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

lfc200

Sale agreed since the 16th of June on a receivership property. Vendors solicitor <mod snip > have still not responded to all our title queries. Seriously turning into a nightmare at this stage.
Our solicitor is on the phone numerous times in the week looking for the answers, I've been on the phone to the estate agent we purchased through numerous times to try and get things moving! Anyone any suggestions on how to get things moving along a bit quicker?

LimkTeach

We are a couple in our early 30s and eager to buy. Due to various reasons we have never been in a position to buy before now. We have just completed our first year where both of us had full time employment with the added bonus of us both being in permanent employment now. We have 30,000 saved. We have been renting a house since 09 and pay all bills for the property bar the insurance. However we have never saved a set amount regularly. When both had work we saved loads but if one was unemployed we saved whenever we could. Will not having saved a set amount stand against us? We both own cars which we bought outright (second hand) but never had car loans or any loan or overdraft. Our Gross Salary is approx 72000 and we know a house we'd love is going up for sale for 185000 with the bank.

Villa05

LimkTeach wrote:

We are a couple in our early 30s and eager to buy. Due to various reasons we have never been in a position to buy before now. Our Gross Salary is approx 72000 and we know a house we'd love is going up for sale for 185000 with the bank.

You should be fine, Documented rent payments would help

LimkTeach

<mod snip> we pay by D.D. every month.

Thanks for your reply. We are hoping to go to the banks this week as we have gathered all our paperwork. If they require us to hold off 6months and save a regular amount rather than sporadic saving so be it.

I spent all yesterday evening and today reading through this thread. I've really had my eyes opened seeing people's journeys and frustrations with banks and brokers and EA.

I know some people spoke of getting cash gifts or inheritance for deposits. My dad offered to give us a cash gift to further increase the size of the deposit and reduce our mortgage but I am under the impression that as we'd be going for a joint mortgage and are not married that my boyfriend would technically have to pay 33% tax on half of the money gifted as he is not related to my father. Am I correct in my assumption?

E.g. If we were to be gifted 25,000. 12,500 is written off against the 280,000 inheritance I can receive from my father. But boyfriend pays 33% tax on the remaining 12500.

LimkTeach

Sorry athtrasna I wrote that flippantly. I meant from my perspective everything is above board my rent is documented as we pay by D.D and deal with a property management company. By I have seen that the landlord/owner of our rental property, who owns several properties was on defaulters list recently.

Villa05

LimkTeach wrote:

I spent all yesterday evening and today reading through this thread. I've really had my eyes opened seeing people's journeys and frustrations with banks and brokers and EA.

Don't be over worrying. Your situation is understandable regarding savings. Deposit and income is more than sufficient to get the mortgage you are looking for.

paintinglasses

I will never understand estate agents.
The current house we're looking at is at a very affordable price. The EA wants proof of funds before he gives the seller our bid.

Our solicitor has gotten in contact with him to tell him we have the funds available. But today at a third viewing we were informed that he wants a letter from the bank stating how much we're getting from them and how we're making up the remaining balance eg. bank statements with our savings.

Does this seem strange to anyone? The EA won't deal with our solicitor at all, says that's not how things are done. Our solicitor said that contact from them should be enough as proof of funds.

Any advice??

intheclouds

paintinglasses wrote: »

I will never understand estate agents.
The current house we're looking at is at a very affordable price. The EA wants proof of funds before he gives the seller our bid.

Our solicitor has gotten in contact with him to tell him we have the funds available. But today at a third viewing we were informed that he wants a letter from the bank stating how much we're getting from them and how we're making up the remaining balance eg. bank statements with our savings.

Does this seem strange to anyone? The EA won't deal with our solicitor at all, says that's not how things are done. Our solicitor said that contact from them should be enough as proof of funds.

Any advice??

The EA we are dealing with wanted to see Letter of Offer from the bank although he didn't ask to see the balance we are making up.

I think plenty of EAs have been burned with finance falling through after people say they can afford it and looking for proof of funds seems to be increasingly common.

Naid23

paintinglasses wrote: »

I will never understand estate agents.
The current house we're looking at is at a very affordable price. The EA wants proof of funds before he gives the seller our bid.

Our solicitor has gotten in contact with him to tell him we have the funds available. But today at a third viewing we were informed that he wants a letter from the bank stating how much we're getting from them and how we're making up the remaining balance eg. bank statements with our savings.

Does this seem strange to anyone? The EA won't deal with our solicitor at all, says that's not how things are done. Our solicitor said that contact from them should be enough as proof of funds.

Any advice??

They can ask for approval but do not show them how much you are able to bid - this will only drive the price up if they know exactly how much you have. they just wanna see that you covered to make the actual bid.

We've been asked a couple of times for the approval letter and we have completely blacked out the amount to ensure they cant see it.
They have no right to ask how you are going to make up the difference etc. I would be very suspicious of that now and personally have never come across it on the 5 or so houses we've bid on.

Print out you approval, black out the amount with a maker on each side and then scan it back in, thats what we did and you cant see the amount at all.

paintinglasses

That's exactly what I thought too, very suspicious of it. He specifically said he needs the letter from the bank saying how much we'll be getting from them and statements that make up the rest of our bid.

He wouldn't accept the solicitors email and told us that things don't work like that....

I have spoken to my solicitor and she said under no circumstances to give him anything. We can give our statements to her and she'll contact him to say we have the funds to cover the amount.
And if that doesn't work then we might have to leave it. Which is a shame but I don't feel comfortable giving random estate agents our bank statements!

Thanks for the advice :-)

intheclouds

paintinglasses wrote: »

That's exactly what I thought too, very suspicious of it. He specifically said he needs the letter from the bank saying how much we'll be getting from them and statements that make up the rest of our bid.

He wouldn't accept the solicitors email and told us that things don't work like that....

I have spoken to my solicitor and she said under no circumstances to give him anything. We can give our statements to her and she'll contact him to say we have the funds to cover the amount.
And if that doesn't work then we might have to leave it. Which is a shame but I don't feel comfortable giving random estate agents our bank statements!

Thanks for the advice :-)

The EA is not the Revenue Commissioners and has a bit of a cheek asking to see your personal financial details.

Id be inclined to ask him to can he provide his credentials as a data controller if he is requesting such sensitive information from you. Let him know you are happy to refer the matter to the Data Commissioner.

boris1234

Myself and my OH are currently saving and eager to get on the property ladder. We haven't spoken to banks yet so looking for some advice as to wait another while before applying or are we in a good position as it stands.

Current savings are approx 28K. This is made up of our own savings of 12K this year and contributions from parents.

I have been renting in Dublin for almost 2 years. 1 year in shared accommodation and 1 year jointly with my partner since she moved to join me in Dublin.

Joint income of 70K approx (40-30). We are both in permanent positions.

I also have a credit card with debt of 600 euro at the moment.

Given the above, I'd love to hear what people think. Should we save more, clear the CC debt etc. before applying or would we be in a decent position as it stands.

Also, in terms of where to start, what is the best approach, talk to your current acc bank, talk to other banks or talk to a mortgage advisor.

Appreciate any opinions

Thanks

Wisesmurf

boris1234 wrote: »

Myself and my OH are currently saving and eager to get on the property ladder. We haven't spoken to banks yet so looking for some advice as to wait another while before applying or are we in a good position as it stands.

Current savings are approx 28K. This is made up of our own savings of 12K this year and contributions from parents.

I have been renting in Dublin for almost 2 years. 1 year in shared accommodation and 1 year jointly with my partner since she moved to join me in Dublin.

Joint income of 70K approx (40-30). We are both in permanent positions.

I also have a credit card with debt of 600 euro at the moment.

Given the above, I'd love to hear what people think. Should we save more, clear the CC debt etc. before applying or would we be in a decent position as it stands.

Also, in terms of where to start, what is the best approach, talk to your current acc bank, talk to other banks or talk to a mortgage advisor.

Appreciate any opinions

Thanks

Clear the debt first - in my experience it's what banks hate most (beside gambling transactions)

Calculate what you want need to spend to buy the house you want (deposit) and all other fees (legal, surveyor, misc)

demonstrating paying rent is a positive but you also need to show an ability to save consistently every month even if it's a small amount (it seems like you're doing that already)

You can probably afford something sub 200k at the moment and that wont get much (in Dublin) so my advice would be to baton down the hatches and save for another year if you can. You seem to have a decent combined income so deposit is the key.

boris1234

Thanks for your input, I guess I'm just concerned that by waiting much longer prices will just keep rising and rising.

We'd be looking at a budget of around maximum 250. Considering all types of properties in Dublin 8 and 12 mainly.

It's hard to know what to do in the current market. Keep renting for another bit and see what happens or bite the bullet now.

I should also mention that we may have further funds available from parents but 28K is what we have in the total pot right now.

Ayuntamiento

250k won't get you anything worth buying in Dublin 8 unfortunately, You've probably seen a few properties on daft, etc that have been advertised at that level but I speak from experience in saying that they have all gone 30k++ over the asking price.
There seems to be a conspiracy of using ridiculously low asking prices to attract people into properties in that area. Very frustrating as you end up wasting your time going to viewings for properties that you haven't a chance of buying unless you're approved for over 300k.

You have a good chance of getting something in Dublin 12, however I gave up looking there as I found it a bit rough around the edges for my liking.
I'd say a clever thing to do (if possible) would be to rent in D12 for the next year and get a feel for the ok parts vs the no-go areas. Then you'll be well set up when you go to view properties.

It would be an awful pity to rush into buying something unsuitable right now just because you're worried over prices.
That's just my opinion anyway!

mirrorwall14

mirrorwall14 wrote: »

Life insurance is now my main advice for anyone planning on getting a mortgage. Do it when you get your first AIP even before hand. Get a 32 year policy and at least you have time to stress about it without trying to house hunt/draw down at the same time

Penn wrote: »

Agreed, but the point is that if you already have life insurance in place, adding mortgage protection to it is fairly simple. Whereas if you don't, regardless of whether you're going for life insurance + mortgage protection or just mortgage protection, it can take a few weeks and delay things. As I said, I've been waiting 6 weeks to finalise mortgage protection and have put off signing contracts until I'm sure I have it in place. In my opinion, it's taken at least 4 weeks too long and has therefore delayed me by same.

The solicitor's work and moving in should be fairly straightforward though so hoping to claw back a bit of time there.

Its a lot more expensive to get life cover though, when I was meeting the bank about AIP I spoke to their person who deals with mortgage protection etc and I would only be looking for the cheapest possible option (after discussing the options) which was mortgage protection on its own. The way he was talking it would be very quick and easy to get it set up once the time came.

boris1234

Yes I know what your saying about asking prices. We have enquired and viewed a few places just to get a feel for the market but in each case there is always an offer on for over the asking price.

It's very disheartening I guess when you think there may be something in that area only for it to be false hope when it comes to it.

Sebastian Dangerfield

Ayuntamiento wrote: »

There seems to be a conspiracy of using ridiculously low asking prices to attract people into properties in that area. Very frustrating as you end up wasting your time going to viewings for properties that you haven't a chance of buying unless you're approved for over 300k.

Prime example in that programme "Find Me A Home" last week. House in Kimmage was advertised for €310k, and sold for €445k. The EA tried to defend his valuation saying it was "conservative", but that it was the buyers responsibility to calculate their own valuation based on other similar properties in the area. Absolute nonsense, and just a waste of everyone's time.

Ayuntamiento

I don't even understand that strategy. Why would an estate agent want the hassle of facilitating enquiries and viewings from people who don't have the budget to buy at the price that they feel the property will get?
I suppose somebody has to get the bidding going.. Also I'm sure they love the fever pitch that's created by an open viewing with loads of people milling around.
I was talking to an Estate Agent the other day who said he was surprised how little has been released onto the market after the traditional summer lull. I wonder are vendors holding off to see what impact the budget will have on prices?

Naid23

Ayuntamiento wrote: »

I don't even understand that strategy. Why would an estate agent want the hassle of facilitating enquiries and viewings from people who don't have the budget to buy at the price that they feel the property will get?
I suppose somebody has to get the bidding going.. Also I'm sure they love the fever pitch that's created by an open viewing with loads of people milling around.
I was talking to an Estate Agent the other day who said he was surprised how little has been released onto the market after the traditional summer lull. I wonder are vendors holding off to see what impact the budget will have on prices?

my auntie put her house up for sale about a month ago, EA came out, valued it at 350k but then told her they will be putting it on daft for 295k to gather more interest and to lure in first time buyers. She was disgusted at the fact they would do that and decided to change Estate agents as she didnt see the point in dragging people along on a house they cant afford.

Whole industry is an unregulated joke IMO. They are getting away with as much as they did during the boom.

We've actually decided to take a step back from it all because its just been so mentally and emotionally exhausting. We've been looking for 9 months now, have been out bid of 5 houses since june and all by ridiculous money, every time being at least 30k+ over the asking.
We have our deposit ready to go for our budget so gonna take a break from saving and enjoy ourselves (take a holiday) between now and christmas and then start looking again in January!

Ayuntamiento

I think you're right to take a step back. I've actually found the whole process has stopped feeling like reality anymore.
I've put bids on properties and I'd practically put money on the fact that I haven't a hope of getting them.
And I'm looking at properties that are advertised at 30k under my max budget!!
I'd hate to lose my perspective and end up buying any old rubbish just so I can say I own something!

Sebastian Dangerfield

Ayuntamiento wrote: »

I don't even understand that strategy. Why would an estate agent want the hassle of facilitating enquiries and viewings from people who don't have the budget to buy at the price that they feel the property will get?

I can only imagine that people who wrongly think they can afford the house flood in (on the same programme, 100 people turned up at a single viewing), and people who actually can afford it get spooked and think "there's huge demand, we need to move quickly / blow these out of the water".

I just got keys yesterday, having paid €60k over the asking price. Similar scenario, but I never really bought the original valuation as there wasn't a single house anywhere near as good as ours that sold for as little. We always knew we'd be paying well over the asking to get it.

There's another house around the corner from where Im renting now, that's been on the market since April. It was listed for €495k, and there was no uptake so they re-listed it for €465k in early August. They immediately got a bid of €467k, but it's still on the market so clearly the lowered asking price is only an optical illusion, as they're not willing to accept it.

mirrorwall14

Azalea Screeching Padding wrote: »

Its a lot more expensive to get life cover though, when I was meeting the bank about AIP I spoke to their person who deals with mortgage protection etc and I would only be looking for the cheapest possible option (after discussing the options) which was mortgage protection on its own. The way he was talking it would be very quick and easy to get it set up once the time came.

Not if you get a reducing term that will work along the mortgage. My life cover for the mortgage is a 35 year reducing term policy and is very cheap despite my loading. This is tied to my mortgage for it's duration . The banks however will tell you anything in my experience.

I was told there would be no issue getting life cover despite me being completely open about my OH having been refused cover. I was condescendingly told I was doing it backwards and I didn't need to worry about mortgage protection until the very end and it would all be fine. Later when issues arose I was told that getting a mortgage without him covered would be fine. Later again I was told that the 5 year policy would be grand.

In the end we lost our deposit exemption and had to accept a hugely reduced mortgage from what they were offering from day one despite me being clear about the issues we had with cover. We even had to write a personal statement explaining how the mortgage would be paid if anything happened to my OH.

I was even told early on that the bank would have influence on insurer which was of course complete crap. They wouldn't be a very good life cover if they were taking on bad risks because the bank told them to. I gave off reams to an EBS advisor at one point because they had wasted my time for four months even though I had been open and honest about the life insurance problem. It was incredibly stressful despite being aware of the issue it would cause. I can't imagine what it would have been like if we had a house lined up that we could have lost during the delays!

They get you sucked into the final stage of the house buy knowing that at that stage you will do or pay anything to make it go through

It's all fine if you are perfectly healthy and family history is good. It all falls apart if that is not the case

Ayuntamiento

I was recently at a viewing for a 3 bed penthouse property in Dublin 8 which was advertised on daft for circa 220k!! One day post viewing it had gone 40k over asking. I only went to the viewing to check out the area, not because I actually entertained the idea that it would ever sell for less than 300k.
I'm currently the highest bidder on a property and the EA has gone AWOL and doesn't answer my calls. I'm assuming the vendors are hoping that the budget next week will introduce an opportunity to gouge some more money from a first time buyer.

StiffOldMan

mirrorwall14 wrote: »

I gave off reams to an EBS advisor at one point because they had wasted my time for four months

Snap.. the same bank wasted 6 months for me and my wife telling us if we did this and that we would absolutely get mortgage approval. When it came down to it and we had the 20% saved and a house in mind, we were refused and told by the same advisor to come back in maybe 4 to 5 months... He didnt even want to submit our forms to the mortgage department.. We said F**k that, took all our money out of that bank, closed our accounts and got AIP by another bank two days later... I'm now in my new house 6 weeks! If I stuck with that crowd god knows where I'd be now..

StiffOldMan

lfc200 wrote: »

Sale agreed since the 16th of June on a receivership property. Vendors solicitor <mod snip > have still not responded to all our title queries. Seriously turning into a nightmare at this stage.
Our solicitor is on the phone numerous times in the week looking for the answers, I've been on the phone to the estate agent we purchased through numerous times to try and get things moving! Anyone any suggestions on how to get things moving along a bit quicker?

That's a joke. I'm guessing contracts have not been exchanged? If so I'd definitely at this stage be threatening to get your deposit back from the EA unless you get an agreed dates for exchange of contract and closing date. Make sure you get a closing date from these vendors if you are looking into exchange of contracts as they seem to want to delay for some reason, possibly they are looking for a new house themselves and dragging you along

68 lost souls

Naid23 wrote: »

We have our deposit ready to go for our budget so gonna take a break from saving and enjoy ourselves (take a holiday) between now and christmas and then start looking again in January!

Dont forget the impact this will have on your capacity to repay. Just be careful you dont screw yourself over mortgage wise. I understand your frustrations and enjoy the mental break. Showing continous savings is important

matrim

All a bit anti-climatic here. We got word that everything is cleared and the estate agent is free to give us the keys but the fecker is in Cork for the evening and won't be back until tomorrow.

Siipina

We signed the contract yesterday, closing date is the 26.10. but our solicitor put in that if both parties are ok with it and the money is there we might get in earlier, hopefully everything goes well now. The vendors are out on the 21st so we have a bit of a hope really to get in earlier.

sabinalee

Hi Guys,

I'm new to this topic and all mortgage thing...but excited.

After 10 years or renting our landlord decided to sell the house and put it one the market in March 2017. Of course we can't afford it.

Our savings: 25K

I put an application online with BOI yesterday, just to check if we are able to get anything from them.

Today, after phone screening, the lady calculated, we could buy a property for about 170K. Our age limited us here and we could get the mortgage for 16 years term only.

The next step, and I'm not sure here what to expect. Next Wednesday I will have 30 minutes application over the phone. Before, I have to send my husband and CU statements from last 6 months.

What will happen after? Is this looking good already?

Can you give me idea where we standing...?

Thank you.