Saving/Applying for a mortgage 2020-22 Edition

27-03-2022 7:35pm

I note someone mentioned bonuses back the thread.

I have a guaranteed 10% bonus in my contract.

How would lenders assess this?

I have only been in my current role one year mind. I did have bonus income from my previous employer but it wouldn't have been as high.

GoldFour4 · 27-03-2022 7:56pm

https://www.boards.ie/discussion/comment/118843774#Comment_118843774

Bonus guaranteed in your contract will be counted but think it will be average of past 3 years

Creamy Goodness · 28-03-2022 10:09am

Some banks salary certs ask your employer if the bonus is guaranteed or not, if it is AIB told me they'd take my full bonus into account, mine isn't so they wanted to see me get it for 3 years and then they'd only take 50% of the amount. This was in 2018/9 though so might have changed since.

28-03-2022 7:35pm

https://www.boards.ie/discussion/comment/118845703#Comment_118845703

Yeah it's in my contract guaranteed 10% minimum.

The company is doing really well so it may be even more than 10%.

If the bank did take the full amount into consideration it would be a huge help to me.

28-03-2022 7:47pm

Only started this job in January 2022 mind.

That said it will be Q1 2023 before I apply for mortgage approval.

Giblet · 28-03-2022 9:10pm

https://www.boards.ie/discussion/comment/118848501#Comment_118848501

For me they asked for 3 years. Avant took the full amount as part of salary, but I had contract saying it is guaranteed and it was also shown on salary cert.

Cork2021 · 29-03-2022 12:59pm

When applying for a mortgage has anyone been told that if you’ve a car loan/pcp it’s a necessary expense and that isn’t used against what you can borrow?

one broker told me this.

Dodge · 29-03-2022 2:26pm

https://www.boards.ie/discussion/comment/118851185#Comment_118851185

The amount you can borrow is based on what you earn (central bank rules) and what you can afford (your savings, current rent/mortgage, other out goings etc etc). So the amount you’re spending on a car loan will factor in there. No question. If you can prove you can pay your mortgage with that, then you’re fine. A lot of people have car loans and they get mortgages

Creamy Goodness · 29-03-2022 5:54pm

A car loan isn't a necessary expense, a car may be necessary but the loan certainly isn't in the eyes of the bank. It'll effect your ability to repay calculations by how much is completely up to your other finances.

29-03-2022 9:42pm

Speaking of the car loan.

I have absolutely zero debt but I also don't have a credit rating as I have never needed to take out a loan.

Would this be an issue for a bank?

AlmightyCushion · 29-03-2022 10:33pm

https://www.boards.ie/discussion/comment/118853704#Comment_118853704

Having loans to build up your credit rating is an American thing. It doesn't help you in any way here.

rob316 · 29-03-2022 10:37pm

What's the story with secondary income? So I have my full time salaried job but I'm also a director (non-shareholder) of another company that I am paid a directors fee from for the last 2 years. Can I use that income for a mortgage?

tolow · 30-03-2022 12:50pm

Anyone here applying for a mortgage working as a contractor as a director of an umbrella company? If so how was the process.

Also, Has anyone a job that is 100% remote based? How was this viewed by the bank when applying?

whatawaster · 30-03-2022 1:23pm

I'm sure this has been asked before, but looking for up to date info on:

what amount do banks like to see left over after mortgage repayments, loan payments etc. From memory it used to be 2100 for a couple plus 250 per child?
what rate do banks stress test mortgage payments at? Is it 2% above the rate you are applying for, or 2% above their standard variable rate?
Is it true that if you go for a 5 year fixed rate, stress tests like above do not apply?

miamee · 30-03-2022 2:50pm

https://www.boards.ie/discussion/comment/118855810#Comment_118855810

I work 100% remotely. It only started as a result of the pandemic but has and will continue to be 100% remote. The bank wanted a letter from my employer to confirm that I could work 100% remotely going forward as we were buying a good distance away from 'the office' (not a commutable distance if I ever had to go back). Employer was happy to provide it and there were no issues once they had it.

Creamy Goodness · 30-03-2022 2:57pm

bullet 1: this will depend hugely on bank and circumstances. for me as a single applicant to AIB in 2018 it was 2500.

bullet 2: it's 2 over their Standard variable rate (again this was AIB).

bullet 3: this kinda sounds like something a broker would say to get you "in the door".

whatawaster · 30-03-2022 3:36pm

https://www.boards.ie/discussion/comment/118856623#Comment_118856623

Regarding point 3, you could be right, but i've seen it mentioned elsewhere and it makes sense. If you're rate is fixed for 10 years, a stress test now on rate increases is kind of pointless.

ciano1 · 30-03-2022 6:30pm

Anybody on here use the crypto.com card for their day-to-day spending? Would banks look down on using it while also saving up for a mortgage?

I have a regular bank account (PTSB) and have my wages paid into this. I also pay rent from this and my savings account is also PTSB. Once rent and savings are done with for the month, I transfer my everyday spending onto the Crypto.com card and get 2% back in CRO on all my purchases.

I do buy a little bit of crypto (~€120pm) and some stocks but mainly have the card for the 2%.

Would the banks have any issues?

theboringfox · 30-03-2022 9:06pm

How do people find BoI? Going to apply to them after they cut rates. Need to switch and get top up mortgage for extension so assuming the Avants and Fin Ireland crowds are a non runner

teaandsnooker · 31-03-2022 8:31pm

Folks - waiting on AIP from Avant for 24 working days now - is this normal? We had one more info query about 3 weeks and nothing since. Just concerning now that it's so long

Cork2021 · 31-03-2022 9:13pm

https://www.boards.ie/discussion/comment/118862931#Comment_118862931

question for you. Did you go through a broker or straight to Avant?

teaandsnooker · 31-03-2022 9:35pm

Can only go through a broker for avant.

houseyhouse · 31-03-2022 9:52pm

https://www.boards.ie/discussion/comment/118863148#Comment_118863148

Avant only work through brokers. Was on the phone with them last week and that’s what they told me.

Cork2021 · 31-03-2022 9:59pm

https://www.boards.ie/discussion/comment/118863265#Comment_118863265

Thanks

teaandsnooker · 31-03-2022 10:01pm

https://www.boards.ie/discussion/comment/118863372#Comment_118863372

Exactly- we went through a broker - but it's taking way longer than they advertise - just wondering if other people are having the same experience

Cork2021 · 31-03-2022 10:01pm

https://www.boards.ie/discussion/comment/118863372#Comment_118863372

Thanks, as I talk of brokers, low quotes got onto me today. I mentioned yesterday about the car loan I have. They did mention that car loans aren’t frowned upon as often anymore, still are but see them as a necessary expense for some lenders. As I saw as well in previous posts, they could be just wanting my business and selling me a dud!

Cork2021 · 31-03-2022 10:02pm

It’s driving me nuts!( mind the pun)

teaandsnooker · 31-03-2022 10:03pm

https://www.boards.ie/discussion/comment/118863429#Comment_118863429

Might depend on the lender - and how they calculate your repayment ability. I get the impression avant are very cautious - but others aren't as particular

Cork2021 · 31-03-2022 10:12pm

https://www.boards.ie/discussion/comment/118863446#Comment_118863446

We’re not nowhere near ready to look for approval as we don’t have the savings for 6 months plus yet. Was asking to see what the craic would be when we might go for it. Our issue is we’ve personal loan of €511 and a car loan of €429 mortgage €405 a month(it’s small), they definitely won’t be gone if we try over the next two years. I got a bonus from work over the last week and cleared 2 small loans and our credit card balance as well.

Another question for anyone who has this issue.. herself works in childcare and is term time. For 8 weeks of the year she needs to sign on, is that 8 weeks of dole added to our gross salary earnings? Also why isn’t child benefit added in? We’ve a 1 and 3 year old guaranteed that €280 a month for another 15 years..

teaandsnooker · 31-03-2022 10:14pm

I've a friend who has term dependent work - ebs were helpful.

Saving/Applying for a mortgage 2020-22 Edition

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