Mortgage of 170k - what are the chances??

Discussion in 'Mortgages and buying and selling homes' started by Sonik, Apr 27, 2010.

  1. Sonik

    Sonik Registered User

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    14
    Hi Everyone,

    Just looking for a bit of info before we get our hopes up and this seems to be the best place to ask.

    My partner is going to a broker tomorrow to see if he can get a mortgage of €170K (have fallen in love with a house €185K). He is in full time perm employment for the past 7 years, no chance at all of being let go. His current gross is €35K. He is in the army so every 2/3 years he does overseas trips where he comes home with between 16K-24K for the trip, seperate to his wages. He has a loan of €5K which he has never missed a payment on. He unfortunately also has cc's with bal of about €5K also. I plan to clear the cc's though before the end of the year as Im being made redundant.

    Basically I just want your opinion on whether you think he could possibly qualify for this on his own? His dad has said he will go joint with him if necessary but I think they will only give a 12 year term increasing monthly payments to a crazy amount. Do they allow garantours? (sorry for spelling) We have the deposit as it was a gift to us but he doesn't have a record of savings. He was saving in Halifax but account is closed and he has no statements... wasn't really worth talking about anyway!

    Sorry this has become a complete rant but if anyone has any advice or view on this Id really appreciate your comments :)

    Thanks a mil ...
     
  2. Asbo25

    Asbo25 Registered User

    Posts:
    18
    I think you have as good a chance as anyone. I would apply directly to EBS.
    Use a broker who works with everyone.

    Is there any chance you can clear the loan off early and clear the CC debt?
    It would really increase your chances.
     
  3. fizzelina

    fizzelina Frequent Poster

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    540
    Don't get your hopes up and don't fall in love with a house, you don't know what banks will say. There are many threads here with people saying they got 3 times gross salary, others got more. On 35k looking for 170k it is under 5 times gross salary so clear as many debts as you can as suggested above and use a broker who knows what he's doing and who to apply to and good luck!!
     
  4. mathepac

    mathepac Frequent Poster

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    5,476
    Do not apply until the loan and credit cards are cleared; it will be a waste of time.
     
  5. jhegarty

    jhegarty Frequent Poster

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    2,858
    I agree with mathepac, clear those loan.


    You don't stand much a chance with them.
     
  6. NorfBank

    NorfBank Frequent Poster

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    2,112
    The main thing banks look for these days is repayment capacity.
    If your partner can show he can afford the mortgage repayments (stress tested at variable rate + 2.75%) and also has enough to live on after this, say €1500 per month then he will have a good chance of getting the mortgage.

    The big negative here is the lack of savings, as he does not have a record of savings, he will struggle to get approval. Lenders are looking for a proven history of savings over a period even if this is only €100-€200 per month.

    Guarantors are allowed but in this case it might make more sense for him to put the mortgage on hold, start saving for 6+ months and then try and get the mortgage on his own.

    He is earning enough to afford the mortgage, he needs to prove this to the lenders through his financial behaviour.

    www.moneybackmortgages.ie
     
  7. Sonik

    Sonik Registered User

    Posts:
    14
    Thanks Guys,

    Really do appreciate your advice here. I will definately try and clear as much of the debtas as we can a.s.a.p. All extra cash will go that way..

    Just another quick question, would we be better to clear the cc etc or start saving? We could prob do a bit of both but obviously will take longer that way?!
     
  8. NorfBank

    NorfBank Frequent Poster

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    2,112
    Clear the cc, you will be paying more in interest on that than you will earn on the savings.
     
  9. oldtimer

    oldtimer Frequent Poster

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    846
    Norfbank is spot on. My son recently looked for a loan of 180k to purchase a house. He is in fulltime employment, 40k per annum, with little chance of redundancy. He tried through a broker but was turned down because he has no savings. Told to try again in a few months time.
     
  10. Renter27

    Renter27 Frequent Poster

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    197

    Not true - mine had to be cleared yes, but before actual drawdown of mortgage, it didnt delay my loan approval .
     
  11. Sonik

    Sonik Registered User

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    14
    Thanks a mil for that.... hes going into the broker today anyway so I suppose good or bad we'll know the story :)

    I was going to look at Shared Ownership also as we might both be able to apply on that!

    Thanks for the advice x
     
  12. dereko1969

    dereko1969 Frequent Poster

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    2,325
    why aren't you applying jointly?
     
  13. Sonik

    Sonik Registered User

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    14
    I had a mortgage previously with my ex, well when i say previously Im still on it as it was a fixed term and neither of us could afford the crazy breakage fee the bank was charging to come off it. My ex still lives in this house and is responsible for everything inc payments. He has missed 3 payments on the mortgage and so my icb is awfull (sickening considering Ive never missed a loan payment in my life!)

    Also Im being made redundant this year, where I work is closing in June but Ill be getting maternity leave until Dec, then redundancy payment. I dont think any bank will take me on! :(