Investment Property Mortgage application timing

D

Daddy Ireland

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A house has come on the market that I am interested in. At what point should I be looking to get mortgage approval for 70% and not knowing what the house purchase price will be ? Application form which goes on and on that I have seen from my own bank requires the property address to be stated and that's awkward to complete in advance of whether or not I would be given approval or indeed the actual amount I'll need. Basically I am applying for a mortgage for a property not even bid on by me and I have to state the address and the amount of the loan I want ?
Should the bank I bank with for many years not give me some idea over the phone rather than have to go to all of the bother of applying, payslips etc only to be turned down and meanwhile I cannot make a bid without approval. Could someone please guide me as to how to proceed ?
 
It's pretty much the same process as buying a house you're going to live in. You can get approval in principle, then at least you know that subject to the valuation of the specific property, you'll be able to borrow the money. It's only when you've found the property and agreed the price that you need to do the final steps.
If you call up the bank, saying you want to speak to someone, they'll guide you through the process.
 
Thanks. It's 30 years since I approached a bank on my own house so have forgotten. Should I be stating the advertised price on the application form or a higher price I am prepared to go to on the property? If the latter couldn't it be open to collusion between the bank individual I am dealing with and the estate agents. I know it sounds far fetched. If one is only getting approved in principle for an x amount of money why does the address of the house have to be on the application form ?
 
It's not a full application form, so there is no address. Which bank are you looking at? I'll see if I can find it for you.
 
Thanks. Permanent TSB mortgage application.relevant section.
 

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Sorry, I can't find an option with PTSB. They direct you to call them on the website.

With AIB as an example, you leave the property details section blank to get approval in principle, but there's nothing like that on the PTSB forms. It'd be best to give them a shout - try to get allocated to one of their mobile mortgage managers. That way you've a specific person to contact to ask questions and keep things moving.

If I understand, you want to know quickly whether or not they'll lend you the money?

If you do the full application now, with just the price wrong, it will take weeks to get approval, and lots of documents will be needed. It should be a relatively quick later to correct the sales price.

Looks like calling them is the quickest option.
 
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