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

flipflophead22

Good info here, im 40 and looking to apply this year with my partner for a mortgage. Am I right in saying the max I can get is 25 year mortgage? My age will go against me I guess.

Woshy

flipflophead22 wrote: »

Good info here, im 40 and looking to apply this year with my partner for a mortgage. Am I right in saying the max I can get is 25 year mortgage? My age will go against me I guess.

My husband is 37 (about to turn 38) and we were told the max term we could get is 33 years - I was just on the phone to the bank 20 minutes ago about it. So I think you could get 30 years - worth looking into anyway.

C@t

flipflophead22 wrote: »

Good info here, im 40 and looking to apply this year with my partner for a mortgage. Am I right in saying the max I can get is 25 year mortgage? My age will go against me I guess.

Some banks (AIB) allow you to go to retirement age, so you may get an extra 2-3years, up to age 67/68.

jlm29

We had to get a 19 year term when my oh was 46

guy101

Woshy wrote: »

When we got our mortgage as first time buyers we had one unpaid direct debit in our accounts. It was just a timing issue, I'd forgotten to transfer money over to an account - the direct debit was paid a few days later. It as for about e25 I think. However, PTSB reduced the amount they would lend us by 30k because of this unpaid direct debit. They told us the best thing was to wait 2-3 months and apply again when this was no longer on our statements.

We went with another bank in the end who didn't have an issue with it but it's something to keep in mind if you're preparing to apply for a mortgage.

I’m about to submit paperwork to EBS.
Does anyone know what their view on returned direct debits?
Just after spotting it on my statement from November 19. Similar situation to the poster above.
Nightmare if I’m going to have to wait another five months!
We’re currently saving 3.2x what our proposed mortgage payment will be.

Woshy

guy101 wrote: »

I’m about to submit paperwork to EBS.
Does anyone know what their view on returned direct debits?
Just after spotting it on my statement from November 19. Similar situation to the poster above.
Nightmare if I’m going to have to wait another five months!
We’re currently saving 3.2x what our proposed mortgage payment will be.

We actually went with EBS in the end and they didn't say anything to us about it. That was 5 years ago

guy101

Thanks Woshy!
We’ll keep our fingers crossed so.
I’ll update here if they flag it.

twinytwo

When looking at repayments, let's say your variable currently is 4%. Always consider what the repayments are going to be if the rate goes to 5% or 6%, is it still workable.

Craftylee

Hi all,

A few probably quite basic mortgage questions from a FTB here

1. When applying to a bank for a mortgage in prinicple, do you need to show that you just have the deposit saved? Or also the combined extra costs, such as stamp duty + legal fees etc?

2. Looking at mortgages providers out there, is there any rules/downsides stopping me from doing the following?
- Get a fixed rate mortage with BoI for x amount of years and get the 2% cashback offer
- Once the x years fixed rate has finished, move the mortgage to another bank (+ potentially claim there switcher deals as well). I know this has re-mortgage costs, but it seems well worth it for savings in the long term.

Looking at the BoI variable rate, it seems much higher than others. So my plan would be to get a 2 or 5 year fixed term with BoI at 2.9%/3% interest. Claim the 2% cashback. Then once that fixed term is up, move to other bank with a better % intereste rate and switcher deal (currently KBC looks best).

Thanks for your help!

howayahorse

Another beginner here...just had what felt like a very pointless call with an AIB mortgage advisor. They essentially just told me what I already know by multiplying my salary by 3.5 and adding it to my savings. The only advice they had to offer was to call another day when they might have exceptions available. I tried asking about the process for getting approval in principle and got a nasal mumble at lighting speed like when they rush through the T&Cs on ads! Maybe I was expecting too much or maybe they weren't interested as really the max house price I can afford right now is around 240k.

It's brought up 2 questions for me though:

- does anyone know if not having a pension is seen as unfavourable? I have about €40k sitting in a pension from a previous job but haven't got around to signing up for the scheme in my new workplace since passing probation.

- if going for an exception can you get somewhere in between 3.5 and 4.5 times your salary. The girl on the phone led me to believe you have to take the full 4.5 times your salary. (Really I don't want to overstretch myself and think I would only want around 3.8 times to stand a chance at some of the properties I have seen advertised)

Graham

Mod Note

Threads merged

Woshy

howayahorse wrote: »

Another beginner here...just had what felt like a very pointless call with an AIB mortgage advisor. They essentially just told me what I already know by multiplying my salary by 3.5 and adding it to my savings. The only advice they had to offer was to call another day when they might have exceptions available. I tried asking about the process for getting approval in principle and got a nasal mumble at lighting speed like when they rush through the T&Cs on ads! Maybe I was expecting too much or maybe they weren't interested as really the max house price I can afford right now is around 240k.

It's brought up 2 questions for me though:

- does anyone know if not having a pension is seen as unfavourable? I have about €40k sitting in a pension from a previous job but haven't got around to signing up for the scheme in my new workplace since passing probation.

- if going for an exception can you get somewhere in between 3.5 and 4.5 times your salary. The girl on the phone led me to believe you have to take the full 4.5 times your salary. (Really I don't want to overstretch myself and think I would only want around 3.8 times to stand a chance at some of the properties I have seen advertised)

with regards the pension, when we applied for our first time mortgage the mortgage adviser got my husband to check if his pension contributions were optional (they weren't) as if they were they would have offered us a higher mortgage, as if we were struggling with the mortgage and needed to we could have stopped the pension payments. That was with EBS. So in my experience having no pension contributions means you can afford a higher mortgage.

DelBoy Trotter

I have been savings for a deposit for a number of years. I recently got a letter from the credit union stating that they won't accept any further transfers as I have gone over the maximum limit which they will hold in an account. We are currently mortgage approved, but not really looking at present. This may or may not change soon.
Can anybody give me any advice on the handiest place to keep my savings in the above scenario? I'm thinking an online savings account with my currently bank. My plan would be to move a chunk of my current savings to the online account, and then redirect my monthly savings to online savings account each time I get paid

zweton

Woshy wrote: »

with regards the pension, when we applied for our first time mortgage the mortgage adviser got my husband to check if his pension contributions were optional (they weren't) as if they were they would have offered us a higher mortgage, as if we were struggling with the mortgage and needed to we could have stopped the pension payments. That was with EBS. So in my experience having no pension contributions means you can afford a higher mortgage.

Do both myself and partner have to have a pension going? Or just one person?

hanaimai

Craftylee wrote: »

2. Looking at mortgages providers out there, is there any rules/downsides stopping me from doing the following?
- Get a fixed rate mortage with BoI for x amount of years and get the 2% cashback offer
- Once the x years fixed rate has finished, move the mortgage to another bank (+ potentially claim there switcher deals as well). I know this has re-mortgage costs, but it seems well worth it for savings in the long term.

Looking at the BoI variable rate, it seems much higher than others. So my plan would be to get a 2 or 5 year fixed term with BoI at 2.9%/3% interest. Claim the 2% cashback. Then once that fixed term is up, move to other bank with a better % intereste rate and switcher deal (currently KBC looks best).

Thanks for your help!

This is exactly what everyone should be doing. The numbers of switchers in Ireland are pretty low and it's crazy the amount of people who sign up for a fixed rate and then just sit on a high variable rate once that's up! As you've already mentioned, the only cost really is legal fees to move bank (assuming you're not breaking out of the fixed rate early) but that's usually well recouped by the potential savings and possible cashback/switching offers etc.

Dolbhad

DelBoy Trotter wrote: »

I have been savings for a deposit for a number of years. I recently got a letter from the credit union stating that they won't accept any further transfers as I have gone over the maximum limit which they will hold in an account. We are currently mortgage approved, but not really looking at present. This may or may not change soon.
Can anybody give me any advice on the handiest place to keep my savings in the above scenario? I'm thinking an online savings account with my currently bank. My plan would be to move a chunk of my current savings to the online account, and then redirect my monthly savings to online savings account each time I get paid

Same thing happened to me recently. I set up a demand deposit account with my current bank. And moved my money there and will redirect money there monthly.

However depending on who your going with for the mortgage, if it’s BOI they have a good mortgage saving account that gives you €1300 (I think) after DIRT if you take out a mortgage with them. There are some other terms and conditions with them.

fergiesfolly

So, we're looking at moving this year, but haven't done anything about it yet.
Is it best to value our house first and then approach banks to see how much we can borrow or just go to the bank first.
House prices in our area have been very variable, so don't know where our house is, price wise.
We have about €30k outstanding on our home with some €20k in savings, no other loans and very modest outgoings.

Jsmac67

Hoping to apply as a first time buyer in the second half of the year, using the next six months to get statements etc in order. One question though, how do Banks view assistance from family members?

For example, I plain to save a 10% deposit by June, with my parents another circa 5%

Is this looked down upon by banks?

drunkmonkey

I know the papers are only saying small ups and downs in their articles on house prices but some areas are bucking the national trend, if there going up in your area hold off getting the value, ask the bank who their valuer is and have a chat with them.

Creamy Goodness

Jsmac67 wrote: »

Hoping to apply as a first time buyer in the second half of the year, using the next six months to get statements etc in order. One question though, how do Banks view assistance from family members?

For example, I plain to save a 10% deposit by June, with my parents another circa 5%

Is this looked down upon by banks?

The bank will require a letter signed by your parents that the money is a gift and that they don’t expect repayment and they don’t want any part of the house/mortgage.

It’s not frowned upon providing you meet all the other rules the bank have.

wolfyboy555

Does anyone have a spreadsheet comparing mortgages rates of each that was made by a fellow boardsie and put up a good while ago. I thought I had it downloaded but cant find it.

zweton

Oh would be great to see this.

drunkmonkey

Have a look on bonkers there all there, you just need to decide if the cash back offers and that are worth it, depending on the amount your borrowing they may well be. Look at them over the length of the deal term not the mortgage term and be prepared to switch when the deals up if there's a better one.

Woshy

zweton wrote: »

Do both myself and partner have to have a pension going? Or just one person?

I'm not sure what you mean? my post is saying that the bank wanted my husband to have the ability to stop contributing to his pension, not that they wanted him to have one.

drinkingwater

wolfyboy555 wrote: »

Does anyone have a spreadsheet comparing mortgages rates of each that was made by a fellow boardsie and put up a good while ago. I thought I had it downloaded but cant find it.

https://touch.boards.ie/thread/2058018419/1/#post111357595

fin12

Question on how to show savings record:

I save in my credit union.

I withdraw my wages from my bank account and deposit cash into my credit union every month.

If the bank statement from credit union show a deposit of the same amount going in each month is that enough?

I’m just wondering cause it’s not electronic transfer and it’s cash being deposited, could it be a problem?

L1011

That should be fine

Dolbhad

fin12 wrote: »

Question on how to show savings record:

I save in my credit union.

I withdraw my wages from my bank account and deposit cash into my credit union every month.

If the bank statement from credit union show a deposit of the same amount going in each month is that enough?

I’m just wondering cause it’s not electronic transfer and it’s cash being deposited, could it be a problem?

I do that and bank had no issue with it. You should ensure you lodge it immediately though from withdrawal into the credit union. The bank so look at any withdrawals so they check it corresponds.

what_traffic

fin12 wrote: »

Question on how to show savings record:

I save in my credit union.

I withdraw my wages from my bank account and deposit cash into my credit union every month.

Is the amount always the same or do you change from month to month?

gnf_ireland

zweton wrote: »

Do both myself and partner have to have a pension going? Or just one person?

I have never been asked about pensions when I was applying for mortgages. I imagine it only gets important in the following circumstances:
- you have a public sector pension and therefore have a 'stable' income and defined lump sum in retirement. This may become important if you are looking to have a mortgage beyond 65
- you are contributing large amounts to your pension now and have the flexibility to reduce this in the future to meet other commitments (such as the mortgage)

In general, most private sector workers have negligible pensions when they are looking to buy a house, so its not material in any way to the overall financial position. Defined contribution pensions are uncertain by their nature, so banks would be slow to consider them unless material in value