Currently buying/selling a house? How is it going? READ MOD NOTE POST #1

hada

Have got to signing contracts stage & deposit paid, and we’re aiming for a close over next few weeks.

How common is it for a closing date to be selected but then it slips by a few days? Also, do you know when a “Sold” sign is put up? Is it once the vendor receives the deposit / contracts exchanged or is it when completion occurs (i.e. when we move in??).

goingagain

hada wrote: »

Have got to signing contracts stage & deposit paid, and we’re aiming for a close over next few weeks.

How common is it for a closing date to be selected but then it slips by a few days? Also, do you know when a “Sold” sign is put up? Is it once the vendor receives the deposit / contracts exchanged or is it when completion occurs (i.e. when we move in??).

Very common, especially if it’s a chain.

Sold goes up when contracts are signed and the 10% deposit is paid. Once it gets to that stage it’s pretty much home and dry.

Pussyhands

Sweet.Science wrote: »

Initially I thought the same . These houses haven't come back on the market since going sale agreed though

Have heard from an agent who said they're going sale agreed and 6 months later it's still sale agreed.

errlloyd

Does anyone know how mortgage exemptions actually work. Specifically for BOI, but in general for anyone else.

I've been sale agreed for about 7 weeks. And BOI told me I was likely to get a mortgage exemption. And now every single week I've to check in to see if I got one, and they can't give me a time line etc.

I just wanna know if I'm in a queue, if there is a priority system, if their capacity is ten percent of demand, or if its 90 percent. But no info.

JimmyVik

errlloyd wrote: »

Does anyone know how mortgage exemptions actually work. Specifically for BOI, but in general for anyone else.

I've been sale agreed for about 7 weeks. And BOI told me I was likely to get a mortgage exemption. And now every single week I've to check in to see if I got one, and they can't give me a time line etc.

I just wanna know if I'm in a queue, if there is a priority system, if their capacity is ten percent of demand, or if its 90 percent. But no info.

Its just the bank dragging out on committing. As you get closer to draw down everything will fall into place.


I think these days they are waiting til the last minute, in case people lose their jobs or end up on covid payment. If that happens they wont get a mortgage for years maybe.

Markitron

errlloyd wrote: »

Does anyone know how mortgage exemptions actually work. Specifically for BOI, but in general for anyone else.

I've been sale agreed for about 7 weeks. And BOI told me I was likely to get a mortgage exemption. And now every single week I've to check in to see if I got one, and they can't give me a time line etc.

I just wanna know if I'm in a queue, if there is a priority system, if their capacity is ten percent of demand, or if its 90 percent. But no info.

I'm in a practically identical situation to you, no info from them whatsoever, I can't move forward without my loan offer and my sale is about to fall through because of it. My broker says he has no idea when they might give them out again, if you have an alternative I would go about pursuing it now.

errlloyd

JimmyVik wrote: »

Its just the bank dragging out on committing. As you get closer to draw down everything will fall into place.


I think these days they are waiting til the last minute, in case people lose their jobs or end up on covid payment. If that happens they wont get a mortgage for years maybe.

I'm not certain this is the case for me. The person I deal with seems quite frustrated that every week she has to "check" if exemptions are available and every week it's a no.

Lonestar75

Hi There,

I had posted this in an older thread, but got no response, so if anyone one here with any knowledge about Clawback, your input would be greatly appreciated!

I have a query in relation to clawback on an affordable property purchased in 2009 and hope someone could advise me.

Purchased property in Jan 2009 for €199,750. Clawback was 26.02%. Therefore I understood the market value to be €270,000 and that the local council paid the remaining money - €70,250. At the time I was okay with this, grateful to get a property.

Now looking to sell. Contacted local council and they confirmed clawback rate, and how between 10 years and 20 years this would reduced by 10% per year. So at this stage the clawback rate would be 21.07%. I was fine with this, still believing that they had paid over the €70,250 to meet the market value as the clawback rate was 26.02%.

However, it transpires that they in fact only paid €50,000, as the property was sold for the overall price €249,750 and not €270,000 as I had believed it had. If this is the case, should the clawback original rate be 20.02%, not 26.02%?

It won't make a difference at the moment as the market where I live leaves the price difference negligible, but I could be tempted to hold on for a year or 2, as the drop in the clawback rate will go substantially more in my favour.

Any advice would be greatly appreciated

bulmersgal

errlloyd wrote: »

Does anyone know how mortgage exemptions actually work. Specifically for BOI, but in general for anyone else.

I've been sale agreed for about 7 weeks. And BOI told me I was likely to get a mortgage exemption. And now every single week I've to check in to see if I got one, and they can't give me a time line etc.

I just wanna know if I'm in a queue, if there is a priority system, if their capacity is ten percent of demand, or if its 90 percent. But no info.

They took forever to get back to me about mine I applied in Oct/Nov I was sale agreed finance Ireland came back first so was able to sign contracts and loan offer. BOI didn't grant exception till Jan/Feb they kept asking for more documents. Was ridiculous looking for Dec payslip even though I applied in Nov. Every time they questioned something was like I was put back to end of pile.

cintec

I bid on a second property Friday afternoon and i'm the highest bidder at least for the moment but unsure how long I should wait i.e. days, weeks etc

briancarr82

Hi all, bit of a difficult question to answer as i know everyone's situation is different. How likely are the banks to led the max limit for trading up? Currently selling current home and have usual monthly commitments of childcare etc. Have deposit saved. Just wondering, how often do they lend the max amount of 3.5 times combined salary to the "average couple". Or does it almost always come in under this. Cheers

yew_tree

Sweet.Science wrote: »

Same . Worst the supply has ever been in my times looking

Prices must have increased by over 10% from q4 2020 to q1 2021

Is it solely down to lack of supply and people bidding on houses that they normally would pass on just to get something ?

It’s at breaking point now and the housing issue is very serious. Another generation coming through now will want to buy a home but who will be able to afford them?

Builders are not building good quality affordable homes anymore and the government don’t build social housing.

It’s depressing. I think economically we are sliding into a bad place too. All this money is going to have to be paid back so taxes will rise.

enrique66_35

briancarr82 wrote: »

Hi all, bit of a difficult question to answer as i know everyone's situation is different. How likely are the banks to led the max limit for trading up? Currently selling current home and have usual monthly commitments of childcare etc. Have deposit saved. Just wondering, how often do they lend the max amount of 3.5 times combined salary to the "average couple". Or does it almost always come in under this. Cheers

The 3.5 time multiplier indicates the max mortgage amount but bear in mind the bank will only lend up to 80% of the house sale price (90% for first time buyers). So if for example 3.5 times your combined salary was 220K then you could get a mortgage for that amount provided the house price is 275K or above (i.e. 275K x 80% = 220K). The 20% difference is usually made up from the money left over when your existing house is sold and mortgage cleared (e.g. you sell for 250K and there was 180K left on the mortgage then the 70K surplus can be as deposit on the new house).

I'd suggest having a play around on a bank mortgage calculator to familiarise yourself with the mechanics of it. The bank of ireland one is
https://personalbanking.bankofireland.com/borrow/mortgages/calculators/mortgage-calculator/
but each of the mortgage providers have something similar and there are also comparison sites like bonkers.

To directly answer your question - the 3.5 multiplier is the default. When people talk about exemptions they mean to be allowed exceed this to borrow 4 times or 4.5 times which the Central Bank allows a limited number of each year which the lender has to apply for to be allowed lend the increased amount.

ec18

briancarr82 wrote: »

Hi all, bit of a difficult question to answer as i know everyone's situation is different. How likely are the banks to led the max limit for trading up? Currently selling current home and have usual monthly commitments of childcare etc. Have deposit saved. Just wondering, how often do they lend the max amount of 3.5 times combined salary to the "average couple". Or does it almost always come in under this. Cheers

It 100% depends on how much money they see you have left at the end of the month after your commitments.

As a guide add your mortgage and savings every month and see if that matches what the repayments would be on different loan amounts.

houseyhouse

briancarr82 wrote: »

Hi all, bit of a difficult question to answer as i know everyone's situation is different. How likely are the banks to led the max limit for trading up? Currently selling current home and have usual monthly commitments of childcare etc. Have deposit saved. Just wondering, how often do they lend the max amount of 3.5 times combined salary to the "average couple". Or does it almost always come in under this. Cheers

We got about 3x our salaries but that was all we wanted and I believe we could have got the full 3.5. We have a fairly average combined salary, perhaps slightly above average. It all depends on what bank you go with and what they want to see you have left over each month. I recall one bank saying that after expenses (mortgage, other loans, childcare) they want E2k take home pay per couple per month and another E250 for each child. I think it was AIB told me that. We were lucky that when we applied I was on paid maternity leave and so we had very low childcare costs. If we'd been paying 1.5k/month in childcare as we do now we might have qualified for less.

Also, I'm very confident that the 3.5 is the max mortgage, not the house price.

briancarr82

ok thanks all, and just in terms of mortgage application .Because we'll be selling and buying at the same time. Will they say, We'll offer you "this" based on your house selling for "That" or how does that work?

cintec

cintec wrote: »

I bid on a second property Friday afternoon and i'm the highest bidder at least for the moment but unsure how long I should wait i.e. days, weeks etc

Anyone any advice on this as i'm new to bidding and don't want to be too pushy with the EA/vendors.

ec18

briancarr82 wrote: »

ok thanks all, and just in terms of mortgage application .Because we'll be selling and buying at the same time. Will they say, We'll offer you "this" based on your house selling for "That" or how does that work?

no they'll offer you the same as the mortgage is based on your income and expenditure. The selling price of your house will inform the budget for the next house but it's not linked to the mortgage approval. (That's assuming you have some of the cash deposit yourself) If the sale of your current house is going to be all of your equity in the next house purchase the bank might be more interested in the sale price of your house.

For example,

the house you want to buy is 200,000,

scenario 1:

you have 20,000 in savings and want a mortgage of 100,000 with the remaining 80,000 being funded by the proceeds from the sale of your house. Bank not likely to care too much about sale price as you are well within LTV and LTI from their point of view

Scenario 2:

you have 20,000 that you hope to get from the sale of house and want a mortgage of 180K. Bank will likely tie the mortgage amount to LTV and LTI if for some reason you only ended up with 18K instead of 20K etc


When I was talking to the bank earlier in the year about a mover mortgage they went over what we had in cash to hand first and what mortgage amount we wanted first.

It is a tad more complicated than that when you talk to them but that's the basic jist of it. Best is just arrange a call with a bank and they'll go through it with you and let you know exactly where you stand

Stark

cintec wrote: »

Anyone any advice on this as i'm new to bidding and don't want to be too pushy with the EA/vendors.

Don't bid against yourself.

DataDude

cintec wrote: »

Anyone any advice on this as i'm new to bidding and don't want to be too pushy with the EA/vendors.

One piece of advice I was given by a savvier business man than I was that, in all walks of life, your offer should be timebound.

Not something stupid like "I need to know by 5pm". But "I'm offering X, my offer is valid until Friday 23rd April, at which point it will be withdrawn".

To me, that would seem like a sensible approach for someone in your boat. At the moment they're just leaving you hanging fishing for offers always knowing they have your offer in their back pocket if nobody else is biting.

brio09

We had gone sale agreed on a property 2 weeks ago. Valuation is done and report submitted to the bank. Surveyors went in today, so waiting on that report. Solicitor finally received the contracts on Friday. We heard from the solicitor today and there is a clause on the contract stating the sale is conditional upon the vendor completing purchase of an alternative accommodation. I find this bizarre as does our solicitor. Our solicitor has reached back to the vendor's solicitor that at least a time limit should be put on this clause. Let's see what they come back with. The vendor is sale agreed elsewhere I find it very strange that they plan on leaving it open-ended and so out of the buyer's control! We love the property very much and would be disheartened if we have to walk away from it. Has anyone else seen such unreasonable conditions on the contract lately?

cintec

DataDude wrote: »

To me, that would seem like a sensible approach for someone in your boat. At the moment they're just leaving you hanging fishing for offers always knowing they have your offer in their back pocket if nobody else is biting.

yes it feels like they are waiting for more interest which they can then use my bid to leverage a higher bid. Considering it's 30k above the asking I thought they might get back quickly but it is a sellers market right now.

ec18

brio09 wrote: »

We had gone sale agreed on a property 2 weeks ago. Valuation is done and report submitted to the bank. Surveyors went in today, so waiting on that report. Solicitor finally received the contracts on Friday. We heard from the solicitor today and there is a clause on the contract stating the sale is conditional upon the vendor completing purchase of an alternative accommodation. I find this bizarre as does our solicitor. Our solicitor has reached back to the vendor's solicitor that at least a time limit should be put on this clause. Let's see what they come back with. The vendor is sale agreed elsewhere I find it very strange that they plan on leaving it open-ended and so out of the buyer's control! We love the property very much and would be disheartened if we have to walk away from it. Has anyone else seen such unreasonable conditions on the contract lately?

There was some law society guidance around conditionality in contracts to protect buyers/sellers. The vendors solicitor is probably being cautious in that if for any reason their sale falls through their clients aren't homeless? Frustrating if you're trying to buy their house but makes sense from the vendors point of view

JimmyVik

DataDude wrote: »

One piece of advice I was given by a savvier business man than I was that, in all walks of life, your offer should be timebound.

Not something stupid like "I need to know by 5pm". But "I'm offering X, my offer is valid until Friday 23rd April, at which point it will be withdrawn".

To me, that would seem like a sensible approach for someone in your boat. At the moment they're just leaving you hanging fishing for offers always knowing they have your offer in their back pocket if nobody else is biting.

Dont know why people think this works.
The EA will just say grand so.
And then on the 30th Apr they will ring you back and say are you still interested. Are you then going to say no and put down the phone

DataDude

JimmyVik wrote: »

Dont know why people think this works.
The EA will just say grand so.
And then on the 30th Apr they will ring you back and say are you still interested. Are you then going to say no and put down the phone

It's not the EA though. It's the seller. May not work in all instances but know it does for some. Family just sold and buyer did exactly this. Family member was hoping to hold out for higher offers but ultimately accepted the bid as he was afraid the bidder would walk away. If bidder hadn't put a deadline on it, he'd still be waiting - or potentially be sitting with a higher offer from someone else.

kippy

DataDude wrote: »

It's not the EA though. It's the seller. May not work in all instances but know it does for some. Family just sold and buyer did exactly this. Family member was hoping to hold out for higher offers but ultimately accepted the bid as he was afraid the bidder would walk away. If bidder hadn't put a deadline on it, he'd still be waiting - or potentially be sitting with a higher offer from someone else.

Again, as stated above - it'll work in certain situations and not in others. The person putting in the offer knows little about the circumstances of the seller or vice versa. Without knowing these variables bidding tactics are damn near impossble to put any logic and/or science on.
Outside of both parties specific circumstances, there are other variables, local market, other bidders situations, etc.

I've heard of bidders put time bound offers on properties, ended up walking away as offer wasn't accepted, house sold for 3K over their offer about 3 weeks later, that was 2 and a half years ago, they are still looking - don't know if they've bid on other properties in the meantime.

So it might work and it might not.

Sweet.Science

Prices seem to be at celtic tiger levels at the moment
Think I'll rent for 12 months and look then

fliball123

Sweet.Science wrote: »

Prices seem to be at celtic tiger levels at the moment
Think I'll rent for 12 months and look then

I think we are still about 20% off the peak of the tiger

DancingDaisy

So random question, we're hit the final hurdle now. Contracts have been exchanged, deposit is paid, we've a closing date of 3 weeks time, and the funds requistion letter has gone in. All our insurances are in place. At what point does the EA update the house to Sold? Is it after the keys have been exchanged?

And in that case, does the sign sit outside with Sold on it for a period of time, or can you just have the sign removed. These seem like stupid questions, but this whole process confounds me! The sign only went Sale Agreed when we went to do another viewing 2 weeks ago, though we'd gone sale agreed back in February! The EA was putting up the Sale Agreed when we arrived at the house :rolleyes::P

I don't really mind whichever way, but I'm interested to know how it should generally work?

JimmyVik

DancingDaisy wrote: »

So random question, we're hit the final hurdle now. Contracts have been exchanged, deposit is paid, we've a closing date of 3 weeks time, and the funds requistion letter has gone in. All our insurances are in place. At what point does the EA update the house to Sold? Is it after the keys have been exchanged?

And in that case, does the sign sit outside with Sold on it for a period of time, or can you just have the sign removed. These seem like stupid questions, but this whole process confounds me! The sign only went Sale Agreed when we went to do another viewing 2 weeks ago, though we'd gone sale agreed back in February! The EA was putting up the Sale Agreed when we arrived at the house :rolleyes::P

I don't really mind whichever way, but I'm interested to know how it should generally work?

They might not even bother changing the sign at this point.
And as soon as you get the keys you can take the sign down yourself.