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Saving/Applying for a mortgage 2020-22 Edition

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    #1742
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Pete123456 wrote: »
    Had a chat with AIB, they’re subtracting €3600 from your net wages for a joint application, less any loans or dependents. If you can afford the stress tested mortgage payment with what is left over, you will qualify for an exception to the 3.5x LTI... tough enough!

    Thats 3600 a month ?
    Thats 900 a week
    Most couples would find it hard to meet those criteria for an exemption
    Would probably need a combined income of over 200k
    3600 a month would get you 900k over 30 years


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    #1743
    Pete123456
    Registered Users Posts: 963 ✭✭✭Pete123456


    brisan wrote: »
    Thats 3600 a month ?
    Thats 900 a week
    Most couples would find it hard to meet those criteria for an exemption
    Would probably need a combined income of over 200k
    3600 a month would get you 900k over 30 years

    Yes a month - they’re accounting for €2050 living expenses for two and then adding €1550 on top, that’s how they came to the €3600.

    I’m sure if you had a joint income of 120 or €130k you would be able to manage it with small car loans and no dependents, but yeah the girl on the phone did say it was very very hard to meet the criteria. It’s funny that to qualify for the exception you wouldn’t really need it anyways!!


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    #1744
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Pete123456 wrote: »
    Yes a month - they’re accounting for €2050 living expenses for two and then adding €1550 on top, that’s how they came to the €3600.

    I’m sure if you had a joint income of 120 or €130k you would be able to manage it with small car loans and no dependents, but yeah you’re one on the phone did say it was very very hard to meet the criteria. It’s funny that to qualify for the exception you wouldn’t really need it anyways!!

    Sorry I thought it was 3600 after all other costs were deducted
    No wonder it seemed excessive lol


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    #1745
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Pete123456 wrote: »
    Yes a month - they’re accounting for €2050 living expenses for two and then adding €1550 on top, that’s how they came to the €3600.

    I’m sure if you had a joint income of 120 or €130k you would be able to manage it with small car loans and no dependents, but yeah the girl on the phone did say it was very very hard to meet the criteria. It’s funny that to qualify for the exception you wouldn’t really need it anyways!!

    I n that case 2good wages would cover it
    By good I mean 120-150 combined
    2050 living expenses is fairly generous for 2 people for a month
    500 a week


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    #1746
    Pete123456
    Registered Users Posts: 963 ✭✭✭Pete123456


    brisan wrote: »
    I n that case 2good wages would cover it
    By good I mean 120-150 combined
    2050 living expenses is fairly generous for 2 people for a month
    500 a week

    Yeah two good wages would cover it, but I’m not sure what they would want to deduct for dependents or other commitments etc so I guess that’s a factor also for some. Again, the higher the monthly mortgage payment then the bigger the remainder needs to be so at least there are somewhat clear figures to meet for AIB


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    #1747
    mairtmairt
    Registered Users Posts: 26 ✭mairtmairt


    Hi Guys do you know if its possible to get more then 3.5 times your salary if you manage to have more then 10% of deposit. Whats the criteria? No immediate plans as of yet but starting to save more aggressively (easier with lockdown). On average salary approx €40000.


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    #1748
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    mairtmairt wrote: »
    Hi Guys do you know if its possible to get more then 3.5 times your salary if you manage to have more then 10% of deposit. Whats the criteria? No immediate plans as of yet but starting to save more aggressively (easier with lockdown). On average salary approx €40000.

    In theory yes its possible
    The anecdotal evidence is that exemptions to the salary cap are extremely rare
    See the post above ,Number 1741


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    #1749
    Pete123456
    Registered Users Posts: 963 ✭✭✭Pete123456


    mairtmairt wrote: »
    Hi Guys do you know if its possible to get more then 3.5 times your salary if you manage to have more then 10% of deposit. Whats the criteria? No immediate plans as of yet but starting to save more aggressively (easier with lockdown). On average salary approx €40000.

    When we spoke to AIB we did not mention savings and therefore I’m led to believe that what you have saved does not have much bearing on whether you qualify for an exception or not - I.e. that you are still expected to have the mortgage payment left over after the deducted “qualifier” amount, if that makes sense.

    Best to have a chat with your own exact figures I would think.


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    #1750
    Jasna1982
    Registered Users Posts: 277 ✭✭Jasna1982


    mairtmairt wrote: »
    Hi Guys do you know if its possible to get more then 3.5 times your salary if you manage to have more then 10% of deposit. Whats the criteria? No immediate plans as of yet but starting to save more aggressively (easier with lockdown). On average salary approx €40000.

    No, however much you have as deposit does not affect an exemption.
    They do look for savings ability, but unless your salary is high enough they won’t give you one.
    Before COVID most banks were looking for a single applicant salary of 50.000 although I have heard them doing it for lower salaries.
    But it depends on the bank and the situation.
    And with COVID, who knows what their criteria will be next year

    Use my Tesla referral link for free charging credits: https://www.tesla.com/referral/jasna121868



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    #1751
    Carter D
    Banned (with Prison Access) Posts: 31 ✭Carter D


    Hi quick question how far back can the bank ask for when applying for a mortgage is it just 6 months or can they ask for 3 or 4 years ?


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    #1752
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    Carter D wrote: »
    Hi quick question how far back can the bank ask for when applying for a mortgage is it just 6 months or can they ask for 3 or 4 years ?

    Think usually its 6 months of bank statements, 3 months of payslips and your credit report which goes back 5 years.


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    #1753
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    Carter D wrote: »
    Hi quick question how far back can the bank ask for when applying for a mortgage is it just 6 months or can they ask for 3 or 4 years ?
    Markitron wrote: »
    Think usually its 6 months of bank statements, 3 months of payslips and your credit report which goes back 5 years.

    EBS looked for 6 months payslips from us also.


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    #1754
    Renjit
    Registered Users Posts: 949 ✭✭✭Renjit


    Carter D wrote: »
    Hi quick question how far back can the bank ask for when applying for a mortgage is it just 6 months or can they ask for 3 or 4 years ?

    Generally it is 6 months. Can vary. Your credit history covers more time, so they will know if you defaulted on something.


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    #1755
    Carter D
    Banned (with Prison Access) Posts: 31 ✭Carter D


    Renjit wrote: »
    Generally it is 6 months. Can vary. Your credit history covers more time, so they will know if you defaulted on something.



    Thanks I just ordered my credit history so will have a look at what's on that .


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    #1756
    Carter D
    Banned (with Prison Access) Posts: 31 ✭Carter D


    What banks have most of yous got a mortgage from ?
    Where did you get the best rate ?

    Has anyone got a mortgage from AIB have heard they are one of the worse


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    #1757
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    Carter D wrote: »
    What banks have most of yous got a mortgage from ?
    Where did you get the best rate ?

    Has anyone got a mortgage from AIB have heard they are one of the worse

    We applied with EBS, AIB and ICS (my girlfriend works in the public sector).

    Got full underwriting approval from EBS and ICS and we have decided to go with EBS due to their cashback offer and also didn't need the larger mortgage from ICS.

    AIB are still looking for documents from us :pac:


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    #1758
    Carter D
    Banned (with Prison Access) Posts: 31 ✭Carter D


    Starlord_01 wrote: »
    We applied with EBS, AIB and ICS (my girlfriend works in the public sector).

    Got full underwriting approval from EBS and ICS and we have decided to go with EBS due to their cashback offer and also didn't need the larger mortgage from ICS.

    AIB are still looking for documents from us :pac:


    What was AIB like rubbish? Why are they still looking for documents if have gone with someone else?


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    #1759
    Meraf
    Registered Users Posts: 42 ✭Meraf


    Carter D wrote: »
    What was AIB like rubbish? Why are they still looking for documents if have gone with someone else?

    I'm with AIB and I found their process easy to follow. It took time for them to process all but if you have all your ducks in row process its easy.

    I guess depends from your circumstances


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    #1760
    Jimson
    Closed Accounts Posts: 164 ✭✭Jimson


    mairtmairt wrote: »
    Hi Guys do you know if its possible to get more then 3.5 times your salary if you manage to have more then 10% of deposit. Whats the criteria? No immediate plans as of yet but starting to save more aggressively (easier with lockdown). On average salary approx €40000.

    You might be better off applying to the County Council if you can get higher than e.5. Apply for two banks for a higher amount and get two rejections. Theres a calculator on the site and its significantly more.

    If your on under 50K or 75K fir a couple can apply. Its how most single people are couples on lower salaries are getting the mortgage.


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    #1761
    Doctorsamuel
    Registered Users Posts: 16 ✭Doctorsamuel


    I have got AIP from AIB the same day we applied and after less than 3 weeks we received a positive answer that the mortgage was approved. Now they just want to know if somehow our working conditions will change due to Covid but it's not our case. Fair play to them, we are very satisfied for the service. Thanks to all of you guys for the previous suggestions. I strongly believe this forum is really useful!


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    #1762
    klose
    Registered Users Posts: 11,693 ✭✭✭✭klose


    Carter D wrote: »
    What was AIB like rubbish? Why are they still looking for documents if have gone with someone else?

    What do you mean by rubbish? If it's rates I think they're one of the best for example.

    Have AIP from them, it's a slow process but fair from what I can see.


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    #1763
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Doctorsamuel wrote: »
    I have got AIP from AIB the same day we applied and after less than 3 weeks we received a positive answer that the mortgage was approved. Now they just want to know if somehow our working conditions will change due to Covid but it's not our case. Fair play to them, we are very satisfied for the service. Thanks to all of you guys for the previous suggestions. I strongly believe this forum is really useful!

    A bit presumptuous of me but
    Are you a doctor ?
    Have you and your partner good salaries ?
    Have you a good deposit
    Are you looking for less than 80% LTV
    Are you looking for a mortgage of less than 3.5 times combined salaries
    All these things will affect the speed of your application
    Unfortunately not everyone is in the same position
    I have got full mortgage approval in the past (,years ago ) before I left the managers office


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    #1764
    Doctorsamuel
    Registered Users Posts: 16 ✭Doctorsamuel


    brisan wrote: »
    A bit presumptuous of me but
    Are you a doctor ?
    Have you and your partner good salaries ?
    Have you a good deposit
    Are you looking for less than 80% LTV
    Are you looking for a mortgage of less than 3.5 times combined salaries
    All these things will affect the speed of your application
    Unfortunately not everyone is in the same position
    I have got full mortgage approval in the past (,years ago ) before I left the managers office


    Are you a doctor ? No, I wish
    Have you and your partner good salaries ? Average wages
    Have you a good deposit? No, HTB scheme
    Are you looking for less than 80% LTV? No
    Are you looking for a mortgage of less than 3.5 times combined salaries? No

    Just to add:

    - rent always paid in full
    - clear bank statements
    - no loans/overdrafts
    - no betting


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    #1765
    itsusuallyjazz
    Registered Users Posts: 72 ✭✭itsusuallyjazz


    Carter D wrote: »
    Hi quick question how far back can the bank ask for when applying for a mortgage is it just 6 months or can they ask for 3 or 4 years ?

    6 months for current account but 1 year for my savings account
    That’s for PTSB


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    #1766
    Carter D
    Banned (with Prison Access) Posts: 31 ✭Carter D


    Hi so when you go for a mortgage do they only take into account your salary you and your partner are on by 3.5 times your incomes .

    Myself and parnter will be building will be looking for around 300k mortgage
    Do they look at savings say I have 25k saved and parnter has 15k which gives us 40k which would be plenty for a deposit .


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    #1767
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Carter D wrote: »
    Hi so when you go for a mortgage do they only take into account your salary you and your partner are on by 3.5 times your incomes .

    Myself and parnter will be building will be looking for around 300k mortgage
    Do they look at savings say I have 25k saved and parnter has 15k which gives us 40k which would be plenty for a deposit .

    According to posters on here they will look for detailed costings and will make you allow for over runs on budget of about 10%
    So if the build is coming in at 340 they will expect you to have access to 374 approx between savings and mortgage
    A kitchen extension rarely comes in on budget never mind a new house
    Good luck with your house
    A broker will be able to advise


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    #1768
    EO2019
    Registered Users Posts: 162 ✭✭EO2019


    Anyone managed to get a LTV exemption lately. Second time buyers but bought pre recession and sold at break even. We currently have a 15% deposit. Both public sector decent wage no loans/overdraft/credit card.

    Trying to decide whether to push ahead now and apply or wait approx 8 months til we have 20%.


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    #1769
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    Carter D wrote: »
    What was AIB like rubbish? Why are they still looking for documents if have gone with someone else?

    Not rubbish by any means, just slow. The portal is handy to begin to process but when it goes to advisors it's tedious. Look for documents in dribs and drabs, where EBS looked for everything up front.


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    #1770
    CarMc
    Registered Users Posts: 74 ✭✭CarMc


    EO2019 wrote: »
    Anyone managed to get a LTV exemption lately. Second time buyers but bought pre recession and sold at break even. We currently have a 15% deposit. Both public sector decent wage no loans/overdraft/credit card.

    Trying to decide whether to push ahead now and apply or wait approx 8 months til we have 20%.

    No harm in applying now and if they say no try again in January?

    We got a LTV exemption as a second time buyer but that was in March. I'm not sure what the criteria is for one but I rang KBC at the time and was told no immediately over the phone, I asked why I didn't qualify for one and I was told they aren't sure but when they typed my details in the 'computer says no'! I got one through PTSB with the same details....

    I know someone else who applied in August and was turned down for one from all banks though.


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    #1771
    Carter D
    Banned (with Prison Access) Posts: 31 ✭Carter D


    brisan wrote: »
    According to posters on here they will look for detailed costings and will make you allow for over runs on budget of about 10%
    So if the build is coming in at 340 they will expect you to have access to 374 approx between savings and mortgage
    A kitchen extension rarely comes in on budget never mind a new house
    Good luck with your house
    A broker will be able to advise



    Good thing about building is we can build within our budget we wouldn't be able to get a mortgage for a 500k house but we can build a 4 or 5 bed house then buying a new build and paying back a higher/longer mortgage.


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