Saving/Applying for a mortgage 2020-22 Edition

Dolbhad

DubLad69 wrote: »

Both AIB and EBS are still offering exemptions. On a case by case basis and you need to have a good income.

I used to have an exemption with AIB and then they changed their criteria and we were not eligible as they increased their disposal income level you needed. I think it was hard to get an exemption from them on an average income even before Covid hit.

I was speaking to a few mortgage advisors and broker I know through work (I work in a business park so have a few banks and brokers around the office). No one seems to really know.

The broker thinks plan for January for them to kick in. The advisor in PTSB is hoping possibly September they may hear word of exemptions. BOI and KBC weren’t able to give any timeframe on when they expect to hear.

We are really struggling bidding without the exemption.

MaryO100

DubLad69 wrote: »

Both AIB and EBS are still offering exemptions. On a case by case basis and you need to have a good income.

Hi, I have rung several times and have been told there are no loan to value exemptions being offered. I think there may have been loan to income though. But I hope that is correct and it isn’t a case of who you may know about whether you can get one.

MaryO100

Jasna1982 wrote: »

Really? Because EBS told me not at the moment

I was told the same by all banks. I tried AIB, EBS, Bank of Ireland, KBC, Finance Ireland

MaryO100

Yeah I have been told, maybe September, maybe New Year and it could be anytime!

MaryO100

Dolbhad wrote: »

I used to have an exemption with AIB and then they changed their criteria and we were not eligible as they increased their disposal income level you needed. I think it was hard to get an exemption from them on an average income even before Covid hit.

I was speaking to a few mortgage advisors and broker I know through work (I work in a business park so have a few banks and brokers around the office). No one seems to really know.

The broker thinks plan for January for them to kick in. The advisor in PTSB is hoping possibly September they may hear word of exemptions. BOI and KBC weren’t able to give any timeframe on when they expect to hear.

We are really struggling bidding without the exemption.

Hi, was that a loan to income exemption? It is very tough the criteria changing.

I hope that they can get back to looking at applications on a case by case basis rather than this blanket ban which I can’t understand.

random_banter

MaryO100 wrote: »

Wondering if anyone has any update about exemptions? There is technically no blanket ban on mortgages for those in receipt of Covid payments now, but there is still a blanket ban on exemptions. I don’t know why it can’t be looked at on a case by case basis. We are two public servants with decent incomes and had hoped to buy this year and had assumed we could get a loan to value exemption. We were stung with negative equity for the past ten years, so we don’t have much equity in the house and so are short on the 20% deposit. It is so frustrating being in limbo and potentially having to wait years to save the 20% when we have the capacity to repay.

Also wondering if by any chance Avant Mortgages will offer exemptions?

Literally got an update on Friday from BOI that exemptions are still off. When they come back, we were told, we need the exemption request to be linked to a specific house that we’ve bid on. Seems weird to think we would have to bid and still not know if we would get the exemption.

Like you, we need LTV. So I feel your pain. Some articles about AIB etc over the last few months mention that there are a few LTI’s going but LTV’s are definitely gone across the board.

Brego888

In the process of switching mortgage at the minute to KBC. They have very favourable rates of 2.25% at my ltv rate.

Would you fix for 2 or 3 years in the current climate? Both the same rate.
Obviously there are lots of variables to the question and personal circumstances will differ.
But as a straightforward option would you pick 2 or 3 years and why?

hanaimai

MaryO100 wrote: »

Hi, was that a loan to income exemption? It is very tough the criteria changing.

I hope that they can get back to looking at applications on a case by case basis rather than this blanket ban which I can’t understand.

Banks can only give exemptions on a certain percentage of lending every year. So the more mortgages they give out, the more exemptions they can give out. Since lending took a big hit with Covid, there are less mortgages being given out, therefore there are less exemptions available. Banks probably need some time to work out how many exemptions etc. they can give out with the downturn in lending to still be within the rules. If lending picks up, there will probably be more exemptions available later in the year.

2up2down

hi Guys , if your current account shows a small minus balance at the end of one of the months from monthly salary after savings and all bills have been paid /direct debited will banks frown upon this ?

pooch90

Our broker said things like that are fine. Once you don't go over your overdraft limit or live in the red then it's ok.

The_Brood

Let's say you only have to put down a mortgage of 30,000 euro or something, but you are willing to pay more as you have a large amount saved. It would make financial sense to give as much as you can for the mortgage as it would mean you would owe the bank less, and therefore would have to pay lower monthly fees and lower interest, right?

So say theoretically house price is 200,000. Better to pay mortgage of 50,000 and owe 150,000 rather than pay a smaller mortgage of 30,000 and owe 170,000, right?

MaryO100

hanaimai wrote: »

Banks can only give exemptions on a certain percentage of lending every year. So the more mortgages they give out, the more exemptions they can give out. Since lending took a big hit with Covid, there are less mortgages being given out, therefore there are less exemptions available. Banks probably need some time to work out how many exemptions etc. they can give out with the downturn in lending to still be within the rules. If lending picks up, there will probably be more exemptions available later in the year.

I hope that is the case, that things will gradually get moving again. They seem to be advertising mortgages a lot, I wonder are they actually granting many applications. Hopefully September brings some good news.

MaryO100

random_banter wrote: »

Literally got an update on Friday from BOI that exemptions are still off. When they come back, we were told, we need the exemption request to be linked to a specific house that we’ve bid on. Seems weird to think we would have to bid and still not know if we would get the exemption.

Like you, we need LTV. So I feel your pain. Some articles about AIB etc over the last few months mention that there are a few LTI’s going but LTV’s are definitely gone across the board.

Yeah we heard the same - that it is tied to a house. Sounds like it will make things a bit more complicated alright. Although we already have a house we would love to make an offer on in the morning if we could!

klose

Everyone else still getting radio silence over on the my mortgage portal for AIB? Even a sorry we are busy message would be appreciated.

Cliona2012

Hi guys, perhaps someone could help me out with my maths and tell me if I'm missing something?

I'm looking to borrow 40,000 from BOI Mortgages. At 2.9% fixed rate over 5 years that's € 3,018 total interest. Now I also have a mortgage saver so would be entitled to 2,000 in bonus interest. Then there's cash back of 1,200.
Am I incorrect?

brisan

Cliona2012 wrote: »

Hi guys, perhaps someone could help me out with my maths and tell me if I'm missing something?

I'm looking to borrow 40,000 from BOI Mortgages. At 2.9% fixed rate over 5 years that's € 3,018 total interest. Now I also have a mortgage saver so would be entitled to 2,000 in bonus interest. Then there's cash back of 1,200.
Am I incorrect?

well you have to pay DIRT on the 2k and I am not sure if there are terms on the size and length of the mortgage plus there may be conditions around LTV

Bubbaclaus

I presume getting an exemption in the AIP process online with AIB is pretty much meaningless at the moment? Have an automatically generated AIP letter here after filling in all the details and looks like it has given close to 4.5 LTI exemption.

Green Mile

Brego888 wrote: »

In the process of switching mortgage at the minute to KBC. They have very favourable rates of 2.25% at my ltv rate.

Would you fix for 2 or 3 years in the current climate? Both the same rate.
Obviously there are lots of variables to the question and personal circumstances will differ.
But as a straightforward option would you pick 2 or 3 years and why?

I’d fix for 1 year or 2 years. With avantcard mortgages entering the market later this year, other banks may start competing a bit more so I’d be thinking of shopping around in a year or two for a lower rate than what is currently on offer.

redsteveireland

klose wrote: »

Everyone else still getting radio silence over on the my mortgage portal for AIB? Even a sorry we are busy message would be appreciated.

I got a message from one of the staff yesterday, not just generic either, they mentioned some specifics, and also said they were busy and apologised.

Rocket99

redsteveireland wrote: »

I got a message from one of the staff yesterday, not just generic either, they mentioned some specifics, and also said they were busy and apologised.

Hopefully a sign things are starting to move. Weeks in the queue now. Soul destroying

VonLuck

Can anyone tell me if I was to make a career change with a severe drop in pay (40-50% gross), how would that affect my current mortgage? I would have gotten it originally on the basis of 3.5 times the higher salary and would not be within an arses roar if I applied with the lower salary.

jesus_thats_gre

Why would it have any effect whatsoever once you keep your payments up?

mycro2013

VonLuck wrote: »

Can anyone tell me if I was to make a career change with a severe drop in pay (40-50% gross), how would that affect my current mortgage? I would have gotten it originally on the basis of 3.5 times the higher salary and would not be within an arses roar if I applied with the lower salary.

Be as well to wait until you have the mortgage drawn down.

tommyombomb

hanaimai wrote: »

Banks can only give exemptions on a certain percentage of lending every year. So the more mortgages they give out, the more exemptions they can give out. Since lending took a big hit with Covid, there are less mortgages being given out, therefore there are less exemptions available. Banks probably need some time to work out how many exemptions etc. they can give out with the downturn in lending to still be within the rules. If lending picks up, there will probably be more exemptions available later in the year.

What type of salary level would be needed to get the 4.5 multiple for a single earner. Wondering for myself as looking for something in mid 2021 and would need close to that to get an apt in a nice location.

VonLuck

jesus_thats_gre wrote: »

Why would it have any effect whatsoever once you keep your payments up?

Well the whole basis for a mortgage is your salary. It kind of undermines the whole thing if you can jump down to a 25k salary the moment after you draw down a mortgage for 300k (hypothetical).

Markitron

tommyombomb wrote: »

What type of salary level would be needed to get the 4.5 multiple for a single earner. Wondering for myself as looking for something in mid 2021 and would need close to that to get an apt in a nice location.

I don't think it is exclusively calculated via salary. I am in the same boat as yourself and I was talking to a broker the other day, he was telling me that each lender has a different threshold for the exemptions. With KBC apparently you would need to have 2100 leftover after the mortgage payment + loans + dependents.

If I was to guess what the minimum salary was, I would say roughly 50-60k

VonLuck wrote: »

Can anyone tell me if I was to make a career change with a severe drop in pay (40-50% gross), how would that affect my current mortgage? I would have gotten it originally on the basis of 3.5 times the higher salary and would not be within an arses roar if I applied with the lower salary.

There would be nothing stopping you after you draw down but would you really want to do this to yourself? If you have a partner and/or planning to rent out rooms that is different I suppose but getting a mortgage calculated at double your current salary sounds like a bad idea to me.

Bluefoam

Can drawdown happen if ESB hasn't been connected, or is this a show stopper? Will the final valuation fag it?

wassie

Generally if you haven't got a power connection then your house isn't suitable for occupation - again, generally, you need power to run necessary services such as lights, heating appliances, ventilation fans and cookers. Of course you can design your house to live off grid, but otherwise I would say it would be a show stopper.

jesus_thats_gre

VonLuck wrote: »

Well the whole basis for a mortgage is your salary. It kind of undermines the whole thing if you can jump down to a 25k salary the moment after you draw down a mortgage for 300k (hypothetical).

But if it's a mortgage that he has already drawn down on (how I interpreted the situation), it would make no difference once he maintained his payment schedule.

If he is still in the process of applying for the mortgage... well, that's a different story entirely.

Dowend

I'm currently living in Australia, and have been for 3 years now. Planning on returning to Ireland in 2021 and will be looking to buy a house when I return. I will be a first time buyer.

I understand that since I haven't paid tax in Ireland for the last 3 years, I wont qualify for the Help to Buy scheme. However, I'm assuming I will still qualify for the 10% deposit as a First Time Buyer. Am I right to assume this or will the fact that I've lived abroad mean I don't qualify for this? I haven't been able to find this out elsewhere.