Beginners Guide to Mortgage?

Looly8726

I would avoid any large debt now, if you can suck it up for another few months and drive what you have! If you think about it how will you feel in 12 months time if the car puts your dream home just out of your reach based on your disposable income calculations?

Creamy Goodness

jlm29 wrote: »

It’s about context really. If they have salaries of 115k between them, and want to buy a house for 200k, so can easily afford it, there’s nothing wrong with buying a decent car. If they’re on the cusp of what they can afford, and looking at houses for 400k, then it might be a bit more reckless.

of course it's about context, but without knowing exactly what house price they're looking at (other than them doing 115k * 3.5) it's safe to assume they're going to be at the higher end of their budget.

I never mentioned there was something wrong with buying a decent car, but the key is when the timing is right.

maybe I'm just overly cautious. but when I was getting my mortgage I made sure every cent coming/going in/out of my accounts was squeaky clean.

mortgage69

Creamy Goodness wrote: »

Yes, a mortgage is one of the biggest loans you'll ever get. you're getting the guts of 1/3rd of a million euro over x amount of years. the trade off is you get a lovely home to live in, however you're willing to jeopardise getting this loan for the sake of a comfier car as banks do not like risk. Whilst depending on the circumstances a 20k loan might be a small risk, it's a risk in the banks eyes.

The advice above is good; buy a small get-around car for 2-3k to do you until you get your house, then use it as trade-in/scrappage to get a 20k car.

So...just to be clear, in terms of a 340k mortgage i was just using that as an example. We would equally be happy with a 200k mortgage or even less when the time comes. It really depends whats on the market when we do decide to buy. All we know is it has to be right for us, the price of it we dont really care. BUT it would be nice to have the option of say a new build or something when time comes. And yes based on this discussion I think i will review the 20k car loan and wait until after. It makes sense. I am learning all this as i go along so thanks a million for all yer advice and opinions.

Thoie

Make sure each person going on the mortgage has utility bills at your current address in their name. E.g., if Mrs Homebuyer has all the utility bills in her name, get at least one switched to Partner Homebuyer's name. Mobile phone bills often won't do.

Start keeping things like salary slips if you work for a company that still prints them out.

You will be surprised how often "someone" wants 6-12 months proof of address, proof of salary, proof of shoe size...

If either of you smoke, and are planning on quitting, do it sooner rather than later. Being smoke-free for >12 months helps cut the cost of life insurance greatly. Similarly if you're overweight and plan to lose weight anyway - the closer to "normal" BMI you are at the time of the assessment, the cheaper the monthly cost (broadly speaking).

Start thinking about who your solicitor will be before you start looking at houses - you'll often have to name one at pretty short notice if you're putting down a holding deposit.

Start the decluttering now - you don't want to end up moving a whole bunch of crap you don't want into your new home, and even with the best intentions, you're unlikely to do it "as we're packing". Pick an evening a month and do a room at a time. Try not to buy more stuff in the interim.

TheShow

loads of info in this tread:

https://www.boards.ie/vbulletin/showthread.php?t=2057501206

Looly8726

Thoie wrote: »

Make sure each person going on the mortgage has utility bills at your current address in their name. E.g., if Mrs Homebuyer has all the utility bills in her name, get at least one switched to Partner Homebuyer's name. Mobile phone bills often won't do.

Start keeping things like salary slips if you work for a company that still prints them out.

You will be surprised how often "someone" wants 6-12 months proof of address, proof of salary, proof of shoe size...

If either of you smoke, and are planning on quitting, do it sooner rather than later. Being smoke-free for >12 months helps cut the cost of life insurance greatly. Similarly if you're overweight and plan to lose weight anyway - the closer to "normal" BMI you are at the time of the assessment, the cheaper the monthly cost (broadly speaking).

Start thinking about who your solicitor will be before you start looking at houses - you'll often have to name one at pretty short notice if you're putting down a holding deposit.

Start the decluttering now - you don't want to end up moving a whole bunch of crap you don't want into your new home, and even with the best intentions, you're unlikely to do it "as we're packing". Pick an evening a month and do a room at a time. Try not to buy more stuff in the interim.

Great advice. We are also selling at the moment and it was very frustrating to wait a week for our “buyer” to name their solicitor. In the end their finance was refused and it was all a complete disaster. So definitely also get full approval in principle before you start looking!

Proof of shoe size 😂 lol!

mortgage69

awesome advice guys!

mortgage69

I remember some time back someone posted a link and it basically shows a listing of new builds around the country, anyone any ideas? Just wanted to keep an eye on whats coming up.

mortgage69

Looly8726 wrote: »

I would avoid any large debt now, if you can suck it up for another few months and drive what you have! If you think about it how will you feel in 12 months time if the car puts your dream home just out of your reach based on your disposable income calculations?

yes for sure, i would be bet senseless lol.

mortgage69

Creamy Goodness wrote: »

of course it's about context, but without knowing exactly what house price they're looking at (other than them doing 115k * 3.5) it's safe to assume they're going to be at the higher end of their budget.

I never mentioned there was something wrong with buying a decent car, but the key is when the timing is right.

maybe I'm just overly cautious. but when I was getting my mortgage I made sure every cent coming/going in/out of my accounts was squeaky clean.

no your right its a good way to be. We are quite organised people so will be watching everything from now on.

worker bee

Whichever lending agent you are going to sign up with, make sure you get a mortgage where you don't have to pay penalties for paying off early - whether it's lump sums or a regular monthly overpayment. Get that stipulation in writing in the terms and conditions.

voluntary

mortgage69 wrote: »

Based on this would we need 40k deposit?

No, that 40k was a sample. You'd need whatever deposit you need based on your circumstances. You'll need a minimum of between 10% and 20%

flipflophead22

Sorry to but in here, what sort of deposit would ya need for house below?

https://www.daft.ie/clare/houses-for-sale/clonlara/coolisteige-clonlara-clare-2127227/

myshirt

123Vicki wrote: »

Bank of Ireland very harsh. Declined us as we had credit cards and I have a personal loan. Applied 1 week later with PTSB and they didn't factor in the credit cards or loan and got approved within the week. We will get 2% cashback at drawdown and 2%back off monthly mortgage payments.

Regular savings and any transactions over approx 100 looked at but not in great detail. Best of luck.

Of all the banks you could go with, PTSB are the last bank you want to be stuck with. They are not in as good financial shape, and they have exhorbitant standard variable rates which they'll land you on if you ever got snookered and couldn't switch provider, or if a new lender didn't want your business. They have no capacity to provide forbearance or work with you. Very heavy handed if you got boxed into a corner. If everything is going good, excellent, but be careful with them if they are not because you'll ruin your credit rating well beyond anything that could be resolved off your ICB report in 5 years.

Creamy Goodness

flipflophead22 wrote: »

Sorry to but in here, what sort of deposit would ya need for house below?

https://www.daft.ie/clare/houses-for-sale/clonlara/coolisteige-clonlara-clare-2127227/

10% of purchase price - €35.5k if first time buyer.
20% of purchase price - €71k if up/down sizing.

Of course this is entirely dependent on what the mortgage provider is willing to give you. Majority of people will need a bigger deposit to make up the short fall

Antares35

voluntary wrote: »

This is a myth. Just make sure you have as little outstanding debt as possible when you apply for a mortgage. It's the regular savings + current rent what banks are looking for.

Thank you I hate all this adulty savings business. I want to buy wine and shoes I actually got a pair repaired this week instead of buying new ones!

We were looking at the BOI mortgage saver but might reconsider now since some people here have said they are stricter.

Antares35

Creamy Goodness wrote: »

not really, Ireland isn't huge into credit scores. Just make sure you've never missed a payment on any credit you've been given and you'll be fine. If you've ever paid a cent interest on a credit card, cut it up as it's not doing any favours.

I always pay the balance in full, made a personal promise to myself to never pay interest! But sometimes paying it in full will leave me a bit short at month end and I end up using it again, then paying it off etc. It is almost like borrowing from yourself. Think it might be wise to just lock it up for an emergency.

Interested Observer

Get a broker. Let them guide you through everything else.

zweton

They take a cut for this I presume?

Are you using them as a middle man ?

Creamy Goodness

zweton wrote: »

They take a cut for this I presume?

Are you using them as a middle man ?

They get commission from the bank for bringing them business, you don't need to pay them.