Not sure if we would qualify for a mortgage

droglodyte

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We are FTB and have found a house at price we would be happy to buy (180k)

I am ICT project manager in permanent position, 55k annual, just cleared probation in new job.
Her 3rd level lecturer part time, 20k annual, 10 years teaching at same university.

50k in savings with another 12k to mature in an account in June built up over three years.
We are looking to secure 130k
We have a gift of about 5k

Wife owes 1.7k on credit card, 0.8k for myself.

Going to BOI tomorrow. Any pointers folks would be greatly appreciated
 
Hi I went through this last year so here goes.

1) Do you pay rent? if so important to bring proof as it show's ability to make regular payments.
2) Savings important so you have that
3) Credit card, wipe it out and if possible close it, if there is charges for bookies or large pub bills they will note it, so better off with it gone.
4) You are looking for 72% of value of house so looks good from that view point.
5) How long are you in your job?
6) Is there any gap in your employment in last year or two?
7) Does your partner have permanent position in college or year to year contract?
8) 5 thousand gift, could this not just be "cash" you have saved at home, if you get my drift..

Jonny
 
Hey Jonny,

1) We pay rent of 650 per month mandated from my account
2) Savings are good
3) Yeah I will try to clear the credit card
4) Yeah we are good here
5) Snag here as I am only in my current job five months
6) Two weeks between current job and last job
7) Partner in permanent
8) Hmmm I normally don't leave cash like that lying around
 
You have €50k in savings, don't "try" to clear the credit cards, just clear them. Leaving aside the mortgage application, why pay interest at possibly 17% but only earn interest at 1-2%?

Your relatively recent employment in your current position may raise questions but without applying you won't know. As jonnykerry has pointed out, your deposit is sizeable and a good percentage of the current estimated value of the house. Have your savings been built up over a period of time or is there a lumpy gift or inheritance of some description in there? The difference would be between demonstrating a long term savings habit.

I would disagree with jonnykerry on how to present the €5k someone has been kind enough to gift you. Primarily because to present it as something other than what it is would basically be lying. If it comprised the majority of your cash it would be an issue as you would not be able to demonstrate savings, but it doesn't so I'd be of the opinion that honesty is best. At least some of the blame for the bubble that occurred has to lie with people lying on application forms about their money, in the long term it does you and the rest of us no favours.
 
1) We pay rent of 650 per month mandated from my account: Perfect
2) Savings are good
3) Yeah I will try to clear the credit card: Pay it off and get rid of!
4) Yeah we are good here
5) Snag here as I am only in my current job five months: This should be fine as long as it is a good company and they will stamp/sign that you are permanent.
6) Two weeks between current job and last job: Fine
7) Partner in permanent: Good
8) Hmmm I normally don't leave cash like that lying around. Sure with the above this money being a gift will be fine.

Really don't see a problem you getting approved as with the rent you pay will be seen as ability to maintain payments and taking into account 130,000 over 25 yr's is about 700 a month it's not a notable difference.
Also don't be afraid to go to a few banks as with you looking for a LTV of 72% you will get a discount of 0.4 to 0.6% off the standard variable rate so about 4.2%

Ulster bank is quiet approachable at the moment.

Best of luck
 
Was in with BOI yesterday and they seemed OK with our application. May stick with them if they offer.

Could I bargain with them on the interest rate given the size of the deposit?
 
Have you applied to any other banks? I'd shop around first if I were you and get the best deal for yourself.
 
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