Mortgage Application Question

angeldelight · 08-10-2015 9:39pm #1

Quick question - I've put our income/dependent details into KBC's mortgage calculator and it says we could apply for 489k ish. If I put in that I'm repaying a car loan of 310 a month that reduces to 411k. We've been putting off getting a new car for ages as we thought it would seriously impact on a mortgage application but both these figures are well over what we'd be looking for!

So my question is how reliable is the website? Would it influence any decision more than the above?

Edited to add reason for new car is we've had a baby and are struggling to fit stuff in our Yaris!

Sala · 08-10-2015 11:18pm

Not reliable. I just did it and it approved us for 130k more than we actually got approved for (with a different bank). I presume you heard of the new rules? 3.5 times your salaries max, 10% deposit up to 220k and 20% thereafter. So if you want to buy a 350k house you need 48,000 deposit and a mortgage of 302,000- that's a joint salary of just over 86,000.

Sala · 08-10-2015 11:21pm

It's probably worth saying the banks can make exception to the rules in 15 or 20% or cases I think - they did for us but it expired and all exceptions are gone, and most banks are in same position. I assume they will start giving exceptions again at then start of 2016 if they don't have to carry over their excessive lending

Jen44 · 09-10-2015 8:36am

Dont rely on online calculators!! KBC are great to deal with give them a ring or arrange and appointment just talking to them and going through your story can greatly change the amount you will be lent. We ended up getting a mortgage with only 10% deposit despite us being movers and keeping our first property and mortgage with another bank. Im not saying that they will make these kind of exemptions for everyone im simply saying if you are serious go in and talk to them, dont rely on online calculators they don't take the bigger picture into account. To note we also have a car loan which didnt hugely impact on the amount we borrowed.

angeldelight · 09-10-2015 9:19am

Thanks for the replies! We will go in and talk to them but no point yet we've still a bit to go with deposit. Just trying to figure would we be shooting ourselves in the foot of we get a car loan now!

meme74 · 09-10-2015 9:27am

As long as you know you can well afford it then I cant see the car loan being a problem. Both myself and OH took out new car loans afew months before we applied for our mortgage and there was no problem. Our mortgage advisor actually said that it can sometimes help the application as you are showing you can comofrtably and reliably repay a debt. That said, our car loans were well within our spending capacity. Work out afew figures and make sure you knwo what you can afford before getting the car loan.

Muff Richardson · 09-10-2015 4:45pm

Jen44 wrote: »

We ended up getting a mortgage with only 10% deposit despite us being movers and keeping our first property and mortgage with another bank

I'm totally lost with these rules, are these rules 'rules' or 'Irish rules'??? What is it with these exceptions? Wtf is the situation. I took it for granted I would need a 20% deposit for my move...because apparently they were the 'rules' which the central bank laid out...banana republic.

10-10-2015 7:15pm

Muff Richardson wrote: »

I'm totally lost with these rules, are these rules 'rules' or 'Irish rules'??? What is it with these exceptions? Wtf is the situation. I took it for granted I would need a 20% deposit for my move...because apparently they were the 'rules' which the central bank laid out...banana republic.

Well it makes sense to have exceptions for some people for instance why refuse a mortgage to a high earner in secure employment because they don't have a 20% deposit when they are a fairly safe bet.

From day one when these rules were brought in it was made known that there would be a certain percentage of exceptions.

Sala · 10-10-2015 7:45pm

The exceptions were built in. The banks are allowed move outside the rules in some cases. (15 or 20% can't recall). UB used up all theirs and I saw Aib I think in paper had too. Which is scary because up until June or July people had AIP from prior to the rules, which suggests they used up the exceptions in a couple of months.

Jen44 · 12-10-2015 8:21am

I suppose there are always exceptions to rules. As someone else pointed out there was an allowance built into the new rules that exemptions could be made on 20% of banks loan books. In our case we were well able to meet the mortgage payments, our first house is in Drogheda with a huge rental market so there is no problem still making the first mortgage payments and the both of us are in good secure jobs.

Jen44 · 12-10-2015 8:26am

Muff Richardson wrote: »

I'm totally lost with these rules, are these rules 'rules' or 'Irish rules'??? What is it with these exceptions? Wtf is the situation. I took it for granted I would need a 20% deposit for my move...because apparently they were the 'rules' which the central bank laid out...banana republic.

I wouldnt take anything for granted when it comes to getting a mortgage. Its always better to go into the banks and go through your personal situation with lenders. Always do your research, we already were aware about the exemptions so when i rang banks the first thing i said was are your banking making any exceptions to the new rules based on individual cases. That way i didn't waste my time going through the process with a bank that couldn't offer us a mortgage with only 10% upfront. Some banks eg AIB wouldn't budge they were iron clad that it was 20% or nothing but at the time we were applying there were a few banks willing to look at our case. That being said I have heard since heard that a couple of banks have already exhausted there allowance of exceptions to the rules.

Mortgage Application Question

Comments