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

audi12

audi12 wrote: »

why doesn't it matter your paying higher repayments each month than if you bought at the right time.. You also have a crap net worth

What's the alternative for the person who bought then? Keep renting even tough it was unsuitable for them and almost certainly be paying far more now than the mortgage they have. Also much easier to get mortgages back then than now.

Once a person is able to pay their mortgage (without it crippling them) and they don't plan on selling in the medium to long term the actual value of the house doesn't make a massive difference. Same as the house being worth 200k more than it was makes absolutely no difference if you aren't going to sell it.

Why would you be worried about net worth? As above if people are living comfortablely they aren't going to care too much about the house being worth less on paper as its all on paper anyway. They could be saving far more than if they were renting for example so the net worth figure is meaningless if they are not selling.

audi12

audi12 wrote: »

Azalea Screeching Padding wrote: »

What's the alternative for the person who bought then? Keep renting even tough it was unsuitable for them and almost certainly be paying far more now than the mortgage they have. Also much easier to get mortgages back then than now.

Once a person is able to pay their mortgage (without it crippling them) and they don't plan on selling in the medium to long term the actual value of the house doesn't make a massive difference. Same as the house being worth 200k more than it was makes absolutely no difference if you aren't going to sell it.

Why would you be worried about net worth? As above if people are living comfortablely they aren't going to care too much about the house being worth less on paper as its all on paper anyway. They could be saving far more than if they were renting for example so the net worth figure is meaningless if they are not selling.[/Q
pointless having this argument going round in circles your comment about net worth is beyond belief so if you had a net worth of half a million you wouldent think about selling then no at least you have the option with no net worth guess what you have no options

why would you be worried about net worth ive heard it all now ... well let me explain if you have a net worth of half million you can sell if you decide and be wealthy if you have a negative net worth you have no options make sense to you now ..

athtrasna

Enough sniping please

Villa05

The housing market summed up in this thread arguing about the pros and cons of being in the frying pan or the fire and which is more beneficial.

If only we collectively put our energies in developing more sustainable housing solutions

Arsen5

Hi, We applied for a mortgage (both good income) out of three banks two refused based on what they said (repayment ability) one asked for a new contract as my current one is nearing it's end (sent them a new one as I'm on rolling contracts for the last 8 years and waiting for their reply shortly). My question is does this two refusals necessarily mean bad credit report from ICB (had few missed direct debits before but very good repayment on a small personal loan for nearly two years)or it's due to something else (bank statement all over the place with a lot of to & fro transfers between me and a couple of few friends) I requested ICB report on my self and hopefully will get it within 3-4 days. If that's the case can I do anything to improve a bad ICB report before 5 years?
Thanks in advance.

McGinty2016

Hi All,
Just a question I've been trying to find an answer to online in relation to applying for a mortgage.
If you are pregnant / have a child already, will this reduce the amount you can borrow? If so, by how much?
Currently renting but hoping to be in a position to buy early next year. 3.5 time salary cap is really hindering our chances though as husband moved into an accounting role recently so is on trainee salary.

Michael D Not Higgins

McGinty2016 wrote: »

Hi All,
Just a question I've been trying to find an answer to online in relation to applying for a mortgage.
If you are pregnant / have a child already, will this reduce the amount you can borrow? If so, by how much?
Currently renting but hoping to be in a position to buy early next year. 3.5 time salary cap is really hindering our chances though as husband moved into an accounting role recently so is on trainee salary.

For each child, the mortgage underwriters will add ~250 per month to your expenses, if this is off the top of your mortgage repayments, that roughly translates to 50k less of a mortgage.

whiskeyman

Michael D Not Higgins wrote: »

For each child, the mortgage underwriters will add ~250 per month to your expenses, if this is off the top of your mortgage repayments, that roughly translates to 50k less of a mortgage.

But childcare could cost 1k p/m?

Michael D Not Higgins

whiskeyman wrote: »

But childcare could cost 1k p/m?

It's the minimum expenses for a child, they cover childcare elsewhere and yes if you're paying 1k a month, that reduces your affordability by 1k a month.

stefanovich

Apologies if this has been asked before but how likely are the banks to waive the 10% deposit requirement for first time buyers? Currently saving and have around 10,000 but looking to buy something for around 200,000.

Rew

stefanovich wrote: »

Apologies if this has been asked before but how likely are the banks to waive the 10% deposit requirement for first time buyers? Currently saving and have around 10,000 but looking to buy something for around 200,000.

I don't think they can wave the 10% but I could be wrong

L1011

stefanovich wrote: »

Apologies if this has been asked before but how likely are the banks to waive the 10% deposit requirement for first time buyers? Currently saving and have around 10,000 but looking to buy something for around 200,000.

Realistically no chance. The waivers are used for people who have significant incomes and insufficient deposit or significant deposits and slightly below the income multiplier; not at this end of the scale.

Tasden

Michael D Not Higgins wrote: »

For each child, the mortgage underwriters will add ~250 per month to your expenses, if this is off the top of your mortgage repayments, that roughly translates to 50k less of a mortgage.

Can you clarify what you mean by if this is off the top of mortgage repayments? Sorry my brain is drawing a blank with your comment

Michael D Not Higgins

Rew wrote: »

I don't think they can wave the 10% but I could be wrong

I'm not sure there's anything preventing it but the banks are wary about getting into that territory. The usual exemption would cover a drop from the 20% requirement and is usually backed by the affordability being met.

stefanovich, for a mortgage of 190k, you would need a minimum salary of 54k but to meet the exemption they might require a higher bar, best to speak to the bank or a broker.

Michael D Not Higgins

Tasden wrote: »

Can you clarify what you mean by if this is off the top of mortgage repayments? Sorry my brain is drawing a blank with your comment

Sorry, yeah that was a bit unclear. What I meant was there's an affordability criteria within the bank's underwriting where they take your expenses and salary into account and apply their own rules, e.g. stress testing to come up with your affordable mortgage repayment. With a child, this affordable payment would be reduced by 250 per month and would equate to about 50k less mortgage amount.

stefanovich

Michael D Not Higgins wrote:

stefanovich, for a mortgage of 190k, you would need a minimum salary of 54k but to meet the exemption they might require a higher bar, best to speak to the bank or a broker.

Well the income is more than 80k and I have a deposit of 5% already. Waived is probably the wrong word. What I meant was deposit 5% rather than 10%.

Tasden

Michael D Not Higgins wrote: »

Sorry, yeah that was a bit unclear. What I meant was there's an affordability criteria within the bank's underwriting where they take your expenses and salary into account and apply their own rules, e.g. stress testing to come up with your affordable mortgage repayment. With a child, this affordable payment would be reduced by 250 per month and would equate to about 50k less mortgage amount.

Is it possible to take the same mortgage amount but over a longer period to accommodate the affordability figures? Obviously within reason etc. But i guess what I'm asking is does it always reduce the amount you can loan or can it be worked around with regards to actual repayments.... does that make any sense?

L1011

stefanovich wrote: »

Well the income is more than 80k and I have a deposit of 5% already. Waived is probably the wrong word. What I meant was deposit 5% rather than 10%.

They would be asking questions about the sustainability of the mortgage if you have only saved 10k on that income. So no.

Tasden wrote: »

Is it possible to take the same mortgage amount but over a longer period to accommodate the affordability figures? Obviously within reason etc. But i guess what I'm asking is does it always reduce the amount you can loan or can it be worked around with regards to actual repayments.... does that make any sense?

Depends on the amount and the terms in question. Banks aren't lending 40 year mortgages on small amounts anymore.

Tasden

L1011 wrote: »

Depends on the amount and the terms in question. Banks aren't lending 40 year mortgages on small amounts anymore.

There goes my plans so :pac:
Thanks

Michael D Not Higgins

Tasden wrote: »

Is it possible to take the same mortgage amount but over a longer period to accommodate the affordability figures? Obviously within reason etc. But i guess what I'm asking is does it always reduce the amount you can loan or can it be worked around with regards to actual repayments.... does that make any sense?

The banks have max mortgage terms, pushing a mortgage to 40 years to make it affordable is likely not going to fly.

Tasden

Michael D Not Higgins wrote: »

The banks have max mortgage terms, pushing a mortgage to 40 years to make it affordable is likely not going to fly.

See I'm looking at a modest enough mortgage (140k ish) with hopefully 30% deposit to add to cost of house. Not sure of repayment terms etc but don't want my loan amount to go much lower as its already modest enough due to salary rules.

Michael D Not Higgins

stefanovich wrote: »

Well the income is more than 80k and I have a deposit of 5% already. Waived is probably the wrong word. What I meant was deposit 5% rather than 10%.

With that income, it would be easier to save the other 10k than get the exemption.

Michael D Not Higgins

Tasden wrote: »

See I'm looking at a modest enough mortgage (140k ish) with hopefully 30% deposit to add to cost of house. Not sure of repayment terms etc but don't want my loan amount to go much lower as its already modest enough due to salary rules.

Do you have expenses that would make a 140k mortgage unaffordable? The payments for that mortgage could be around 600-650 per month.

Tasden

Michael D Not Higgins wrote: »

Do you have expenses that would make a 140k mortgage unaffordable? The payments for that mortgage could be around 600-650 per month.

That's what i was thinking, hence me asking if the repayment terms can be adjusted rather than the 50k reduction in amount per child. Am i making sense? sorry!

Michael D Not Higgins

Tasden wrote: »

That's what i was thinking, hence me asking if the repayment terms can be adjusted rather than the 50k reduction in amount per child. Am i making sense? sorry!

I can't really answer without all the information and even then it would be an educated guess. It depends on a lot of things and you'll likely have to speak to a mortgage advisor or broker to see what you can do.

Tasden

Michael D Not Higgins wrote: »

I can't really answer without all the information and even then it would be an educated guess. It depends on a lot of things and you'll likely have to speak to a mortgage advisor or broker to see what you can do.

Ah i understand that, i just meant is it a set rule that the loan amount is reduced based on certain expenses-similar to deposit and salary rules/guidelines- or is it a case that expenses are looked at and the persons repayments and loan amount are determined then based on case by case.

Sono

McGinty2016 wrote: »

Hi All,
Just a question I've been trying to find an answer to online in relation to applying for a mortgage.
If you are pregnant / have a child already, will this reduce the amount you can borrow? If so, by how much?
Currently renting but hoping to be in a position to buy early next year. 3.5 time salary cap is really hindering our chances though as husband moved into an accounting role recently so is on trainee salary.

A work colleague applied and got a mortgage approval while she was heavily pregnant and they gave her and her partner €100k less because of it, not sure of the exact rule or if there even is one around this.

Utah

I don't know any rules around it but I don't see how it would make sense to give a couple less because they are expecting a baby - they could get a mortgage and fall pregnant a few months later, it's going to have the same cost regardless.

stefanovich

Michael D Not Higgins wrote:

With that income, it would be easier to save the other 10k than get the exemption.

L1011 wrote:

They would be asking questions about the sustainability of the mortgage if you have only saved 10k on that income. So no.

Yeah both points make sense. I'll admit I'm a spendthrift but have started to save 700 a month. My problem is due to another fault of mine, namely impatience.

L1011

Utah wrote: »

I don't know any rules around it but I don't see how it would make sense to give a couple less because they are expecting a baby - they could get a mortgage and fall pregnant a few months later, it's going to have the same cost regardless.

One is an inevitable (barring disaster) huge increase in costs, the other isn't. They don't lend to unemployed people on the basis that an employed person could be laid off next month.