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

Ayuntamiento

I know it's very frustrating (and absolutely ludicrous considering the fact that you probably would have applied for the credit card straight after draw down anyway) but those are the rules and you really can't take any chances before the money is in your account.

highgiant1985

dar_cool wrote: »

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

I'm in a similar position.
- Bank Mortgage offer Letter signed & Direct Debit mandate signed & both returned to bank.
- House Survey Completed
- House Insurance lined up
- Life Insurance lined up
- Solicitor has received mortgage pack from the bank and selling solicitors documents.
- I'm meeting my Solicitor Tuesday next week to go through the contracts and pay over the remaining booking deposit.

After that I think its a matter of signing contracts, drawing down the funds from the bank and agreeing a closing date.

wazzer1

Any recommendations for home/life insurance??

Santy2015

wazzer1 wrote: »

Any recommendations for home/life insurance??

Hi wazzer, I went with Zurich for my life insurance(mortgage protection) and stuck with BOI for my home insurance they gave us a very competitive rate

Sono

wazzer1 wrote: »

Any recommendations for home/life insurance??

Aviva came in the cheapest for our life insurance by a mile, about €22 a month!

myshirt

How long did it take to get the life insurance sorted?

Sono

myshirt wrote: »

How long did it take to get the life insurance sorted?

Took me weeks as the doctor disclosed that I was a smoker but I'm not(anymore) and it really dragged on and on but if no issues it should only take a couple of days.

Mink

We've seen a property that we like and plan to put offer in Monday. We feel we'll get it as the other offer in is from a guy who doesn't have mortgage approval and the EA said it's ours in so many words.

It's an ex rental and is empty so there is no chain issue. Although I'm eager to get going, I also don't want to have to move just before Xmas. There's various bits and bobs that have to be done to make it liveable and I highly doubt I'd be able to get tradesmen before or during Xmas/ny holidays!

Plus it's an hour from where we live now so it's a lot of hassle to get my son minded and then travel down to get anything done. Husband will be working a lot over Xmas "break".

However I also need to have the sale closed before 1st wk of Jan so can register my sons for schools.

On a stress scale of 1-10 I envision this move will be a 15

SB_Part2

Mink wrote: »

We've seen a property that we like and plan to put offer in Monday. We feel we'll get it as the other offer in is from a guy who doesn't have mortgage approval and the EA said it's ours in so many words.

It's an ex rental and is empty so there is no chain issue. Although I'm eager to get going, I also don't want to have to move just before Xmas. There's various bits and bobs that have to be done to make it liveable and I highly doubt I'd be able to get tradesmen before or during Xmas/ny holidays!

Liveable in general or just by your standards? I had huge issues with one bank because they didn't think my house was habitable and wouldn't give me a mortgage on it.

whiskeyman

Sono wrote: »

Aviva came in the cheapest for our life insurance by a mile, about €22 a month!

Low.ie came in cheapest for me.
Only heard of them on boards.ie

Mink

SB_Part2 wrote: »

Liveable in general or just by your standards? I had huge issues with one bank because they didn't think my house was habitable and wouldn't give me a mortgage on it.

No just by my standards. Just grubby as f@ck. Nothing major that a bank would deny mortgage over.

Wesser

Mink wrote: »

No just by my standards. Just grubby as f@ck. Nothing major that a bank would deny mortgage over.

If it just that it is grubby or needs ' bits and bobs' then I would inclined to just bid and take it. Otherwise you might miss out. The house does not need to be perfect for you to live in it. Don't risk your house it your child's child care place for some grubbiness..

StiffOldMan

Arsen5 wrote: »

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.

I understand your frustration but you really shouldn't have changed your financial circumstances between approval in principle and drawdown. That is the most sensitive time when applying for a mortgage. If a bank sees any big changes in your circumstances, they will not play ball

MrStuffins

Guys, when should I seek to see a broker?

We have the vast majority of our deposit saved up. In fact, we'd have enough if we wanted to buy a house on the lower end of the scale.

We're not entirely sure exactly where we want to live yet, so we only have a general idea of how much we actually want to borrow.

Is it advisable to wait until you have an exact figure in mind and the relevant deposit before seeing a broker?

Michael D Not Higgins

MrStuffins wrote: »

Guys, when should I seek to see a broker?

We have the vast majority of our deposit saved up. In fact, we'd have enough if we wanted to buy a house on the lower end of the scale.

We're not entirely sure exactly where we want to live yet, so we only have a general idea of how much we actually want to borrow.

Is it advisable to wait until you have an exact figure in mind and the relevant deposit before seeing a broker?

Go whenever you're ready. The approval will be for an amount related to your salary and expenses. The conditions of drawing down will be meeting the LTV criteria for a deposit which you can continue to save for while you're looking.

Keep in mind approval in principle lasts 6 months (IIRC) and you'll need to reapply after that. So if your deposit looks like it's going to take longer than that to save I'd wait a bit yet.

wersal gummage

Is there a general rule of thumb as to what impact children have on the amount a bank will lend? I presume it is significant as the costs of childcare and so on are probably deducted from your earnings and thus lower the amount that you can afford to repay??

The 3.5x salary confuses me as I presume it is only 3.5 times salary subject to having a minimum net, disposable income per month?

Also, does anyone know knowing at what point (in age of customer terms) the banks stop give 30 year mortgages? Eg, is there a general maximum age that you can have a mortgage until?

Thanks!

Ayuntamiento

@Michael D Not Higgnins, my experience with one bank was that they would literally only approve us for the amount that correlated with the deposit that we had saved at the point of the application going to the underwriters. That same amount was roughly half what we'd be entitled to based on the '3.5 times your income' rule. It was massively frustrating as we save €2k every month and have gone back to them a few times seeking a larger amount as our deposit has increased. They've always granted us the larger amount but it's a bit of a charade having to submit the same paperwork all over again. Not to mention the fact that they're creating so much extra work for their underwriters.

Is there a particular bank that you have come across who will give AIP on the basis that you will have the deposit for a set amount within the 6mths that it remains valid?

Michael D Not Higgins

wersal gummage wrote: »

Is there a general rule of thumb as to what impact children have on the amount a bank will lend? I presume it is significant as the costs of childcare and so on are probably deducted from your earnings and thus lower the amount that you can afford to repay??

The 3.5x salary confuses me as I presume it is only 3.5 times salary subject to having a minimum net, disposable income per month?

Also, does anyone know knowing at what point (in age of customer terms) the banks stop give 30 year mortgages? Eg, is there a general maximum age that you can have a mortgage until?

Thanks!

The 3.5 LTI is the max they can lend (without the exceptions). The bank will have its own underwriting which will also take into account your expenses and lower the amount you can borrow accordingly.

Therefore, a couple with no children compared to a couple with 2 children in full time childcare with equivalent salaries will qualify for very different mortgage amounts.

Generally, the bank won't lend more than you can afford after the usual expenses. For children, they subtract ~€250 per month per child as the basic amount and add any childcare costs on that as well.

The bank won't grant a mortgage beyond your expected retirement age, this is in the range of 65-70 depending on the bank.

SB_Part2

Ayuntamiento wrote: »

Is there a particular bank that you have come across who will give AIP on the basis that you will have the deposit for a set amount within the 6mths that it remains valid?

I got my AIP minus the money I was getting as a gift. I assume that's the same?

wersal gummage

Michael D Not Higgins wrote: »

Therefore, a couple with no children compared to a couple with 2 children in full time childcare with equivalent salaries will qualify for very different mortgage amounts.

Generally, the bank won't lend more than you can afford after the usual expenses. For children, they subtract ~ 250 per month per child as the basic amount and add any childcare costs on that as well..

That's what I thought, thank you for that.

Is there any point at which the 3.5x is more likely to be the limiting factor than the disposable income? I mean, with only two kids as expenses above and beyond the usual day to day?

Eg, combined income of 50k is likely to be hard hit by 2x1000 cr che plus 2x 250 (as above example). Whereas combined income of say 140k would be more likely to absorb the childcare costs and still be limited by the 3.5 multiple??

Michael D Not Higgins

Ayuntamiento wrote: »

@Michael D Not Higgnins, my experience with one bank was that they would literally only approve us for the amount that correlated with the deposit that we had saved at the point of the application going to the underwriters. That same amount was roughly half what we'd be entitled to based on the '3.5 times your income' rule. It was massively frustrating as we save €2k every month and have gone back to them a few times seeking a larger amount as our deposit has increased. They've always granted us the larger amount but it's a bit of a charade having to submit the same paperwork all over again. Not to mention the fact that they're creating so much extra work for their underwriters.

Is there a particular bank that you have come across who will give AIP on the basis that you will have the deposit for a set amount within the 6mths that it remains valid?

Perhaps I am considering a case where someone has said they will be getting the rest of the deposit as a gift from parents. I haven't undergone the mortgage approval process in Ireland so I don't know how the different banks do their process.

Michael D Not Higgins

wersal gummage wrote: »

That's what I thought, thank you for that.

Is there any point at which the 3.5x is more likely to be the limiting factor than the disposable income? I mean, with only two kids as expenses above and beyond the usual day to day?

Eg, combined income of 50k is likely to be hard hit by 2x1000 cr che plus 2x 250 (as above example). Whereas combined income of say 140k would be more likely to absorb the childcare costs and still be limited by the 3.5 multiple??

What they do is they take your net income and take away the expenses. So say you're on 50k with expenses above. They'll take ~2000/month for two adults to live on and with 2500 in child costs, there's no residual for a mortgage. In that situation, they would be likely to deny a mortgage.

For the 140k family, there's a net income of ~7k per month minus 4500 leaves 2500 for a mortgage. The underwriting usually also limits the max percentage of net income for a mortgage to ~40%, so in this case the 2500 is below that and can be fully used for the mortgage. Working out the 3.5 LTI and stress testing to 2% above market interest rates shows they'll just about scrape max mortgage amount.

Arsen5

Still waiting for the bank to wire money to solicitor,(waiting since last Thursday after issue with credit card that supposed to be sorted according to my broker) whole thing is dragging on for ever!, anyone think it will be a good idea to give the bank a deadline & move on to other bank that we got AIP (should still be valid)?.

Ayuntamiento

Will the other bank that gave you AIP not also perform credit checks, realize that you took out a credit card after they gave you AIP and then delay your drawdown too?
Unless you're a seriously high net-worth individual, I don't imagine the bank will respond to an ultimatum.

ThisRegard

Quick question, at what point does the bank send out the valuer to the home they're loaning for, presumably they won't do this until after they've done their credit checks etc and the mortgage is basically a done deal once, pending the valuation?

angeldelight

You arrange the valuation not the bank. You can do it as soon as you're sale agreed but the valuation needs to be within 2 months of drawdown so be careful doing it too early

Zzippy

angeldelight wrote: »

You arrange the valuation not the bank. You can do it as soon as you're sale agreed but the valuation needs to be within 2 months of drawdown so be careful doing it too early

Some banks arrange their own valuer or choose from a panel of valuers, and also pay for the valuation. Ulster Bank, for instance, do this, while KBC appoint a valuer but expect the purchaser to pay their fee.

TJ Mackie

Hi, just looking for some advice.

My fiancé and I have started saving for a house. We’re in our late 20s. Don’t have any substantial savings as it is but we reckon we can save between €50-€60k in 3 years if we are disciplined. The whole notion of getting a mortgage and what’s involved is alien to me, but I guess my main questions are:

1. What are some crucial things you wish you knew at the start of your process – i.e. anything that I should know now rather than find out the hard way?

2. If we are able to save €1500 a month for 3 years in addition to paying rent of €1400 a month for 3 years, how favourable would that look on a mortgage application? Do they even acknowledge what you have been paying in rent or is it purely what you’ve been able to save?

3. I’m not confident I have a great credit history – I got deep into my credit card about 2 years ago (I was always flirting with my max €4k limit) and though I never missed a payment, it was often a case of making my payment then spending straight away. I got the balance a little bit under control, and was able to pay off the lump sum balance thanks to a cash gift from my parents. I closed my Credit Card account as soon as it was cleared. I’ve been in my overdraft for about 18 months at this stage (max €2.8k) and will have it cleared by my PayDay at the end of the month (i.e. I expect to have my balance back to zero before my wages hit my account, so I don’t expect to have to use my overdraft again – indeed my first port of call will be to give myself a far lower limit). How big of a deal is all this? And would it be a big deal in 3 years time, assuming we’ve evidenced the above mentioned 3 years’ worth of saving? i.e. would 3 years perfect credit go any great way to helping me?

Really appreciate any advice!

Thanks

ThisRegard

angeldelight wrote: »

You arrange the valuation not the bank. You can do it as soon as you're sale agreed but the valuation needs to be within 2 months of drawdown so be careful doing it too early

As said above, the bank's often arrange it.



Anyway, so in the case of a bank arranged valuation imagine it's the very last t to be crossed, no point arranging a valuation if they don't otherwise qualify?

sadie1502

ThisRegard wrote: »

As said above, the bank's often arrange it.



Anyway, so in the case of a bank arranged valuation imagine it's the very last t to be crossed, no point arranging a valuation if they don't otherwise qualify?

Yeah they wouldn't send out a valuer unless you have passed the credit checks. I wouldn't imagine so anyway. Well in our case that's what happened.