Saving/Applying for a mortgage 2020-22 Edition

Sophia Petrillo

Thanks for the update.

Cork2021

Hi, just seeing if anyone has any experience with this scenario.

I got the house valued recently and it’s got our minds set on possibly selling up. Herself has asked her parents can we move in with them if we were to sell… would we have to pay capital gains tax on the profit from the sale as we’re not immediately moving into or building a home as we haven’t that sorted.

in truth we’d sell the house pay our debts off roughly €25k between loans, CC and car loan. What’s left over can be used to purchase a site or 20% on a property. Whilst all that is happening we save rigorously if my parents in law put us up!

Ciara26

https://www.boards.ie/discussion/comment/118781334#Comment_118781334

Haven’t had that experience but I just looked on revenue and it looks like you won’t have to pay CGT as long as the place was a PPR https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/principal-private-residence-ppr-relief.aspx

houseyhouse

https://www.boards.ie/discussion/comment/118781334#Comment_118781334

No CGT if it’s your home. But bear in mind that you’d be selling in a rising market with high inflation. So your money is getting devalued while you’re between properties.

Tar.Aldarion

I was due approval this week and ICS have increased their rates from 1.95% to 2.4%. So now have two options, apply for avant at 1.95% or stick with ICS. The issue with avant is they won't give me an exemption but ICS will, yet I don't know if I need an exemption until I get approval and look at houses. Broker said they wouldn't apply for two as I only need one.

houseyhouse

https://www.boards.ie/discussion/comment/118782957#Comment_118782957

Can you not start looking as soon as you get approval but still apply for Avant? Even if it was through another broker. That is definitely what I’d be doing to keep my options open.

Kpme

Hi all. Does anyone have experience with banks which considered annual bonuses (e.g. an average over the last 3 years) as part of their '3.5x Salary' calculations or exemptions? If so, which ones? Thanks!

Ciara26

https://www.boards.ie/discussion/comment/118807716#Comment_118807716

Ptsb took my bonus into consideration, not the full amount though but I got 4 times my salary and half of the bonus.

Giblet

https://www.boards.ie/discussion/comment/118807716#Comment_118807716

Got full bonus from Avant, but was looking for 3.5x only.

babyducklings1

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

Go and talk to a few banks and brokers at least you’ll get advice on where you need to go from here. It might be scary but it’s better than sitting at home not knowing and bickering with your partner. They might be able to give you an idea of the deposit you will need, the terms of the mortgage like length of it etc. At least then you’ll be able to go forward having more information about the whole process.

ggmat799

i've HTB LETTER from last year. Will that be valid now in 2022? or I need to first submit my tax returns?

Ciara26

https://www.boards.ie/discussion/comment/118810834#Comment_118810834

Check letter, expiry date should be there. I applied last year but expires at 31/3/22

Bhail

https://www.boards.ie/discussion/comment/118781334#Comment_118781334

The poor parents 😆. How long ye gonna stay?

Degag

In terms of CGT, would anyone happen to know if you can take any expenses into account?

i.e. if given a site by a relative that was valued at slightly over the CGT threshold, could you take the solicitor fees, stamp duty into account when calculating out much CGT was due on the excess?

Bhail

What has been everyone's experience in paying a lump sum before switching? Anything to look out for?

Cork2021

https://www.boards.ie/discussion/comment/118811038#Comment_118811038

Nothing set in stone! Moving in with them would definitely be a turn key house. Self build would be out of the question, at least with the have some idea with with the former.

it’s all pie in the sky. Honestly I just don’t want any debt and a bigger house for a growing family.. it’ll be this time next If we decide to buy something or at least 3/4 years if we decide we want to build abs realistically it’ll be another 12/18 months then on top of that!

i bought in 2015 got our house for peanuts in a commuter town! We also only had a combined income of €40k then, it’s €90k now!

Bhail

Fair play that's a good jump. Also fair play for having sound in laws.

Cork2021

https://www.boards.ie/discussion/comment/118811602#Comment_118811602

It is but we’ve gathered loans etc to improve the house wedding so need them gone!

another question, has anyone ever given a written commitment to a lender of clearing debts once a sale has gone through on your house.. would it help with the approval process and would probably lessen the chance of having to move into my in laws?

ie €28k debt get €130k from sale of the house, need €70k for a deposit, you clear the debt from the €130k.

Ron.

Builders are taking an age to finish off house I'm buying. If I fail to draw down within 6 months what will the bank look for in the reapplication. Is it the full thing from scratch or is it just updated bank statements & proof of employment? Thanks

Giblet

https://www.boards.ie/discussion/comment/118812495#Comment_118812495

Usually Statements + Payslips. Sometimes it will say it on your letter "Valid for 12 months, payslips and updated bank statements required after 6 months"

Ron.

Thanks, there's no reference to what's required but I can see it reads 'the bank may its absolute discretion extend the period'

Hope I'm sorted before it expires.

l_mc

Hi guys, wondering if anyone has any experience with this. We went sale agreed on a property we aren't overly sure about recently. Feel we have really overpaid even by current market standards.

In the meantime another house has caught our eye which ticks all of our boxes. At this point we have paid a booking deposit but no contracts signed. If we were to pull out can we transfer our full loan offer to a different property or would we need to supply the bank further payslips/statements etc or reapply altogether?

Have been googling this without success so if anyone has done similar or has advice would be much appreciated.

Cork2021

Has anyone ever got a Loan to pay for a site and then use money from a sale of a house to pay off that loan as a form of agreement with the bank?

Tar.Aldarion

What do you think will happen? ICS raised theirs a good bit, meanwhile BOI lowered their green mortgage to 1.9%. Not much movement otherwise.

Currently debating whether to lock in 3 years at 2.25% or 5 at 2.45%.

houseyhouse

https://www.boards.ie/discussion/comment/118829926#Comment_118829926

I’d go the five years if it was me. The peace of mind is worth it even if rates don’t go up. We have a year left of a 3 year fixed rate and I’m nervous about rates going up. I’d love to get the Avant 30 year fixed mortgage but not sure they’d take us.

Ilongga

https://www.boards.ie/discussion/comment/118828366#Comment_118828366

AFAIK the loan offer is specific to the house you are currently sale agreed on. If you are to pull out you will need to go through the loan offer process again as the Bank needs to see the valuation of the new house.

RINO87

https://www.boards.ie/discussion/comment/118830060#Comment_118830060

What are the conditions of the 30 year fixed term from Avant?

Tar.Aldarion

Depends on LTV, rates are between 2.85%-3.10%

arleitiss

Looking for advice from someone who had similar experience (Because I am losing my mind here):

I have loan offer currently (expiring on 5th of April) as house is being completed (New Build in an estate, semi-D, it's about to be done)

There is about 50/50 chance that house will be completed (It's completed but there are few nuances) after loan offer expiry date.

Spoke to my mortgage broker - they contacted the loan provider and loan provider agreed to give 5 days extension.

I might miss it anyway by few days.

Loan provider requires final evaluation - the only thing that isn't ready is - missing kitchen countertops as I went for upgraded kitchen [from the one that comes with house] and ordered stone countertops so those will be ready later, I am not sure how evaluator will look at it.

Other than that - I've paid and got entire house floored (3 bathrooms fully tiled, entire first floor tiled, laminate in rooms installed etc..), kitchen is installed (except countertops).

Am I correct to assume that if I go past loan offer extension expiry date - I would just have to re-apply for mortgage, provide all the documentation again and get new loan offer to close off sale? (House 10% deposit is paid already).

No change in personal circumstances (Except salary increase), still steady saving and rent payment has been ongoing.

I've been really stressing over this for past two weeks and kind of panicking with lots of sleepless nights due to anxiety over this.

Somehow I keep imagining scenario - that I invested so much into property already - yet will get refused and end up being totally screwed.

elchupanebrey

https://www.boards.ie/discussion/comment/118839912#Comment_118839912

I was in a similar situation to yourself in that I had paid for extra work like tiling, kitchen, shed etc and my house wasn't ready by the time my offer expired. My house ended up taking another 4 months once initial offer expired so a short extension would have been no real use in my case.

I did a full new application with the bank including payslips, tax history, saving history etc. I had the same fear that they would not offer me the same amount of money 2nd time round but it was fine, and I collected my keys a couple of weeks ago.

As for the bank valuation. Mine took nearly 3 weeks as the valuer didn't send in their report until I followed up with the bank to see what the delay was, so if you are stuck for time keep the pressure on to get this done.

Snagging also took a lot of time, so hopefully the builder will do anything put on the snag list properly 1st time round, and not have you losing a lot of time on this process too.

I'm sure at this stage the builder will wait for you to get a new offer if that is what it takes, due to your initial one expiring.