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

colly10

Hey, just wondering if you have to have received your letter of offer pack before you sign your contracts?

I’ve just heard (very late) that contracts were sent out. I have approval from 2 banks but still haven’t got the letter of offer from either and am worried about timing

ChewBerecca

colly10 wrote: »

Hey, just wondering if you have to have received your letter of offer pack before you sign your contracts?

I’ve just heard (very late) that contracts were sent out. I have approval from 2 banks but still haven’t got the letter of offer from either and am worried about timing

Solicitor wont call you to sign until you have your full loan pack

It's a waste of your time, theirs and the vendor to sign now as nothing can proceed until you have some promise from the bank of funding.

tomister

colly10 wrote: »

Hey, just wondering if you have to have received your letter of offer pack before you sign your contracts?

I’ve just heard (very late) that contracts were sent out. I have approval from 2 banks but still haven’t got the letter of offer from either and am worried about timing

You’ll have a few weeks when the contracts arrive at the solicitors before you need to send them back and if needed your solicitor can delay it getting them back.

Have you decided on which bank you’re going with and submitted your application? You’ll need the full loan pack so before you get there you’ll need the letter of offer, valuation and life assurance in place.

colly10

tomister wrote: »

You’ll have a few weeks when the contracts arrive at the solicitors before you need to send them back and if needed your solicitor can delay it getting them back.

Have you decided on which bank you’re going with and submitted your application? You’ll need the full loan pack so before you get there you’ll need the letter of offer, valuation and life assurance in place.

The contracts were sent 2 weeks ago and I just heard that today from the agent. They’re expecting it back early next week at the latest. I heard nothing from the solicitor about them receiving the contracts and now i’m at risk.
I was told the solicitor was away for a week, getting very worried at this stage

tomister

colly10 wrote: »

The contracts were sent 2 weeks ago and I just heard that today from the agent. They’re expecting it back early next week at the latest. I heard nothing from the solicitor about them receiving the contracts and now i’m at risk.
I was told the solicitor was away for a week, getting very worried at this stage

Well the solicitor away for the week can be used there to claw a week back. Have you any sign of the letter of offer? Are your approvals underwritten as that should speed it up. I know BOI have a bit of a backlog at the moment

colly10

tomister wrote: »

Well the solicitor away for the week can be used there to claw a week back. Have you any sign of the letter of offer? Are your approvals underwritten as that should speed it up. I know BOI have a bit of a backlog at the moment

We got approval in principle from both BOI and AIB about a month ago.
I stopped the process with AIB cause BOI we’re giving a better offer but I found BOI are taking an age to get anything done.
I submitted the final docs in BOI a week and a half ago and heard nothing. Chased them on Friday and today cause I got no acknowledgement of receipt to find they need one more thing, wouldn’t have heard only I called them.

I finalised the last of what I need with AIB after that

tomister

colly10 wrote: »

We got approval in principle from both BOI and AIB about a month ago.
I stopped the process with AIB cause BOI we’re giving a better offer but I found BOI are taking an age to get anything done.
I submitted the final docs in BOI a week and a half ago and heard nothing. Chased them on Friday and today cause I got no acknowledgement of receipt to find they need one more thing, wouldn’t have heard only I called them.

I finalised the last of what I need with AIB after that

I’ve heard similar stories with BOI and hoping I don’t have the same problem. I had my mortgage specialist in the branch mark it that I was signing this week to try get it through quickly.
With AIB at least you can track it via the app and see if anything is delaying it.

whatever76

sorry if folks already aware of this but no harm mentioning again … it was news to me a few months back as I was just doing reg. saving for Morgtgage deposit - BOI have this offer or Mortgage saving account … https://personalbanking.bankofireland.com/save-and-invest/savings/regular-savings-accounts/mortgagesaver-account/exclusive-offer-for-first-time-buyers/

2k ( less DIRT) when you draw down ( few conditions but a good offer if you are FTB and in middle of deposit saving) … this does not impact any cashback offer for actual Mortgage as wel

Craftylee

Is it me or does the BOI "lure" people in with these nice offers of cash - but you get totally nailed on the interest compared to other lenders? It feels like they're distracting you with "look over here with our awesome chashback" while in the other hand you're paying back a much higher % interest.

Example:
5 Year Fixed rate mortgage from BoI (3.9% APRC)
Loan amount: €162,000
Total cost: €233,054
Total interest: €71,054
Property price: €180,000
Loan-to-value ratio: 90%
5 years of €898.45/month (3% interest rate)
15 years of €995.26/month (4.5% interest rate)

Compared with say a no thrills mortage from KBC:

5 Year Fixed rate mortgage from KBC (3.5% APRC)
Loan amount: €162,000
Total cost: €217,375
Total interest: €55,375
Property price: €180,000
Loan-to-value ratio: 90%
5 years of €882.32/month (2.8% interest rate)
15 years of €913.53/month (3.3% interest rate)

That's a differecne of €15k in interest over the 20 years - or am I missing something?

KingCong

Craftylee wrote: »

Is it me or does the BOI "lure" people in with these nice offers of cash - but you get totally nailed on the interest compared to other lenders? It feels like they're distracting you with "look over here with our awesome chashback" while in the other hand you're paying back a much higher % interest.

Example:
5 Year Fixed rate mortgage from BoI (3.9% APRC)
Loan amount: €162,000
Total cost: €233,054
Total interest: €71,054
Property price: €180,000
Loan-to-value ratio: 90%
5 years of €898.45/month (3% interest rate)
15 years of €995.26/month (4.5% interest rate)

Compared with say a no thrills mortage from KBC:

5 Year Fixed rate mortgage from KBC (3.5% APRC)
Loan amount: €162,000
Total cost: €217,375
Total interest: €55,375
Property price: €180,000
Loan-to-value ratio: 90%
5 years of €882.32/month (2.8% interest rate)
15 years of €913.53/month (3.3% interest rate)

That's a differecne of €15k in interest over the 20 years - or am I missing something?

Collect the BOI cashback then switch to another bank with better interest rates, like Ulster Bank or KBC. Or switch to EBS/PTSB first and collect more cashback before switching again to a bank with decent rates. You only lose on the cashback deals if you stay with the bank long term, people should be reviewing their mortgage at least yearly and switching if there's a better deal, like they do with electricity and gas utilities etc.

awec

Craftylee wrote: »

Is it me or does the BOI "lure" people in with these nice offers of cash - but you get totally nailed on the interest compared to other lenders? It feels like they're distracting you with "look over here with our awesome chashback" while in the other hand you're paying back a much higher % interest.

Example:
5 Year Fixed rate mortgage from BoI (3.9% APRC)
Loan amount: €162,000
Total cost: €233,054
Total interest: €71,054
Property price: €180,000
Loan-to-value ratio: 90%
5 years of €898.45/month (3% interest rate)
15 years of €995.26/month (4.5% interest rate)

Compared with say a no thrills mortage from KBC:

5 Year Fixed rate mortgage from KBC (3.5% APRC)
Loan amount: €162,000
Total cost: €217,375
Total interest: €55,375
Property price: €180,000
Loan-to-value ratio: 90%
5 years of €882.32/month (2.8% interest rate)
15 years of €913.53/month (3.3% interest rate)

That's a differecne of €15k in interest over the 20 years - or am I missing something?

It is a complete waste of time to try and calculate what you'll really pay back over the total term of the mortgage. You have no idea what interest rates will be in 10 years time, you'll have no idea if you still live in the same house or whatever.

Look at what your monthly payments will be at the start at the various interest rates, work it out for 5 or so years and see if the cashback makes sense. You don't get anything for free of course, but having a chunk of cash available up front can be beneficial, even if it means paying slightly higher interest over the first few years of your mortgage.

tomister

KingCong wrote: »

Collect the BOI cashback then switch to another bank with better interest rates, like Ulster Bank or KBC. Or switch to EBS/PTSB first and collect more cashback before switching again to a bank with decent rates. You only lose on the cashback deals if you stay with the bank long term, people should be reviewing their mortgage at least yearly and switching if there's a better deal, like they do with electricity and gas utilities etc.

Also if you’re buying an A rated home you get a 0.2% off the interest rate. Now if you fix it then it’s only for the duration of the initial fixed period

Blanco100

what happens if you sell your house in 5-10 years (you borrow 250k, but over 30 years youre contracted to pay 350k including interest).

Do you still have to pay the bank the full amount back including interest? or is there like a sliding scale?

unbelievably stupid question i know

Brussels Sprout

Blanco100 wrote: »

what happens if you sell your house in 5-10 years (you borrow 250k, but over 30 years youre contracted to pay 350k including interest).

Do you still have to pay the bank the full amount back including interest? or is there like a sliding scale?

unbelievably stupid question i know

I came here to post a very similar question:

Are there certain mortgage types where you can pay off lumps of the capital, above and beyond your regular payments every few years, which will have the effect of not only reducing the lifetime of your mortgage but also reducing the total interest payments?

Padre_Pio

Brussels Sprout wrote: »

I came here to post a very similar question:

Are there certain mortgage types where you can pay off lumps of the capital, above and beyond your regular payments every few years, which will have the effect of not only reducing the lifetime of your mortgage but also reducing the total interest payments?

Variable rate mortgage let's you pay lump sums or pay off early.

Fixed rate penalises you.

awec

Blanco100 wrote: »

what happens if you sell your house in 5-10 years (you borrow 250k, but over 30 years youre contracted to pay 350k including interest).

Do you still have to pay the bank the full amount back including interest? or is there like a sliding scale?

unbelievably stupid question i know

Interest on a mortgage is accrued daily. If you pay it off at any time, you only pay interest up to that day. You do not pay future interest.

So if you sell your house, your sale will pay off the mortgage, including the interest up to the day you pay it off. You owe nothing else.

The total repayment amount you see when you take out a mortgage is just indicative of what you will pay if you pay that mortgage to completion, at that interest rate, with no lump sum payments. It is not a contract to pay that amount back.

Brussels Sprout wrote: »

I came here to post a very similar question:

Are there certain mortgage types where you can pay off lumps of the capital, above and beyond your regular payments every few years, which will have the effect of not only reducing the lifetime of your mortgage but also reducing the total interest payments?

As you pay your mortgage, over time the interest payments get lower and lower. If you make a lump sum payment, you'll automatically pay less interest over time.

tomister

Brussels Sprout wrote: »

I came here to post a very similar question:

Are there certain mortgage types where you can pay off lumps of the capital, above and beyond your regular payments every few years, which will have the effect of not only reducing the lifetime of your mortgage but also reducing the total interest payments?

There’s also an option to split your mortgage and have one portion fixed and the other variable. You can over pay into the variable portion without penalty (yearly bonus etc).
Now it is in essence 2 mortgages and you’ll have 2 DD etc so may not be to everyone’s cup of tea

elizunia87

Guys
How long does it usually take from sale agreed to receive the keys. It is a second hand house, no one lives there. Its been already one month and no news.
Getting crazy.

ChewBerecca

elizunia87 wrote: »

Guys
How long does it usually take from sale agreed to receive the keys. It is a second hand house, no one lives there. Its been already one month and no news.
Getting crazy.

I'm at 4 months now. Hoping to get keys tomorrow.

Vendor and their solicitor have not been helpful.

wirelessdude01

Anyone here used Finance Ireland for their mortgage? Any pros or cons to them?

Interested Observer

elizunia87 wrote: »

Guys
How long does it usually take from sale agreed to receive the keys. It is a second hand house, no one lives there. Its been already one month and no news.
Getting crazy.

A month is nothing really.

If the house is vacant, it isn't in probate is it? Because that will take a long time to sort.

JohnnyChimpo

Interested Observer wrote: »

A month is nothing really.

If the house is vacant, it isn't in probate is it? Because that will take a long time to sort.

Probate can go quickly. Can be a lot quicker than waiting on a seller who's in a chain to move on as well

scarepanda

Hi All,

We're bidding on a house at the moment and just doing up a proper/Final excel sheet of all additional costs of buying a house. From the following list, is there anything im forgetting?

-Bank valuation fee (ive allowed €150, is this reasonable?)
-Legal Fees
-Stamp Duty
-Surveyor fee
-Rent (allowing 2 months jic)

This might be a stupid question, but how quickly do the bills from the solicitors etc come in?

Creamy Goodness

scarepanda wrote: »

Hi All,

We're bidding on a house at the moment and just doing up a proper/Final excel sheet of all additional costs of buying a house. From the following list, is there anything im forgetting?

-Bank valuation fee (ive allowed €150, is this reasonable?)
-Legal Fees
-Stamp Duty
-Surveyor fee
-Rent (allowing 2 months jic)

This might be a stupid question, but how quickly do the bills from the solicitors etc come in?

Bank should be able to inform you of their valuation cost, I think AIB charged me €160.

with regards to solicitors fees mine charged me one bill (itemised) as they received the funds from the bank, their bill for me was roughly €6k and that included stamp duty.

scarepanda

Creamy Goodness wrote: »

Bank should be able to inform you of their valuation cost, I think AIB charged me €160.

with regards to solicitors fees mine charged me one bill (itemised) as they received the funds from the bank, their bill for me was roughly €6k and that included stamp duty.

Thank you!

Does anyone know what PTSB charge? EDIT: Sorry, I just found it on PTSB website. Id looked before and couldnt see it.

Is the valuation paid separately or at drawdown?

awec

scarepanda wrote: »

Thank you!

Were going through a broker, so ill pop him an email and see what the cost of the valuation is.

Is the valuation paid separately or at drawdown?

Valuation will need to be paid before the bank will release your funds.

scarepanda

awec wrote: »

Valuation will need to be paid before the bank will release your funds.

Thank you! I figured as much, but just wanted to check.

whatever76

-Bank valuation fee (ive allowed €150, is this reasonable?)
Yes - I paid 150 and you get this done after Survey report and you are happy to proceed with purchase if any doubt at all with survey result do not get one done

-Legal Fees
Depends on Solicitor but usual around 1% of the sale of house or could be less …… I have budget for 6.5 k ( inc 3200 stamp duty) so that's for everything

-Stamp Duty
1% of the sale price

-Surveyor fee
ranges from 500 - 600 euro - shop about first but advise go with a recommendation they are your friend in the process especially if 2nd house house

-Rent (allowing 2 months jic)
this maybe tight ... ideally if u can stop renting and move somewhere for a bit so not under pressure as its a long process with a lot of back and forth you don't want the stress of having to deal with a move out deadline of a house as well if things get delayed

hope this helps - best of luck !
Tough process … AM near the end I hope - where I am waiting for its was all worth it to kick in - not happening yet with all the things that need sorting

scarepanda

Thank you for your post!

We almost bought a place earlier in the year but missed out by 7 days while we were waiting for mortgage approval, so from then we have the solicitor priced and ready to go.

Surveyor is a family friend, and hes ready to go, although i must touch base with him again.

Rent has me a little worried. We have a sort of loose agreement with the Landlord from both ends that we give each other a few months notice if anything changes. this suits us if we end up buying. I think we plan to give him a heads up if/when we go sale agreed and hope he accepts a couple months notice once we sign contracts if we get that far. Moving and not renting isnt really an option if we can help it at all as we have 2 kids and 2 dogs to move as well so it would be a lot to land on any of the parents.

tomister

Hey everyone,

Have an odd query and wondering if anyone else has had the same. Not sure if this belongs here or in the Help to Buy thread...
Bank have approved my mortgage this morning however have come back with a query on the Help to Buy.
I've been approved on Help to Buy to the max €20k rebate however as the rebate is the lesser of the €20k or 5% of the purchase price of the house I would only be taking €14k (house is €280k).
The underwriter has now come back requesting proof that I will only receive the €14k and not the full €20k. I thought this was odd as these are the rules set by Revenue and I will only be able to prove this once I submit the claim and to do this I need the loan pack.
To be fair my mortgage advisor in the branch has been amazing and cannot understand why they are asking for this. We've gone back with an extract from the Revenue website hoping this will suffice.
Contracts landed today and I would like to get everything closed off.
Has anyone experienced the same?