First time buyer-completely new to this

galaxyminstrels

So I'm female, 29 and looking at buying my first home. I'm single and in a public service job, gross wage is approximately €45,000. A house is due to come on sale in the estate where my brother is currently living. It was one of the houses that didn't sell back in the good days (8 years ago) and is now currently being made ready for sale. It is structurally sound, had been fully finished with Windows, doors, plastering etc before the developer went bust and didn't finish the inside. The estate has been taken over and the new developer is finishing this house first before he moves on to finish the rest of the houses in the estate which were only partially completed at the time.
My brother made enquiries and he was told they will be putting the house up for €125,00 in 2 to 3 weeks. I have savings totalling €19,500 at the moment so I would be pretty confident of getting the mortgage. I save on average €800 per month and am currently paying rent at €225 per month on top of this.
Questions I have are:
Could I apply for maybe €130,000 of a mortgage in order to furnish the house, it will need all appliances, beds etc?
I have a feeling this house could sell pretty quickly as there is a high demand for houses in the area and at the price I am sure it will go quickly. What is the best way to go about getting a mortgage as quick as possible?

I know I should probably have looked into applying for a mortgage earlier once I had savings built up but there was literally no houses coming on stream in my area and just last week I was saying to a friend Id probably have to look at buying in the next town because there was nothing coming up in my local town.
Any advice/words of wisdom would be most appreciated with this as the whole thing has happened so quickly I'm not as prepared as I'd like to be.

BronsonTB

They won't give you more than 90% of the property price. (This excludes furnishing)

You should submit applications to the banks & see how much you are approved for, then you'll know if you can go for it when the house does come up for sale.
Plenty of good brokers out there too to help in getting a good mortgage deal.

Good luck with it

carfax

galaxyminstrels wrote: »

So I'm female, 29 and looking at buying my first home.

Why do you think this is relevant?

galaxyminstrels

I just typed it without thinking, I know it's not relevant.

carfax

galaxyminstrels wrote: »

I just typed it without thinking, I know it's not relevant.

Only kidding best of luck with everything. Sent you a PM just now.

baby and crumble

It came as news to me we couldn't apply for the costs of bringing the property up to habitable standard when we bought. Hence the fact we're only living in 3 rooms 18 months later! Getting there though.

Best of luck OP! I know some folks are dead set against buying a house, but I'm loving having my own little patch where I can do exactly as I want. If I want a shelf I can have a shelf.

SB_Part2

Apply to the banks and see what they come back with. Then you'll know if you're in a financially stable position or not. When I was applying they wanted to see that I had 2-3k (maybe more, not sure) left over to furnish the house.

Irish_rat

You should be fine with the mortgage application I'd say.

The house is going on sale soon? Go with the lowest variable bank and apply asap. Get a good solicitor too.

You only need 12.5 deposit for a 125k house. So you are applying for a loan amount of 112.5k to the bank

Solicitor, valuation, snag, stamp duty about 4k

That's 16.5k in total to get to drawdown

Once you get the keys use the rest of your savings on furnishing. That'll cost you roughly between 10-20k depending on the quality you choose.

Alkers

Irish_rat wrote: »

You should be fine with the mortgage application I'd say.

The house is going on sale soon? Go with the lowest variable bank and apply asap. Get a good solicitor too.

You only need 12.5 deposit for a 125k house. So you are applying for a loan amount of 112.5k to the bank

Solicitor, valuation, snag, stamp duty about 4k

That's 16.5k in total to get to drawdown

Once you get the keys use the rest of your savings on furnishing. That'll cost you roughly between 10-20k depending on the quality you choose.

Basically you'll have 3k + whatever you can save in the meantime to furnish the house. Remember you don't need to do everything the minute you move in.

From a quick look, you should be approved for the mortgage amount on your salary.

PedroDublin

As everyone is saying, you look to be in good shape for the mortgage.

We applied to few banks and on our experience the AIB online process was by far the quickest. We got lots of questions but the fact that you do everything online, and you have a full team for queries, not just one adviser, makes it really smooth. It only took us two days to get the approved in principle and five days for the letter of offer.

I would start with the process as soon as possible as it can be a lengthy one, we are only finishing now and started almost two months ago.

TeaBagMania

galaxyminstrels wrote: »

So I'm female, 29 and looking at buying my first home. I'm single and in a public service job, gross wage is approximately 45,000.

If you re looking for a man I can cook, mow the lawn, work on cars, ride motorcycles, fly planes, and as a bonus I bring US citizenship to the table

Makood

We are in the final stages of full approval and I had a call from the bank today saying they had one issue only before they give it. How was I going to furnish the house... I had only given the minimum savings needed in my application and the accounts that they were in. (I have more but wanted it for improvements).
I said that the house was already furnished and being sold as such. She replies to me then that is a problem, that they will need the valuation of the furnishings and that will be removed from the approved amount.

In truth the furniture is probably worth 1000 euro so no big deal, but still it shows how tight they have got on these little details.

Ursus Horribilis

You'll need to produce a load of paperwork as part of the application so here's what you should start finding or printing out. My memory is a bit hazy on how many months worth of them you'll be asked for. For everything apart from my savings account, they wanted 3-6 months of them.

• Bank statements. You'll most likely be asked for 6-12 months of these
• Credit card statements
• Payslips
• P60 from the tax year just gone by
• Salary Cert - you'll be given this by the bank/mortgage broker. It needs to be filled out someone in HR
• Utility/phone bill with your name and address on it.
• Copy of your passport or driving licence

galaxyminstrels

Thanks to all those who helpfully replied to my query. I have contact my employer for a salary cert. I have my p60 and have print outs to show my savings balance.
Can I use my online banking to print off statements or should these be original bank statements?
I spoke to Bank of Ireland today as I have a contact who works in mortgages there. Their 2 year fixed rate seems to be the best value. Am just wondering what is the best to go for, fixed or variable? I like the idea of knowing what I will be paying every month especially when starting out. Is variable better than fixed at the moment and why?
Bank of Ireland also advised me of their 2% cash back offer. It is enticing as I could then spend on furnishing the house but is there a catch or are the Bank of Ireland rates high to make you feel like you are saving money with the cash back?

filbert the fox

Irish_rat wrote: »

You should be fine with the mortgage application I'd say.

The house is going on sale soon? Go with the lowest variable bank and apply asap. Get a good solicitor too.

You only need 12.5 deposit for a 125k house. So you are applying for a loan amount of 112.5k to the bank

Solicitor, valuation, snag, stamp duty about 4k

That's 16.5k in total to get to drawdown

Once you get the keys use the rest of your savings on furnishing. That'll cost you roughly between 10-20k depending on the quality you choose.

I wouldn't get too het up about the furniture. There are basic requirements which are essential in the first instance - a bed and a device to cook food.

Everything else can come later - wait for the sales, go to Scandanavian furniture stores.Flower it up over time. It's very satisfying.. good luck

bleary

galaxyminstrels wrote: »

Bank of Ireland also advised me of their 2% cash back offer. It is enticing as I could then spend on furnishing the house but is there a catch or are the Bank of Ireland rates high to make you feel like you are saving money with the cash back?

Bank of Ireland give cashback as their variable rate is one of the highest on the markets, this allows them to compete for new business by subsidising it with cashback while fleecing existing customers with high rates who often can't move due to change in circumstances, negative equity etc.
Aib and Ulster bank have the best treatment of existing customers and variable rates.

Irish_rat

2% cash-back is just basically owing more money to the bank.

The banks are under a bit of pressure to reduce their rates. That's the reasoning for going variable over fixed.

Personally I found AIB very good.

You can print off statements from online accounts. Also don't forget payslips.

SB_Part2

Irish_rat wrote: »

2% cash-back is just basically owing more money to the bank.

The banks are under a bit of pressure to reduce their rates. That's the reasoning for going variable over fixed.

Personally I found AIB very good.

How is it owing more money to the bank? They don't ask for it back unless you move within 4-5 years.

I went with BOI because they were the most straight forward with us and there was no messing.

Irish_rat

SB_Part2 wrote: »

How is it owing more money to the bank? They don't ask for it back unless you move within 4-5 years.

I went with BOI because they were the most straight forward with us and there was no messing.

More interest. I went for the lowest rate possible out there. Calculate the difference over the mortgage term, it's huge.

PedroDublin

Irish_rat wrote: »

More interest. I went for the lowest rate possible out there. Calculate the difference over the mortgage term, it's huge.

I don't think that calculation is correct, there is no way to know how the rates on the different banks are going to be in five years time, and in the long term they all will tend to converge.

Aib lower rates and lower repayments, or more capital repaid monthly. BOI some cash now and higher repayments in the next years.

exaisle

filbert the fox wrote: »

I wouldn't get too het up about the furniture. There are basic requirements which are essential in the first instance - a bed and a device to cook food.

You may need a working bathroom too... ;-)

Eric Cartman

galaxyminstrels wrote: »

So I'm female, 29 and looking at buying my first home. I'm single and in a public service job, gross wage is approximately €45,000. A house is due to come on sale in the estate where my brother is currently living. It was one of the houses that didn't sell back in the good days (8 years ago) and is now currently being made ready for sale. It is structurally sound, had been fully finished with Windows, doors, plastering etc before the developer went bust and didn't finish the inside. The estate has been taken over and the new developer is finishing this house first before he moves on to finish the rest of the houses in the estate which were only partially completed at the time.
My brother made enquiries and he was told they will be putting the house up for €125,00 in 2 to 3 weeks. I have savings totalling €19,500 at the moment so I would be pretty confident of getting the mortgage. I save on average €800 per month and am currently paying rent at €225 per month on top of this.
Questions I have are:
Could I apply for maybe €130,000 of a mortgage in order to furnish the house, it will need all appliances, beds etc?
I have a feeling this house could sell pretty quickly as there is a high demand for houses in the area and at the price I am sure it will go quickly. What is the best way to go about getting a mortgage as quick as possible?

I know I should probably have looked into applying for a mortgage earlier once I had savings built up but there was literally no houses coming on stream in my area and just last week I was saying to a friend Id probably have to look at buying in the next town because there was nothing coming up in my local town.
Any advice/words of wisdom would be most appreciated with this as the whole thing has happened so quickly I'm not as prepared as I'd like to be.

No, thank christ, we don't do that anymore. Why would you want to pay for a kettle over 25 years anyway/

L1011

You can't borrow to furnish a house anymore. If you can't afford that, you can't afford a house. Save more.

filbert the fox

exaisle wrote: »

You may need a working bathroom too... ;-)

One assumes the existence of the basics....;)

bleary

Bank of Ireland have not reduced their rates and have basically stuck up two fingers at the minister for finance when asked.
AIB are largely owned by the state and have responded to pressure by reducing their variable rates
Neither situation seems likely to change in the short to medium term .

As an example borrowing 300,000 over 30 years at their variable rate
AIB Repayment per month 1,347
BOI repayment per month 1,520
A difference of 173 per month

Over thirty years you repay 547,000 with BOI and 485,000 with AIB so an additional 62300 for BOI at their variable rates, which you will revert to at some stage as they don't do 30 year trackers.

Figures are taken from
http://www.mortgages.ie/go/first_time_buyers/mortgage_payments_calculator?mode=basic&go=go&buyer_type=First+Time+Buyer&house_price=350000&product=2&amt=300000&lender=-1&status=Single&comparison=loc&term=30&x=42&y=12

bleary

And just in case you just want to go with fixed and see BOI's competive rates there.
The difference between AIB and BOI on a 30 year mortgage with 5 years fixed

AIB total repayments : 485,724
BOI total repayments : 533,971

A difference of 48,247 over the mortgage term.

So your 2% cashback of 6,000 has a very large long term cost.

Michael D Not Higgins

bleary wrote: »

And just in case you just want to go with fixed and see BOI's competive rates there.
The difference between AIB and BOI on a 30 year mortgage with 5 years fixed

AIB total repayments : 485,724
BOI total repayments : 533,971

A difference of 48,247 over the mortgage term.

So your 2% cashback of 6,000 has a very large long term cost.

A better comparison would only show the 5 years you're locked into the BOI mortgage and then assume same costs for both for the rest. The 173/month difference then amounts to ~10k over that time. The bank are still winning out but not as much as you'd shown.

bleary

Michael D Not Higgins wrote: »

A better comparison would only show the 5 years you're locked into the BOI mortgage and then assume same costs for both for the rest. The 173/month difference then amounts to ~10k over that time. The bank are still winning out but not as much as you'd shown.

Absolutely, as long as
1. the buyer is willing to remortgage after the 5 years
2. the buyer is able to remortgage - so no decreases to salary,increase in dependents, still in positive equity etc.

Typically people haven't changed their mortgage provider , particularly not in the last ten years or so.

Michael D Not Higgins

bleary wrote: »

Absolutely, as long as
1. the buyer is willing to remortgage after the 5 years
2. the buyer is able to remortgage - so no decreases to salary,increase in dependents, still in positive equity etc.

Typically people haven't changed their mortgage provider , particularly not in the last ten years or so.

That's what the bank are counting on, but it's a more fair comparison to show the actual minimum cost of the 2% cashback deal than the maximum for a given situation. Either way the bank wins.

Lux23

But if banks are looking for proof on how you're going to furnish then it is an issue? Seems a bit silly because plenty of people have nothing when they move into a new home.

SB_Part2

Lux23 wrote: »

But if banks are looking for proof on how you're going to furnish then it is an issue? Seems a bit silly because plenty of people have nothing when they move into a new home.

You can always say you already own furniture.