Saving/Applying for a mortgage 2020-22 Edition

Markitron

Pivot Eoin wrote: »

Very frustrating, Been denied/deferred by KBC for AIP this morning. EBS last week.

Saving 4.5k per month since October, 20% Deposit Saved, Combined Income of 115k.

My business is Travel, but is domestic Travel and we've actually seen business increase in last few weeks vs. Business last year. Employer is availing of Wage Subsidy but I am on full take home pay. Not even an option of AIP subject to returning to normal pay without Subsidy, which will be ending soon.

IF prices do go down this delay may end up doing you a huge favour. Well, those are the mental gymnastics I would be using if I were in your shoes.

Marius34

Pivot Eoin wrote: »

Very frustrating, Been denied/deferred by KBC for AIP this morning. EBS last week.

Saving 4.5k per month since October, 20% Deposit Saved, Combined Income of 115k.

My business is Travel, but is domestic Travel and we've actually seen business increase in last few weeks vs. Business last year. Employer is availing of Wage Subsidy but I am on full take home pay. Not even an option of AIP subject to returning to normal pay without Subsidy, which will be ending soon.

Just for curiosity, I thought there is no subsidy for High Income? Are you saying someone on over 50K Annual is on Covid wage subsidy?

Pivot Eoin

Marius34 wrote: »

Just for curiosity, I thought there is no subsidy for High Income? Are you saying someone on over 50K Annual is on Covid wage subsidy?

The Wage Subsidy Scheme is different to the COVID-19 enhanced Social Welfare Payment.

The Subsidy scheme applies to any worker earning up to 75k per year. Neither of us earn over 75k Basic.

anplaya27

We were about to complete buying of house. Solicitor etc involved. Surveyor paid. Waiting on house owner to sign contracts as we signed everything on our side. Was denied by bank today as partner was on wage subsidy even though now back in work since last week. We had continued with application at their say so even though the banks knew partner was out of work. Some joke.

Duke of Url

anplaya27 wrote: »

We were about to complete buying of house. Solicitor etc involved. Surveyor paid. Waiting on house owner to sign contracts as we signed everything on our side. Was denied by bank today as partner was on wage subsidy even though now back in work since last week. We had continued with application at their say so even though the banks knew partner was out of work. Some joke.

Were you Mortgage Approved or Mortgage Approved in Principal?

anplaya27

Duke of Url wrote: »

Were you Mortgage Approved or Mortgage Approved in Principal?

Approved, hence us doing all those things. Solicitor was very very surprised at this development.

Techn0

anplaya27 wrote: »

Approved, hence us doing all those things. Solicitor was very very surprised at this development.

Can you not delay for 3 weeks until next payslip to show no more reliance on covid payment?

Duke of Url

anplaya27 wrote: »

Approved, hence us doing all those things. Solicitor was very very surprised at this development.

So what happens now. Did they give you options or have they revoked approval?

wally79

Is there anything to stop vendor signing contracts still?

If they are pricks then your deposit could be in jeopardy if you have to pull out after contract signed.

anplaya27

Duke of Url wrote: »

So what happens now. Did they give you options or have they revoked approval?

Its in solicitors hands. Wont know anymore until after the bank holiday.

Apparently banks are changing minds re approvals in the last few days. Even if people are back in work theres still a subsidised scheme in some places I think till august to help businesses until back to normal. So it will show on payslip. Even getting a letter to show you'll be on what you were on prior and after scheme is over is no good apparently.

It looks like I lost out on a few grand anyway what with fees paid and to be paid due to bank giving the go ahead originally.

Danger781

Hey all,

I have sone questions that I haven't seen answers to in this thread:

1. I'm still in probation in my new job. Assuming that period is not extended I should be over the line in September. I assume we need to wait for my probation period to be over before we apply? With all that's going it will probably be necessary anyway with herself out of work and on the Covid payment..

2. I see a lot of people here recommending applying via a Broker. Is that not an expensive option? Can anyone offer some information on the costs of a broker?

3. We are currently saving separately. Separate bank accounts. Separate saving accounts. Should we be saving together?

4. Would it better to be engaged before we apply? Currently still technically single but we're living in her parents house to save.

Creamy Goodness

Danger781 wrote: »

Hey all,

I have sone questions that I haven't seen answers to in this thread:

1. I'm still in probation in my new job. Assuming that period is not extended I should be over the line in September. I assume we need to wait for my probation period to be over before we apply? With all that's going it will probably be necessary anyway with herself out of work and on the Covid payment..

You can apply to get the ball rolling but you’ll need to be out of probation and your partner off any COVID related payments before drawdown.

2. I see a lot of people here recommending applying via a Broker. Is that not an expensive option? Can anyone offer some information on the costs of a broker?

Brokers shouldn’t charge. They get commission from the banks.

3. We are currently saving separately. Separate bank accounts. Separate saving accounts. Should we be saving together?

Doesn’t matter they’ll assess both of your current accounts and savings accounts so it won’t matter. Just make sure savings are regular and for the same amounts.

4. Would it better to be engaged before we apply? Currently still technically single but we're living in her parents house to save.

Marital status doesn’t mean much in terms of getting a mortgage. You’ll both be named on it so you’ll both be responsible for it. That’s about it.

houghton88

Creamy Goodness wrote: »

You can apply to get the ball rolling but you’ll need to be out of probation and your partner off any COVID related payments before drawdown.



Brokers shouldn’t charge. They get commission from the banks.


Doesn’t matter they’ll assess both of your current accounts and savings accounts so it won’t matter. Just make sure savings are regular and for the same amounts.


Marital status doesn’t mean much in terms of getting a mortgage. You’ll both be named on it so you’ll both be responsible for it. That’s about it.

Good advice here. Doesn't matter if the money in credit unions, post office, multiple banks etc...they just need statements to prove you have it. So essentially it may as well all be in the one. Regarding brokers, I think they generally don't charge. They are probably the best and most competent person you'll deal with in the whole process. They can save a lot of time, money and hassle. If interested, I can pm you the guy I use. Best of luck regardless.

Danger781

Creamy Goodness wrote: »

Doesn’t matter they’ll assess both of your current accounts and savings accounts so it won’t matter. Just make sure savings are regular and for the same amounts.

I have regular savings of €250 per month and have had that going for a couple of years. I know it's very little but I used to thrown in lump sums when I'd get quarterly bonus or if the account just got passed a certain point over time. I'm earning a lot more now in the newer job so I should really get around to increasing the regular amount...

Does it matter that my regular amount is quite small even though savings are substantial?

lir6777

Danger781 wrote: »

I have regular savings of €250 per month and have had that going for a couple of years. I know it's very little but I used to thrown in lump sums when I'd get quarterly bonus or if the account just got passed a certain point over time. I'm earning a lot more now in the newer job so I should really get around to increasing the regular amount...

Does it matter that my regular amount is quite small even though savings are substantial?

Depends- they will want to see you are proving repayment capacity, so between rent and savings they will want to see you consistently paying more than the mortgage repayments will be. So 250 is not going to be enough but if you're paying sizeable rent like most of us you should be fine. A lot of the banks have repayment estimators that would help you get a sense of what repayments you might be looking at, then add on a few hundred as the bank will want to see a buffer! If your rent and savings currently match that, they should be satisfied you'll be able to pay each month

Duke of Url

Just got Mortgage Approval in principle this morning

bulmersgal

Duke of Url wrote: »

Just got Mortgage Approval in Principal this morning

That's great news. I've another week to wait I think. Broker said two weeks but will update as banks get back in touch with him

Duke of Url

bulmersgal wrote: »

That's great news. I've another week to wait I think. Broker said two weeks but will update as banks get back in touch with him

Good Luck

We applied directly with our Bank (BOI) We submitted everything last week but i think it was fast as they already have access to all our current accounts and savings accounts for the past few years.

random_banter

Duke of Url wrote: »

Good Luck

We applied directly with our Bank (BOI) We submitted everything last week but i think it was fast as they already have access to all our current accounts and savings accounts for the past few years.

Congrats! Nice to hear that people are still getting approvals.

We were always planning to apply for approval this month, and have decided to keep going to try to get approval. We don't know if we will buy in the next 6 months as we want to know more about how COVID affects everything, but it's certainly much easier to look if you have approval.

I have a quick question actually, maybe somebody will know the answer - do they do the credit checks before issuing approval in principle?

(Tried to order my report from the ICB but their website errored out. I think i've likely got nothing to worry about but about a year ago I missed a credit card payment. Purely from being forgetful - I sorted it as soon as I got the letter. I did pay it within the bank's 30 day grace period, so they're not supposed to report it to the ICB, but I wouldn't have minded checking just in case. It's one of those niggly tiny things that's in the back of my head.)

Everything else is in order, good deposits built up, very good savings history and repayment capacity is far more than we need to borrow. So keeping the fingers crossed that we will be approved.

Duke of Url

random_banter wrote: »

I have a quick question actually, maybe somebody will know the answer - do they do the credit checks before issuing approval in principle?

With BOI I was informed Yes. During the Mortgage Application they asked for Statements, P60s, Salary Certs and pay slips.

They also told us they they would run a credit check from their side.

random_banter

Duke of Url wrote: »

With BOI I was informed Yes. During the Mortgage Application they asked for Statements, P60s, Salary Certs and pay slips.

They also told us they they would run a credit check from their side.

Thank you, that's great to know. Had my first proper call with a bank just now to get the process going. Hopefully we can get AIP to at least have the option of bidding on things once the market starts moving a bit more (whether that be up or down...)

Creamy Goodness

random_banter wrote: »

Thank you, that's great to know. Had my first proper call with a bank just now to get the process going. Hopefully we can get AIP to at least have the option of bidding on things once the market starts moving a bit more (whether that be up or down...)

I'm not a betting man but even I would call myself foolish if I didn't bet on a bank doing credit checks on a mortgage application, the sky is blue and the grass is green (technically yellow atm *shrug*).

random_banter

Creamy Goodness wrote: »

I'm not a betting man but even I would call myself foolish if I didn't bet on a bank doing credit checks on a mortgage application, the sky is blue and the grass is green (technically yellow atm *shrug*).

Of course, it's what i'd assumed too, I just didn't know how far along in the process that those checks occurred. There seems to be a lot of the "approval in principle" vs. "pre approval" terms thrown about in conversation (both online and in conversation with friends) and I often wondered at which point the banks actually did their background checks during each of those. And also wondered what the difference between "pre approval" vs. "approval in principle" was in terms of checks.

We've been working towards this for a few years and while there's lots I'm familiar with now, that was one of my few remaining questions. Thanks.

EvoEvo

Ehy Guys, I'm just wondering Will Lotto transactions affect mortgage application?
Personally I have only small amounts..like 20 E per month..

What do you think?

gmannix1000

Anyone got a mortgage for 3.5 salary, and shortly afterwards applied for a top up to 4.0 times salary. Wondering if this is our only option at the moment to buy and do up a property given banks are not lending higher than 3.5 times salary at the moment with COVID and we need (and can afford) 4.0 times salary?

Creamy Goodness

gmannix1000 wrote: »

Anyone got a mortgage for 3.5 salary, and shortly afterwards applied for a top up to 4.0 times salary. Wondering if this is our only option at the moment to buy and do up a property given banks are not lending higher than 3.5 times salary at the moment with COVID and we need (and can afford) 4.0 times salary?

4 times salary is considered an exception. So they won’t entertain it.

Duke of Url

EvoEvo wrote: »

Ehy Guys, I'm just wondering Will Lotto transactions affect mortgage application?
Personally I have only small amounts..like 20 E per month..

What do you think?

I dont think so but im not 100% sure

Idjit

Does anyone know, does it matter to the bank if you have your savings in a joint account or can they be spread out over several accounts?

Myself and my partner have a credit union account each, and a bank savings account each. Our savings are split over these four accounts.

Do the banks have any preference over this, or does it matter as long as we can provide statements for them all?

ELM327

Idjit wrote: »

Does anyone know, does it matter to the bank if you have your savings in a joint account or can they be spread out over several accounts?

Myself and my partner have a credit union account each, and a bank savings account each. Our savings are split over these four accounts.

Do the banks have any preference over this, or does it matter as long as we can provide statements for them all?

I know for us (2 accounts + 2 shares accounts) it wasnt an issue. PTSB. But this was before covid.

ELM327

EvoEvo wrote: »

Ehy Guys, I'm just wondering Will Lotto transactions affect mortgage application?
Personally I have only small amounts..like 20 E per month..

What do you think?

probably wont look great but once it's 20 quid a month not a day you'd be grand I'd say.