Will I qualify for a mortgage?

Mortgage2023 said:
Presuming a fixed rate is better than variable in these times of uncertainty?
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Probably. Some of the variable rates are lower than the fixed rates now but that may only be temporary – none of the lenders increased their variable rates when they increased their fixed rates but they might yet do so.
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And your savings will be largely wiped out when you buy a place, so certainty around your monthly repayment is probably more important to you than to someone who has replenished their savings.
 
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Super thank you Paul F.

After doing a very quick and unscientific search on Bonkers on a hypothetical 300k property with my 94k savings, borrowing 206k over 25 years on fixed rate only results in the below cheapest result.

Permanent TSB 4 Year Fixed Rate New Business - LTV greater than 60% and less than or equal to 80% - €945.04 monthly​


I put in a call back request with the Broker I mentioned as well as with AIB so I will potentially speak to them on Tuesday. Checked the Terms of Service of the Broker and there are definitely no charges.

TSB is my bank so would it be easier to go directly to them myself rather than through a broker?
 
Although it says Full term cost of this is €310,465.95 compared to full term cost with AIB of €293,650.82 as per the below. Although of course there is no guarantee your property will be B3 or higher.

AIB - 5 Year Fixed Rate >50% <80% LTV - €993.02Monthly repayment - €993.02 monthly​

Reduced rate for BER ratings of B3 or higher​

 
Mortgage2023 said:
TSB is my bank so would it be easier to go directly to them myself rather than through a broker?
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In practice, there's no real benefit.

Mortgage2023 said:
Although it says Full term cost of this is €310,465.95 compared to full term cost with AIB of €293,650.82 as per the below.
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The 'full term cost' assumed that you'll revert to standard variable rate at the end of the fixed rate. But you should have other options available to you.

I think Paul linked to some best buys threads earlier. Have a look through these, and it might lead you to more questions as you get to know more.

I think it's fairly certain that rates available when you actually get to drawdown will be different to whats available right now, so its a good idea to have a few options available. The banks haven't repriced recent rate increased fully into their rates yet.
 
Mortgage2023 said:
Although it says Full term cost of this is €310,465.95 compared to full term cost with AIB of €293,650.82 as per the below.
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RedOnion said:
The 'full term cost' assumed that you'll revert to standard variable rate at the end of the fixed rate. But you should have other options available to you.
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@Mortgage2023 As @RedOnion says, don't pay too much attention to the full-term cost. It is built on fairly meaningless dubious assumptions. The fixed interest rate is usually the most important consideration.
 
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Two more questions please.

In relation to the bonus, I joined to company in January 2022 so didn’t qualify last year, this year will be my first year getting the bonus it will be paid in February. Do I need to wait until its actually paid or can I proceed with my application in lieu of it as its in my contract and on my salary certification.

I will have a salary review in June or July 2023. Again I didn’t qualify for it last year as I was only new but I will this year. It won’t be a huge increase but last year it was 4% across the company and they have had a good year this year so I would expect a small bit more. If I get AIP and draw down after the salary review will this be factored into how much I can borrow?
 
Mortgage2023 said:
In relation to the bonus, I joined to company in January 2022 so didn’t qualify last year, this year will be my first year getting the bonus it will be paid in February. Do I need to wait until its actually paid or can I proceed with my application in lieu of it as its in my contract and on my salary certification.
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@RedOnion Once Mortgage2023 gets their bonus in February, can the lender count it as gross income for the purposes of the "4x income" calculation? Or can the lender only consider Mortgage2023's gross income for the 2022 calendar year?
 
@Mortgage2023
Start the process with your broker, and explain the bonus situation. Each lender has their own treatment of bonuses, and the broker will know best how to proceed with each. If its on your salary cert that can be included in the LTI calculation.
You won't have found a house and drawn a mortgage before the bonus is paid in February, so you should expect to have to provide up to date payslips including the bonus.
 
Paul F said:
@RedOnion Once Mortgage2023 gets their bonus in February, can the lender count it as gross income for the purposes of the "4x income" calculation? Or can the lender only consider Mortgage2023's gross income for the 2022 calendar year?
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Once it's on salary cert it can be included, otherwise people would have to be in jobs 12 months before applying for mortgage. But most lenders will want to see payslip including it for their own underwriting criteria.
 
Thank you for all the advice. I have uploaded my documents with the broker and requested a call back for tomorrow.

I will let you know how I get on.
 
You could try the credit union too. I found them more willing to lend more and their rates aren't bad. You have to have an account with them, but this can be set up after initial enquiries. l found them very helpful, much more personal than my broker and might be able to consider bonus more?

My recent experience of Avant is that they are cherry picking borrowers because everyone wants to switch to them. PTSB and credit union offered more than Avant via broker.
 
RedOnion said:
Once it's on salary cert it can be included, otherwise people would have to be in jobs 12 months before applying for mortgage. But most lenders will want to see payslip including it for their own underwriting criteria.
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I thought 6 months was the min to apply ?
 
The mortgage broker I mentioned in my previous posts has reverted to me with the below to my question of will they submit to multiple lenders.

Should I swerve them as a result?

"We will only submit to one lender. However, if this does not work out for whatever reason, we can approach another lender for you"
 
Good evening all,

Please see a quote I received today from the broker. I am shocked to see TSB rates are so low as they are said to be uncompetitive? Although I do see the fixed period is 4 rather than 5 years. Does anybody have any thing to add?

Lender/product Period Rate APR Monthly Repayment

ICS Owner Occupier LTV <=80% 5yr Fixed 60 months 5.10% 5.23% €1,255

PTSB 4 Year New Business Fixed Rate 48 months 2.70% 3.49% €975

Haven 5 year Fixed new 60 months 3.55% 3.40% €1,070

BOI 5yr Fix LTV 61-80% New 60 months 3.25% 3.80% €1,036

Finance Ireland Progress 5yr Fixed <=80% 60 months 5.55% 5.40% €1,311

Avant 5yr Fixed >70-80% LTV 60 months 3.75% 3.59% €1093
 
Mortgage2023 said:
Please see a quote I received today from the broker. I am shocked to see TSB rates are so low as they are said to be uncompetitive? Although I do see the fixed period is 4 rather than 5 years. Does anybody have any thing to add?
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Ignore the APR figure (the second percentage figure) in each row.

Your broker has left out the Haven, PTSB and BOI green rates, which you may or may not be eligible for (depending on the BER of the property you buy).

Many people here, at least those who were switching their existing mortgage, have found Haven to be very slow.

PTSB are competitive at the moment but they (and BOI) could potentially increase their rates before AIB do, and before you draw down.

The BOI rate offers 3% cashback but the 2.7% PTSB rate does not, making BOI better value for your case (especially if you get the green rate).

PTSB have treated their existing customers very badly in the relatively recent past – not offering fixed rates to existing customers, and when they finally did only offering rates that were higher than those for new customers. They have largely ended those practices now but nobody can say for sure that they won't return.
 
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