Mortgage

bhoya2001

Hi Everyone, any advice to apply mortgage first time buyer?

Many Thanks

Toots

I think you're going to have to elaborate a bit if you want people to give you advice. Have you started saving? What kind of deposit do you have/what size loan are you looking for, etc.

Geuze

Have saved 20% of your net income every month for several years before application.

Trish56

As a first time buyer you can borrow up to 90% of the purchase subject to 3.5 times joint income and lenders policy and criteria. You will need 10% deposit from savings or and gift. Additional costs will be 1% stamp duty and approx. €2200 legal fees. Lender will need evidence that you can cover all these. As a single person you need to have net disposable income of €1400 after stressed repayments and any other borrowings per month.

You need to prove repayment capacity by showing monthly rent/savings for past 6 months equal to stressed monthly repayments (approx. 5.50%). Term can be up to age 65 however one lender will allow you borrow up to age 70. If you are paying rent you need to show the rent going out of your bank account. Very hard to give you advice with no information however the above guidelines may help.

Vitas

Hi everyone. Just been refused mortgage life cover by 2 insurance companies because of my body mass index (bmi), however i dont have any other underlying health condition. My husband was approved though. Is there a way of getting around this as we are about draw the mortgage?

phormium

Ask the bank about a waiver, happens regularly, lots of people are turned down for life cover or have premium increased to unaffordable levels. There is a system in place to allow for this but up to individual banks whether or not they accept it.

thetimeisnow

1. If one has generally been a bad saver would one have to show they have changed over a certain amount of time even if they knuckled down and had the deposit within 6 to 9 months

2.Does it matter if all your savings are in the credit union or should you have a savings account with the institution your borrowing the mortgage from?

niva*sis

Just out of curiosity...
If one was earning lets just say 25k per annum.. Does that mean that the bank may only give you 87.5k of a mortgage? or if you had savings (20-30k) would the chances or a higher mortgage increase?

Shefwedfan

niva*sis wrote: »

Just out of curiosity...
If one was earning lets just say 25k per annum.. Does that mean that the bank may only give you 87.5k of a mortgage? or if you had savings (20-30k) would the chances or a higher mortgage increase?

According to my bank. Yes saving are a help but in reality it goes on your wages.


Saving are just to show you can save but with the new Central Bank rules they can no longer give mortgage to a person if they are not earning enought to pay back the mortgage. So the multiplier is the way they work it out. Argue all you want but you will get nowhere. It is part of regulations


Again this is what I was told when I got mine

Shefwedfan

thetimeisnow wrote: »

1. If one has generally been a bad saver would one have to show they have changed over a certain amount of time even if they knuckled down and had the deposit within 6 to 9 months

2.Does it matter if all your savings are in the credit union or should you have a savings account with the institution your borrowing the mortgage from?

1. My bank took a 12 month review of finance to see how are you are saving
2. Doesn't matter where it is once you can produce evidence to show it exists

niva*sis

Shefwedfan wrote: »

thetimeisnow wrote: »

1. If one has generally been a bad saver would one have to show they have changed over a certain amount of time even if they knuckled down and had the deposit within 6 to 9 months

2.Does it matter if all your savings are in the credit union or should you have a savings account with the institution your borrowing the mortgage from?

1. My bank took a 12 month review of finance to see how are you are saving
2. Doesn't matter where it is once you can produce evidence to show it exists

Do you mind telling us which bank? Do they normally take 12 month or is it 6 months?

Shefwedfan

niva*sis wrote: »

Do you mind telling us which bank? Do they normally take 12 month or is it 6 months?

KBC....



They took 12 months first time if I remember correctly. Then due to normal issues the approval ran out and the second time to re-approve it was 6 months

Trish56

You need to show a history of 6 months savings/paying rent by submitting 6 months savings, current account and credit card statements with your application. Lenders can ask for 12 month statements however the norm is 6 months.

Under Central Bank Regulations the max you can borrow is 3.5 times your gross basic income and they may allow 50% of overtime, bonus once you can prove same by submitting P60's.

You will need to provide evidence of balance of funds when applying - Example = Purchase Price 200k - qualify for a 90% mortgage 180k - deposit required = 20k plus stamp duty of 2k and legal 2.5k - total = 24.5k so you must show savings of 24.5k or a combination of savings, gift and confirmation of Help to Buy Scheme. All lenders will accept a gift towards the deposit.

niva*sis

Thanks Trish56 and Shefwedfan..
Mine is a bit of a different situation as i am in australia at the moment and moving home in June of next year.  I then have to find a permanet job before i can apply for a mortgage.. My understanding is that once you are in the job 3 months and have passed your probation period (permanent job) then you can approach the banks regarding a mortgage.  i have savings here but from September onwards i will be sending savings home each month into my Irish account.. (exchange rate is shocking, that is why ive kept them here for now) Im going home in two weeks for a quick holiday hence why i will start sending the savings home in Sept so that i can start fresh and put the head down when i come back.

I am with AIB. i worry that i will be given less than 100k for a mortgage. i will be looking for work in an admin role. i have a degree in information systems but not but work in my hometown for that. 

Trish56 when you say the banks many allow 50% of overtime what does that mean?

Shefwedfan

I was moving house for last mortgage, as I was already paying a mortgage and saving x per month they counted all that into consideration

I think you might have to wait longer than 3 months before approaching bank for mortgage....it might be worth ringing kbc now

The other “banks” I found a joke when trying to deal with....same old crappy irish attitudes

Trish56

niva*sis
Most lenders require you to be in your current employment for 1 year with the exception of permanent tsb who will accept 6 months and you must be permanent and finished probation.

You will need to bring home some banking history with you such as 6 months savings and current a/c and all banks will look for a credit report from Australia which causes huge stress as it is hard to get once you get home. You will need to apply to Experian for this and might save a lot of stress if you can arrange before you come home.

Regarding overtime if you can prove that extra's such as overtime, commission and bonus is a regular part of your employment the lender will take a % up to 50% into consideration when calculating how much of a mortgage you qualify for.

I presume you will have a considerable deposit towards the purchase of your home coming from Australia.

niva*sis

Hi Trisha56

Thanks for all this info, was it always a year you need to be In Permanent employment (bar TSB).

The proof of savings over here will be fine and getting the report before I leave will be fine (how long does the credit report last) eg if it’s only 6 months but I need to be in employment 1 year at home then it expires before I get to use it. How far back do you need to go for credit report? I have been away from Ireland since 2011 in more than 1 country.

I have savings but not 100% of them will be going to wards mortgage or so I was hoping. Will literally be starting from scratch at home (on my own) meaning I need to buy a car, car insurance, health insurance, ship my dog home and if I do manage to get a mortgage then I need to furnish a house so 100% of savings won’t just be for a house.

Thanks for your answers so far.

sparkman

Hi - a friend of mine is opening an account called a "mortgage saver account" and they are being asked " how much of their income is generated as cash". I told her that this just meant was she ever paid in actual cash as opposed to direct payment into her account. Was I correct? Thanks. Sorry if this is an obvious question, but I just don't want to put her wrong.