Reality of getting a mortgage at the moment...

raven

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214
Hi there,

We're probably about to apply for a mortgage quite soon.
We thought we were as close to guaranteed to get one as its possible to be, - but my father was speaking to a friend of his (ex owner of an EBS agency) who is declaring that banks are basically not giving money to anyone, - pretty much regardless of circumstance...

I find the above a little hard to believe to be honest. I expect its tightened up a lot, but think there's a bit of over-exaggeration going on, - but I could be mistaken.

Has anyone any real experiences of successfully drawing down money in recent times? - would be interested to hear your circumstances (briefly).

In terms of our own circumstances, - in brief:
- 80% deposit approx; 385K in cash, mostly savings over a decade or so, gift from parents and money from previous house sale a few years back. (The fruits of being the frugal type !!)
- For a house of c 460K, - mortgage would be around 80K.
- I'm self employed as a consultant/contractor in IT, - salary of approx 80K for the last 4 years in this country (6 years overseas prior to that).
- Wife has permanent position as a manager in an IT MNC ( 60K salary). Has been there 4 years.
- Probably a decade of evidence of regular savings and consistent income
- No debts
- Creche outgoings of 1.5K per month

I'd have thought we'd be ultra low risk for any bank, - but this friend of my father reckons not so. I realize I am self employed but my wife would be able to carry the mortgage comfortably on her own. With both of us earning (which I expect to be honest, - plenty work in IT around at the moment), the repayments would be substantially less than our rent.

Any thoughts? And would be very interested to hear if anyone has successfully drawn down recently, and from what bank?

Thanks...
 

LDFerguson

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4,039
Hi Raven,

We arrange mortgages and I can verify that some banks are lending at present, albeit very carefully. As far as I can tell, EBS and Haven have virtually stopped lending recently so that may be where your father's friend is coming from. But AIB, Bank of Ireland, ICS and KBC are all approving loans at present. Not sure about Permanent TSB as their rates are poor at present, so we haven't tried them. Ulster Bank don't deal with brokers, but I have contacts there who tell me they are lending at present. From what you have posted, I'd say you could take your pick.

Allow plenty of time, expect plenty of queries and make sure all your documentation is correct and you should be fine.

Liam D. Ferguson
 

raven

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214
Thanks Liam, - just the kind of info I was after.
Yeah, he's an old school EBS guy, and is still involved with them - so could well be coming from that perspective alright.
 

sadie

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611
We were approved with Bank of Ireland.
Why don't you just apply now, so you have all your paperwork more or less done when the time comes.
Then, when you do find a house, all you'll need to provide is a couple of updated recent documents to renew the application if it's gone past the 3 months or however long the approval lasts.
 

raven

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214
Then, when you do find a house, all you'll need to provide is a couple of updated recent documents to renew the application if it's gone past the 3 months or however long the approval lasts.
Good idea, makes sense, thanks.
 

mwhich

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52
Hi Raven, if you don't get a mortgage, the rest of us are rightly screwed!!!! nice position to be in, with that kind of money in the bank....I think I'd be buying a nice house for myself for 350k and forgetting about a mortgage....living mortgage free sounds like a dream....
 

NorfBank

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2,103
Agree with mwhich.

If you go as a cash buyer you may be able to negotiate a significant discount on the asking price too if the vendor needs to sell quickly.
 

raven

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214
Yep, - happy enough to be in this position, - its a combination of a little luck (living abroad during the "boom"), a little foresight and mostly being the type of people that while not being totally frugal, - are happy enough to keep things simple and low stress.

Yes, had thought (obviously) about going for a slightly cheaper house and being mortgage free. A house has come up for us though that ticks a great number of boxes (we've been sitting for years now), - and a limited, manageable mortgage gives us the opportunity to purchase a house with space, location etc. We may never need to trade up or move from this house in the future (bar unplanned circumstantial changes) and I see this as a long term cost saving in itself.

Of course, the wait or buy now dilemma is always lurking still, - but that's another discussion!
 
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