Saving/Applying for a mortgage 2020-22 Edition

stampydmonkey

Looptheloop30 wrote: »

Anyone have experience with doddl?

Yeah, using mortgage horizons (same entity) as FTB. Can take a while to get a response for an email first time but a call/follow up and they are on it. Definitely know their stuff from what we can see.

nurik922

If I buy a new house, does it increase in value over time at the same rate as a similar second hand house? For example, if I choose between a new house for 300k and 4 year old property for 250k and buy the new one, after say 5 years living in that new house, in my view, any potential buyer when selecting between my house which is 5 years old and that second hand property which will be 9 years old then will choose 9 year old one (assuming the same growth rate in price). Am I missing some factors here?

For all ive read a new house is like a new car. Youre paying a premium for it, and the day you buy it it's no longer "new" and youd take a decent loss selling it too soon after.

But trying to predict too far ahead either way isnt wise

Jasna1982

nurik922 wrote: »

If I buy a new house, does it increase in value over time at the same rate as a similar second hand house? For example, if I choose between a new house for 300k and 4 year old property for 250k and buy the new one, after say 5 years living in that new house, in my view, any potential buyer when selecting between my house which is 5 years old and that second hand property which will be 9 years old then will choose 9 year old one (assuming the same growth rate in price). Am I missing some factors here?

Depends on the market.
New houses near me sold for 290.000 in 2016. Now they sell secondhand for 370.000

McGrath5

Jasna1982 wrote: »

Depends on the market.
New houses near me sold for 290.000 in 2016. Now they sell secondhand for 370.000

There are houses only 12 or 24 months old near me selling well in excess of the price the original owners paid.

Creamy Goodness

I don't see why they wouldn't tbh? There's a housing shortage and if a 10 year old 4-bed semi can fetch price X, there's no reason why a 2 year old 4-bed semi shouldn't be at least on par with it.

DubLad69

nurik922 wrote: »

If I buy a new house, does it increase in value over time at the same rate as a similar second hand house? For example, if I choose between a new house for 300k and 4 year old property for 250k and buy the new one, after say 5 years living in that new house, in my view, any potential buyer when selecting between my house which is 5 years old and that second hand property which will be 9 years old then will choose 9 year old one (assuming the same growth rate in price). Am I missing some factors here?

In houses that we were looking at, new houses go for anywhere between 5-15% more expensive than a comparable second hand house (with a lower BER). In the house that we are trying to buy now I'd say they are about 30k more than a second hand house.

So if we do lose anything if we decide to sell in 5 or 10 years time, then we will only loose our 30k that we got free from the HTB.

Kevhog1988

Quick question. I'm aware lenders look poorly on gambling. Do they look the same way on someone investing in stocks and shares?

brianc27

Kevhog1988 wrote: »

Quick question. I'm aware lenders look poorly on gambling. Do they look the same way on someone investing in stocks and shares?

i dont think so, i had shares through work that i usually put my bonus and a portion of my wages into and seemed to look favorably enough on it, i was selling them regularly enough and placing the money in savings

Knex*

Looptheloop30 wrote: »

Anyone have experience with doddl?

Great for initial consultation and advice. Service after that I was really disappointed with.

Time delay, lack of attention etc were deal breakers for me, and we ultimately went with another mortgage broker after that.

At one point we gave them all our docs, files etc. and sent follow up emails asking if they needed anything else, and they came back to us three weeks later having only just reviewed our application. At this point we were under the impression that they'd already been in contact with the banks and started the process on that end, so it was less than ideal.

Antares35

Kevhog1988 wrote: »

Quick question. I'm aware lenders look poorly on gambling. Do they look the same way on someone investing in stocks and shares?

I asked EBS advisor that as OH has invested a good bit and he said it is fine, once it's done from disposable income i.e. not relying on it to pay bills etc.

Kram_1

Hi folks,

I've seen a house that I wish to buy. My gross salary is €40k, €2250 pm net income. The joint application will solely be on my income. My girlfriend just started working a temporary contract through an agency and her income won't be taking into account. We have the 10% deposit build up and have been paying rent and have proof of regular savings. We don't have any loans or dependants.

What would be the maximum amount we could borrow? I'm hoping we can borrow €135k from the bank.

Creamy Goodness

Kram_1 wrote: »

Hi folks,

I've seen a house that I wish to buy. My gross salary is €40k, €2250 pm net income. The joint application will solely be on my income. My girlfriend just started working a temporary contract through an agency and her income won't be taking into account. We have the 10% deposit build up and have been paying rent and have proof of regular savings. We don't have any loans or dependants.

What would be the maximum amount we could borrow? I'm hoping we can borrow €135k from the bank.

Max is 3.5x of 40k = 140k, with an exemption at 4.5x (which is unlikely) = 180k. It's tight as you'll need roughly 6-7k for solicitor fees, stamp duty and other miscellaneous (searchers, land registry) fees etc.

Best advice would to get talking to a broker/banks.

Kram_1

Creamy Goodness wrote: »

Max is 3.5x of 40k = 140k, with an exemption at 4.5x (which is unlikely) = 180k. It's tight as you'll need roughly 6-7k for solicitor fees, stamp duty and other miscellaneous (searchers, land registry) fees etc.

Best advice would to get talking to a broker/banks.

Thanks, we have slightly more than 10% of deposit saved to take into account stamp duty, solicitor fees, etc.

I will contact a broker or bank.

Green Mile

Kram_1 wrote: »

Thanks, we have slightly more than 10% of deposit saved to take into account stamp duty, solicitor fees, etc.

I will contact a broker or bank.

I wonder, is it better to get a mortgage jointly even if there’s just one income rather than one person on their own.
A bank might see two lives on a policy as beneficial or would a bank take a view that there is a financial dependent

Antares35

Green Mile wrote: »

I wonder, is it better to get a mortgage jointly even if there’s just one income rather than one person on their own.
A bank might see two lives on a policy as beneficial or would a bank take a view that there is a financial dependent

Good question, and also they need to be shown that after the stress test payments are paid, there is still living expenses over, which is 1,025 I think.

Renjit

Green Mile wrote: »

I wonder, is it better to get a mortgage jointly even if there’s just one income rather than one person on their own.
A bank might see two lives on a policy as beneficial or would a bank take a view that there is a financial dependent

You will still be assessed as a couple if you are married. At least that was the case with me.

And that is required so that a couple doesn't claim HTB twice.

therg2411

Hi everyone,

My partner and I will be applying for a mortgage in the next few months. We both get paid into her current account and have savings in her name only. Will the banks look unfavourably on this?

We have a combined income of 110k, pay 1200 rent a month, no debt and have 13k in savings built up over the last 7/8 months.. Although sometimes not very consistent on the savings front ranging from 500 to 2000 a month savings, with the occasional dip/withdrawals from it.

Both approved for HTB for 29k this year due to Covid. Looking to buy new build in the range of 350-380k.

Main question is whether or not both our salary and savings being in her name only will impact our outcome? Also, will the banks look unfavourablly on dipping in and out of savings even when we have a net positive at the end of the month?

Thanks in advance, and would love to hear what people think!

Renjit

therg2411 wrote: »

Hi everyone,

My partner and I will be applying for a mortgage in the next few months. We both get paid into her current account and have savings in her name only. Will the banks look unfavourably on this?

We have a combined income of 110k, pay 1200 rent a month, no debt and have 13k in savings built up over the last 7/8 months.. Although sometimes not very consistent on the savings front ranging from 500 to 2000 a month savings, with the occasional dip/withdrawals from it.

Both approved for HTB for 29k this year due to Covid. Looking to buy new build in the range of 350-380k.

Main question is whether or not both our salary and savings being in her name only will impact our outcome? Also, will the banks look unfavourablly on dipping in and out of savings even when we have a net positive at the end of the month?

Thanks in advance, and would love to hear what people think!

It should not matter in joint application where your maximum savings are. However, they will assess you based on regular savings to check your repayment capability to pay mortgage installments.

1200 + average savings each month (or may be different metrices) +/- some other factors = repayment capability.

If you still have time, try to open a mortgage saver or savings account with regular savings of certain amount so that it gets added to your repayment capability calculation too.

In my case, we are paying rent 1500 and also depositing monthly 900 into mortgage saver account. Total repayment capability is 1500 + 900 = 2400 euros. Our mortgage installment is about 1200.

Best to talk with the bank representative to assess and guide you.

Interested Observer

I'm after getting a letter from our bank saying my mortgage amount is going to change upwards by 4 euro a month or something small. It isn't exactly clear to me why. Are they just allowed change my monthly payment like this? I'm about 2 years into a 5 year fixed term at the moment, I'd love to break the fixed rate so wondering if this is a chance to get out of it or anything.

TheMilkyPirate

therg2411 wrote: »

Hi everyone,

My partner and I will be applying for a mortgage in the next few months. We both get paid into her current account and have savings in her name only. Will the banks look unfavourably on this?

We have a combined income of 110k, pay 1200 rent a month, no debt and have 13k in savings built up over the last 7/8 months.. Although sometimes not very consistent on the savings front ranging from 500 to 2000 a month savings, with the occasional dip/withdrawals from it.

Both approved for HTB for 29k this year due to Covid. Looking to buy new build in the range of 350-380k.

Main question is whether or not both our salary and savings being in her name only will impact our outcome? Also, will the banks look unfavourablly on dipping in and out of savings even when we have a net positive at the end of the month?

Thanks in advance, and would love to hear what people think!

They will not look favourably at all on money coming out of the savings. Set up a direct debit with an amount going into your savings every week and don't touch it for 6 months.

Ronald Franz

Have been watching my phone like a hawk for days waiting to hear back on an application. Turns out all along there was a message waiting for me.

Anyone applying through Bank of Ireland new mortgage portal, keep your eye on the message centre page. The title of the message is clickable to bring up the message.

Lia_lia

We got AIP today through our broker. Previously had full approval but the house purchase fell through. So we went back to the broker and asked to get us AIP for as much as they can. Came back to us today and our AIP is a lot less than we expect, same as the full approval we had before which was just for that particular house. Obviously we would like a cheaper house, perhaps the same price as the house that we pulled out of, but of course the markets is crazy so will probably end up paying more.

We earn over 100k between us, great savings, relatively low rent, no loans. We are not big spenders. 1 dependant and do have childcare fees which is the only big expense. Maybe it’s the childcare fees. However we do have loads left over at the end of every month. I thought we’d get 3.5 times our income but it’s a good bit less. Anyone experience anything similar? Or should we not expect to get the full 3.5*...?

DopeTech

Lia_lia wrote: »

We got AIP today through our broker. Previously had full approval but the house purchase fell through. So we went back to the broker and asked to get us AIP for as much as they can. Came back to us today and our AIP is a lot less than we expect, same as the full approval we had before which was just for that particular house. Obviously we would like a cheaper house, perhaps the same price as the house that we pulled out of, but of course the markets is crazy so will probably end up paying more.

We earn over 100k between us, great savings, relatively low rent, no loans. We are not big spenders. 1 dependant and do have childcare fees which is the only big expense. Maybe it’s the childcare fees. However we do have loads left over at the end of every month. I thought we’d get 3.5 times our income but it’s a good bit less. Anyone experience anything similar? Or should we not expect to get the full 3.5*...?

Are you both in full time permanent work?

Lia_lia

DopeTech wrote: »

Are you both in full time permanent work?

Yes, both employed in a MNC for years and are permanent and full time.

Antares35

Lia_lia wrote: »

We got AIP today through our broker. Previously had full approval but the house purchase fell through. So we went back to the broker and asked to get us AIP for as much as they can. Came back to us today and our AIP is a lot less than we expect, same as the full approval we had before which was just for that particular house. Obviously we would like a cheaper house, perhaps the same price as the house that we pulled out of, but of course the markets is crazy so will probably end up paying more.

We earn over 100k between us, great savings, relatively low rent, no loans. We are not big spenders. 1 dependant and do have childcare fees which is the only big expense. Maybe it’s the childcare fees. However we do have loads left over at the end of every month. I thought we’d get 3.5 times our income but it’s a good bit less. Anyone experience anything similar? Or should we not expect to get the full 3.5*...?

Do you know what you would hypothetically be repaying assuming a stress test interest of six percent? I think that's about the figure they use. And if after that amount is deducted from your income, if you would still have 2,050 over? That's for living expenses. And then they add on for a dependent. For us with EBS it was 250.

So for example with us our max to borrow is just under 400k, we needed to show 2300 hypothetical repayments, 2,050 living (2 X adults) plus 250 (1 dependant).

Lia_lia

Antares35 wrote: »

Do you know what you would hypothetically be repaying assuming a stress test interest of six percent? I think that's about the figure they use. And if after that amount is deducted from your income, if you would still have 2,050 over? That's for living expenses. And then they add on for a dependent. For us with EBS it was 250.

So for example with us our max to borrow is just under 400k, we needed to show 2300 hypothetical repayments, 2,050 living (2 X adults) plus 250 (1 dependant).

Yeah we have a lot more than 2050 left over, and that’s with me taking off the creche fees, mortage amount+6%, 250 for dependent and 2050 for us. I dunno really. Going to call the broker tomorrow and see what he says. Just wondering is it expected.

brianc27

Lia_lia wrote: »

Yes, both employed in a MNC for years and are permanent and full time.

When I got my AIP it was a bit lower then 3.5 of my total salary but I put that down to how they were taking in my over time and bonus, was still well in the ball park of what I was looking for though.

Also out of the 4 or 5 banks I enquired to, ulster Bank offered what looked like barely twice my salary, which I found ridiculous

Antares35

Has anyone experience dealing with BOI in any capacity? I feel like I have wasted weeks of my life on hold. :rolleyes:

Antares35

Apologies if this is the wrong place and if it is, mods please move. I feel like we are actually dealing with scammers rather than BOI as we thought. We set up an account with them, and instead of receiving any written confirmation from the bank, we simply received a text with a BIC and IBAN to transfer money into. Obviously I wanted to confirm this was actually our account. So sent an email query and the same person keeps emailing back saying yes that is your account. I called this morning and was on hold for ages then eventually got through...to a vodafone mobile voicemail? And then the call cut. It all just seems bizzare to be honest, and not the way a bank would behave! I wont be transferring our money in there just yet :pac: