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

sabinalee

So, if anyone, on my simple example could calculate the tax rebate, I would be grateful.

The property we could get a mortgage for cost 175.000. It is a new house.
We have a deposit of 25.000.
Our repayment monthly rate would be around 1000. 3 years fixed, 17 years term.

How exactly new budget announcement for FTB would work for us in a 4 years?

68 lost souls

sabinalee wrote: »

So, if anyone, on my simple example could calculate the tax rebate, I would be grateful.

The property we could get a mortgage for cost 175.000. It is a new house.
We have a deposit of 25.000.
Our repayment monthly rate would be around 1000. 3 years fixed, 17 years term.

How exactly new budget announcement for FTB would work for us in a 4 years?

It depends on what PAYE tax you paid in the past 4 years but you should be able to get a tax rebate of 8750. Up front meaning you now have a deposit of 33750 and your mortgage required will come down. You will end up with an LTV of 80.7% which is still above the 80% threshhold so no issues there.

Your repayments will be less each month for the term of the mortgage

EDIT: That is providing you have payed 8750 in PAYE over the past 4 years

68 lost souls

Ive asked this question before and not gotten an answer.

We have a deposit down and AIP from several banks. When we got the booking deposit down on a new house we had to give one mortgage providers details to our solicitor and mortgage pack has gone through approval. We were approved for lets say 300,000 (not the actual amount) but lets say when we draw down we only wan to draw down 280, is that ok?

Also we just gave the details of the bank that was easiest to deal with, wont be drawing down until April and rates may change between now and then, what is the story with going to full approval with multiple banks simultaneously?

Another bank are asking us for all the details and worried about maybe having to pay multiple evaluation fees? Wee ha to pay 150 to EBS for the valuation to get full approval with them. Ulsterbank for example want a valuation done, should we say EBS have done it and can we use the EBS valuation for ulster bank? Can we go to full approval with multiple banks now and decide in April on which one to choose from?

sabinalee

68 lost souls wrote: »

It depends on what PAYE tax you paid in the past 4 years but you should be able to get a tax rebate of 8750. Up front meaning you now have a deposit of 33750 and your mortgage required will come down. You will end up with an LTV of 80.7% which is still above the 80% threshhold so no issues there.

Your repayments will be less each month for the term of the mortgage

EDIT: That is providing you have payed 8750 in PAYE over the past 4 years[/QUO

In a last 4 years? Is it matter that one of us was unemployed 4 years ago, for a 10 month time? Sorry, blonde here

68 lost souls

sabinalee wrote: »

In a last 4 years? Is it matter that one of us was unemployed 4 years ago, for a 9 month time?

It's cumulative for the past 4 years so if you paid for example

2016: 4000
2015: 750
2014: 2000
2013: 2000

That adds up to 8750 so it's fine.

It does not have to be 8750 for each year

sabinalee

68 lost souls wrote: »

It's cumulative for the past 4 years so if you paid for example

2016: 4000
2015: 750
2014: 2000
2013: 2000

That adds up to 8750 so it's fine.

It does not have to be 8750 for each year

Thank You!!!

dar_cool

Was talking to my solicitor today and he told me they have got the contracts, anyone any idea how long it will take from here ?
Thanks

sabinalee

68 lost souls wrote: »

sabinalee wrote: »

So, if anyone, on my simple example could calculate the tax rebate, I would be grateful.

The property we could get a mortgage for cost 175.000. It is a new house.
We have a deposit of 25.000.
Our repayment monthly rate would be around 1000. 3 years fixed, 17 years term.

How exactly new budget announcement for FTB would work for us in a 4 years?

It depends on what PAYE tax you paid in the past 4 years but you should be able to get a tax rebate of 8750. Up front meaning you now have a deposit of 33750 and your mortgage required will come down. You will end up with an LTV of 80.7% which is still above the 80% threshhold so no issues there.

Your repayments will be less each month for the term of the mortgage

EDIT: That is providing you have payed 8750 in PAYE over the past 4 years

Would you know if there is a minimum amount of property price applied to that new scheme? I was reading, before budget announced about 200.000 but can't find it now...?

68 lost souls

sabinalee wrote: »

Would you know if there is a minimum amount of property price applied to that new scheme? I was reading, before budget announced about 200.000 but can't find it now...?

More will be made clear once the motion passes the Dail as I expect there will be some amendments to the system with FF abstaining from the vote

Michael D Not Higgins

sabinalee wrote: »

Would you know if there is a minimum amount of property price applied to that new scheme? I was reading, before budget announced about 200.000 but can't find it now...?

There was no minimum mentioned during the budget speech or in the published budget book. If any minimum applies it will be published with the Finance Bill. I expect a few tweaks, especially to stop people getting an 80% LTV mortgage then paying a big lump sum after the rebate comes through.

john kinsella

Michael D Not Higgins wrote: »

There was no minimum mentioned during the budget speech or in the published budget book. If any minimum applies it will be published with the Finance Bill. I expect a few tweaks, especially to stop people getting an 80% LTV mortgage then paying a big lump sum after the rebate comes through.

This is exactly what we are intending on doing. So your post doesn't fill me with too much confidence!

How do you think it would be enforceable?

Michael D Not Higgins

john kinsella wrote: »

This is exactly what we are intending on doing. So your post doesn't fill me with too much confidence!

How do you think it would be enforceable?

I don't know, all I know is that was the first fiddle everyone started talking about so I doubt it escaped notice of the public servants in the finance department.

If there's no provision to limit that, what's the point in an minimum 80% LTV mortgage at all?

john kinsella

Michael D Not Higgins wrote: »

I don't know, all I know is that was the first fiddle everyone started talking about so I doubt it escaped notice of the public servants in the finance department.

If there's no provision to limit that, what's the point in an minimum 80% LTV mortgage at all?

Very true but just can't see how they could stop it from happening.

ThisRegard

Banks can add clauses to prevent such payments within a certain period of draw down, increase the 'fees' for doing so etc so as to make it not very worthwhile.

awec

ThisRegard wrote: »

Banks can add clauses to prevent such payments within a certain period of draw down, increase the 'fees' for doing so etc so as to make it not very worthwhile.

Nothing to stop you holding onto the rebate for 12/24/36 months and then making your lump sum payment though?

ThisRegard

If I was to put in some clause I'd have the term much longer than 3 years. They could also say that if the loan ratio decreases within a certain period beyond the regular payments then you get bumped to a different, but higher, interest rate. There's a number of methods if they were so inclined to go that road.

paintinglasses

intheclouds wrote:

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

intheclouds wrote:

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.

Just an update. We emailed all our details onto our solicitor who then emailed on our behalf and informed the estate agent that we had the funds needed to buy the house.

Unfortunately we heard back to say this wasn't acceptable and that the bank statements and mortgage letter from the bank is required. But we haven't agreed on a price with the estate agent (as the seller is waiting on our proof of finance) so the bank can't draw up a letter stating how we'll be borrowing off them. We were told once the loan of offer letter is done up it becomes legally binding so we would be stuck if the seller suddenly decided to want another 1,000.

Ugh this is tainting the whole experience of buying a house. It's a well known estate agent too, that's why I'm so surprised!

Flatzie_poo

paintinglasses wrote: »

Just an update. We emailed all our details onto our solicitor who then emailed on our behalf and informed the estate agent that we had the funds needed to buy the house.

Unfortunately we heard back to say this wasn't acceptable and that the bank statements and mortgage letter from the bank is required. But we haven't agreed on a price with the estate agent (as the seller is waiting on our proof of finance) so the bank can't draw up a letter stating how we'll be borrowing off them. We were told once the loan of offer letter is done up it becomes legally binding so we would be stuck if the seller suddenly decided to want another 1,000.

Ugh this is tainting the whole experience of buying a house. It's a well known estate agent too, that's why I'm so surprised!

Bizarre.

Giving that info without having the bid sent to the vendor is like playing poker with your cards facing the wrong way.

I'd respond to the EA saying that what you've done already is all your willing to go out of your way for them.

IMO, if the offer isn't brought to the seller on those terms then you should part ways.

I've heard of that info being requested in a bidding war where the sale price has spiraled upwards a vast deal form what asking was. But never before a price has gone to a vendor.

Siipina

Just got word from the bank, the funds will be in the solicitors account on Monday, Friday is closing date. Sounds very good to me

MissElle

So after 7 long weeks I've finally been approved for life cover! I was getting seriously stressed about the whole situation. My advice to anyone with any pre existing medical conditions is to go for it sooner rather than later, I was lucky my contract was delayed because I didn't want to sign without having it approved.

Should have full loan approval either tomorrow or Monday and hopefully signing contracts next week

bleary

paintinglasses wrote: »

Unfortunately we heard back to say this wasn't acceptable and that the bank statements and mortgage letter from the bank is required.

Sorry they are not being reasonable.I provided quite a bit of information to show willing but never my complete approval.
There has to be give and take on both sides and some element of trust.

I would contact the estate agent and say you have provided as much information as you are willing to, if it is not acceptable then you will move on and forget the offer as they are just messing you around.

I would however try to drop a note in this case to the vendor detailing what the EA has done as it just does not sound right.

On the other hand I don't think there is any obligation conferred by the loan offer . The only obligation is on signing contracts.

sibersha

Question regarding Help to Buy scheme:

Have signed building contract post July 19th and should be drawing down shortly and are receiving an 85% mortgage.

As 1st time buyers of a new build, should we expect a rebate in January 2017 in form of a lump sum? Considering we have collectively paid 5% of the value in PAYE over the last 4 years. Or will it be a tax credits/tax relief?

Utah

sibersha wrote: »

Question regarding Help to Buy scheme:

Have signed building contract post July 19th and should be drawing down shortly and are receiving an 85% mortgage.

As 1st time buyers of a new build, should we expect a rebate in January 2017 in form of a lump sum? Considering we have collectively paid 5% of the value in PAYE over the last 4 years. Or will it be a tax credits/tax relief?

I'm in the same position and I think it's tax credits

Laghan

Zzippy wrote:

Banks will not normally allow a mortgage where there is a planning irregularity. We were sale agreed on a house previously that was built in the wrong location on the site, in the 1970s so well past the 7 year limit, but the bank wouldn't lend on it until the vendor got retention planning. In this case, if you tell the bank you are planning to knock it they may overlook the irregularity, but that's a discussion you need to have with them. The solicitor has a duty to tell the bank AFAIK, it's not something you can hide from them.

Yeah, I'm kind of kicking myself now as I was the one who flagged it to my solicitor. It makes no odds to me if it's not properly registered as I do plan to knock it, but not right now.
If the bank refuse then it will be a case of the seller having to get retention (I don't want to wait that long) or knock the thing... which I don't want as it will mean having to go outside to go to the toilet until we can afford renovations!! Hopefully i will hear something tomorrow.

athtrasna

Please post all help to buy queries in the help to buy thread. Thanks

Mod

Innervision

Thought I'd finally weigh in on this thread, I've found it incredibly useful over the past few months.

We've put a booking deposit down on a new build that's basically our dream home, but getting so frustrated now with the length of time it's taking to get our full approval so that we can sign contracts! Our broker keeps telling us they have all they need, should be done and dusted in the next day or two...then comes back looking for something else! Anyone else experienced this when signing for a new build? We're just really anxious that the builder will get fed up waiting as we've had the contracts 4 weeks now.

SB_Part2

I don't think that's just related to a new build. That can happen with any house.

It's frustrating but I think builders are aware of the hassle banks can put potential buyers through.

REFLINE1

Innervision wrote: »

Thought I'd finally weigh in on this thread, I've found it incredibly useful over the past few months.

We've put a booking deposit down on a new build that's basically our dream home, but getting so frustrated now with the length of time it's taking to get our full approval so that we can sign contracts! Our broker keeps telling us they have all they need, should be done and dusted in the next day or two...then comes back looking for something else! Anyone else experienced this when signing for a new build? We're just really anxious that the builder will get fed up waiting as we've had the contracts 4 weeks now.

Hi- As matter of interest how long has it been since you put your name down for the house/paid the booking deposit? did you show any proof of approval in principle at the time?

Innervision

REFLINE1 wrote: »

Hi- As matter of interest how long has it been since you put your name down for the house/paid the booking deposit? did you show any proof of approval in principle at the time?

We paid the booking deposit just over a month ago. No we weren't asked to show any proof of approval in principal, they did ask whether we had it but didn't have to prove anything!

Arsen5

Got a letter of offer 4weeks ago every thing was ok till solicitor try to drawdown, for some reason they decided to do another credit check they found that I applied for credit card after my approval, they asked for that to be cleared from my account which we did two days ago& submit a proof of that. Two days still no sign of the fund sooo frustrating that your whole life is disturbed just because you want to finally buy a house & settle down(keep giving landlord notice after notice that we are moving & changing it again, family is another city paying two rent since July, daughter is going to loose her place in the school near the house if we didn't move quickly) it just fills you with rage that someone sitting at a desk in bank building is controlling your whole life & future.