Mortgage approval too low

O

ohoh

Registered User
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hi
reading this forum for ages, first posting today.
i earn 28k a year and have no loans. I can only get 130k of a mortgage on my own. Im a second time buyer and sold my last property last year. I have been gifted 50k from a family member. Would this increase my overall approval figure?
 
ohoh said:
hi
reading this forum for ages, first posting today.
i earn 28k a year and have no loans. I can only get 130k of a mortgage on my own. Im a second time buyer and sold my last property last year. I have been gifted 50k from a family member. Would this increase my overall approval figure?
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Mortgages are offered on the idea of affordability (in theory anyway) which means you should be paying no more then 40-45% of your monthly pay on your mortgage repayments so on a salary of 28k, it sounds right. Have you shopped around. The 50k is unlikely to allow you to borrow more.
 
i only received this lum sum last week,so i hadnt shopped around with this. I was just hoping to see if anyone could shine a light on whether it would help my approval figure increase.
 
so basically to buy on your own you have to be earning 60k a year to buy in dublin, what a pain.
 
ohoh said:
so basically to buy on your own you have to be earning 60k a year to buy in dublin, what a pain.
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To afford to buy in Dublin you need to be earning that. Or at least near to it.

If you get a guarantor or get parents/family to go on the mortgage with you this will increase the amount. The gift of 50k helps lower the LTV of the loan so helps, but won't give you a bigger mortgage as such (a lower LTV may provide a lower rate giving a better affordability and hence can help with a bigger mortgage, slightly).
 
must make an appointment with a few mortgage brokers, i really thought having a huge deposit like that, would give me a better chance at getting a higher mortgage.
 
ohoh said:
Im a second time buyer and sold my last property last year
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Did you owned few properties if you sold your last one last year or do you mean you sold last year the last one your owned?
Did you not make any profit on the sale (or sales) of that/these properties, that can be added to the €130k + €50k for buying a new property, e.g. €130k is enough?
 
You could qualify for slightly more than you have been approved for. Every situation is different but you would need to speak with a mortgage advisor who can give you a better idea of all the different products on the market at present. Some lenders will lend up to 5 times your salary and some up to 3 times. It all depends on your particular situation.

Jacqueline
 
ohoh said:
must make an appointment with a few mortgage brokers, i really thought having a huge deposit like that, would give me a better chance at getting a higher mortgage.
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Nope, not really. Lenders always assess applications on the ability to repay which comes down to income and outgoings. If they lent "irresponsibly" based on the borrower having a large deposit and therefore the lender not being at risk of losing money if (when) the house was repossessed due to missed payments on a too large mortgage the Financial Regulator would be very, very cross........

Sarah

www.rea.ie
 
ohoh said:
must make an appointment with a few mortgage brokers, i really thought having a huge deposit like that, would give me a better chance at getting a higher mortgage.
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well it won't get you a larger mortgage, but if will give you more spending power

It will also give you a greater LTV (load to value). So if you have 50k and you are purchasing a property worth 200k you will have a LTV of 75% (i.e. a mortgage of 150) which may give you a lower interest rate with some lender and in turn give you more affordability. However the more you borrow the greater your LTV becomes... catch 22.

All a mortgage provdider cares about is your ability to meet your monthly repayements
 
Sarah W said:
Nope, not really. Lenders always assess applications on the ability to repay which comes down to income and outgoings. If they lent "irresponsibly" based on the borrower having a large deposit and therefore the lender not being at risk of losing money if (when) the house was repossessed due to missed payments on a too large mortgage the Financial Regulator would be very, very cross........

Sarah

www.rea.ie
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God forbid Irish Banks would be involved in irresponsible lending practices! ;)
 
ohoh said:
i earn 28k a year and have no loans. I can only get 130k of a mortgage on my own.
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Without being too harsh on you mate you just don't earn enough. I know of people earning nearly twice that who would have affordability issues on a single mortgage. If you do decide to push ahead with a mortgage and manage to get one (???) I hope you've done the maths cause if it was me i'd sit tight and hope my salary went north over the coming years!!!!
 
And if you read some of the papers at the e/end it also might look like house prices might even come down !

What you need is for prices to come down & your salary to go up, so sit tight for a little while.

BTW if you have a partner both of your incomes can be taken into account if you want to buy jointly......just a thought.
 
Perplexed said:
BTW if you have a partner both of your incomes can be taken into account if you want to buy jointly......just a thought.
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Looks like Ill have to go find me a man to get on the property ladder again :D
Havent got money from sale of last house, spend that on a nice time travelling and new car (young and stupid back then)
 
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