Saving/Applying for a mortgage 2020-22 Edition

Black_Knight

Idjit wrote: »

Does anyone know, does it matter to the bank if you have your savings in a joint account or can they be spread out over several accounts?

Myself and my partner have a credit union account each, and a bank savings account each. Our savings are split over these four accounts.

Do the banks have any preference over this, or does it matter as long as we can provide statements for them all?

So long as you show them I the accounts it's grand. We had on my side 1 current account, 2 savings accounts, a joint account, then my wife had a current account and savings account.

EvoEvo

ELM327 wrote: »

probably wont look great but once it's 20 quid a month not a day you'd be grand I'd say.

I'm thinking the same.....I have checked now and I have one Lotto transaction (around 20E) every 40-45 days....I'll be surprised that can affect a mortgage application:eek::eek:

IvoryTower

They never looked at the much detail tor me. Just larger unexplained transactions like a few hundred in or out.

EireinOZ

Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

wally79

EireinOZ wrote: »

Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

I don’t think you will get 5 times salary which is what you would need.

Pivot Eoin

EireinOZ wrote: »

Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

You dont have any chance unfortunately. Couples exceptions only begin to be considered now at €80k joint salary

It's good that you're thinking about it, but tbh it sounds like you have time. If you really want to get on the ladder save and save and buy a good price 2 bed apartment in 12-18 months, this will be a good investment in the expected climate then and will set you up nicely to profit and get to your house sooner.

Black_Knight

EireinOZ wrote: »

Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

wally79 wrote: »

I don’t think you will get 5 times salary which is what you would need.

Exactly.

300k house, 30k deposit. You need to be able to borrow 270k. Ye need a combined salary of 77k for that, or 5 X 54k ye currently earn.
I'm not saying there's no chance of ye getting a 5x exemption, but my unprofessional opinion is there's no chance ye will get it.

On the brighter side, don't public servants have set salaries, so over the years you're guaranteed some pay bumps. Your partner being an engineer (possibly depends what type) should get decent bumps early in their career as they move from graduate to junior to mid.

IMO, park the house idea. Ye just don't earn enough to buy a 300k house for the foreseeable future. If there wasn't an impending recession id suggest looking at cheaper options like an apartment, then trading up in a few years. Right now that's probably not a good idea though.

Your rent is cheap, your savings are good. If ye can park the house idea, get rid of the car loan. Your deposit won't be going towards a house anymore, and it's earning <1% interest in the bank while you pay many multiples of that in interest on the car loan. Ye are doing really well with the deposit though. Seriously, if you keep that up, when your salaries increase enough, you'll be able to get a great LTV ratio, a great mortgage rate, and ideally a short mortgage.

RedXIV

Worth pointing out that your partner in Engineering is likely to get more in terms of salary relatively quickly, wouldn't be unheard of to see an engineer almost double their salary in about 2 or three years which would solve your salary limitation.

Not exactly what you're looking for but that may help?

Black_Knight

RedXIV wrote: »

Worth pointing out that your partner in Engineering is likely to get more in terms of salary relatively quickly, wouldn't be unheard of to see an engineer almost double their salary in about 2 or three years which would solve your salary limitation.

Not exactly what you're looking for but that may help?

28 to 56 is a pretty big jump for a graduate who after 2 years would at best be a mid level engineer. Very much the exception, not the rule. That 28 should be mid 30s on promotion though. Moving company will likely accelerate the pay bumps once they stagnate. Basically, get a promotion, move company. Repeat (unless they pay you well to stay).

Plasandrunt

How long in would you guys recommend to contact a broker to get some advice? I only have 3 months savings but I also own a property with no mortgage on it with plans of selling to buy. I wasn't going to contact the broker until i had 6 months savings in my savings a/c

RedXIV

Plasandrunt wrote: »

How long in would you guys recommend to contact a broker to get some advice? I only have 3 months savings but I also own a property with no mortgage on it. I wasn't going to contact the broker until i had 6 months savings in my savings a/c

No harm going earlier, Worst case is that you are told to return at a later date but likelihood is that most advice from a broker benefits from longer time periods

Dylan94

Plasandrunt wrote: »

How long in would you guys recommend to contact a broker to get some advice? I only have 3 months savings but I also own a property with no mortgage on it with plans of selling to buy. I wasn't going to contact the broker until i had 6 months savings in my savings a/c

We went in from day one we started saving and then kept in contact with any questions we had along the way.

TM2015

RedXIV wrote: »

Worth pointing out that your partner in Engineering is likely to get more in terms of salary relatively quickly, wouldn't be unheard of to see an engineer almost double their salary in about 2 or three years which would solve your salary limitation.

Not exactly what you're looking for but that may help?

Your average civil engineer in general will not see 56k until they're in their 30s.

JohnnyChimpo

IvoryTower wrote: »

They never looked at the much detail tor me. Just larger unexplained transactions like a few hundred in or out.

The only thing I had to explain was a €7000 transaction from a Portuguese ice-cream stand (a bank error which took fvcking months to fix). Once I showed them the refund and convinced them I didn't have a crippling gelato addiction they were grand.

(jokes on them - i DO have a crippling gelato addiction)

bulmersgal

Got mortgage approval today so happy 😊

ladystardust

bulmersgal wrote: »

Got mortgage approval today so happy 😊

Congratulations ! Enjoy the buzz. We are signing contracts on Wednesday. Its along road but so worth it!

Duke of Url

bulmersgal wrote: »

Got mortgage approval today so happy &#55357;&#56842;

Congrats

Was it Mortgage Approval in Principle ?

bulmersgal

Duke of Url wrote: »

Congrats

Was it Mortgage Approval in Principle ?

Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

Not sure difference in mortgage approval in principle and mortgage approval looked at letter and it's approved by head underwriter and they have looked through my bank statements, payslip etc

Duke of Url

bulmersgal wrote: »

Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

We only have the following conditions:

Prior to letter of offer you need to provide documentary evidence confirming there has been no change to your income or employment situation as a result of Covid19 or other factors....

So they could ask again for payslips, Statements, Salary Certs etc......

Where they talk about Covid payments, This may be where people are getting effected on drawdown of Mortgages so now they are highlighting it in the Approvals section early.

Duke of Url

bulmersgal wrote: »

Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

Not sure difference in mortgage approval in principle and mortgage approval looked at letter and it's approved by head underwriter and they have looked through my bank statements, payslip etc

Which bank?

bulmersgal

Duke of Url wrote: »

We only have the following conditions:



Where they talk about Covid payments, This may be where people are getting effected on drawdown of Mortgages so now they are highlighting it in the Approvals section early.

Yes I have that condition too which I was expecting.

Finance Ireland is the mortgage company they a broker only company as far as I can see. Hopefully get a few more approvals and can compare. Happy to have one in the bag already.

ClaptonBay

Question on new builds as i see in our area there is a new build for sale but in this situation the first time owners only lived in it id say 4/5 months and now looking to sell..we're not looking at it but what is the situation here for say first time buyers who would buy this house now? As they would be deemed second owners of the house, they wouldnt be entitled to the help to buy is that correct? Or is there a time limit eg if the first buyer sells the new build within x amount of months, a person deemed a first time buyer can still get the grant if they were to purchase?

I think for the first owner of the property, assuming they were first time buyers and availed of the help to buy, there would be a clawback, correct?
I know technically this is deemed a second hand property sale but curious if there are other conditions on this type of sale of a new build.

ELM327

ClaptonBay wrote: »

Question on new builds as i see in our area there is a new build for sale but in this situation the first time owners only lived in it id say 4/5 months and now looking to sell..we're not looking at it but what is the situation here for say first time buyers who would buy this house now? As they would be deemed second owners of the house, they wouldnt be entitled to the help to buy is that correct? Or is there a time limit eg if the first buyer sells the new build within x amount of months, a person deemed a first time buyer can still get the grant if they were to purchase?

I think for the first owner of the property, assuming they were first time buyers and availed of the help to buy, there would be a clawback, correct?
I know technically this is deemed a second hand property sale but curious if there are other conditions on this type of sale of a new build.

Help to buy clawback is 5 years
You can't get help to buy on a non new house.

Jsmac67

Hi all,

Hoping to apply to get approval in principal soon. We can afford to borrow roughly 350k, assuming 3.5x income, however would like to borrow closer to 375/400k.

Having factored in various items such as stability of employment/lack of financial commitments/no dependents etc I'd be satisfied we could obtain some for of exemption.

My question is, when do you apply for said exemption? Part of the approval in principle application, or completely separate process?

Thanks!

WeeCuppaCha

From reading here and elsewhere, it seems all exemptions have been now been suspended. Lenders are strictly adhering to the 3.5 rule and mortgages are only being approved where Covid subsidies are not being used to top up wages. When or if they’ll be reintroduced is anyone’s guess.

Creamy Goodness

Jsmac67 wrote: »

Hi all,

Hoping to apply to get approval in principal soon. We can afford to borrow roughly 350k, assuming 3.5x income, however would like to borrow closer to 375/400k.

Having factored in various items such as stability of employment/lack of financial commitments/no dependents etc I'd be satisfied we could obtain some for of exemption.

My question is, when do you apply for said exemption? Part of the approval in principle application, or completely separate process?

Thanks!

Mention it as soon as you can to the bank. It’s much easier for them if you know what you need up front. They’ll crunch the numbers and come back to you. However I doubt they’ll open up exemptions until 2021 at this point (but this is pure speculation on my point).

lir6777

Creamy Goodness wrote: »

Mention it as soon as you can to the bank. It’s much easier for them if you know what you need up front. They’ll crunch the numbers and come back to you. However I doubt they’ll open up exemptions until 2021 at this point (but this is pure speculation on my point).

My broker guesses the same, end of the year at best but he said he can only speculate. I understand the caution on the banks' part,makes sense right now given we're waiting for the country to fall to pieces, but it's gutting. I'm a single FTB with a permanent job in the health service so my ability to repay hasn't changed (yet-i know levies may be coming) but 3.5 isn't enough so was reliant on an exemption. I now can't proceed with the new build I'd reserved and am stuck renting for however long things will take to straighten out. Which wouldn't be so bad if renting wasn't more expensive than a mortgage repayment, unless you want a bunch of flatmates (way less fun the older I get). Excuse the self-pity I know things could be so much worse, just seems there are others on here who will relate to the situation. Really hope those on here who are having trouble at drawdown stage get sorted, can't imagine getting that close and for it to not work out.

Maz2016

lir6777 wrote: »

My broker guesses the same, end of the year at best but he said he can only speculate. I understand the caution on the banks' part,makes sense right now given we're waiting for the country to fall to pieces, but it's gutting. I'm a single FTB with a permanent job in the health service so my ability to repay hasn't changed (yet-i know levies may be coming) but 3.5 isn't enough so was reliant on an exemption. I now can't proceed with the new build I'd reserved and am stuck renting for however long things will take to straighten out. Which wouldn't be so bad if renting wasn't more expensive than a mortgage repayment, unless you want a bunch of flatmates (way less fun the older I get). Excuse the self-pity I know things could be so much worse, just seems there are others on here who will relate to the situation. Really hope those on here who are having trouble at drawdown stage get sorted, can't imagine getting that close and for it to not work out.

http://rebuildingirelandhomeloan.ie/calculator/

Would this be of any help to you? It’s the route I’m going down as I’m on a similar situation

lir6777

Maz2016 wrote: »

http://rebuildingirelandhomeloan.ie/calculator/

Would this be of any help to you? It’s the route I’m going down as I’m on a similar situation

Thanks for that, I don't qualify though. Good luck with it!

cant26

Just wondering if anyone has any experience with this...I’m expecting my third child. Due in November. We will be applying for our first mortgage in September. I have absolutely no intention of telling the bank about my pregnancy as I know legally I am not obliged to. However, my obstetrician consultant fees come out of my current account. So far only one payment of €900. I’ve another payment of €1600 due in around four weeks time. And another payment after the birth. Will the bank question what these are for? It will clearly say my doctors name, can they press what the consultation is for? This literally just came to mind now and just wondering has anyone else been in a similar situation? Thanks!

ladystardust

cant26 wrote: »

Just wondering if anyone has any experience with this...I’m expecting my third child. Due in November. We will be applying for our first mortgage in September. I have absolutely no intention of telling the bank about my pregnancy as I know legally I am not obliged to. However, my obstetrician consultant fees come out of my current account. So far only one payment of €900. I’ve another payment of €1600 due in around four weeks time. And another payment after the birth. Will the bank question what these are for? It will clearly say my doctors name, can they press what the consultation is for? This literally just came to mind now and just wondering has anyone else been in a similar situation? Thanks!

I could be wrong but I believe they cant enquire regarding a pregnancy, however, when applying you will have to state number of dependants. Obviously they do not count as yet unborn children. They may ask prior to drawdown if your personal circumstances have materially changed. If the baby has arrived then they have and you are obliged to declare.

awec

This question comes up often on here. You only have to declare children, not pregnancies. If they ask you can say you have 2, but if you think this third child is the difference between you getting a mortgage or not then you have some figuring out to do financially. You're only fooling yourself by trying to hide it.

Pivot Eoin

bulmersgal wrote: »

Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

Not sure difference in mortgage approval in principle and mortgage approval looked at letter and it's approved by head underwriter and they have looked through my bank statements, payslip etc

Do you mind me asking who with? We're looking for Approval in Principal and fine with conditions.

cant26

awec wrote: »

This question comes up often on here. You only have to declare children, not pregnancies. If they ask you can say you have 2, but if you think this third child is the difference between you getting a mortgage or not then you have some figuring out to do financially. You're only fooling yourself by trying to hide it.

Where did I say that declaring a third child was the make or break for a mortgage? It certainly is not but I won’t be divulging anything unnecessary willingly. Just preparing myself for all scenarios. Can more than afford the children I have and the children I have yet to have! I am not fooling anyone, especially not myself. My not divulging my pregnancy is because I do not have to, not because i am hiding it! If it was a legal requirement to do so I would with bells on! Thanks so much for your extremely helpful response

cant26

ladystardust wrote: »

I could be wrong but I believe they cant enquire regarding a pregnancy, however, when applying you will have to state number of dependants. Obviously they do not count as yet unborn children. They may ask prior to drawdown if your personal circumstances have materially changed. If the baby has arrived then they have and you are obliged to declare.

Thanks for that, yes of course I would be obliged to declare if asked when the baby is born. No problem doing so and if it was a legal obligation to declare a pregnancy I would also do.

bulmersgal

Pivot Eoin wrote: »

Do you mind me asking who with? We're looking for Approval in Principal and fine with conditions.

I'm working with a broker you can pm me if you want his details. The approval is with Finance Ireland. He said he will apply to more banks when I find the house I want and make an offer on it. He did mention if any other exceptions became available he would apply for them for me but at the moment no bank is giving any

2Mad2BeMad

quick question folks,

can you get a mortage with rebuildingireland as well as get the help to buy scheme?

CIP4

Starting to look at houses now have AIP will probably end up waiting a few months to see what way things go with house prices. Obviously I know you need savings to cover deposit, solicitor, stamp duty, Engineer report etc. But I have started thinking I probably shouldn’t buy any house until along with the above I also have a decent rainy day fund saved to have this remaining once I have bought the house. I plan on buying a house in decent enough shape but after you move in you don’t know what will go wrong with the house or indeed life in general within the first few months.

Interested to hear what other have done would you be happy enough to buy once you have the deposit saved and enough to cover the costs of buying. Then once moved in start to build back up a rainy day fund. Or would you wait until you have a decent chunk of savings in excess of the cost of buying the house. It’s hard to know.

Techn0

2Mad2BeMad wrote: »

quick question folks,

can you get a mortage with rebuildingireland as well as get the help to buy scheme?

Hi 2Mad,

Yes you can, two separate functions. Of course each have they're own criteria however if all are met both can be used.

Febreeze

CIP4 wrote: »

Starting to look at houses now have AIP will probably end up waiting a few months to see what way things go with house prices. Obviously I know you need savings to cover deposit, solicitor, stamp duty, Engineer report etc. But I have started thinking I probably shouldn’t buy any house until along with the above I also have a decent rainy day fund saved to have this remaining once I have bought the house. I plan on buying a house in decent enough shape but after you move in you don’t know what will go wrong with the house or indeed life in general within the first few months.

Interested to hear what other have done would you be happy enough to buy once you have the deposit saved and enough to cover the costs of buying. Then once moved in start to build back up a rainy day fund. Or would you wait until you have a decent chunk of savings in excess of the cost of buying the house. It’s hard to know.

This one is interesting. Exactly what I was thinking myself. Would love if someone replied with their experience :-)

Black_Knight

CIP4 wrote: »

Interested to hear what other have done would you be happy enough to buy once you have the deposit saved and enough to cover the costs of buying. Then once moved in start to build back up a rainy day fund. Or would you wait until you have a decent chunk of savings in excess of the cost of buying the house. It’s hard to know.

You'd like to think the engineers report would have found any big issues before buying.

Can't say about a "spending everything" scenario. We bought back in the brief 10%+20% days, but had about 20k leftover after our deposit, but we knew there were some works we wanted to do (about 5-6k immediately). Nothing unexpected popped up, and we took our time buying some furniture and décor. But it can be surprising how little bits and bobs tot up.

The buffer we had was nice I guess, but we had no loans (other than the mortgage now) or kids etc, so we were also saving quite heavily at the time. All depends on your current circumstances. In our first year, including the 5k mentioned, we spent 15k (furniture, new boiler, new rads, put in a stove, some small works, paint and necessary tools)

IMO, we likely wouldn't have been comfortable spending all our money on the house. Would probably have wanted 10k at hand after all was said and done. Saves you having to spend the first year of ownership building up a reserve, then more months saving for bits you want to do to the house.

3DataModem

guyfawkes5 wrote: »

Legal fees will be €1,500 - €2,500 depending on the solicitor. Be aware cheaper fees may mean they are treating your case as part of a backlog and that may entail delays, but this is not always the case.

This.

Don't choose your solicitor based on their price. It's a paper-riddled complex process. Most of the time there are no issues, but when there is an issue, a good solicitor is worth their weight...

Bobmo123

I was wondering, we have been on HAP for a while now and we are both back at work as of this week.

This means we will be leaving HAP due to the amount we earn will take us off it. We really want to buy. Does anyone know of any help to buy scheme for people coming off HAP? I have tried to find out but cant find anything.

Thanks in advance.

Graham

There's nothing specific for previous HAP recipients.

Standard mortgage or Rebuilding Ireland Home Loan are your usual options (subject to eligibility).

Income, history of saving, size of deposit and length of employment are the main areas for you to concentrate on.

Bobmo123

Thanks very much for the reply.

I will get on with the normal procedures for it.

Cheers.

random_banter

Just off the phone to the bank. No problem getting approved, borrowing and repayment capacity proven, but as I feared, the LTV exemptions are gone as well as the LTI.

All we wanted to was the LTV exemption (the other half has another mortgage and I'm FTB, so we are both seen as mover and need a 20% deposit). Frustrating as we've been saving hard and have a significant amount done, would have been ok for a 15% deposit. It feels like climbing Everest to get to 20%. Had been focused on buying our own home before the end of the year. We were planning to see how prices go in Q3+4 and be ready to bid then.

There are worse things happening in the world, I know. Be a long time before the 20% can come together so will just have to get over it!

CIP4

Black_Knight wrote: »

You'd like to think the engineers report would have found any big issues before buying.

Can't say about a "spending everything" scenario. We bought back in the brief 10%+20% days, but had about 20k leftover after our deposit, but we knew there were some works we wanted to do (about 5-6k immediately). Nothing unexpected popped up, and we took our time buying some furniture and décor. But it can be surprising how little bits and bobs tot up.

The buffer we had was nice I guess, but we had no loans (other than the mortgage now) or kids etc, so we were also saving quite heavily at the time. All depends on your current circumstances. In our first year, including the 5k mentioned, we spent 15k (furniture, new boiler, new rads, put in a stove, some small works, paint and necessary tools)

IMO, we likely wouldn't have been comfortable spending all our money on the house. Would probably have wanted 10k at hand after all was said and done. Saves you having to spend the first year of ownership building up a reserve, then more months saving for bits you want to do to the house.

Thanks for the response. Yes when writing this I kind of had 10k minimum to 20k ideal left over after deposit and basic buying costs in my head. My thinking is the same as you I don’t want to buy the house have nothing left and then spend months trying to build back up some cash before I can start getting anything for the house.

trinib

random_banter wrote: »

Just off the phone to the bank. No problem getting approved, borrowing and repayment capacity proven, but as I feared, the LTV exemptions are gone as well as the LTI.

All we wanted to was the LTV exemption (the other half has another mortgage and I'm FTB, so we are both seen as mover and need a 20% deposit). Frustrating as we've been saving hard and have a significant amount done, would have been ok for a 15% deposit. It feels like climbing Everest to get to 20%. Had been focused on buying our own home before the end of the year. We were planning to see how prices go in Q3+4 and be ready to bid then.

There are worse things happening in the world, I know. Be a long time before the 20% can come together so will just have to get over it!

Do you mind me asking which bank?
Got told over the phone from our bank 3 weeks ago we could get a LTV exemption from 20% to 10%, have just been getting the paperwork ready to lodge this week. Really hope it hasnt changed!

pauldoo

Would anyone know if voluntary payments into a company share scheme would count as part of the capacity to repay? Its effectively a savings scheme that could be stopped at any time

We are applying with BOI and they have been a disaster, after going on months, they say there could be issues on a capacity to repay, despite looking for well under the max mortgage for our salary and having about a 35% deposit (equity on the sale of the house is covers the 20% deposit)

fago

pauldoo wrote: »

Would anyone know if voluntary payments into a company share scheme would count as part of the capacity to repay? Its effectively a savings scheme that could be stopped at any time

We are applying with BOI and they have been a disaster, after going on months, they say there could be issues on a capacity to repay, despite looking for well under the max mortgage for our salary and having about a 35% deposit (equity on the sale of the house is covers the 20% deposit)

In my case AIB did consider it as evidence of monthly savings on an initial AIP.