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Saving/Applying for a mortgage 2020-22 Edition

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Comments

  • #4402
    Buyingahouse25
    Registered Users Posts: 3 ✭Buyingahouse25


    I wouldn't worry about it too much. Two or three explainable late fees or overlimits should be fine.

    But get your credit report for free to give you piece of mind. I thought I was over the limit a few times and got charged late fees incorrectly a few times. I made my payments just after the incorrect statements and nothing showed up in my credit report. I actually did go a few euro over the limit one time but because I paid back in a respectable time frame that late fee never showed up on my credit report. One or two mistakes doesn't automatically show up your credit report. Depends what way your banks reporting works.



  • #4403
    Ainm Cleite
    Registered Users Posts: 5 ✭Ainm Cleite


    I'm saving for a mortgage at the moment, and doing freelance work outside the day job to get extra money. I will have a fairly big tax bill to pay next year. I have been saving very ambitiously, but the most of the money for next year's tax bill will have to come out of my savings.

    So I'm just wondering would withdrawing that money cause trouble when applying for a mortgage? Would it be better to save a bit less and put the tax money in a separate pot?



  • #4404
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,102 Mod ✭✭✭✭AlmightyCushion


    https://www.boards.ie/discussion/comment/122417799#Comment_122417799

    Your mortgage savings should be the same amount each month and you should never touch them. So, yes put the tax money in a separate account and put a bit extra away for the tax savings just in case you underestimate how much you owe.



  • #4405
    bridge45
    Registered Users Posts: 1 ✭bridge45


    Hi Self Build2024,

    Did you manage to drawdown without land in your name? We are in the same position, applied end of January here we are in August and still land hasn’t been transferred to my name. One of the most frustrating process’ ever and between the banks/solicitor/land registry they are all working at snails pace.

    We are at roof level now of the build and will most likely have to stop now until land is in my name as can’t pay anybody ….



  • #4406
    Rita57
    Registered Users Posts: 36 ✭Rita57


    https://www.boards.ie/discussion/comment/122327580#Comment_122327580

    I would suggest get your credit report and go to a mortgage advisor at a brokers they will hopefully be able to provide you with an advice on how to proceed. It’s better to approach it this way rather than submitting an application to the lender and for them to see or read about it for the first time. Looks better if you approach it first (if your credit is an issue)



  • #4407
    o1s1n
    Registered Users, Registered Users 2 Posts: 35,281 ✭✭✭✭o1s1n
    Master of the Universe


    Overlimit fees are just charges for going over your credit card limit, it's not a strike on your credit report or anything.

    Your credit report is just about your ability to pay back a loan and if you missed any payments.

    Overlimit fees from 2 years ago won't have any relevance to your mortgage application as they won't be appearing on your 6 months of bank statements.

    What you should be aware of though is overlimit fees on your current 6 months of bank statements that you're supplying to the bank. They aren't fond of them at all.

    I had a couple of them in my bank statements and my mortgage broker shat me out about them. She made it work but she had to explain each one to the banks.



  • #4408
    antodeco
    Registered Users, Subscribers, Registered Users 2 Posts: 13,594 ✭✭✭✭antodeco


    Quick question, whilst I know you can borrow up to 4 times your salary, I also understand that there is a % of available income that they apply a rule to. I think its around 25-34%? However, based on that calculation, 34% of a monthly income is significantly less than the monthly mortgage rate. Which takes preference?

    EG: 5k Monthly Salary. Max 34% is €1700 per month. a 380K Mortgage over 27 years is €1900? So do banks allow the €1900 or just the €1700? If have happen to have a personal loan for say €500 per month, is that then €1400 or €1200 respectively, or what way does it work?



  • #4409
    Gary_dunne
    Registered Users, Registered Users 2 Posts: 551 ✭✭✭Gary_dunne


    https://www.boards.ie/discussion/comment/122586022#Comment_122586022

    Hard to give a definitive answer as most mortgages are nearly taken on a case by case basis. They will do a stress test to see if rates went up by a certain % (usually around 2.5%) can you continue to afford to pay the mortgage on your current salary. The % of your salary would only come into the equation if it was accounting for 65/70% of it.

    A 5k a month salary would only qualify for a max of €240k of a mortgage so couldn't be near the 380 mark in your hypothetical scenario hence why it's difficult to provide you with a definitive answer without much more info.

    I'd get in touch with a broker if you need concrete information.



  • #4410
    antodeco
    Registered Users, Subscribers, Registered Users 2 Posts: 13,594 ✭✭✭✭antodeco


    https://www.boards.ie/discussion/comment/122586053#Comment_122586053

    Sorry to clarify, 5K net, 8K gross



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  • #4411
    Gary_dunne
    Registered Users, Registered Users 2 Posts: 551 ✭✭✭Gary_dunne


    https://www.boards.ie/discussion/comment/122586090#Comment_122586090

    No worries, at an 8k salary you'd have no issues obtaining a mortgage of €380k, myself and my partner are in a very similar financial position to yourself (slightly less net and a bit less loan amount per month) and flew through the AIP process being offered a mortgage max of €375k



  • #4412
    antodeco
    Registered Users, Subscribers, Registered Users 2 Posts: 13,594 ✭✭✭✭antodeco


    https://www.boards.ie/discussion/comment/122586119#Comment_122586119

    Thanks for that. Would having another loan of €500 - €1000 per month massively influence this also?



  • #4413
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,017 ✭✭✭antimatterx


    https://www.boards.ie/discussion/comment/122586253#Comment_122586253

    Of course it would have a massive influence.



  • #4414
    Middleage Fanclub
    Registered Users Posts: 91 ✭✭Middleage Fanclub


    Sorry if this has been asked before, for a self build mortgage, when you draw down money from the bank, do they pay it directly to you, your solicitor or the builder? Thanks



  • #4415
    FastFullBack
    Registered Users, Registered Users 2 Posts: 1,457 ✭✭✭FastFullBack


    https://www.boards.ie/discussion/comment/122586792#Comment_122586792

    In my case, bank pay solicitor. Solicitor will transfer to you or direct to builder, whichever you want



  • #4416
    extra-ordinary_
    Registered Users, Registered Users 2 Posts: 1,805 ✭✭✭extra-ordinary_


    https://www.boards.ie/discussion/comment/122219341#Comment_122219341

    Wouldn't think 2022 will come into it if applying now. Also, are Avant not at 6 or 7% fixed these days?



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  • #4417
    extra-ordinary_
    Registered Users, Registered Users 2 Posts: 1,805 ✭✭✭extra-ordinary_


    ..

    Post edited by extra-ordinary_ on


  • #4418
    extra-ordinary_
    Registered Users, Registered Users 2 Posts: 1,805 ✭✭✭extra-ordinary_


    https://www.boards.ie/discussion/comment/122586022#Comment_122586022

    If the mortgage repayments go over the affordability threshold you could either extend the term or borrow less to bring down the repayments. If there's no actual leeway the bank will just offer you less than the full 4x amount.



  • #4419
    Buyingahouse25
    Registered Users Posts: 3 ✭Buyingahouse25


    https://www.boards.ie/discussion/comment/122587255#Comment_122587255

    I don't think so, seeing 4.05% for the longer fixed or full terms and just under 4% for their shortest 4 year fixed. I wouldn't be looking at anything at 6 or 7%!



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