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

Lux23

Paul_Mc1988 wrote: »

Ulster bank wouldn't accept it as savings for the current 6 month period . Had to get a brokerage statement to clarify why a large amount was deposited in February this year to my personal account before it could go to the underwriter.

I was telling my partner this all along, I am going to murder him! I said we were better off putting the money straight in our savings.

GingerLily

Banks want to see consistent savings and they want you to have a deposit, I really didn't think it mattered when a lump sum was added? If your savings say 2k a month anyway etc.??

awec

Stock will only count as savings if you sell it.

ChewBerecca

awec wrote: »

Stock will only count as savings if you sell it.

This.

I work in funds, the price of your stock can be reduced to zero at the drop of a hat. Millions can be wiped out without warning. The banks wont care if it's been stable for x years, tomorrow it could be worthless.

nak

ChewBerecca wrote: »

This.

I work in funds, the price of your stock can be reduced to zero at the drop of a hat. Millions can be wiped out without warning. The banks wont care if it's been stable for x years, tomorrow it could be worthless.

Yep, 20k invested in shares and didn't include it in my mortgage application. Saved me paying pretty much half of it to the revenue so even if the share price drops I should still be better off (unless my employer goes the way of Thomas Cook).

Lux23

awec wrote: »

Stock will only count as savings if you sell it.

We did sell it, and then put the amount in the savings account?

Paul_Mc1988

Lux23 wrote: »

We did sell it, and then put the amount in the savings account?

Well then your Ok. It's only the money that is currently vested in stocks that wont count. Selling the stocks and using them as savings is fine you will just need to show the bank where the money came from.

Lux23

Paul_Mc1988 wrote: »

Well then your Ok. It's only the money that is currently vested in stocks that wont count. Selling the stocks and using them as savings is fine you will just need to show the bank where the money came from.

Ah ok! Panic over then.

KingCong

ChewBerecca wrote: »

This.

I work in funds, the price of your stock can be reduced to zero at the drop of a hat. Millions can be wiped out without warning. The banks wont care if it's been stable for x years, tomorrow it could be worthless.

The original question related to an ESPP, where people give X percent of their salary usually for 6 month periods then get a discount(usually 15%) on the stock price to buy at the end of the period. Most people do a quick sale which instantly sells the stock when you get it, locking in your gain, which is the same as the discount minus tax and trading fees. I've done this consistently for years and never had an issue with either BOI or PTSB who both counted it as savings. If you don't sell the stock when you get it though you're taking a gamble and they likely won't count it as savings, unless you sell and cash it in before applying for mortgage. Other people's mileage may vary though, sounds like other people have had different experiences.

awec

An ESPP is just a slightly different process for acquiring the stock.

But at the point the bank expect you to have the necessary savings, they will want to see it as cold, hard cash, because it's only at that point that it's actually guaranteed to be worth anything.

Padre_Pio

KingCong wrote: »

they likely won't count it as savings, unless you sell and cash it in before applying for mortgage. Other people's mileage may vary though, sounds like other people have had different experiences.

I have 20k but I can't touch it for 2 years.
Unless you can access your stock immediately UB doesn't count it.

ELM327

KingCong wrote: »

The original question related to an ESPP, where people give X percent of their salary usually for 6 month periods then get a discount(usually 15%) on the stock price to buy at the end of the period. Most people do a quick sale which instantly sells the stock when you get it, locking in your gain, which is the same as the discount minus tax and trading fees. I've done this consistently for years and never had an issue with either BOI or PTSB who both counted it as savings. If you don't sell the stock when you get it though you're taking a gamble and they likely won't count it as savings, unless you sell and cash it in before applying for mortgage. Other people's mileage may vary though, sounds like other people have had different experiences.

They accepted the funds as part of the deposit but did not count the money deducted to the espp as savings. In my case anyway with both PTSB and BOI

ELM327

Padre_Pio wrote: »

I have 20k but I can't touch it for 2 years.
Unless you can access your stock immediately UB doesn't count it.

That sounds more like PSU/RSU shares rather than ESPP where you contribute?

cefh17

awec wrote: »

An ESPP is just a slightly different process for acquiring the stock.

But at the point the bank expect you to have the necessary savings, they will want to see it as cold, hard cash, because it's only at that point that it's actually guaranteed to be worth anything.

My question was more phrased as would it be considered part of the (rent you're paying)+(savings) equation when looking at ability to afford the mortgage. I appreciate your response and can understand why they can't take the trade account balance as part of your deposit savings

Padre_Pio

cefh17 wrote: »

My question was more phrased as would it be considered part of the (rent you're paying)+(savings) equation when looking at ability to afford the mortgage. I appreciate your response and can understand why they can't take the trade account balance as part of your deposit savings

I would say yes. My application looked at my pension AVCs as ability to save.

awec

Yes, so long as you cash out the stock when it's needed then it'll be counted as savings. Since ESPP is an entirely voluntary deduction from your salary, they'd also count the amount you're paying each month as income.

ESPP is a completely legitimate and reasonable way to save. It's riskier than just saving in a bank account, but also has the potential for much greater rewards.

Paul_Mc1988

ELM327 wrote: »

That sounds more like PSU/RSU shares rather than ESPP where you contribute?

No RSUs mature yearly. Sounds more like APSS. You put away your quarterly and yearly bonus and avoid paying the PAYE. Catch is you have to wait 3 years. If the share price drops 40 % in the three years you break even. If it stays the same your up 40% and if it rises its party time

Stark

Is that scheme still going? I remember availing of it back in 2005/2006 but then hearing they got rid of it during the recession budgets.

Padre_Pio

Paul_Mc1988 wrote: »

No RSUs mature yearly. Sounds more like APSS. You put away your quarterly and yearly bonus and avoid paying the PAYE. Catch is you have to wait 3 years. If the share price drops 40 % in the three years you break even. If it stays the same your up 40% and if it rises its party time

That's the one.
I bought 2 years ago, putting in about 10k a year I can sell the first tranche next year, but the bank won't could any of it unless I can sell now.

Padre_Pio

Paul_Mc1988 wrote: »

No RSUs mature yearly. Sounds more like APSS. You put away your quarterly and yearly bonus and avoid paying the PAYE. Catch is you have to wait 3 years. If the share price drops 40 % in the three years you break even. If it stays the same your up 40% and if it rises its party time

That's the one.
I bought 2 years ago, putting in about 10k a year. I can sell the first tranche next year, but the bank won't count any of it unless I can sell now.

ChewBerecca

Just as a heads up for anyone submitting a drawdown with AIB in the coming days, we are now onto the 5th business day and the application was still stuck in a back log yesterday evening even with our mortgage advisor chasing and escalating.

The 2-3 days we originally expected has doubled.

Everything is in order, they are just overrun and understaffed apparently.

what_traffic

ChewBerecca wrote: »

Just as a heads up for anyone submitting a drawdown with AIB in the coming days, we are now onto the 5th business day and the application was still stuck in a back log yesterday evening even with our mortgage advisor chasing and escalating.

The 2-3 days we originally expected has doubled.

Everything is in order, they are just overrun and understaffed apparently.

Thats odd considering drawdowns are falling but approvals are up. Staffing been re-allocated from one to the other I wonder?
https://www.bpfi.ie/news/mortgage-approvals-august-showed-continued-year-year-growth/

ChewBerecca

what_traffic wrote: »

Thats odd considering drawdowns are falling but approvals are up. Staffing been re-allocated from one to the other I wonder?
https://www.bpfi.ie/news/mortgage-approvals-august-showed-continued-year-year-growth/

Could also be because of the holiday period, maybe a bunch of solicitors are submitting drawdowns now after being off for the last few months. We also had an exception so it might have needed more senior approval or something.

We got confirmation it hit their payments team this morning but still waiting for our solicitor to receive the funds.

colly10

Hey, just wondering if it usually takes long from the time you put a booking deposit down to receive contracts?
I put down a deposit 3 weeks ago, would it be the norm to be waiting a while

tomister

cefh17 wrote: »

Would they take into account the likes of ESPS into it? My savings rate is quite low but I've been doing 10% gross (taken from net) since January

Was just in doing my mortgage application with BOI today. While I’m not using my ESPP as my deposit they do take it into consideration as regular savings and include the amount into the ability to repay calculation as you opted into it.
If you cash it out then they would take it as deposit once you have the statement from the broker.
I highlighted it on my payslips and included the ESPP info in the pack as it’s still available funds

tomister

colly10 wrote: »

Hey, just wondering if it usually takes long from the time you put a booking deposit down to receive contracts?
I put down a deposit 3 weeks ago, would it be the norm to be waiting a while

In the same boat here. Put down the booking deposit last week and was expecting them to appear next week. From reading here it’s 6-8 weeks on average so you’ve a few weeks yet I’m afraid

Corruptedmorals

I would say 6-8 weeks is the longest side of normal. It's out of solicitor annual leave season now which helps but getting deeds and some documents in order can delay it.

guppy

colly10 wrote: »

Hey, just wondering if it usually takes long from the time you put a booking deposit down to receive contracts?
I put down a deposit 3 weeks ago, would it be the norm to be waiting a while

I bought a house in probate, but the probate process was well advanced by the time we went sale agreed. Our solicitor had contracts within 2 weeks.

Blanco100

Finally getting to sign our contracts and letter of offer with our solicitor this coming Friday. Its been a long wait.

Any idea of a timeline until we get our keys? no chain either side

ChewBerecca

Blanco100 wrote: »

Finally getting to sign our contracts and letter of offer with our solicitor this coming Friday. Its been a long wait.

Any idea of a timeline until we get our keys? no chain either side

Ours was two weeks post vendor signing. Today is meant to be the day (drawdown went in a week ago and got stuck in a queue). Still waiting for the call, our solicitor confirmed receipt of the mortgage funds but no news yet.