First Time Buyer

T

tinal

Registered User
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Hi All

I'm a first time buyer and I have a couple of questions that I would love advice on:

I'm looking to buy a house for €225,000 but it will need another 30k spent on it to bring it up to scratch. My first question is - can I figure this 30k into the amount that I ask the bank for or will they only consider the actual 225k for the mortgage?

My next question is - I'm currently using a broker to check out mortgages for me. Now I'm wondering why I need him - is it not as easy for me to just go into PTSB or AIB and enquire about mortgages myself?

Any insights into the above will be much appreciated.

t
 
You will only be given a mortgage for 90-92% of the purchase price of property , so if the house is 225k , they will loan you 90% or 92% ( depending on which bank ) . You will have to make up the remainder with your deposit . Don't forget also valuation fees , surveyor fees, solicitors fees etc, you cannot borrow extra to decorate/furnish etc. Although some banks may still offer a 3 month moratarium at the beginning of your mortgage, its a payment break which can help you get the essentials done.

Of course you can deal directly with the banks, I dealt directly with EBS & found them brilliant .
 
Renter27 said:
You will have to make up the remainder with your deposit
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Are you sure about this? If you're adding value to the house to bring it back up to the market value, why wouldn't a bank loan at least some of this - maybe not 90%, but perhaps 50-70%??
 
Renter27 said:
Of course you can deal directly with the banks, I dealt directly with EBS & found them brilliant .
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One word of warning with EBS, they do not publish their fixed rates for existing customers so you could be offered any rate.
If you are confident you know the ins and outs of each mortgage offering made by the banks then you could apply to each bank directly.
Make sure you shop around for your insurances too, don't buy direct from the bank without ensuring they are the most competitive.

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One word of warning with EBS, they do not publish their fixed rates for existing customers so you could be offered any rate.
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The heading to this question is "First Time Buyer", so this is irrelevant.
 
Brendan Burgess said:
The heading to this question is "First Time Buyer", so this is irrelevant.
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I don't see how to be fair.

The minute the OP draws down the mortgage, they becomes an existing customer.
If something happens early in the term of the mortgage causing them to have to fix, they should be aware that they will not know the rates on offer at EBS.

When signing up for a long term loan all future considerations should be taken into account especially for a first time buyer who may not be aware of the differing terms and conditions between the lenders.

All things being equal between EBS and another lender I would advise a client to go elsewhere due to the fact EBS are secretive about their fixed rates. If EBS have a problem with this then why don't they publish their fixed rates for existing customers on their website as the competition does.

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If lenders are not being transparent in their dealings with customers then this should be highlighted especially on a site such as this.
 
Tinal - are you paying for your broker? Most brokers are not paid by the clients. We didn't pay our one and I must say having him made it much less stressful, he liaised with the banks, he checked over all documents to ensure that there was nothing which would cause confusion / rejection / delays. He sent the docs to the bank, followed up on the application at each stage. I think he saved us much time and phone calls and also had the knowledge to ensure our mortgage application was as it needed to be to get the approval (which these days is harder to get and could be refused for even small reasons)
 
Bob_tg said:
Are you sure about this? If you're adding value to the house to bring it back up to the market value, why wouldn't a bank loan at least some of this - maybe not 90%, but perhaps 50-70%??
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If the property is 225k , the mortgage will be given to a maximum of 92%
ie Loan amount 207k
Deposit needs to be at least 18k , from buyers own savings , not a loan .
 
Yes, but what about the other 30k to "bring it up to scratch"? If someone buys a house that is undervalued, but needs "modernisation", which is really further investment as opposed to maintenance, can this not be considered in the mortgage?

At an extreme example, if there was a derelict house that was was worth only 100k, but would need another 150k, surely the bank would not extend a mortgage only for the derelict house?
 
Well tinal
I am just wondering how ur search for a mortgage is going. I was also looking at a similar position myself so would be interested to know how u got on. The house is for sale for 380 though but needs a good 40 k spent on it.
Regards
Mike
 
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