FTB mortgage choice advice

[georged3rd]

FTB (joint) & just paid a deposit on a new build. We're delighted. Complete newbs to the world of mortgages but learning fast with the help of AAM.
HTB approved. Looking for mortgage at 70% LTV.

Questions:

1. How soon after placing a deposit on a new build do I need to get a loan offer?

2. Is it essential to have a loan offer in place before signing the developer's contract? Or is it possible to sign a contract including a stipulation that it is subject to loan offer receipt? Do most developers tend to agree to such a stipulation (they did for someone else that I know in the same estate but I don't want to over risk it either)?

3. Where can I find a good calculator illustrating how much can be saved (in money & term time) by overpaying (e.g. lumpsum)?

4. What is the easiest way to find out what PTSB's overpayment (e.g. lumpsum) options & costs are?
- PTSB's Flexible Mortgage Options outlined at https://www.permanenttsb.ie/globala...s/permanent-tsb-flexible-mortgage-options.pdf don't appear to be straight forward to interpret. Complicated formula on page 18 (section: Fixed Term Loans)

5. What is the simplest way/source to estimate the fixed rate penalties for overpaying while on a fixed rate for the various banks?

6. If we were to start a family & one of us was to stop working for a period of time (6 to 12 months or longer) would most/all banks likely prevent us from switching (either after breaking out or at end of term)? We want to avoid being stuck with a bank with less competitive rates & flexibility such as PTSB.

7. Do KBC have a criteria for exemptions in that the loan amount requested must be at least €20K more than your income figure * 3.5? If so, has anyone had KBC waive this criteria (e.g. if the loan amount requested was only ~3K more than income * 3.5%)?

8. Are UB slower than most to process applications?

9. [Newb question] When switching, does the Total Amount Repayable (e.g. the figure in https://compare.ccpc.ie/MortgageDetail.aspx?i=471) also move with the mortgage or is it just the principal/loan amount that moves?

 

[Coldwarrior]

Answers inline to some of your questions.

FTB (joint) & just paid a deposit on a new build. We're delighted. Complete newbs to the world of mortgages but learning fast with the help of AAM.
HTB approved. Looking for mortgage at 70% LTV.

Questions:

1. How soon after placing a deposit on a new build do I need to get a loan offer?
If you haven't already got approval I'd be applying to multiple banks straight away, see the Best Buy key posts for which banks/rates may be best. Also check out the thread/s on multiple switches to avail of cashback offers.

2. Is it essential to have a loan offer in place before signing the developer's contract? Or is it possible to sign a contract including a stipulation that it is subject to loan offer receipt? Do most developers tend to agree to such a stipulation (they did for someone else that I know in the same estate but I don't want to over risk it either)?
Some developers do allow the contract to be subject to loan offer, get your solicitor to ask. If they don't agree to this, do not sign the contract without having full mortgage approval from at least one bank. Doing so risks losing your whole deposit if for any reason you can't get the mortgage approval.

3. Where can I find a good calculator illustrating how much can be saved (in money & term time) by overpaying (e.g. lumpsum)?
I find this one to be the best: https://www.drcalculator.com/mortgage/

4. What is the easiest way to find out what PTSB's overpayment (e.g. lumpsum) options & costs are?
- PTSB's Flexible Mortgage Options outlined at https://www.permanenttsb.ie/globala...s/permanent-tsb-flexible-mortgage-options.pdf don't appear to be straight forward to interpret. Complicated formula on page 18 (section: Fixed Term Loans)

5. What is the simplest way/source to estimate the fixed rate penalties for overpaying while on a fixed rate for the various banks?

6. If we were to start a family & one of us was to stop working for a period of time (6 to 12 months or longer) would most/all banks likely prevent us from switching (either after breaking out or at end of term)? We want to avoid being stuck with a bank with less competitive rates & flexibility such as PTSB.

7. Do KBC have a criteria for exemptions in that the loan amount requested must be at least €20K more than your income figure * 3.5? If so, has anyone had KBC waive this criteria (e.g. if the loan amount requested was only ~3K more than income * 3.5%)?

8. Are UB slower than most to process applications?
I definitely found their application process slower that the other banks I've dealt with

9. [Newb question] When switching, does the Total Amount Repayable (e.g. the figure in https://compare.ccpc.ie/MortgageDetail.aspx?i=471) also move with the mortgage or is it just the principal/loan amount that moves?
Not sure what that figure is on the ccpc site, looks to be the total interest maybe, but regardless the only figure that matters when switching is the current balance/principal left on the mortgage. If you plan on switching and want to keep the same term it might be worth taking your mortgage protection policy out for a year longer than the initial mortgage term, as banks tend to only use whole years for the mortgage term, so for example if you were 6 months into a 30 year mortgage and you wanted to switch, your new mortgage term can't be 29.5 years, it'd be either 29 or 30, the latter only being possible if you take the mortgage protection policy out for a bit longer than the original mortgage term (eg take it out for 31 years)

 

[georged3rd]

Thanks Coldwarrior.

In the scenario where contracts are ready to be signed but we are out of the country on holidays & where our return date would be a week or two beyond the 3 to 4 week timeframe that our estate agent has originally advised that we would have to sign the contracts; is it normal/expected that the developer would have to be fine with that? Or is this risky? Obviously we don't want to risk losing out on the property but equally we don't want to have to change our holiday plans.

 

[David1234]

I wouldn't worry about being away, I doubt there would be any issue with the developer. Very common for people to be on holiday in the summer months so let the estate agent know and that you will sign when you get back.