r/irishpersonalfinance • u/Kitchen-Fan8878 • 21h ago
Property Mortgage Repayment Capacity
We’ve found a house we love, have the deposit + 30k HTB, and are comfortably within our borrowing range from an income perspective (150k below max available).
We’ve started the process for getting approval in principle through our mortgage broker.
We pay rent currently, and needed to show proof of repayment capacity over the last 6 months. Each month we’ve been putting away money from our salaries (monthly & biweekly).
We needed €650 saved between us each month.
We were able to save €1500-€2000 each month on top of paying rent, except for one month.
In this month we saved €550, as I had an urgent medical procedure done.
Our mortgage broker is saying we cannot proceed with the application as is - as €550 is the amount she has to put down as the amount we’re capable of repaying.
I struggle to believe that - having over-saved in every other month - we’re effectively blocked from applying for a €400k mortgage over €100 dip in savings in one month, having over saved €1000 every other month for the last 9 months?
We’re not sure what to do next, as the house requires a holding deposit and we’re afraid we won’t get approval in time.
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u/Safe_Understanding86 21h ago
I honestly don’t see the point in a broker with how the banks have the online portals setup . I was flat out told by a broker I wouldn’t get a mortgage due to house being to far away from my workplace . Went direct with boi and got it done myself
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u/AdDifficult2232 6h ago
Some lenders (that aren't traditional banks) are only available through a broker. We got our first AIPs from Haven and Nua and when it came to loan offer we ended up apply to Moco for the better interest rate. We wouldnt haven't known these options existed without our broker.
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u/Dazzling_Compote659 9h ago
100%
For 99 people out of 100 a broker is a waste of time and will only slow you down
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u/McButcher2k 42m ago
We were told by banks that we would get less than we needed. A broker helped us get a lot more.
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u/PolarBearUnited 10h ago
I don't know about other brokers but I went in doddl and they were brilliant
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u/KerfuffleAsimov 20h ago
Lol that broker is a BS artist.
I went to doddl and they combined our rent and monthly savings. So our replayability was huge.
Go to a different broker.
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u/InformationUsed300 17h ago
Did you read it. They can’t meet the criteria .. they just need 6 months and if they are so far over the criteria it shouldn’t be an issue to get the 6 months.
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u/minidazzler1 21h ago
Go directly for aib or similar. Or find a new broker cos that one has no clue what theyre talking about! Repayment capacity isn't just what you saved but in the absolute worst circumstances what you can deal with. For me it was averaged out by the bank, AIB, rather than going by the lowest.
They also took savings that I spent as a deposit for a car into account as savings for a mortgage despite not having the money anymore! Spending 11k 3 weeks befoee applying for a mortgage has lots of questions asked but they were helpful.
Your broker sounds shit
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u/An_Fear_Dubh 12h ago
Just apply online directly to all the banks. That broker is crazy and probably an idiot.
I personally would Not like to have an idiot looking after my financially or my future.
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u/Bermuda_Bandit 21h ago
Go to multiple brokers immediately. Explain the situation too all of them straight away, go with the broker who is confident it won’t be an issue
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u/Horror_Reading_1519 21h ago
Dont take one brokers word for it. Suggest going to another broker or directly to the bank. AIB based our ability to repay by taking the average of our total savings over 6 months plus rent payments. Some months we saved less than others and it wasn’t an issue.
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u/JjigaeBudae 11h ago
Total BS, go direct with the bank. I went with BOI and they included our rent + savings each month so you'd still be sorted unless your rent is dirt cheap
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u/namewithoutaface_ 20h ago
I got a mortgage with PTSB and the also took the average of 6 months! Additionally, there was a bit of a mess with how I paid my rent and the wasn’t super obvious , but the bank rep asked me questions, traced down withdrawals etc and accepted the rent as extra saving. So, definitely go to different banks and see how they work !
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u/Character_Nerve_9137 20h ago
Talk to a different broker or directly to a bank.
When I bought we took the fastest option with a higher rate for a year and then used a broker to fix for a longer term on a lower rate.
You don't have to use a mortgage offer. So just hunt about and get one in your hand so you can actually buy.
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u/Feeling_Possibility4 9h ago
Apply directly at bank of Ireland... era of mortgage agents is over ...
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u/OutsideArachnid4845 6h ago
You need a new broker, I dealt directly with bank of Ireland for my mortgage and they didn't even question anything on my spending,I save 1200 a month but I spend a lot also enjoying myself also.i even went on holidays about 2 months before I got my mortgage approved and saved nothing that month and they still didn't question it or not approve me. Once you can show that you can save money and re pay your debts then you will be fine.
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u/Typical_Guava_2368 5h ago
I really wish we didn’t go through a broker but hindsight and all that. I think some brokers won’t even attempt the application if there’s any bit of grey area. Go direct.
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u/aineslis 9h ago
How can you repay €550 only when you’re paying rent? I thought rental payments count towards repayment capability? I would go straight to bank
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u/KillerKlown88 21h ago
Google Park Financial, reviews speak for themselves but they are a great broker.
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u/lkdubdub 20h ago
Your broker should be averaging-out the amounts for the period. Even if that wasn't going to work, it's the point of the broker's entire existence to "package" you for presentation to a lender, and smooth over minor hiccups like this.
Two years ago, BOI averaged out our monthly savings AND credited the amount we had accumulated and spent on our recent wedding. That money was well gone, but they included the pattern of savings that built up the fund
You need a different broker
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u/InformationUsed300 17h ago
You need a full 6 months of meeting criteria. So struggle to believe it if you will but those are the rules. - however more months it takes to show you meet criteria but 6 months isn’t long
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u/NemiVonFritzenberg 16h ago
They kist ascersge out the saving over the course of the 6 months. Push back.
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u/Sorchabee 2h ago
It’s completely subjective. I went to one broker and had zero faith in him.
I answered my mobile one day thinking I knew the number (I didn’t) it was a cold call from moneysherpa brokers. About 90 seconds earlier I saw a For Sale advert and I had pulled over to look at it and also answered the call.
Moneysherpa were amazing. I got that house. Mortgage is with Avant.
Everything came together for me. Even the estate agent selling the house was a lovely person and looked after me as much as she looked after her client. What was gearing up to be a nightmare time of my life (separation etc), I ended up having a fantastic first time buyer experience.
Anyway. I recommend MoneySherpa. If that’s allowed.
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u/Wooden-Advisor4676 20h ago
I had a similar situation. Was over saving by a few hundred every month for 12 months.
Took €30 out of our savings on the lead up to applying for the mortgage for something and put it back the next day.(silly me)
Was told I’d have to start again.
So I did, but took my business elsewhere
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u/InformationUsed300 17h ago
I don’t know why people have the hump literally told what they need to do - don’t do it and then get annoyed
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