Saving/Applying for a mortgage 2020-22 Edition

Billythekid19

Dowend wrote: »

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.

Allied Irish Bank will accept mortgage applications from people employed abroad who plan to live in Ireland straight away on a full-time basis.
For applicants employed abroad and moving to Ireland in the future , AIB will assess them as Buy To Let (BTL) applications. (This means higher rates and a larger deposit requirements)

After moving to Ireland – you will usually need to be living here for at least 6 months and been in employment for at least 12 months,before most lenders will consider you for a mortgage.

Marty1983

Hi Folks, looking for some advice.


We have just moved back to Ireland after a few years away. We are both coming home to good permanent jobs and will have a decent income.


We have spent a lot of our savings in relocating so would not have 10% deposit at the moment.


What options are available to us? Will we have to work in Ireland for 6 months or so before looking for approval in principle? We could provide payslips and bank details from our previous employment outside Ireland and i am sure our new employers could fill out income certs for us.


Any and all advice would be greatly appreciated.

Del2005

Until you have the 10% deposit, assuming that you didn't own when outside of the country, there is no point in doing anything. Save up to the 10% deposit and then you will have the savings history needed for the mortgage.

Bluefoam

Dowend wrote: »

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.

I would recommend getting your mortgage before you come home. Much easier. However you'll need 30-35% deposit

whiskey_sour

Marty1983 wrote: »

Hi Folks, looking for some advice.


We have just moved back to Ireland after a few years away. We are both coming home to good permanent jobs and will have a decent income.


We have spent a lot of our savings in relocating so would not have 10% deposit at the moment.


What options are available to us? Will we have to work in Ireland for 6 months or so before looking for approval in principle? We could provide payslips and bank details from our previous employment outside Ireland and i am sure our new employers could fill out income certs for us.


Any and all advice would be greatly appreciated.

We were in a similar position this year and got great help from a broker - the job issue really depends on your industry/past experience but he was able to tell us which banks would entertain us or not. We also had to provide quite a lot of extra info - feel free to PM me if you've any Qs.

hello2020

whiskey_sour wrote: »

We were in a similar position this year and got great help from a broker - the job issue really depends on your industry/past experience but he was able to tell us which banks would entertain us or not. We also had to provide quite a lot of extra info - feel free to PM me if you've any Qs.

can you please share the broker details , if possible

moneymaid

Make sure to check out the Help To Buy (HTB) scheme if you are a first time buyer. Info available on revenue.ie

Starlord_01

How long (roughly) does it take for Revenue to review HTB Scheme application?

Markitron

Starlord_01 wrote: »

How long (roughly) does it take for Revenue to review HTB Scheme application?

Mine was done in a couple of hours, but it may take longer if there are any complications

Jasna1982

Starlord_01 wrote: »

How long (roughly) does it take for Revenue to review HTB Scheme application?

A lot of people have been waiting for 3 weeks, because they've been inundated with requests since it went up to 30k.
You might get lucky, but it wouldn't be out of the ordinary to wait a bit.

Dowend

Bluefoam wrote: »

I would recommend getting your mortgage before you come home. Much easier. However you'll need 30-35% deposit

Why would you recommend this? Unlikely to have the 30% deposit. I'm curious as to how long I will need to be in a job after I return to Ireland before I can get approval. I notice a P60 is a requirement in most banks, which I won't have until 12 months of work so does that mean I will have to wait minimum 12 months?

brisan

Dowend wrote: »

Why would you recommend this? Unlikely to have the 30% deposit. I'm curious as to how long I will need to be in a job after I return to Ireland before I can get approval. I notice a P60 is a requirement in most banks, which I won't have until 12 months of work so does that mean I will have to wait minimum 12 months?

A P60 is issued in
Jan-Feb for the previous calendar year.
So even if you only have 1-6 months employment in that calendar year you will receive a P 60

Bluefoam

brisan wrote: »

A P60 is issued in
Jan-Feb for the previous calendar year.
So even if you only have 1-6 months employment in that calendar year you will receive a P 60

Revenue no longer provide p60s

Bluefoam

Dowend wrote: »

Why would you recommend this? Unlikely to have the 30% deposit. I'm curious as to how long I will need to be in a job after I return to Ireland before I can get approval. I notice a P60 is a requirement in most banks, which I won't have until 12 months of work so does that mean I will have to wait minimum 12 months?

When I returned to Ireland, I needed 3 months continuous employment, full time permanent status and a letter from my employer confirming I had passed a probation period.

Starlord_01

Markitron wrote: »

Mine was done in a couple of hours, but it may take longer if there are any complications

One of the lucky ones, thanks!

Jasna1982 wrote: »

A lot of people have been waiting for 3 weeks, because they've been inundated with requests since it went up to 30k.
You might get lucky, but it wouldn't be out of the ordinary to wait a bit.

Appreciate that, other half had some issues with her USC so had to get that sorted before re-applying. Hopefully hear back soon enough.

Markitron

Starlord_01 wrote: »

One of the lucky ones, thanks!

Last week I cancelled it to reapply for the full amount and it went through instantly, I feel for the people that have to wait ages, I am not even likely to use it this year.

Starlord_01

Markitron wrote: »

Last week I cancelled it to reapply for the full amount and it went through instantly, I feel for the people that have to wait ages, I am not even likely to use it this year.

Just gotta ride it out. We have some places picked out and would be ready to go now, but sure look!

Green Mile

Bluefoam wrote: »

Revenue no longer provide p60s

“Employers” no longer issue P60s.
You must now obtain a Statement of Earnings from MyAccounts on revenue.ie, these issue in January every year when a tax year ends.

Duke of Url

Green Mile wrote: »

“Employers” no longer issue P60s.
You must now obtain a Statement of Earnings from MyAccounts on revenue.ie, these issue in January every year when a tax year ends.

Just in case people are confused the old P60 is now called Employment Detail Summary on the revenue site.

Shiok

Expat (non eurozone resident) mortgage application for a second property. Existing mortgage was granted while also non-resident.

I recall BOI pubicly advised at the end of last year that they were exiting the non-resident mortgage market.

Any interest shown to anyone recently from other lenders? Specically, for a second 'holiday home' property?

Quickie research - ask the internet :P Thanks!

ebayissues

So I a have been farting arround on mortgage payment calculator.

Lets just say for a mortgage of 250k, with appoximately 1100 a pm...rough figures here, the bulk of this amount is interest payments.

Are there any other ways to make the bulk payments principal payments rather than interest?

LoonyLovegood

ebayissues wrote: »

So I a have been farting arround on mortgage payment calculator.

Lets just say for a mortgage of 250k, with appoximately 1100 a pm...rough figures here, the bulk of this amount is interest payments.

Are there any other ways to make the bulk payments principal payments rather than interest?

It always starts with you paying more for interest than the principal at the start. You're better off saving anything extra, and then when the fixed term ends (if you're on one) paying a balance off the principal.

G_R

ebayissues wrote: »

So I a have been farting arround on mortgage payment calculator.

Lets just say for a mortgage of 250k, with appoximately 1100 a pm...rough figures here, the bulk of this amount is interest payments.

Are there any other ways to make the bulk payments principal payments rather than interest?

As you move through the term, your payments will change from being more interest to more capital. Any over payments you make will come straight off capital. If you are in a position to do so (and your loan type allows it - i.e. youre on a variable rate, or a fixed rate which allows some overpayment (some banks will allow 10pc of the capital per annum to be over paid on a fixed rate, for example)) then an extra 100/200 euro a month will see you make huge savings. You could be talking knocking a couple of years off the term and saving your self thousands in interest.

omicron

Question for those in the know. I'm planning on applying for a mortgage shortly and have 2 issues:
- Have been saving for over a year but only set up a direct debit to a savings account 4 months ago, previous to that it was just building up in my current account, is this likely to be an issue, will I need 6 or more months of direct debit savings?

- On the application checklist proof of address is required. I live in an apartment where all bills are included so I don't have any bills or post with my address on it, only my lease. Any bank accounts etc so have my parents place as the address ( in another county). Will the bank take a copy of lease as proof of address?

Cheers!

zuhuraswa

omicron wrote:

Question for those in the know. I'm planning on applying for a mortgage shortly and have 2 issues: - Have been saving for over a year but only set up a direct debit to a savings account 4 months ago, previous to that it was just building up in my current account, is this likely to be an issue, will I need 6 or more months of direct debit savings?

Nope. Just consistently saving somewhat a good amount per month is ok Doesn't have to be specifically in a savings or even in a separate account from your current one for that matter (so long as the cumulative saving is evident, in that you aren't dipping into any previously saved amount for use).

omicron wrote:

- On the application checklist proof of address is required. I live in an apartment where all bills are included so I don't have any bills or post with my address on it, only my lease. Any bank accounts etc so have my parents place as the address ( in another county). Will the bank take a copy of lease as proof of address?

This was my case. Any recent letter from the government/revenue should also be sufficient.

ebayissues

G_R wrote: »

As you move through the term, your payments will change from being more interest to more capital. Any over payments you make will come straight off capital. If you are in a position to do so (and your loan type allows it - i.e. youre on a variable rate, or a fixed rate which allows some overpayment (some banks will allow 10pc of the capital per annum to be over paid on a fixed rate, for example)) then an extra 100/200 euro a month will see you make huge savings. You could be talking knocking a couple of years off the term and saving your self thousands in interest.

Ok thanks for this.


Another question.. bank need a letter of gift. Are there any tax implications if the amount is greater than 3k?

G_R

ebayissues wrote: »

Ok thanks for this.


Another question.. bank need a letter of gift. Are there any tax implications if the amount is greater than 3k?

Depends on who is doing the gifting.

You have a life time allowance in gifts/inheritance that you can receive tax free, repending on your relationship to the gifter. These fall into three groups.

Group A (parents) €335,000
Group B (grand parents, siblings, aunts/uncles) €32,500
Group C (everyone else) €16,250

Once you are outside those limits, no tax implication. Above that, tax is payable at 33% of the amount above the threshold.

unhappys10

Possibly mentioned, but can HTB be applied for and be granted before 31 December, but mortgage and beginning to build etc not be applied for until into new year?

gillka92

I am hoping to go for a mortgage in the next few months. I am a chartered accountant and my salary would more then cover what I would be looking to borrow. I have almost double the 10% deposit in savings but I recently moved jobs and I am on a contract. Does anyone know what banks would considering lending to me when I am not permanent? Thanks

lcarrol3

gillka92 wrote: »

I am hoping to go for a mortgage in the next few months. I am a chartered accountant and my salary would more then cover what I would be looking to borrow. I have almost double the 10% deposit in savings but I recently moved jobs and I am on a contract. Does anyone know what banks would considering lending to me when I am not permanent? Thanks

I've been given AIP with KBC, UB, Finance Ireland and PTSB, all of whom didn't blink at the fact that I'm on a rolling contract with the HSE. From what I've been told by our broker, it depends more on your field of work and the likelihood you would be re-employed if you lost your contract tomorrow. I know there are different rules with regard to probation though.

So you're likely to be fine.