offer. House insurance I did through the mortgage provider for the first year anyway because it's easier. Life Assurance I organised 2 weeks ago

Blanco100

Phileas Frog wrote: »

Mortgage provider looked after (and paid for) the valuation prior to issuing loan offer. House insurance I did through the mortgage provider for the first year anyway because it's easier. Life Assurance I organised 2 weeks ago

How did you manage to get them to pay for valustion? we have to pay for ours haha

skippy123!

Hey guys... Do you know by any chance how long does bank of ireland take to get approved? At least in principle?

wheresthebeef

skippy123! wrote: »

Hey guys... Do you know by any chance how long does bank of ireland take to get approved? At least in principle?

10 days for underwritten AIP and then another 5 for full loan pack

Mickiemcfist

wheresthebeef wrote: »

10 days for underwritten AIP and then another 5 for full loan pack

Yea that's about what it took me. Maybe a day or two less.

G_R

ELM327 wrote: »

Quoted for posterity.


I can't see that happening. I'm a credit risk analyst by trade with a penchant for macro economics.


Will return here in 12 months and see what has transpired. I don't think there will be any mainstream Irish bank offering below 2.5% fixed

KBC's 2yr fixed just recently dropped to 2.25% FYI (LTV less than 60pc, 2.3% above that)

https://www.kbc.ie/our-products/mortgages/our-mortgage-rates

ELM327

G_R wrote: »

KBC's 2yr fixed just recently dropped to 2.25% FYI (LTV less than 60pc, 2.3% above that)

https://www.kbc.ie/our-products/mortgages/our-mortgage-rates

No one looking to buy a house in the standard/real world comes with 40% deposit so you can rule out the 2.25 anyway



I checked the website and the variable rate is 3.2%, and fixed rates are well above 2.25% too. Not sure where you are at with the 2.25???

2 year fixed at 2.5 seems the best option (and a bit lower than I would have expected) but 2 years is a short term. I mentioned a 10 year term in posts prior to the one you quoted.



Fixed Rates Interest Rates APRC 1 Year <=60% LTV 2.70% 3.21% 1 Year >60-80% LTV 2.70% 3.25% 1 Year >80-90% LTV 2.70% 3.48% 2 Year <=60% LTV 2.45% 3.10% 2 Year >60-80% LTV 2.50% 3.16% 2 Year >80-90% LTV 2.50% 3.36% 3 Year <=60% LTV 2.75% 3.12% 3 Year >60-80% LTV 2.80% 3.18% 3 Year >80-90% LTV 2.85% 3.37% 5 Year <=60% LTV 2.80% 3.07% 5 Year >60-80% LTV 2.85% 3.12% 5 Year >80-90% LTV 3.00% 3.33% 10 Year <=60% LTV 3.05% 3.14% 10 Year >60-80% LTV 3.19% 3.27% 10 Year >80-90% LTV 3.40% 3.49%

derekbro

ELM327 wrote: »

I checked the website and the variable rate is 3.2%, and fixed rates are well above 2.25% too. Not sure where you are at with the 2.25???

2 year fixed at 2.5 seems the best option (and a bit lower than I would have expected) but 2 years is a short term. I mentioned a 10 year term in posts prior to the one you quoted.

If you have a current account with KBC the rates are .2% lower

ELM327

So where can you fix for 10 years below or on 2.5%?

ELM327

Just got the call from PTSB, mortgage approved for 275k.
Now to get to viewings and clearing out the apartment to prep for sale.

WOOHOO

Teach30

Hope this doesn’t sound like a silly question but who is the best person to go to to get advice on mortgages and savings? I know the bank will tell us how much we can get but we need some advice on working out the cost of living, how much is best to save for college funds etc. We are a bit clueless and I have no family to ask either.

Thanks.

Sunrise_Sunset

ELM327 wrote: »

Just got the call from PTSB, mortgage approved for 275k.
Now to get to viewings and clearing out the apartment to prep for sale.

WOOHOO

That's great. It's a very exciting time.

r93kaey5p2izun

I had an offer accepted yesterday. I'm happy but terrified. It's a probate sale, so I suppose it will probably be a long drawn out affair. Trying to organise a solicitor now but everyone is on holidays.

TheShow

Teach30 wrote: »

Hope this doesn’t sound like a silly question but who is the best person to go to to get advice on mortgages and savings? I know the bank will tell us how much we can get but we need some advice on working out the cost of living, how much is best to save for college funds etc. We are a bit clueless and I have no family to ask either.

Thanks.

a financial advisor is your best option.

GingerLily

ELM327 wrote: »

No, they'd be fools to make it provable.


If they have data suggesting that married couples are less likely to default then you can be sure they will discriminate against non married couples. It just won't be documented in anything as explicitly like that.


I know in previous jobs where I worked as a risk analyst we had to produce risk coefficients , and present a score per customer. If it works like that for the underwriters then it woudl be very easy to bury the married vs unmarried risk increase within that score.

The CBI sees all the banks internal models, if its there it will have been cleared by the CBI

Teach30

TheShow wrote: »

a financial advisor is your best option.

Ok thanks, is there a particular type or are they all the same, my partner is self employed if that matters? Will look for one locally anyways.

Ciarajl

Applied for a mortgage with PTSB. Seems there is a loan written off appearing on my credit report they are querying. I have no knowledge of a written off loan against me and they wont give details to my broker..

Only loan ive had in the last 7 years has been one with BOI that was paid 2 years ago and my current credit card that had less than 800 outstanding.

Waiting on a copy of my credit report to see what it relates to.. has anyone experienced the same? How likely is the mortgage application to be approved with that on my record? Im sweating here.. 2 years of saving and hoping. has it all been for nothing?

GingerLily

Ciarajl wrote: »

Applied for a mortgage with PTSB. Seems there is a loan written off appearing on my credit report they are querying. I have no knowledge of a written off loan against me and they wont give details to my broker..

Only loan ive had in the last 7 years has been one with BOI that was paid 2 years ago and my current credit card that had less than 800 outstanding.

Did you have arrears on the loan you cleared 2 years ago?

Ciarajl

GingerLily wrote: »

Did you have arrears on the loan you cleared 2 years ago?

Nope none. It was paid off in 18 months as per the terms

Hollybeg

Teach30 wrote: »

Hope this doesn’t sound like a silly question but who is the best person to go to to get advice on mortgages and savings? I know the bank will tell us how much we can get but we need some advice on working out the cost of living, how much is best to save for college funds etc. We are a bit clueless and I have no family to ask either.

Thanks.

I'm not being funny, but you know yourself how you manage your finances. Start with a simple spreadsheet, income and expenditure (as in essential items to run your household, any loans you may have etc) and literally go through it line by line. Might be no harm to have 6 -12 months bank statements available to assist (or export to an excel sheet if you can) The CSO will give you information on the cost of living (percentage inflation) https://www.cso.ie/en/statistics/prices/consumerpriceindex/

What ever is left is your surplus which can be used as savings. I would always add extra to your expenditure amount to cover unexpected expenses (up to yourself, 5 to 10% I would suggest). Once you have your cash surplus worked out, setup a savings account with a Direct Debit to take funds whenever you get paid (assuming you're PAYE). Also make sure to setup an account specifically for your monthly recurring bills, that was you know exactly what money is going where and there isn't a temptation to spend money you don't have. Don't waste money on a financial advisor unless you want to save tax, even at that you're probably going to have some knowledge yourself about tax bands and may need some more specialised advise. I appreciate that it's not feasible for everyone to have an accountant to assist, but if you do, use their expertise.

drunkmonkey

Teach30 wrote: »

Ok thanks, is there a particular type or are they all the same, my partner is self employed if that matters? Will look for one locally anyways.

It's going to a bit longer as he's self employed, they'll want accounts and 6mts worth of his statements, bit of a pain getting it all together.
Some mortgage lenders aren't paying commission to financial advisors but hopefully there up front and point you to the best deal, they might he happy if you give them the mortgage insurance or something.
The EBS deal is good at the moment but if you apply to AIB first EBS can't deal with you so be careful what your applying for.
I found EBS very good, they'll drop out to you and help get everything together. A lot more hands on than the banks.

Teach30

Hollybeg wrote: »

I'm not being funny, but you know yourself how you manage your finances. Start with a simple spreadsheet, income and expenditure (as in essential items to run your household, any loans you may have etc) and literally go through it line by line. Might be no harm to have 6 -12 months bank statements available to assist (or export to an excel sheet if you can) The CSO will give you information on the cost of living (percentage inflation) https://www.cso.ie/en/statistics/prices/consumerpriceindex/

What ever is left is your surplus which can be used as savings. I would always add extra to your expenditure amount to cover unexpected expenses (up to yourself, 5 to 10% I would suggest). Once you have your cash surplus worked out, setup a savings account with a Direct Debit to take funds whenever you get paid (assuming you're PAYE). Also make sure to setup an account specifically for your monthly recurring bills, that was you know exactly what money is going where and there isn't a temptation to spend money you don't have. Don't waste money on a financial advisor unless you want to save tax, even at that you're probably going to have some knowledge yourself about tax bands and may need some more specialised advise. I appreciate that it's not feasible for everyone to have an accountant to assist, but if you do, use their expertise.

Perfect thanks for the help. At the moment we don’t run a household hence why we though it would be beneficial to find someone who could advise us on what we should be saving for and how much. Say pension funds, water charges, college, rainy day etc. The spreadsheet would be helpful but I wouldn’t be too confident in knowing what other hidden costs are required to run a house as I don’t run one currently!

Tax - I wouldn’t even have thought of that so I suppose I’m trying to find someone who would explain things to me as well as help sort them out. Thanks for the helpful advice though.

skippy123!

wheresthebeef wrote: »

10 days for underwritten AIP and then another 5 for full loan pack

Thank you for the reply. It has past 5 days now so I hope next week we will get full approval. On Tuesday will already be 7 days passed of 21 before deadline for the contracts. Is there a possibility to drag that out a bit? I don't think it is possible to wrap up everything in 21 day.

Mrnew

Supposed to be closing this Friday the last two weeks have dragged in, this thread has been so helpful.

Uglysoik1

Mrnew wrote: »

Supposed to be closing this Friday the last two weeks have dragged in, this thread has been so helpful.

Congrats! what's your timeline here?