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Saving/Applying for a mortgage 2015/16/17/18/19

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  • Closed Accounts Posts: 43 F412


    Jen44 wrote: »
    they dont really care where you save it so long as there are no withdrawls. For example you cant really show savings in a current account so its best to keep it all in a separate savings account so they can clearly see the money coming in and not going out. We had a savings account in my name and husband used to transfer money to my current account that i then I would transfer it to my online savings account. We had to clearly highlight the funds coming into my current account and then show them going into the savings account

    How do they look on withdrawals?

    As I said I've two separate savings accounts one that's for general savings that I would plan on using for big things such as say buying a car or other significant purchase but not for day to day. If I were to withdraw I would continue saving into it even on the month of withdrawal so wouldn't that show I'm not falling back on savings rather using them for something useful. As yet it's untouched in over a year since I opened it.

    The other account I don't touch and it's purely for going towards a deposit (to show I can save every month towards it), thing is I already have the majority or even more than I'd spend on my deposit from various gifts over the years that's held separately so I actually would require very little or any of my actual savings for it I'm saving really to build up a record and for buying stuff or covering myself was I out of work for a period etc.

    I'm not actually planning to buy at this moment by but I want to have my accounts in the right shape for when the bank do want to look at them.


  • Registered Users Posts: 562 ✭✭✭Flatzie_poo


    F412 wrote: »
    I'm not actually planning to buy at this moment by but I want to have my accounts in the right shape for when the bank do want to look at them.

    Long story short, they just want to see you can do without (x) amount per month.

    The amount you can do with out they'll determine as what you can pay back to them.

    For example, you pay €800 PM on rent, save €400 on top. They''ll see you as being about to afford €1200 per month. They'll factor this into your ability to repay a particular sum, and approve you for whatever amount meet this and other factors.


  • Registered Users Posts: 1,065 ✭✭✭Santy2015


    Yeah that's what we were told too, keep saving and don't even dream of touching those savings accounts. Another tip try and not use your Visa card for paying for drinks in a pub or gambling 6 months prior to going for approval


  • Closed Accounts Posts: 43 F412


    Santy2015 wrote: »
    Yeah that's what we were told too, keep saving and don't even dream of touching those savings accounts. Another tip try and not use your Visa card for paying for drinks in a pub or gambling 6 months prior to going for approval

    I've already moved over to using the cash card for lodging and withdrawing money from my betting account so no more gambling on my account, that said I have a friend who has just got a mortgage and he is often using his account for lodging to betting accounts and it didn't appear to have any impact.

    On the savings I can understand the keeping saving but not why you cant touch your savings (if its not really impacting on your deposit), obviously if you are dipping in constantly for paying your rent or food shopping its bad but if you go in for some every now and then for a big purchase like new tv, car etc but continue saving I don't see how it takes away from showing you have the ability to save as you are not using them to get by but to buy something useful and something you would not buy if you hadn't the money for it.

    I have a fixed amount going to one account every month and then I dump everything left in my current account from the previous month into my other savings account. I would have no intention of touching the first but the second I would not plan on keeping untouched, though so far it is.


  • Registered Users Posts: 1,065 ✭✭✭Santy2015


    F412 wrote:
    gambling
    F412 wrote:
    I've already moved over to using the cash card for lodging and withdrawing money from my betting account so no more gambling on my account, that said I have a friend who has just got a mortgage and he is often using his account for lodging to betting accounts and it didn't appear to have any impact.
    we have but standing orders into our credit union accounts each Thursday and SO into a separate bank savings the bank savings are a car for myself once we get the house sorted and for small furnishings. The credit union savings are for deposit and stamp duty


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  • Registered Users Posts: 6,784 ✭✭✭Alkers


    F412 wrote: »
    On the savings I can understand the keeping saving but not why you cant touch your savings (if its not really impacting on your deposit), obviously if you are dipping in constantly for paying your rent or food shopping its bad but if you go in for some every now and then for a big purchase like new tv, car etc but continue saving I don't see how it takes away from showing you have the ability to save as you are not using them to get by but to buy something useful and something you would not buy if you hadn't the money for it.

    I have a fixed amount going to one account every month and then I dump everything left in my current account from the previous month into my other savings account. I would have no intention of touching the first but the second I would not plan on keeping untouched, though so far it is.
    The amount going into your untouched savings account is what the bank will see as being an affordable mortgage repayment for you. Even when you have a mortgage, you would be hoping to be saving some money also, which is where the second account comes in.
    If you're saving 1k a month into an account but every six months you're dipping into it to make a big purchase, they would calculate your affordable payment as being less than the 1k a month.


  • Registered Users Posts: 1,584 ✭✭✭Del007


    Will any bank give a mortgage to someone working on a contract?


  • Registered Users Posts: 236 ✭✭leanonme


    I purchased a house this year. It was 140000, we got the maximum mortgage of 125000, as I was the only one of us who could be on the application. I had 19000 in savings, 15000 went to the deposit, 4000 on stamp duty and solicitors fees etc. my partner had a further 10 for furniture. But we had some other expenses as well, so make sure ya have a contingency fund.
    Little things pop up, such as for us the boiler was broken, and the shower was broken, and worst of all, before we got the keys the place was broken into and the copper pipes were robbed. So make sure ha have money there for stupid things us would never think of.

    My best advise is make sure you don't have an over draft that your using, don't touch your savings at any point and if you do ha will need a good explanation as why you did, save a consistent amount every month and don't drop below that amount. Also we were initially refused for a mortgage but then went to a broker and got accepted by three banks including the original that refused us, so I would advise if your working on a contract get a broker, because they help you to jump all those hurdles. I had to get letters from my employer which were worded in a nice way so that it seems like my contract would more than likely be renewed.


  • Posts: 0 Cash Spicy Banana


    Del007 wrote: »
    Will any bank give a mortgage to someone working on a contract?

    It would depend on many factors I'd imagine but I would think that they will in certain circumstances.


  • Registered Users Posts: 2,921 ✭✭✭Bananaleaf


    April 73 wrote: »
    I based that on the quote I got from a solicitor as below:
    The bit you might be able to negotiate on is the professional fee. I don't think they can do anything about the registration & search fees.

    Purchase:
    Land Registry fee to lodge Transfer €800.00
    Land Registry fee to lodge Deed of Mortgage €175.00
    Copy Folio €6.00 €981.00

    Stamp Duty @ 1%

    Search fees as required by the Lending Institution and against the vendor €125.00
    V.A.T @ 23% €28.75 €153.75

    Professional fee €1,250.00
    V.A.T @ 23% €287.50 €1,537.50


    Hi all

    Hi Santy - hope the savings are going well. Good thread.

    We are saving for a mortgage too. I really don't know what to do or how to make the first step - is there any manual or information anywhere???

    We currently have 20k saved and will have 40k by next year. For what we are looking for, the price now is 160k, so we are looking at a 120k mortgage. I would say we have a combined salary of about 70k

    We have no loans so I guess we should be okay.

    I haven't factored in extra costs as I don't know what they would be

    April - I was wondering if you can explain the costs in your post above. Do we also have to pay these?

    40k would be all the savings we will have by next Sep so would we really need an extra 10k on top of that?

    Furniture etc will be fine, we will get second hand/cheap/hand me downs and do up one room at a time.

    Thank you


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  • Registered Users Posts: 25 BertyytreB


    Del007 wrote: »
    Will any bank give a mortgage to someone working on a contract?

    Yes I got one, but I'm on a rolling contract and 4years in the job


  • Registered Users Posts: 846 ✭✭✭April 73


    Bananaleaf wrote: »

    I haven't factored in extra costs as I don't know what they would be

    April - I was wondering if you can explain the costs in your post above. Do we also have to pay these?

    40k would be all the savings we will have by next Sep so would we really need an extra 10k on top of that?

    Furniture etc will be fine, we will get second hand/cheap/hand me downs and do up one room at a time.

    Thank you

    Hi Bananaleaf, you will have to pay stamp duty of 1% of the purchase price to Revenue. On a house priced at €160,000 this will be €1600. The other big expense is the legal cost. I would factor in around €2000 to €2500 to cover the solicitor's professional fee, searches & land registry - that's what those costs outlined in my previous post cover. Don't forget the survey cost which could be around €300 to €500. You may also have to pay a valuation fee to the bank - usually around €100-€150.
    And yes, you'll have similiar costs involved in the purchase.

    With savings of €40,000 for a house costing €160,000 you should be fine. Deposit of €32,000 is 20% and mortgage of €128,000 should be fine. That would leave €8000 to cover stamp duty, solicitor, any other costs.


  • Registered Users Posts: 891 ✭✭✭NyOmnishambles


    Del007 wrote: »
    Will any bank give a mortgage to someone working on a contract?
    It would depend on many factors I'd imagine but I would think that they will in certain circumstances.
    BertyytreB wrote: »
    Yes I got one, but I'm on a rolling contract and 4years in the job

    They will but you might have to provide more information than normal, also depends on what industry you are in I would guess

    I work in IT so they accepted that it is pretty normal to move around every 12-18 months and be on 6 month contracts

    I had to provide a copy of my current contract and P60's from the previous 3 years and a copy of my CV (everything on it was factual but have no idea what use it could be to them) once they saw a consistent level of income of that time period there were no issues


  • Posts: 0 Cash Spicy Banana


    April 73 wrote: »
    Hi Bananaleaf, you will have to pay stamp duty of 1% of the purchase price to Revenue.

    Also just to add if you go with BOI you will get your stamp duty refunded (up to certain limits).


  • Users Awaiting Email Confirmation Posts: 5,620 ✭✭✭El_Dangeroso


    Also just to add if you go with BOI you will get your stamp duty refunded (up to certain limits).

    Which you'll pay back and then some with their higher variable rates.


  • Posts: 0 Cash Spicy Banana


    Which you'll pay back and then some with their higher variable rates.

    I'm only mentioning the offer. A friend of mine just went with BOI for a mortgage and he is no fool so I would say they must be much of a muchness between the banks.


  • Registered Users Posts: 562 ✭✭✭Flatzie_poo


    I'm only mentioning the offer. A friend of mine just went with BOI for a mortgage and he is no fool so I would say they must be much of a muchness between the banks.

    I think it's competitive until 7/8 years in - if you're going to sell before this time then it's a prudent deal.


  • Users Awaiting Email Confirmation Posts: 5,620 ✭✭✭El_Dangeroso


    I'm only mentioning the offer. A friend of mine just went with BOI for a mortgage and he is no fool so I would say they must be much of a muchness between the banks.

    I think it becomes attractive at much lower LTV rates so maybe that was the case with your friend.
    I think it's competitive until 7/8 years in - if you're going to sell before this time then it's a prudent deal.

    I believe they have a clawback clause, not sure when it kicks in though.


  • Registered Users Posts: 562 ✭✭✭Flatzie_poo


    I believe they have a clawback clause, not sure when it kicks in though.

    I haven't read the small print by any means, just did a quick calc to see, so I'll err on the side of caution with you on this!


  • Registered Users Posts: 902 ✭✭✭lainey316


    Clawback is 5 years for the cashback with BoI

    Cost of credit as per my offer letters from BoI vs EBS had a 96k difference - EBS much cheaper on SVR. BoI fixed rates are competitive with ESB variable. Their variable rates are outrageous (60-80% LTV)


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  • Users Awaiting Email Confirmation Posts: 5,620 ✭✭✭El_Dangeroso


    Askaboutmoney has done the calcs for us:

    http://www.askaboutmoney.com/threads/evaluating-the-bank-of-ireland-2-cash-back.194719/

    So it's five years before you can switch.


  • Registered Users Posts: 1,065 ✭✭✭Santy2015


    Just in relation to going for mortgage approval, BOI are giving you 12 months and EBS 6 months. Come January we should have €10k in CU accounts and €1k in BOI savings as we are using our CU savings for our deposit and stamp duty and bank savings for a car loan for myself when hopefully we'll have a house. They are both offering similar mortgage packages except BOI who have longer approval and will probably extend that cash back offer. Should we go for approval in January or hold out? We will have €15k by the start of May too


  • Registered Users Posts: 1,065 ✭✭✭Santy2015


    Nothing in the budget for FTB or incentivise people to buy. Still keep the head down and keep on saving our euros


  • Registered Users Posts: 495 ✭✭bleary


    I don't think the market needs more people incentivised to buy at the moment. The issue is a lack of supply. Perhaps Nama may provide some additional housing but not for a bit down the line


  • Registered Users Posts: 1,065 ✭✭✭Santy2015


    Nama won't be much good too people outside of Dublin. I think they said 90% will be in the Dublin area. Private housing is a major problem everywhere but saying that supply in my area isn't too bad and is affordable if you save hard enough


  • Registered Users Posts: 561 ✭✭✭HiGlo


    MrStuffins wrote: »
    You might be fine.

    Just request a credit report from the ICB website. Costs €6. I got one a while ago as i wasn't sure about a loan I had before. It was all clear. €6 well spent :)

    I did this and got it in the post yesterday.
    The only indication on it is that I have revoked credit card. The card was issued in 2007 but I haven't had an actual physical credit card since 2010/11 when no card was sent to me when the original expired. I have fully paid this card off since August 2014.
    According to the ICB report the Scheduled Removal Date is September 2018. Does this mean that this card will sit on my record till then?? Or does it just mean that's the current expiry date on the card (even though I don't have a physical card?). Does anyone know can I contact the bank and ask them to close that credit card account? Would that make any difference?


    I'm getting my ass in gear to start some serious saving now.


  • Registered Users Posts: 1,065 ✭✭✭Santy2015


    Got my arse into gear as soon as I popped the question haha. Had different plans but down here in cork the rental market is a joke and you're better off to buy here.


  • Registered Users Posts: 7,977 ✭✭✭youcancallmeal


    Me and the wife are looking at buying our first (And hopefully only) house next year. We've been advised by a few people to start talking to mortgage brokers now? This thread is great for getting an idea of where we need to be. We are looking at south Dublin so aiming for house value around 400k and mortgage of 350k. Hoping to have close to 50k saved by next August/Sept. From what I can tell 350k mortgage with 50k may not be enough after factoring in around 10k for stamp duty, legal fees etc? Anyone any recommendations for a good broker in south Dublin?


  • Registered Users Posts: 460 ✭✭iainBB


    Hoping to have close to 50k saved by next August/Sept. From what I can tell 350k mortgage with 50k may not be enough ?


    With the new rules you will need 58 k deposit for a house of 400k
    It's 10 % deposit on 220 and 20% on rest.

    so that is 22k on first bit and 36k for the rest

    That is excluding fees etc.
    Your going to have to save a hell of a lot more or change house price. You may if lucky to get waver for only10% deposit.


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  • Registered Users Posts: 7,977 ✭✭✭youcancallmeal


    iainBB wrote: »
    With the new rules you will need 58 k deposit for a house of 400k
    It's 10 % deposit on 220 and 20% on rest.

    so that is 22k on first bit and 36k for the rest

    That is excluding fees etc.
    Your going to have to save a hell of a lot more or change house price. You may if lucky to get waver for only10% deposit.

    I don't know why but I had it my head the restrictions only apply to the amount you want to draw down(i.e. 350k) as opposed to total value of the house. Yeah I suppose we'll just have to save for longer or change house price range. Still very early days for us so end goal is a bit of a moving target. Might even wait until 2017 if we have to but that would not be ideal.


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