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

fermanagh_man

Our mortgage application went in at lunch time to KBC

Going on holidays early July for 2 weeks so I'm hoping for a decision by then

Have already viewed some houses but nothing had us go wow, although we are viewing a property tomorrow that we are both very excited about

loveisdivine

Just got our first approval in principal letter, delighted as we got the 3.5 limit exemption It's only 20k above the limit but it makes all the difference!

Tasden

loveisdivine wrote: »

Just got our first approval in principal letter, delighted as we got the 3.5 limit exemption It's only 20k above the limit but it makes all the difference!

Brilliant!

FiannaSuccess

So many wage slaves with Stockholm syndrome in this thread. Sad to see.

Michael D Not Higgins

Mod: FiannaSuccess, please read the forum charter before posting again, we don't allow attacking the posters.

mollybird

so our meeting with the bank went very well. they just need 3 small things from us that wasn't quite right and should have our answer in a week after they are all in. can't get over how quick this is all moving along. AIB have also changed their mortgage apporval from 6 months to 12 months so we were both nicely surprised by that. Now to let the craziness begin. :P:P

loveisdivine

I probably already know the answer to this, but if there's a house we really like the look of and it's up for 210, is it worth going to view it if our absolute maximum is 190?

Michael D Not Higgins

loveisdivine wrote: »

I probably already know the answer to this, but if there's a house we really like the look of and it's up for 210, is it worth going to view it if our absolute maximum is 190?

Only in one (or some) of the following instances:
1. You're a cash buyer.
2. The asking price is way over the value.
3. The market in the area is slow.

loveisdivine

Just spoke to the estate agent and there's already an offer in for 200 so no point going to look really.
Thanks!

hawkeye_bmr

Gutted.com

Just had a phone call from our solicitor, he is advising us not to proceed with the purchase due to some outstanding issues.

1. Property was built in 2006, so we will be the 1st to buy it from the builder. That's classing it as a new build in the eyes of the bank and so they are requiring a 10 year home bond to be in place to release the funds. The house of course is 10 years old, so there isn't any chance of getting the home bond.

2. The estate has a management company set-up for the upkeep of the greens/roads, but no money has ever been paid into this fund. So, the builder has been taking care of those areas for the past number of years himself, so when the last house is sold, the management company will be transferred to the home owners but this fund will be empty.

He said the bank may issue the loan if they remove the home bond requirement, but there's still the fact of the non existent management company, all of which will be an issue if we decided to sell it again.


We had just sorted our home insurance yesterday, have everything bought for the house, from sofas and beds, down to new toilet seats, trying to keep our heads up and move on but just so disheartening when we were so close.

Tasden

hawkeye_bmr wrote: »

Gutted.com

Just had a phone call from our solicitor, he is advising us not to proceed with the purchase due to some outstanding issues.

1. Property was built in 2006, so we will be the 1st to buy it from the builder. That's classing it as a new build in the eyes of the bank and so they are requiring a 10 year home bond to be in place to release the funds. The house of course is 10 years old, so there isn't any chance of getting the home bond.

2. The estate has a management company set-up for the upkeep of the greens/roads, but no money has ever been paid into this fund. So, the builder has been taking care of those areas for the past number of years himself, so when the last house is sold, the management company will be transferred to the home owners but this fund will be empty.

He said the bank may issue the loan if they remove the home bond requirement, but there's still the fact of the non existent management company, all of which will be an issue if we decided to sell it again.


We had just sorted our home insurance yesterday, have everything bought for the house, from sofas and beds, down to new toilet seats, trying to keep our heads up and move on but just so disheartening when we were so close.

Aw that's disappointing. But its not the end of the road, just taking a diversion. You'll get your house, just may not be this one.

hawkeye_bmr

hawkeye_bmr wrote: »

2. The estate has a management company set-up for the upkeep of the greens/roads, but no money has ever been paid into this fund. So, the builder has been taking care of those areas for the past number of years himself, so when the last house is sold, the management company will be transferred to the home owners but this fund will be empty.

This would be a big deal in an apartment block but I wouldn't see it as being a big deal in a housing estate at all. Grass cutting etc will be the biggest job and that's not going to cost massive money or need a big fund. Just collect a fee from each house to pay for it.

L1011

Azalea Screeching Padding wrote: »

This would be a big deal in an apartment block but I wouldn't see it as being a big deal in a housing estate at all. Grass cutting etc will be the biggest job and that's not going to cost massive money or need a big fund. Just collect a fee from each house to pay for it.

It is very likely that the council are going to refuse to take the estate in charge, so the management company will be responsible for roads and sewerage pumping amongst other things. This requires an actual management company with an actual sinking fund.

Even if you can convince the bank to sell now, you've got a huge chance of an unsaleable property when you want to move on.

hawkeye_bmr

L1011 wrote: »

you've got a huge chance of an unsaleable property when you want to move on.

This is the main point that the solicitor is advising me about.

Naid23

Broker just came back with an approval offer from KBC which is great but they are looking for €46k deposit on a 310k buy price so they would be lending us €269.

I'm a bit shocked tbh - thats 5k over the bank deposit rules. Has anyone else been asked for a larger deposit then normally required?

matrim

Naid23 wrote: »

Broker just came back with an approval offer from KBC which is great but they are looking for €46k deposit on a 310k buy price so they would be lending us €269.

I'm a bit shocked tbh - thats 5k over the bank deposit rules. Has anyone else been asked for a larger deposit then normally required?

Are they possibly taking into account the money you need for legal fees, surveys etc?

Naid23

matrim wrote: »

Are they possibly taking into account the money you need for legal fees, surveys etc?

Nope they specifically asked for it for the deposit. We have approval with another bank aswel and theres 5k in the difference for the same amount. Doesnt make sense how it could differ from 2 different banks.

Sleepy

One judges you to have a lower repayment capacity than the other. It's less about the deposit than it is about the amount they're prepared to lend you...

Sono

Naid23 wrote: »

Broker just came back with an approval offer from KBC which is great but they are looking for €46k deposit on a 310k buy price so they would be lending us €269.

I'm a bit shocked tbh - thats 5k over the bank deposit rules. Has anyone else been asked for a larger deposit then normally required?

Are you after getting an exemption? It could be a case of one giving less of an exemption than the other.

If they say you can buy a house for €310k and lending you €269k then that's a deposit of €41k not €46k or am I missing something?

Sono

Also the bank's can't dictate what value house you can buy, if you have the savings you can pretty much put as much down as you want, the banks are only interested in what they are lending you and that you meet the minimum deposit criteria and ability to pay the mortgage back, after that it's up to you.

Naid23

Sono wrote: »

Are you after getting an exemption? It could be a case of one giving less of an exemption than the other.

If they say you can buy a house for €310k and lending you €269k then that's a deposit of €41k not €46k or am I missing something?

Sorry its €315 not 310. No exemption with either bank.
Was hoping to go with KBC for their lower rates so was a bit flustered writing earlier.

Sono

Is the amount they are willing to lend you 3.5 times your/joint salary? There is very little between what the banks will lend you to be honest unless there's an exception given. They can't offer different amounts as per central bank rules unless it's changed in the past 6 weeks since we bought.

Sono

@Naid23 how are the banks offering you different amounts with no exemption given?

quadrifoglio verde

<quote snipped: Mod>

People were liking ft mortgages at both the top of the market and bottom. People will always be looking for mortgages. There's nothing wrong with a mortgage if it's to live there long term. If you plan to live there until you come out in an overpriced box the price of the house ain't going to bother you.
Likewise there is nothing wrong with a mortgage if you only plan in living there in the short term, provided you're aware that thinks might go tits up and your stuck there long term.

There is something majorly wrong with buying with a short term view that it will be worth a fortune in a few years time and you can use it to trade up to a house suitable for you.

audi12

quadrifoglio verde wrote: »

People were liking ft mortgages at both the top of the market and bottom. People will always be looking for mortgages. There's nothing wrong with a mortgage if it's to live there long term. If you plan to live there until you come out in an overpriced box the price of the house ain't going to bother you.
Likewise there is nothing wrong with a mortgage if you only plan in living there in the short term, provided you're aware that thinks might go tits up and your stuck there long term.

There is something majorly wrong with buying with a short term view that it will be worth a fortune in a few years time and you can use it to trade up to a house suitable for you.

Also a lot wrong paying 400 grand for a three bed semi just because it is located in a certain post code in dublin

kwat

Apologies if this has been covered before.
My husband and I currently saving towards a deposit. Bit of a way to go. Will hopefully have about €15k saved by the end of the year. Combined incomes of c.€100k.
We won't be looking for a huge mortgage. Will be hopefully looking at properties around the €220k mark, so would need a €22k deposit.
If we reach the €15k in savings and took out say a credit union loan of about €10k would it have a big impact on our application?
We have no other loans. I know having loans is seen as a negative but as the mortgage amount isn't excessive and have repayment capacity (currently paying monthly rent of €1,200 p.m / saving €1,000 p.m) would we still qualify for a mortgage of this size?

A lot of if's in here I know but any advice appreciated.
Thanks.

Sono

kwat wrote: »

Apologies if this has been covered before.
My husband and I currently saving towards a deposit. Bit of a way to go. Will hopefully have about €15k saved by the end of the year. Combined incomes of c.€100k.
We won't be looking for a huge mortgage. Will be hopefully looking at properties around the €220k mark, so would need a €22k deposit.
If we reach the €15k in savings and took out say a credit union loan of about €10k would it have a big impact on our application?
We have no other loans. I know having loans is seen as a negative but as the mortgage amount isn't excessive and have repayment capacity (currently paying monthly rent of €1,200 p.m / saving €1,000 p.m) would we still qualify for a mortgage of this size?

A lot of if's in here I know but any advice appreciated.
Thanks.

Your salaries are quite high for a low mortgage, is there a few kids involved here? I just ask as I'm sure the banks would be wondering why you can't save more. Granted I don't know all your circumstances but your repayments on a €220k mortgage would not be more than €950 a month, are you saving much more than this at present?

Santy2015

kwat wrote: »

Apologies if this has been covered before.
My husband and I currently saving towards a deposit. Bit of a way to go. Will hopefully have about €15k saved by the end of the year. Combined incomes of c.€100k.
We won't be looking for a huge mortgage. Will be hopefully looking at properties around the €220k mark, so would need a €22k deposit.
If we reach the €15k in savings and took out say a credit union loan of about €10k would it have a big impact on our application?
We have no other loans. I know having loans is seen as a negative but as the mortgage amount isn't excessive and have repayment capacity (currently paying monthly rent of €1,200 p.m / saving €1,000 p.m) would we still qualify for a mortgage of this size?

A lot of if's in here I know but any advice appreciated.
Thanks.

They'd look straight at the loan and they'll make it difficult. An example is my OH who has a car loan of about €3000 was a bit higher when we applied. With our gross incomes we could technically afford a house up to €180k but with the loan it was reduced by €45k that's massive. We are saving €1200 a month still we needed 20k saved before they agreed to give us our approval

kwat

Sono wrote: »

Your salaries are quite high for a low mortgage, is there a few kids involved here? I just ask as I'm sure the banks would be wondering why you can't save more. Granted I don't know all your circumstances but your repayments on a €220k mortgage would not be more than €950 a month, are you saving much more than this at present?

No kids involved.
We're saving about €1,000 per month between us. Just started saving properly earlier this year due to other expenses over the past few years.
We're in a position to just continue saving until we have the full deposit but the rent we're paying now is a few hundred quid more than what we'd be paying on a mortgage of that size, so the loan would just help us reach the deposit quicker and would have the repayment capacity to repay that also (know there's other variables to be taken into account also - interest on loan etc.!).

kwat

Santy2015 wrote: »

They'd look straight at the loan and they'll make it difficult. An example is my OH who has a car loan of about €3000 was a bit higher when we applied. With our gross incomes we could technically afford a house up to €180k but with the loan it was reduced by €45k that's massive. We are saving €1200 a month still we needed 20k saved before they agreed to give us our approval

Yeah any other loans seem to be a no-no.
With our salaries we could technically afford a house of up to €350k, but because we'd only be looking around the €220k mark, I'm wondering whether there'd still be room for a €10k loan within that.
Only one way of finding out I suppose!