First Time Buyer

TheShepard

Ok so I have got AIP and I'm pretty happy with rates and them with the bank i'm going with but I have a few questions

1) If I get a fixed rate mortgage and when that's done let's say I switch to another bank, can I switch back after that fixed rate term is up? basically can I keep bouncing from bank to bank to make savings and can I stay on a fixed term if I keep switching? I hope that makes sense!

2) My budget is around 200k (+/- 20k extra if needed as a gift). If I buy a site for 25k (in galway, which I have my eye on) could I build something ? Just a nice small house nothing fancy, I don't plan to live beyond my means. I aware this is very vague but just like to know is it a viable option or is it better to just buy. Also Id be applying for the help to buy scheme here.

3) And lastly any good tips for viewing a house?

noplacehere

TheShepard wrote: »

Ok so I have got AIP and I'm pretty happy with rates and them with the bank i'm going with but I have a few questions

1) If I get a fixed rate mortgage and when that's done let's say I switch to another bank, can I switch back after that fixed rate term is up? basically can I keep bouncing from bank to bank to make savings and can I stay on a fixed term if I keep switching? I hope that makes sense!

2) My budget is around 200k (+/- 20k extra if needed as a gift). If I buy a site for 25k (in galway, which I have my eye on) could I build something ? Just a nice small house nothing fancy, I don't plan to live beyond my means. I aware this is very vague but just like to know is it a viable option or is it better to just buy. Also Id be applying for the help to buy scheme here.

3) And lastly any good tips for viewing a house?

Can’t answer 2 but for 1 you can and should move banks to get better rates if it is possible. If you end up needing an exemption on salary or deposit or life insurance then it’s more difficult

For 3 we didn’t do anything special except keep an open mind

catrionanic

You can move banks but there are significant legal fees so it isnt as easy as just switching and saving money. Thered need to be a significant difference in interest rates for the savings to be worth it.

You would need a self-build mortgage if you buy land. I have no experience of them, but you'll need significantly more than a 10% deposit for that i would imagine. The bank also will not lend all the money up front. You have to have significant capital in order to do some of the building yourself. The bank release finance in drips and drabs as different stages of the build are completed. No bank is going to lend you 200k to buy something that is only worth 25k at present.

Dav010

In relation to 2. You need to go to the local planning office with an example of the house you are going to build. This will be an informal meeting and does not mean planning is guaranteed, but they will be able to give you an indication of any major obstacles, their development policy may mean only those with ties to the area will be granted pp. Don’t buy the site, then find you haven’t a hope of getting pp.

Newbie20

Yeah as mentioned by previous poster, don’t just buy the land outright and try to get planning afterwards. Most of the time land is bought pending planning permission being given. So if the planning permission isn’t granted you’re not stuck with the land which is then no use.
You will need to have proper plans drawn up by an architect before planning would be given.

jack in the box

1) Possible and advisable. Some banks might require you to be with your current provider for 12/24 months in order to switch. Factor in solicitors fee(€800 - €1000) and property report(€150) prior to switching. However your cashback or lower interest rate would cover this.

TheShepard

catrionanic wrote: »

You can move banks but there are significant legal fees so it isnt as easy as just switching and saving money. Thered need to be a significant difference in interest rates for the savings to be worth it.

You would need a self-build mortgage if you buy land. I have no experience of them, but you'll need significantly more than a 10% deposit for that i would imagine. The bank also will not lend all the money up front. You have to have significant capital in order to do some of the building yourself. The bank release finance in drips and drabs as different stages of the build are completed. No bank is going to lend you 200k to buy something that is only worth 25k at present.

Thanks for that, I'd try and stay with the bank if the rates were still ok.
I'd have about 20-30% saved , 30% would be with gifted money. Thanks

Dav010 wrote: »

In relation to 2. You need to go to the local planning office with an example of the house you are going to build. This will be an informal meeting and does not mean planning is guaranteed, but they will be able to give you an indication of any major obstacles, their development policy may mean only those with ties to the area will be granted pp. Don’t buy the site, then find you haven’t a hope of getting pp.

Should have stated that the site would be purchased subject to planning Permission. Aside from that Thanks

Banks offer good deals on fixed term mortgages and cashback offers which get customers in the door. When you're in the midst of looking for a mortgage it's easy to think that if you keep fixing or switching you can take a lot of money off your mortgage.

But if you're anything like me, by the time you're finished the whole house-buying process, you'll be exhausted! Banks are often counting on that when they make these offers, because the majority of people, with all the smarts in the world, just don't have the time or energy to keep switching their mortgage, even if they know they'll incur less interest.

Then there's also the security to consider if you're moving between banks, which catrionanic has already referred to. I don't know the ins and outs of it but you'll need to get through a fair bit of documentation, might require your solicitor, need to get the deeds transferred, and then do the admin to make sure your DD is timed right. For most people it's just more hassle than it's worth, and you need to consider how much savings you'd need to make in order to justify the time spent arranging everything.

TheShepard

true-or-false wrote: »

Banks offer good deals on fixed term mortgages and cashback offers which get customers in the door. When you're in the midst of looking for a mortgage it's easy to think that if you keep fixing or switching you can take a lot of money off your mortgage.

But if you're anything like me, by the time you're finished the whole house-buying process, you'll be exhausted! Banks are often counting on that when they make these offers, because the majority of people, with all the smarts in the world, just don't have the time or energy to keep switching their mortgage, even if they know they'll incur less interest.

Then there's also the security to consider if you're moving between banks, which catrionanic has already referred to. I don't know the ins and outs of it but you'll need to get through a fair bit of documentation, might require your solicitor, need to get the deeds transferred, and then do the admin to make sure your DD is timed right. For most people it's just more hassle than it's worth, and you need to consider how much savings you'd need to make in order to justify the time spent arranging everything.

Appreciated , this is the adice I need! thanks