Bank Of Ireland 1st Start Mortgage

niceday999

Went to the Home buyers eveing at Europa hotel last week and someone mentioned a Bank Of Ireland 1st Start fixed rate Mortgage. It is for first time buyers but it allows the paernts income to be taken into consideration with out putting the parents name on the deeds.
It seems really good but that was the bank of Ireland people trying to sell it to us.
it says the rate is 4.5% and you can borrow 90% LTV .
has anyone heard of it or know anything about it .
Thanks
I am a first time buyer looking to buy a 1st property
Thanks

steveymp

Mmmmmm Bank of Irleand, now there's a sound financial institution

I banked with them for years and they are without doubt the worst bank ever, but that's just my opinion.

I don't like the idea of the Parents income being taken into consideration, if the income of a person or a combined couple are not enough for a mortgage then surely it is a risk, by the bank and yourselves taking one in the first place. Are parents then liable if defaulted also ??? that is certainly what it sounds like.

The 4.5% rate sounds competitive enough at present but is it ixed over a few years or more? Do a few internet searches for Mortgage offers, this very site has some excellent info on current offers. I am after a new mortgage myself soon and do all my banking with Abbey (Santander) they have some very good offers for existing customers so check out what your current bank offer as well.

niceday999

steveymp wrote: »

Mmmmmm Bank of Irleand, now there's a sound financial institution

I banked with them for years and they are without doubt the worst bank ever, but that's just my opinion.

I don't like the idea of the Parents income being taken into consideration, if the income of a person or a combined couple are not enough for a mortgage then surely it is a risk, by the bank and yourselves taking one in the first place. Are parents then liable if defaulted also ??? that is certainly what it sounds like.

The 4.5% rate sounds competitive enough at present but is it ixed over a few years or more? Do a few internet searches for Mortgage offers, this very site has some excellent info on current offers. I am after a new mortgage myself soon and do all my banking with Abbey (Santander) they have some very good offers for existing customers so check out what your current bank offer as well.

I know what you are saying but....I would say the same about Northern Bank....Bloo** Useless !!!!!
We want to help out and are in a position to help pay the mortgage.( should that be necessary )
Her pay will rise substancially in the next few years....and my husband and have our mortgage paid off but dont want to add our name to the deeds as we would be hit for capital gains tax should she sell this house.
also we would have to declare to HMRC as a 2nd property...so think this is a a great idea.
we are helping with a lump sum for the deposit and also to get things done in the house when she buys...
It seems to be a fixed rate so I assume its only fixed for a few years.....just wanting a bit of info before we go in to see them about this....
has anyone heard of this Mortgage with Bank Of ireland
Northern Ireland seems to be limited to Morgage deals does it not ????

deirdre42c

Hi

I have a family member with the first start mortgage- its been around for a few years!!

basically your income is taken into consideration as a "guarantor" and you would be liable if the person taking the mortgage defaults. Its a good option for you in particular because
1. Your name doesn't have to go on the deeds so you wouldn't be liable for capital gains tax
2. When her income increases you can ask to be removed from mortgage.
I know a few people have gone down this route particularly a few recently qualified doctors who know their income will be increasing and its sometimes the only way to get on the property ladder.

Talk to the mortgage official in the Bank-always found them to be genuine and I know when i was taking my mortgage with them that they looked at other offers and told me straight at one stage that another financial institution had a better deal(not much of a difference but the honesty made me stay with them)

PS- In relation to Bank of Ireland being safe I checked this out and mortgages and most accounts are now Bank of Ireland Uk and fall under the UK compensation scheme so as safe as any other bank at the minute!

Hope this helps!

tara747

If you can't borrow enough to buy a house on the strength of your own salary/salaries, then you shouldn't be buying a house. End of. Sorry to be so blunt, but ridiculous mortgages like these are part of the reason for the housing market overheating and then crashing.

OP - how much do have saved as a deposit, and how many times your income are you hoping to borrow? My advice is to save some more and buy when you have a decent deposit and can get mortgage approval on your own.

steveymp

Judging by post 3 I think OP is the parent rather than the person looking for the mortgage.

Shop around for mortgage deals with other banks etc... or even see a free independant mortgage adviser.

The bank of Ireland offer to take the parents income into consideration seems to be not the normal thing to do with most banks, but I suppose they are simply after more security before giving a mortgage (shutting the stable door after the horse has gone:o).

Most banks will only give a mortgage on single or combined earnings of the person or persons whose names will be on the deeds.

As Tara has said a bigger deposit will help with any mortgage, the bigger the better, maybe you could offer your help that way. I have 2 siblings and I dread to think of what the job / mortgage situation will be like when they leave school, but I am putting aside a few pounds when I can for them now to try to help in the future.

tara747

steveymp wrote: »

Judging by post 3 I think OP is the parent rather than the person looking for the mortgage.

Shop around for mortgage deals with other banks etc... or even see a free independant mortgage adviser.

The bank of Ireland offer to take the parents income into consideration seems to be not the normal thing to do with most banks, but I suppose they are simply after more security before giving a mortgage (shutting the stable door after the horse has gone:o).

Most banks will only give a mortgage on single or combined earnings of the person or persons whose names will be on the deeds.

As Tara has said a bigger deposit will help with any mortgage, the bigger the better, maybe you could offer your help that way. I have 2 siblings and I dread to think of what the job / mortgage situation will be like when they leave school, but I am putting aside a few pounds when I can for them now to try to help in the future.

OMG, that's very generous of you! :T

I wouldn't worry though, if house prices keep going the way they're going they will be very cheap indeed by the time your siblings are of housebuying age.

niceday999

tara747 wrote: »

If you can't borrow enough to buy a house on the strength of your own salary/salaries, then you shouldn't be buying a house. End of. Sorry to be so blunt, but ridiculous mortgages like these are part of the reason for the housing market overheating and then crashing.

OP - how much do have saved as a deposit, and how many times your income are you hoping to borrow? My advice is to save some more and buy when you have a decent deposit and can get mortgage approval on your own.

How Rude or as you put it "BLUNT"
We are very comfortably off after paying off our own mortgage early and having several other rental properties..We beleive in giving the children money now ( when they actually need it and can benefit from it as opposed to when we are pushing up the daisies....
Its our money earned by US.
The original post did not ask on your opinions as to the affordability of being able to pay the Mortgage !!!!!!!!!

loveni

I regularly read this NI forum and find the advice really useful and the posters usually honest and kind. This post however annoyed me. I don’t think tara747 was rude at all. She was just being honest.

You also seem to have progressed very quickly to "several rental properties". I would be slightly worried if I was you especially if your earnings are still the same as stated in the above post.

niceday999

loveni wrote: »

I regularly read this NI forum and find the advice really useful and the posters usually honest and kind. This post however annoyed me. I don’t think tara747 was rude at all. She was just being honest.

You also seem to have progressed very quickly to "several rental properties". I would be slightly worried if I was you especially if your earnings are still the same as stated in the above post.

Dont understand the last paragraph ? can you explain so I can reply? My properties are all owned outright even my home i live in. my daughter is the first time buyer.
Husband will be adding his name to her mortgage application !

tara747

niceday999 wrote: »

How Rude or as you put it "BLUNT"
We are very comfortably off after paying off our own mortgage early and having several other rental properties..We beleive in giving the children money now ( when they actually need it and can benefit from it as opposed to when we are pushing up the daisies....
Its our money earned by US.
The original post did not ask on your opinions as to the affordability of being able to pay the Mortgage !!!!!!!!!

I really wasn't being rude. I was dismayed at the madness of the boom and sad for those who got caught up in it, borrowing way beyond their means and now in negative equity.

May I remind you that in your first post you pretended to be the son/daughter, not the parent:

I am a first time buyer looking to buy a 1st property

Therefore, my post assumed limited knowledge of property finance on your part. And my advice was sound. I don't believe that anyone should take out a mortgage if they can't afford it solely on their (and their OH's if applicable) income. What if they come looking for money at a time when you haven't got it? What if you have a financial emergency yourself? And with the market still falling, it is still a risky time to buy unless it's a house you're happy to stay in for at least 10-15 years.

You want to help out your son/daughter but why not give them a contribution towards the deposit rather than getting bogged down having your name on the mortgage??? Surely that's simpler? I'm confused.

loveni wrote: »

I regularly read this NI forum and find the advice really useful and the posters usually honest and kind. This post however annoyed me. I don’t think tara747 was rude at all. She was just being honest.

You also seem to have progressed very quickly to "several rental properties". I would be slightly worried if I was you especially if your earnings are still the same as stated in the above post.

Thanks loveni.

p.s. I was also thinking that owning several rental properties may not be the route to riches right now... if they have been bought in the last few years they are likely to be in severe negative equity.