advice on FTB

W

Whitesnake

Guest
need a little bit of advice
we've put ours name down for house €295 on anew build which is not due for completion for 12 months. we currently have 16K for the deposit and have got 92% approval. My query is "can we borrow the balance of the 10% deposit (13.5K), which is required in 2 months. By the time the house is built, we would have the balance of the 8% required.
My other question is more complex. We got 92% approval last week, but i am due to start a new permanent job (with local authority) next week and will be in that position almost a year by the completion date. When should i inform the building society of my change in jobs.
 
Whitesnake said:
need a little bit of advice
we've put ours name down for house €295 on anew build which is not due for completion for 12 months. we currently have 16K for the deposit and have got 92% approval. My query is "can we borrow the balance of the 10% deposit (13.5K), which is required in 2 months. By the time the house is built, we would have the balance of the 8% required.
My other question is more complex. We got 92% approval last week, but i am due to start a new permanent job (with local authority) next week and will be in that position almost a year by the completion date. When should i inform the building society of my change in jobs.
Click to expand...
Regarding borrowing for the deposit... don't ask us, ask the bank! (or credit union / building society, etc.). Seriously, I doubt it'll be a problem.

However, I would suggest two things: on the deposit, you could approach the developers and seek to have the deposit reduced, since you're FTBs with high loan to value approval. If you say you're willing to make a sizeable deposit - 16k is pretty sizeable! - but want to fund as much of the balance as possible through new savings, they may provide some limited flexibility. Emphasise that your mortgage approval is over 90%, so it's the source of those funds. They may at least meet you at the 8% mark if you ask.

Secondly, and more importantly, talk to your solicitor about the job change. It is possible that the change in your circumstances (or indeed future rate increases and the like) could affect your ability to obtain a mortgage. If you can have inserted into the contracts that completion is subject to your still being able to obtain a mortgage for the balance, it gives you much better protection should rates soar and leave you unable to get a mortgage, or you find you hate the local authority so much you resign after a week to work in Dunnes... all very unlikely stuff, but without such a clause in the contract the developer can retain your deposit, and / or sue you to complete.

Take your solicitor's advice on when to inform your lender, but probably the sooner the better.
 
You must log in or register to reply here.
Back
Top