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

Looptheloop30

lfen wrote: »

Just sure to show 6 months of saving more than €950 monthly

Possibly a daft question: Does rent payments count towards being able to show saving ability?

I.e if living at home you'd need to show 900/1000 savings each month whereas if renting you'd need to show monthly rent payments + savings to make up to the 900 or whatever ball park figure?

lir6777

Looptheloop30 wrote: »

Possibly a daft question: Does rent payments count towards being able to show saving ability?

I.e if living at home you'd need to show 900/1000 savings each month whereas if renting you'd need to show monthly rent payments + savings to make up to the 900 or whatever ball park figure?

Yes, rent will count towards repayment calculations. Also I believe any loan repayments where the loan will be paid off before drawdown

hanaimai

Glen_Quagmire wrote: »

Probably a stupid question but I assume the banks dont renegotiate the rates with situations like this and offer the lower rate if it changes shortly after? I know some industries offer customers a refund of the difference if something they buy goes down in a sale in the near future.

I doubt banks are the same and its probably a stupid question as the rates could have easily gone up rather than down but I said I would ask the question as there maybe something there which I'm not aware of.

Short answer - no. If you signed a contract for a fixed rate, you're locked into that rate for the duration of the contract. Whether the banks rates go up or down won't affect your fixed rate until it expires.

Longer answer - you are of course free to break contract during the term of the fixed rate and move to a lower rate (either with BOI or a different bank). This may incur a penalty known as a break fee. The break fee can vary greatly but you can ring up BOI for a quote. It's possible that even with the break fee, the lower rate will save you money in the longer term so you should certainly look into it.

Padre_Pio

I've been following this thread for a year. Just went sale agreed on a nice cottage on a half acre.
Sorted solicitor and bank today.
Going for Ulsterbank as they seem to have competitive rates.

Thanks a million for all the advice and help.

z0oT

For anyone who's bought a new build:

At what point can you get Home Insurance & Mortgage Protection in place? Mortgage Protection can probably be done whenever the mortgage amount & term is finalized. For Home Insurance the house probably needs to be finished?

We're buying a new build (which is being built at the minute), and hoping for drawdown around the middle of April. We've just got what will likely be our final Mortgage Letter of Offer last week. Does one have to specify a start date on those policys or can the start date change? I obviously don't know the exact date we'll be getting the keys.

We're new to all of this, but I want to move on the Mortgage Protection & Home Insurance probably this week if I can.

Creamy Goodness

z0oT wrote: »

For anyone who's bought a new build:

At what point can you get Home Insurance & Mortgage Protection in place? Mortgage Protection can probably be done whenever the mortgage amount & term is finalized. For Home Insurance the house probably needs to be finished?

We're buying a new build (which is being built at the minute), and hoping for drawdown around the middle of April. We've just got what will likely be our final Mortgage Letter of Offer last week. Does one have to specify a start date on those policys or can the start date change? I obviously don't know the exact date we'll be getting the keys.

We're new to all of this, but I want to move on the Mortgage Protection & Home Insurance probably this week if I can.

Both can be put in place basically as soon as you've gotten underwritten AIP and can be held until you need them. Get Mortgage protection done first, depending on your - and your family's - medical history it could end up taking extra time.

Home insurance can be pretty much done in a day (one phone call).

You activate the mortgage protection the day your solicitor draw the funds down. You activate the home insurance the day you get the keys.

tomister

z0oT wrote: »

For anyone who's bought a new build:

At what point can you get Home Insurance & Mortgage Protection in place? Mortgage Protection can probably be done whenever the mortgage amount & term is finalized. For Home Insurance the house probably needs to be finished?

We're buying a new build (which is being built at the minute), and hoping for drawdown around the middle of April. We've just got what will likely be our final Mortgage Letter of Offer last week. Does one have to specify a start date on those policys or can the start date change? I obviously don't know the exact date we'll be getting the keys.

We're new to all of this, but I want to move on the Mortgage Protection & Home Insurance probably this week if I can.

For Mortgage Protection you can get it done whenever however for the Home Insurance you need to have the valuation carried out. This is because you need the rebuild cost of the property which you will only get on the valuation

Creamy Goodness

forgot about that, yeah you'll need a valuation done to get the home insurance, still rest of my post remains valid. You get the valuation done once the builder has stated the building is complete.

Klaudia.

Guys, how banks look at investment accounts? I saw on this forum some people are opting out of pension contributions. Would that be the same with investments? Let's say I put away each month the same amount and invest + save on separate account for a house... do I need to stop investing?

Also, I'm thinking about moving back to family house for a few months (rent-free; parents want to help). It will help with savings, but would banks question my ability to repay the mortgage?

gnf_ireland

Glen_Quagmire wrote: »

We bought our house about 8 months ago.

We originally had an offer from BOI for 5 years fixed at 3% however the house wasnt built in time and this offer expired after 6 months and we had to get a revised offer and the rates with BOI had risen to 3.2% for 5 years fixed.

We took the offer at 3.2% for 5 years fixed.

I now see BOI rates have gone back down to 3% again.

Bad luck with timing on our part..

Probably a stupid question but I assume the banks dont renegotiate the rates with situations like this and offer the lower rate if it changes shortly after? I know some industries offer customers a refund of the difference if something they buy goes down in a sale in the near future.

I doubt banks are the same and its probably a stupid question as the rates could have easily gone up rather than down but I said I would ask the question as there maybe something there which I'm not aware of.

No they won't - but you can ask them what the break fee is for fixed mortgage. If the number is negligible, you tell them you wish to break the fixed mortgage and then sign up to another 5 years at 3% ! Absolutely nothing wrong with it and you might find the break free is actually zero

No harm in asking ! The worst that can happen is you waste a bit of time and the fee does not make sense. Its worth 200 euro a year (1k over the 5 year term) for every 100k of a mortgage you have !

KilOit

z0oT wrote: »

For anyone who's bought a new build:

At what point can you get Home Insurance & Mortgage Protection in place? Mortgage Protection can probably be done whenever the mortgage amount & term is finalized. For Home Insurance the house probably needs to be finished?

We're buying a new build (which is being built at the minute), and hoping for drawdown around the middle of April. We've just got what will likely be our final Mortgage Letter of Offer last week. Does one have to specify a start date on those policys or can the start date change? I obviously don't know the exact date we'll be getting the keys.

We're new to all of this, but I want to move on the Mortgage Protection & Home Insurance probably this week if I can.

Get mortgage protection done asap, i was 6 weeks waiting on my one, i bought second hand and it almost fell through because of it.
I'm sure new builds isn't so rough and under huge time constraints though

Monitor1985

Has anyone any experience with ICS mortgages lately? Thinking of going with them as my missus works with the HSE.

Was thinking of going with Ulster Bank first for two years at 2.3% then switching, but it will cost €1500 roughly to swap and the difference is only about €240 over 2 years if I go with ICS straight up.

We'll hopefully be going in at under 80% LTV.

Maz2016

Has anyone had difficulty with the mortgage/insurance when they have a pre existing health condition? I have a heart condition but it doesn’t affect my day to day life. Had surgery 3 years ago

Naked Lepper

prob a stupid question but regarding mortgage, you can get 3.5 times your salary ok
so that means if you earn 100k you can get 350,000 and you need 35k deposit for ftb

does this mean the total value of the property you can buy is 350k + 35k so you can get a property for 385k (in theory)

or if you saved 50k and your salary is 100k that means you can buy a house for 400k if you get +3.5x your salary plus the 50k you saved?

thunderdog

Naked Lepper wrote: »

prob a stupid question but regarding mortgage, you can get 3.5 times your salary ok
so that means if you earn 100k you can get 350,000 and you need 35k deposit for ftb

does this mean the total value of the property you can buy is 350k + 35k so you can get a property for 385k (in theory)

or if you saved 50k and your salary is 100k that means you can buy a house for 400k if you get +3.5x your salary plus the 50k you saved?

Yes, that’s right

Naked Lepper

thanks for the confirmation

GingerLily

Naked Lepper wrote: »

prob a stupid question but regarding mortgage, you can get 3.5 times your salary ok
so that means if you earn 100k you can get 350,000 and you need 35k deposit for ftb

does this mean the total value of the property you can buy is 350k + 35k so you can get a property for 385k (in theory)

or if you saved 50k and your salary is 100k that means you can buy a house for 400k if you get +3.5x your salary plus the 50k you saved?

You still will need the 10% deposit if your a FTB, so10% of 385k is 38.5k, so you'd need a bigger deposit then 35k!

Uglysoik1

GingerLily wrote: »

You still will need the 10% deposit if your a FTB, so10% of 385k is 38.5k, so you'd need a bigger deposit then 35k!

I'll add 5 - 7k for solicitors fee and stamp duty.

Summer2020

Are people considering holding off to see what happens to the economy and property market due to the Coronavirus before buying?

Creamy Goodness

I wouldn’t. If you need a home, the time is right and you can afford the stress payments just go for it. If you put it off the next thing will be there to put you off.

Foot and mouth
Swine flu
Bird flu
Brexit
Corona virus
Etc. Etc.

Padre_Pio

Creamy Goodness wrote: »

I wouldn’t. If you need a home, the time is right and you can afford the stress payments just go for it. If you put it off the next thing will be there to put you off.

Foot and mouth
Swine flu
Bird flu
Brexit
Corona virus
Etc. Etc.

Foot and mouth,
2012,
Y2K,
Boom and Bust etc.

There's no good or bad time really to buy a house (unless it was peak boom maybe)

Woshy

Summer2020 wrote: »

Are people considering holding off to see what happens to the economy and property market due to the Coronavirus before buying?

We're sale agreed on somewhere and I do have the odd thought where I think will we regret it?

But we need somewhere to live, we have the 20% deposit and mortgage approval. We have a growing family and need a bigger house. We've purposely not gone as expensive/big as we could have and the mortgage repayments will be 18% of our monthly wages so can be paid if one of us loses our job (mine is pretty recession proof).

Flyonawall

I wonder what is the view on this. Will this effect house prices?
Thinking of buying here myself, mortgage approved and I am bidding and looking but this has the feel of 2008 alright. There is not the same issue with cheap credit and over supply though.

fifth

Have a booking deposit down on a property myself and mortgage approval but worried about how things are looking with the economy. Not signing anything just yet. Feel the house is overpriced but it's been that way for a long time with pretty much any property i've looked at, and so I just bit the bullet. But now certainly having second thoughts. Job security might be an issue as this drags on.

Padre_Pio

fifth wrote: »

Have a booking deposit down on a property myself and mortgage approval but worried about how things are looking with the economy. Not signing anything just yet. Feel the house is overpriced but it's been that way for a long time with pretty much any property i've looked at, and so I just bit the bullet. But now certainly having second thoughts. Job security might be an issue as this drags on.

It'll take 2 to 3 months to close the sale. You can pull out at any time. It's probably a bad tactic, but if you're really worried you could drag out the sale just to be sure.

ELM327

GingerLily wrote: »

You still will need the 10% deposit if your a FTB, so10% of 385k is 38.5k, so you'd need a bigger deposit then 35k!

It's 10% of the mortgaged amount, or it was when I was applying.
350k mortgage + 10% of 350k gives 385k.

un5byh7sqpd2x0

ELM327 wrote: »

It's 10% of the mortgaged amount, or it was when I was applying.
350k mortgage + 10% of 350k gives 385k.

You’re not correct.

90% of 385k is 346.5, the shortfall being the 10% deposit - 38.5k

ELM327

Remi Hundreds Salamander wrote: »

You’re not correct.

90% of 385k is 246.5, the shortfall being the 10% deposit - 38.5k

100% = 350k mortgage
10% = 350k * .1
110% = 350 + .1*350 = 385k
QED


Permanent TSB and BOI do it this way for sure.

Greyian

ELM327 wrote: »

100% = 350k mortgage
10% = 350k * .1
110% = 350 + .1*350 = 385k
QED


Permanent TSB and BOI do it this way for sure.

Not according to the PTSB or BOI sites.

PTSB


BOI


In both cases, the deposit has to be at least 10% of the property value, not the mortgage. This is as per the Central Bank's rules.

un5byh7sqpd2x0

Greyian wrote: »

In both cases, the deposit has to be at least 10% of the property value, not the mortgage. This is as per the Central Bank's rules.

Exactly... And here's the exact numbers referenced in case he doesn't believe us...

BOI


PTSB