Second time buyers mortgage exemptions

Hi

I am currently on a basic of 63175 with 2k a year bonus and Over time average of 8k. My partner is on 30k. We own an apartment worth 180k but owe 286k on it but we are on a tracker.

Current mortgage = 1050 month
Current savings = 33k
Saving monthly of 1500

2 kids, married and early 30's.

We are looking to keep apartment and have mortgage approval which is up this month and are applying again and hoping to get an exception so we can put forward a lower deposit.

We are looking at house price of 340k

My approval to date took 50% of my over time in to account when applying the 3.5 times your salary. But we still we to get 61k for deposit with is 18%.

Does any one know if we qualify for get a lower rate of deposit taken in to account the banks will bend one of the two central bank rules only( 3.5 times salary or lower deposit)

Parents have agreed to help out but we are looking to do it on our own backs once we can get a 10-15 deposit or so.

Thanks

The banks can only have 15% of their total mortgage lending above 80% for non-first time buyers (LTV rule). If you don't need an exception to the LTI rule, it doesn't mean you will automatically get an exception to the LTV rule - it makes it possible, but you still need to be one of the 15% of people who gets approved for the exception.

If you really need the LTV exception, the solution is to shop around until you get approved for it, starting with the best option for you (rate, term, other features). If that bank doesn't approve you, move down the chain until you either get approved for what you need, or have to accept the 20% deposit requirement, if you cannot get the exception. The banks treat second properties very differently, so that may have a large impact on your chances as well.

Best Regards,
Dave Curry, Irish Mortgage Corporation
https://ie.linkedin.com/in/davecurryirl

Dave

Any effect on applying through all banks at the same time and through a broker or two to see if I can get a lower requirement of one of them. If I got turned down from one for what ever reason would that have any knock backs from others banks?

sidb said:

Dave

Any effect on applying through all banks at the same time and through a broker or two to see if I can get a lower requirement of one of them. If I got turned down from one for what ever reason would that have any knock backs from others banks?

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As someone said in the other thread you started, there wouldn't be any merit in making multiple applications to the same banks through different channels. In general, your first application to any bank is the one that will be assessed. If there is some material change subsequently (e.g. income, deposit available, incorrectly/incompletely presented original application), then it could make sense to apply again, but not otherwise.

Technically, there is no reason why getting turned down for an exception would stop you from getting approved by the next bank, as they should assess your application purely based on their own criteria. However, the first thing they see when they begin the assessment is the list of other banks that have recently looked up your credit history. This can't help your chances.

The best advice is to start with the best options, and the ones most likely to approve you. A broker can give you a very good idea of your chances of success with each lender that they deal with. Again, the second property makes a huge difference here - some banks may simply not be an option, others much more or less likely to offer an exception. Alternatively, you could contact a mortgage advisor in each bank, and ask them to do a detailed assessment of your application before submitting it for approval.

Thanks Dave

You're very close to having a 10% deposit.

How much will a mortgage of 305K cost you? Can you stress test it say 2%.

In addition to the deposit you will have fitting out costs and legal fees. Might be best to wait a while, in six months you'll have another 9K saved.

What is the realistic rental potentional on your current apartment. What happens the tracker if you make it an investment, does it switch to variable? Can you handle that comfortably.