Saving/Applying for a mortgage 2020-22 Edition

yer man!

Is it possible to get multiple Mortgage Loan Offers? I got one from AIB for the new build that I am purchasing which is due for completion in the next few months. I now realise I can get the same fixed rate for longer with Avant. Is there anything forbidding me from now talking to a broker and starting the process with Avant?

houseyhouse

https://www.boards.ie/discussion/comment/118563784#Comment_118563784

No, provided you haven’t signed anything with AIB.

jrochie

Hi all,

Recently received planning permission to extend and do some works on the family home. We're early days in the whole process yet but looking at seeing what kind of financing is / will be available to us. Question I have is, if I were to start the mortgage application process, with the idea of dipping my toe for now, if a reject was to come back from any lenders would that have a negative impact on me in 4-6 months time when I would be looking at doing the application for real?

Idea being that we see where the lay of the land is now, what what budget we are likely to have and what we will need to do ourselves to get to the point where we would need to be financially speaking?

Emma2019

https://www.boards.ie/discussion/comment/118564597#Comment_118564597

Nope. Multiple applications count against your credit score in the UK apparently but they definitely don't here.

houseyhouse

I think you have to tell bank if you’ve ever been rejected before but I don’t know what they do with that information. Having said that, you won’t usually get a straight rejection.

howiya

There is a summary of your credit applications within the last six months visible to the lender on your CCR when you are applying second time around. I don't know if this will show if there was a rejection but it will show the amount you've applied to borrow previously. Falls away after six months.

Emma2019

https://www.boards.ie/discussion/comment/118570286#Comment_118570286

You dont have to tell the bank anything but as someone else mentioned, its on your credit history report.

jrochie

Thanks all, appreciate the feedback.

One other question come into my head. I've started to use my Revolut account for my work expenses, I travel occasionally for work and have my expenses paid back into my Revolut account. One of my ideas for this was to help clean up the bank account.

Question is are the bank likely to ask for Revolut statements? I previously would have transferred money between both but have completed stopped that now, so there is no cross transactions for at least 6 months.

I know if they were seeing transactions they would obviously ask for Revolut statements but if there is no record of it, are they still likely to ask?

Nothing to hide but have been more inclined to use the Revolut recently as I previously would have cash, so want to make sure I keep that clean as well if needed!

Emma2019

https://www.boards.ie/discussion/comment/118582567#Comment_118582567

If they see any revolut transactions on your bank statements they'll ask for full revolut statements. Some just ask regardless.

They only really care about how much you can cover repayments and whether you're spending money on gambling though. You don't need to "clean them up"

Paul_Mc1988

https://www.boards.ie/discussion/comment/118583082#Comment_118583082

They only care about gambling if its excessive. You can have a 10er bet or two a week and it won't be and issue

ona1981

Could you please tell me what’s your experience with getting mortgage for property in bank possession?

iColdFusion

Is there any honest way to get a less than 70% LTI mortgage (with much better rate) on a self build while also qualifying for HTB?

As far as I can see they are both based on the initial mortage valuation?

Technically could you get a variable mortgage for 70.1% of the value and then immediately break it once house is built to get a sub 69% fixed rate?

ralfralf

Hi everyone,

Does anyone know how long does it take to get the homebond certificate to release nowadays? We got a new build and this is the only one left outstanding before we can drawdown.

Thanks in advance.

Arun Thomas

https://www.boards.ie/discussion/comment/118583082#Comment_118583082

Will they check crypto investment and does bank see it as a gambling.I dont have any transactions from my main bank to cryptos for last 6 months

Should I show my crypto investments as I have about 34 k in cryptos

Will I hide it or if i show that it will benefit me or dont benefit me

ClaudeVercetti

Hi All,

Early last year I had a booking deposit down for a newbuild - long story short the building company pulled the development due to financial difficulty and we had our booking deposit returned - at that point I had approval which has since expired.

Since then (almost 8 months ago) I'd continued to save but my shorter term circumstances changed and I wasn't able to save nearly as much, particularly over the 4 months. One month in particular I ended up dipping into savings. I still have a full deposit which has grown since going for the first development but I'll have to restart the application process now. I'm in a better position now that I can go back to saving what I was before, but I know banks also want at least the last 6 months of current account statements. So would I be better off waiting 6 months at least, showing more consistent savings? Or would I be okay to apply now?

EDIT - Also adding that I rent currently and that's been the case during all this time in case that helps.

akelly02

hi

does anyone know if applying for Aip will show up on a credit report?

also does anyone know any bank that takes social welfare payment ( disability ) as part of means?

thanks

Tar.Aldarion

Anyone recommend a mortgage broker that can get exemptions with ICS? My broker said that I should be able to get one but as they are new to the market the banks won't give them an exemption slots.

Ciara26

Emma2019

https://www.boards.ie/discussion/comment/118653226#Comment_118653226

This doesn't sound right at all tbh.

Your broker doesnt "get you" an exception. The lenders have their rules and generally you fit into them or you dont. If you're in a grey area your broker may be able to fight your corner or advise on how to make yourself fit into the rules but that's it.

ICS are not new to the market. There also isnt "exemption slots". Its a central bank rule that lenders can only lend 3.5 times salary to 90% of their customers. They can lend up to 4.5 times to 10% if they want.

In my experience ICS dont do exceptions, but they do consider your salary in 2 increments time if you're a public sector worker. They may also let you draw down before you're finished probation if you're a public sector worker.

Tar.Aldarion

https://www.boards.ie/discussion/comment/118653448#Comment_118653448

Hi, I am just off the phone with the broker who is saying different. They said that ICS only can give out so many exemptions per year so they assign them to senior brokers over new ones, so yes there are 10% but they get to decide who they give them to - and they choose brokers that have done business with them for years over newer ones. It's not ICS that are new, it is my broker themselves. My broker told me to go to another broker and I'd get an exemption. I have checked and people get exemptions with ICS, I asked a friend just now and he got 4.5x. The crazy house prices guy also got 4.5x with them.

houseyhouse

https://www.boards.ie/discussion/comment/118654037#Comment_118654037

I’d contact them directly. They have a couple of mortgage managers in house. I assume they can also get exemptions but I’d ask to be sure.

Interested Observer

https://www.boards.ie/discussion/comment/118654037#Comment_118654037

Can you not ask your friend what broker he used, or how he did it?

Emma2019

https://www.boards.ie/discussion/comment/118654037#Comment_118654037

That makes more sense!

I used Park Financial as brokers, they were great and they deal with ICS.

TimTum

Hi all. I’m 46 and due to some bad decisions and bad luck on my part have nothing in the way of savings. My partner is 33 and is incredibly keen to purchase a home. I earn 38k and she earns 26k. She is in her job about 5 months - previously employed on a permanent contract with another company for approximately 3 years. She left this job of her own accord and was unemployed for about 3 months until her current position became available. Between us we have no savings.

She is looking at houses way beyond our means and insists that because we pay €1,400 rent per month the banks will be jumping with joy to offer us a mortgage, for a deposit she says we can apply to the help to buy scheme. 

She has set up some meetings with brokers which I am more than reluctant to attend, to be honest I’m too embarrassed. My logic is that we get our heads down for a year and save as much as we can but she really seems to think it’s unnecessary and has had numerous "strops" about if we wait property prices will rise, I am blue in the face telling her that while we can afford to pay back a mortgage, we simply can’t afford to get one and that despite our rent spend not a lending institution will touch us at the moment. Has anybody here had experience with the banks “not” taking into account rent paid per month, I understand that on some level they’re meant to but I’m sure the reality is very different and I would much prefer she see sense rather than waste everybody's time at these meetings she has set up.

houseyhouse

I had a meeting with a bank before we started saving properly for our deposit. It was helpful because I learned things about how to set up the savings account and the importance of having the rent go through the bank account, for example. I think it would be useful to see a broker at this stage and get a sense of what you need to do. I understand you’re embarrassed about your financial situation, but the broker will have seen it all before. Anyway, you shouldn’t let embarrassment like that dictate how you live your life. If, as you believe, you have no chance of getting anything for the next year or so then having the broker tell your gf that will take some of the heat of you. That said, I don’t think there’s any use seeing multiple brokers at this stage, unless the first one is no good.

Tar.Aldarion

There's no harm for you guys to meet with a broker to let them set out what you need to do, their service is generally free. You guys can run the numbers and get some advice, it won't take long. My friend just used H2B to fund their deposit. There are also other schemes such as if you are refused a mortgage a few times you can get one etc, so they can let you know about these options too. They can let you know how much you need to earn for an exemption, if you need it, and either way can give you an idea of the overall budget you have and set expectations for you both.

iColdFusion

https://www.boards.ie/discussion/comment/118756030#Comment_118756030

Its best to talk to a broker, they are not the enemy and will give you practical advice for free. I don't think ye stand a chance with the current market to be bluntly honest, you'll only get help to buy as a first time buyer on a new property which ye can't afford as its very unlikely ye will get an exception above 3.5 times income and having no savings especially after the corona lockdowns is a major red flag to any bank, sure ye are paying 1400 a month in rent but that seems to be a financial disaster for ye.

Its great ye are trying to sort this yourselves but I think ye need start applying for the social housing schemes on offer from local councils, Tuath, Respond etc even if ye can get into a cost rental apt it would massively help with saving.

Ye need to also look at a Local Authority (formerly Rebuilding Ireland) home loan, more likely to get one of these than from a bank:

https://localauthorityhomeloan.ie/

SummerK

My wife started working a couple of months ago as an Intern on a 6-month contract. This is her first job. Would the bank consider her income to enhance the overall mortgage amount?

houseyhouse

https://www.boards.ie/discussion/comment/118766795#Comment_118766795

Very unlikely, in my opinion. If her contact her contract gets extended/renewed you would be in a as much stronger position.

poker2k9

Hi folks, once I have AIP from the bank that is subject to passing probation on a new job, is it common for the auctioneers to wait for the draw down after signing contract to purchase?

Simply put, if I sign a contract after leaving deposit, how long do I have to complete the sale with the seller (if any such limit exists) or is it case by case.