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

Santy2015

kwat wrote: »

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!

I think try your hardest to avoid the loan, it's another expense you don't need or want. Just going by my local CU a 10k loan paid back over 3 years will cost you €70 a week.. Why not put that into savings?

Arsen5

kwat wrote: »

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?
Thanks.

I wouldn't advice taking credit union loan and put it as part of deposit first they will ask you where this money came from &high possibility they will say no if they knew it was a loan taken to complete the deposit, you might want some one else ie friend family member to take the loan in his name and then give it to you as a gift (they need to sign a gift letter). From my experience (still waiting on approval with no loan but irregular transfer bet me and few friends) they're very fussy about the source of your deposit.

SB_Part2

I had 700e left of a 15k loan and I was told to pay it off. I don't think they'd look favourably if you had a bigger loan.

angeldelight

Nurse check done for life insurance, they'll hopefully receive the info on Tuesday, fingers crossed for a quick response

hawkeye_bmr

Pick myself up, dust myself down and back onto daft and myhome tomorrow, the search shall continue!

James Forde

Mortgage approved as of yesterday.
Put an offer on a house today 10k below asking.
Let's see what happens!

Finally feel like an adult now.

Tasden

James Forde wrote: »

Mortgage approved as of yesterday.
Put an offer on a house today 10k below asking.
Let's see what happens!

Finally feel like an adult now.

Good luck

Konata

kwat wrote: »

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.!).

Think about it this way - you want to take out a loan to help get an even bigger loan. You're not exactly going to look 'low-risk' in the eyes of the bank. It will definitely impact on your ability to borrow for a mortgage and you should absolutely avoid.

You have a couple of choices here. You could be patient and wait until you have enough saved up at your current saving rate. You could try and save more every month - I don't know the ins and outs of your expenditure obviously but for a broad comparison myself and OH are on joint 70k and saving 1300 per month with rent of 850 per month (so total 2150 per month between those two which is only 50 euro less that you) and we often end up with several hundred left over at the end of the month which also goes into savings - and we are far from perfect with our expenditure! With a salary of 100k I really think you could stretch your saving a little bit more which would speed up your waiting process. Have a good honest look at your expenditure - no need to drastically cut anything but you could be surprised at where there might be savings to be had.

In another time I would have suggested renting somewhere cheaper but I know only too well that it's fairly difficult to get anything decent for under 1200 these days! Always worth keeping an eye out but probably not a viable option.

Alkers

You could also apply for an exemption on the deposit. You should easily meet the repayment and salary multiple values.

dooneenboy

Hi all, new poster here,
Have over 10% deposit (just). Had boss put in a good word and we met bank. Looked at property, all going well and then got approval in principle for a bit less than expected. I went back to the advisor and he gave me the old - we'll sort it, and he gave me a figure 18K higher he said he thought he could get us up to.
So I bid on a house, accepted, laid down 6K deposit and now the other genius is coming back with underwriting are being pricks........
Any advice on how to handle this. I don't have another 18K.....

SB_Part2

dooneenboy wrote: »

Hi all, new poster here,
Have over 10% deposit (just). Had boss put in a good word and we met bank. Looked at property, all going well and then got approval in principle for a bit less than expected. I went back to the advisor and he gave me the old - we'll sort it, and he gave me a figure 18K higher he said he thought he could get us up to.
So I bid on a house, accepted, laid down 6K deposit and now the other genius is coming back with underwriting are being pricks........
Any advice on how to handle this. I don't have another 18K.....

I'm confused about this. Your boss put in a good word? With who?

If you have approval in principle for a certain amount then why are they saying you can't have it now? Or did you get the AIP for 18k less and the advisor said he could get you more without an updated AIP letter?

What are the underwriters saying? What's the issue?

Sono

dooneenboy wrote: »

Hi all, new poster here,
Have over 10% deposit (just). Had boss put in a good word and we met bank. Looked at property, all going well and then got approval in principle for a bit less than expected. I went back to the advisor and he gave me the old - we'll sort it, and he gave me a figure 18K higher he said he thought he could get us up to.
So I bid on a house, accepted, laid down 6K deposit and now the other genius is coming back with underwriting are being pricks........
Any advice on how to handle this. I don't have another 18K.....

This sounds very odd!

If you aren't getting an exemption to the central bank rules your loan offer will be 3.5 times your salary and this will not vary anywhere, only way it will change is if you get an exemption, did the advisor say they would apply for more than the initial amount? The banks are fairly tight with exemptions and do not hand them out to everyone.

I would go back and see if they 18k meant they would get you more than your approval in principle.

I can't see any other reason why there's an issue here to be honest.

dooneenboy

OK

I went to advisor in bank and he did out the applications with us. He had indicated circa 250K
Got letter from underwriting saying aip 230K
Queried this and he said we'd get a bit more.
Looked at house, asked again and he said they could go to 248K
Put bid in, accepted, went back to him and said we're ready to go, now he's all "my hands are tied"
Can't fight them for the extra on the basis of emails from him ??

Sono

Sounds like they thought they could get you an exemption to the CB rules, we applied to a few banks and only one would give us more than the 3.5 rule so we went with them. Who was that with if you don't mind me asking?

SB_Part2

dooneenboy wrote: »

OK

I went to advisor in bank and he did out the applications with us. He had indicated circa 250K
Got letter from underwriting saying aip 230K
Queried this and he said we'd get a bit more.
Looked at house, asked again and he said they could go to 248K
Put bid in, accepted, went back to him and said we're ready to go, now he's all "my hands are tied"
Can't fight them for the extra on the basis of emails from him ??

No unfortunately not. Even if you get it on the AIP letter it's only "approved in principle" it's not a guarantee they'll give you it so his email isn't worth anything.

Is 248k within the 3.5 limit? or is it an exemption?

dooneenboy

Yeah, it's within the limit. It's the 10% I'm chasing.

loveisdivine

We've decided to put an offer in on a house we've seen that we really love. I don't know why but I'm kinda nervous to ring the estate agent! Silly I know but it's the first time doing it and I don't want to make a balls of it.

SB_Part2

dooneenboy wrote: »

Yeah, it's within the limit. It's the 10% I'm chasing.

So you're looking for an exemption? Try a different bank.

Sono

dooneenboy wrote: »

Yeah, it's within the limit. It's the 10% I'm chasing.

10% what is this you are talking about? If the 248k is 3.5 times your salary there must be other factors they have taken into consideration to offer you less than the central bank rules.

Tasden

Sono wrote: »

10% what is this you are talking about? If the 248k is 3.5 times your salary there must be other factors they have taken into consideration to offer you less than the central bank rules.

Is it expenses? I was doing the online calculators and was being quoted way less than CB rules based on what I'm assuming is my childcare costs and expenses that affect ability to repay etc.

Sono

Yes expenses certainly come into play when applying for a mortgage but the standard rule for a person(s) with no kids, loans etc would be 3.5 times your salary then anything in your monthly expenses could change it, children being a huge one.

hawkeye_bmr

Spoke to the EA this morning, they are saying that the estate is going to be under council control, they have agreed to take control and are just waiting on the last bits of paperwork. Said that our solicitor will be sent paperwork to prove this asap.

Dunno where we should go from here, wait and see how it plays out over the next few days, or plug the plug?

loveisdivine

Made an offer on a place yesterday, 25k under asking but theres a fair few repairs to be done and it's had a good few viewings with no offers so fingers crossed. I doubt we'd get it for that low but at least we might be able to haggle a bit.

Had hoped to hear back by now but at this stage it's gonna be next week.

dooneenboy

loveisdivine wrote: »

Made an offer on a place yesterday, 25k under asking but theres a fair few repairs to be done and it's had a good few viewings with no offers so fingers crossed. I doubt we'd get it for that low but at least we might be able to haggle a bit.

Had hoped to hear back by now but at this stage it's gonna be next week.

Best of luck with it. I'd say they do SFA on the Friday before a bank holiday. If you make the offer in writing put a time limit on it if you want a prompt reply.

Tasden

hawkeye_bmr wrote: »

Spoke to the EA this morning, they are saying that the estate is going to be under council control, they have agreed to take control and are just waiting on the last bits of paperwork. Said that our solicitor will be sent paperwork to prove this asap.

Dunno where we should go from here, wait and see how it plays out over the next few days, or plug the plug?

Wait it out and see what solicitor advises when he receives the paperwork maybe?

loveisdivine

dooneenboy wrote: »

Best of luck with it. I'd say they do SFA on the Friday before a bank holiday. If you make the offer in writing put a time limit on it if you want a prompt reply.

I thought about putting a time limit on it, but as its our first bid and we would be willing to increase it if needed, I didn't want to potentially sour the relationship by making any ultimatums just yet.

Will definitely put it in writing though.

Naid23

loveisdivine wrote: »

Made an offer on a place yesterday, 25k under asking but theres a fair few repairs to be done and it's had a good few viewings with no offers so fingers crossed. I doubt we'd get it for that low but at least we might be able to haggle a bit.

Had hoped to hear back by now but at this stage it's gonna be next week.

If you dont mind me asking, is that in dublin. We've been to see a house today and its in need of some major repairs so was considering bidding bout 25-30k under asking. So just teyna figure out tge goingg rate on bids dublin

loveisdivine

No it's in Louth. But just bid what you feel comfortable with and see, you can always raise it.

Naid23

loveisdivine wrote: »

No it's in Louth. But just bid what you feel comfortable with and see, you can always raise it.

appreciate the response.:) My boyfriend and I wouldnt really have a clue as to the cost of renovations so tryna factor that into our offer is a bit tricky. Gonna try and get a second viewing and bring one of our friends up who does property renovations so should have a better idea then.

lawred2

kwat wrote: »

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.!).

That's a terrible idea...

Keep saving what you're saving. You can't fast track this using other sources of debt.