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Saving/Applying for a mortgage 2020-22 Edition

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    #512
    Duke of Url
    Closed Accounts Posts: 1,662 ✭✭✭Duke of Url


    Hi All

    Can you get a Snag list done before you sign contracts on a new build?


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    #513
    awec
    Administrators Posts: 53,795 Admin ✭✭✭✭✭awec


    Duke of Url wrote: »
    Hi All

    Can you get a Snag list done before you sign contracts on a new build?

    No. Why would you?

    Is the house built?


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    #514
    Duke of Url
    Closed Accounts Posts: 1,662 ✭✭✭Duke of Url


    awec wrote: »
    No. Why would you?

    Is the house built?

    Yes. The house is completed.It is a new build in a new estate.


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    #515
    awec
    Administrators Posts: 53,795 Admin ✭✭✭✭✭awec


    Duke of Url wrote: »
    Yes. The house is completed.It is a new build in a new estate.

    No harm in asking.


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    #516
    Bluefoam
    Registered Users Posts: 7,739 ✭✭✭Bluefoam


    Duke of Url wrote: »
    Hi All

    Can you get a Snag list done before you sign contracts on a new build?

    No, but you can have an survey & valuation... snagging is a list of instructions that the developer is responsible to complete... So snagging is not relevant in a scenario where you have no contract with the developer.

    A survey can be extensive as you want...


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    #517
    ClaptonBay
    Registered Users Posts: 187 ✭✭ClaptonBay


    Question on the valuation survey..if they determine the value of the house is say 20k less than what you agreed, would the seller drop thee price based on valuation, has this ever happened? As assume bank will only give you loan then for their valuation.

    Second question, has there been any details released in the media on the help to buy scheme under the new government? As I know FG were trying to extend it up to €30k,but any idea if it will just remain the same for the long term or amended? Think I read it would be extended in the programme for government whatever that means.


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    #518
    guyfawkes5
    Registered Users Posts: 291 ✭✭guyfawkes5


    ClaptonBay wrote: »
    Question on the valuation survey..if they determine the value of the house is say 20k less than what you agreed, would the seller drop thee price based on valuation, has this ever happened? As assume bank will only give you loan then for their valuation.

    Second question, has there been any details released in the media on the help to buy scheme under the new government? As I know FG were trying to extend it up to €30k,but any idea if it will just remain the same for the long term or amended? Think I read it would be extended in the programme for government whatever that means.
    It's up to the seller if they would drop the price for you. It has happened before, but you're far from guaranteed it. The one thing going for you in this scenario is that the seller would know that valuers as a whole are typically pretty conservative and can work for multiple banks, so there's a very decent chance that even if they dropped you and went with another mortgaged buyer, they'd run into the same problem again.

    You're correct that the banks will only loan you enough for their valuation of the house.

    According to the prospective Programme For Government (which is far from guaranteed to pass - but we'll know by this Friday), the HTB scheme would just continue in its current form.


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    #519
    ClaptonBay
    Registered Users Posts: 187 ✭✭ClaptonBay


    What's the general advice re mortgages, should you draw down the biggest mortgage you can get ie 90% or use savings to pay off a higher deposit and get a 75/80% mortgage considering the non existent interest rates at the moment for savings?


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    #520
    Dylan94
    Banned (with Prison Access) Posts: 179 ✭✭Dylan94


    ClaptonBay wrote: »
    What's the general advice re mortgages, should you draw down the biggest mortgage you can get ie 90% or use savings to pay off a higher deposit and get a 75/80% mortgage considering the non existent interest rates at the moment for savings?

    Id say the good advice is to get the smaller mortgage, my plan though is to get the max mortgage and use the additional money (savings) to fit out the house once we have it.

    I would say most would say get the smaller mortgage and do the house up over time.


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    #521
    Creamy Goodness
    Registered Users Posts: 26,578 ✭✭✭✭Creamy Goodness


    Dylan94 wrote: »
    Id say the good advice is to get the smaller mortgage, my plan though is to get the max mortgage and use the additional money to fit out the house once we have it.

    I would say most would say get the smaller mortgage and do the house up over time.
    Banks will not allow you to borrow for house fit-out, you'll need to withhold some of your deposit and keep within the LTV/LTI rules to do what you want to do. They do however allow you to borrow for renovations but want to see proof of future value and it's taken into account.


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    #522
    Dylan94
    Banned (with Prison Access) Posts: 179 ✭✭Dylan94


    Creamy Goodness wrote: »
    Banks will not allow you to borrow for house fit-out, you'll need to withhold some of your deposit and keep within the LTV/LTI rules to do what you want to do. They do however allow you to borrow for renovations but want to see proof of future value and it's taken into account.

    I think you took up my reply wrong.

    The guy I was replying to was asking if he should get a 75% LTV mortgage by using up all of his savings or should he keep some of those savings and get a higher 90% mortgage.

    What I meant was that while Im sure the prudent financial advice would be to use your savings to get a smaller LTV, what I would personally do is keep my additional savings and get a 90% mortgage, using my extra savings to fit out the house.


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    #523
    Renjit
    Registered Users Posts: 949 ✭✭✭Renjit


    ClaptonBay wrote: »
    What's the general advice re mortgages, should you draw down the biggest mortgage you can get ie 90% or use savings to pay off a higher deposit and get a 75/80% mortgage considering the non existent interest rates at the moment for savings?

    I would say keep your savings in place. You never know when you may need it in case of emergency. Further, you can invest this for higher returns.

    Get max mortgage. Keep your savings for rainy day.


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    #524
    whatever76
    Registered Users Posts: 1,017 ✭✭✭whatever76


    ClaptonBay wrote: »
    What's the general advice re mortgages, should you draw down the biggest mortgage you can get ie 90% or use savings to pay off a higher deposit and get a 75/80% mortgage considering the non existent interest rates at the moment for savings?

    tough one - I was in similar situation late last year - i opted to put as much a deposit I could and get mortgage down to under 200k ( single buyer) - main thinking with me is Age as am early 40's so tried to balance everything out and did not go max term year either so looked at what monthly payment look like and what I can pay . I took a 2 year fixed mortgage so planning to start over paying by 10% now and reassess options when this is up - while I can I want to chip away at it and get it down as much as I can over next 10 years . Also based on the current price of property its good to have some comfort in knowing that more than 10% of the house is yours ( I know this can all change based on market price and for me I know I purchased at peak but its a forever home and location was main criteria ) but it gives leyway that if anything does happen and you need to sell good part of sale is yours and not all going to bank. of course lots of different opinions out there on this but this worked for me .. weather right or wrong I just dont know so made best decision at time !


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    #525
    IvoryTower
    Registered Users Posts: 3,825 ✭✭✭IvoryTower


    does anyone know can i buy my neighbours garden as part of my mortgage

    say the house is worth 150k, the garden 10k, can i borrow 160k


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    #526
    Bluefoam
    Registered Users Posts: 7,739 ✭✭✭Bluefoam


    IvoryTower wrote: »
    does anyone know can i buy my neighbours garden as part of my mortgage

    say the house is worth 150k, the garden 10k, can i borrow 160k

    As far as I could see, it is a seperate land transaction, therefore would require a seperate loan & unlikely to qualify for a mortgage.


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    #527
    IvoryTower
    Registered Users Posts: 3,825 ✭✭✭IvoryTower


    Okay thanks.

    Can you increase the mortgage for "refurbishment"and then buy the garden instead?

    I might have rhw cash to buy it, just checking options


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    #528
    Duke of Url
    Closed Accounts Posts: 1,662 ✭✭✭Duke of Url


    How long did it take people to get Mortgage protection after filling out the Mortgage protection application?


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    #529
    [Deleted User]
    Posts: 3,505 ✭ [Deleted User]


    Duke of Url wrote: »
    How long did it take people to get Mortgage protection after filling out the Mortgage protection application?

    Seemed like it was almost straight away (this is pre-covid). We didn't shop around, just went straight through our bank to Irish Life. Talked it out with the advisor and left with a policy selected and log-in details for the website.

    He said they might get on to me about some hospital visits I had a couple years ago, but they never did. About three days after this meeting I used our log-in details for the Irish Life website, and there was a page there ready to go, asking for our start date.

    A few weeks after that we were ready to start the policy and just popped the date in on the website, and the policy started immediately.


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    #530
    LoonyLovegood
    Registered Users Posts: 6,068 ✭✭✭LoonyLovegood


    Has anyone been asked for extra documentation? I have a couple of extra bits I've been asked for, dropping them in tomorrow. I'm assuming that means the 10 business days will start from tomorrow again?


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    #531
    Duke of Url
    Closed Accounts Posts: 1,662 ✭✭✭Duke of Url


    LoonyLovegood wrote: »
    Has anyone been asked for extra documentation? I have a couple of extra bits I've been asked for, dropping them in tomorrow. I'm assuming that means the 10 business days will start from tomorrow again?

    for your Mortgage application?


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    #532
    LoonyLovegood
    Registered Users Posts: 6,068 ✭✭✭LoonyLovegood


    Duke of Url wrote: »
    for your Mortgage application?

    Yeah, they needed an extra letter from work, and proof of some income.


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    #533
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    We had AIP from last year and it expired during the start of covid.
    Now they want all new docs (in fairness, I did take out a new car loan in the interim)

    All gone back up to the underwriters for rereview.


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    #534
    HelpImAlive
    Registered Users Posts: 227 ✭✭HelpImAlive


    This might be a question that has been answered before, but ideally looking to see if anyone has had personal experience.

    Single first time buyer, aip for 160k. Say if I see a house for example at 70k that needs approx 30k work done to it. Is it possible to get the mortgage at 70k and then get some form of loan to cover the 30k works? Obviously factoring in that it will increase the value of the house etc. Tia.


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    #535
    hanaimai
    Registered Users Posts: 207 ✭✭hanaimai


    LoonyLovegood wrote: »
    Has anyone been asked for extra documentation? I have a couple of extra bits I've been asked for, dropping them in tomorrow. I'm assuming that means the 10 business days will start from tomorrow again?

    Yes, the 10 business days only starts once all documentation has been received.


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    #536
    guyfawkes5
    Registered Users Posts: 291 ✭✭guyfawkes5


    Duke of Url wrote: »
    How long did it take people to get Mortgage protection after filling out the Mortgage protection application?
    I submitted on a Friday and heard back on a Saturday. I used a broker who was a reseller of an Aviva policy.

    I didn't have any health complications to fill out in the application.


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    #537
    guyfawkes5
    Registered Users Posts: 291 ✭✭guyfawkes5


    IvoryTower wrote: »
    Okay thanks.

    Can you increase the mortgage for "refurbishment"and then buy the garden instead?

    I might have rhw cash to buy it, just checking options
    You can add refurbishment costs to your mortgage, but the work would be expected add to the value to your house (so it can only be structural improvements like rewiring and so on) and be certified each step of the way by an architect.


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    #538
    Jsmac67
    Closed Accounts Posts: 120 ✭✭Jsmac67


    Has there been any indication as to when exemptions may be back on the table?

    We'll need an exemption, so we're reluctant to obtain approval in principle at 3.5x when not much use to us!


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    #539
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    Jsmac67 wrote: »
    Has there been any indication as to when exemptions may be back on the table?

    We'll need an exemption, so we're reluctant to obtain approval in principle at 3.5x when not much use to us!

    Judging from posts on here, late this year/early next year is a safe bet


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    #540
    lir6777
    Registered Users Posts: 214 ✭✭lir6777


    Jsmac67 wrote: »
    Has there been any indication as to when exemptions may be back on the table?

    We'll need an exemption, so we're reluctant to obtain approval in principle at 3.5x when not much use to us!

    Some banks with stricter criteria do have them, I just called them all and asked. Didn't work out for me as the ones who are best for single buyers don't have them but AIB and EBS said to me in the last week that they have LTI ones available (not LTV though) and are assessing case by case. Might be harder than usual to get one with them but might be worth a shot!


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    #541
    Ikozma
    Registered Users Posts: 1,049 ✭✭✭Ikozma


    I'm hoping to have my 20% deposit saved by the end of this year, even though we will be selling the house we in now to move to a slightly bigger one and using money left over from that to go towards it also.
    We will more then likely go through a broker but my question is when should we apply, I don't want to put our house up for sale and then not get a new mortgage, would the bank take into account the fact that we will be selling our current house and factor that in so when it does sell we can move forward, sorry for silly question but we've never sold a house before in order to try get another


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