Mortgage query + proof of salary

B

buzz55

Guest
Hi all,
I've seen a house for sale that I would really like to buy, its on the market for c. 260k. I currently earn 25k per annum, with my partner being self employed with a (very) fluctuating income. He is a software contractor, but got hit badly with the downturn in IT a few years back and was out of work for 1.5 years. He has now been working on 3 different contracts since November 03.
I have a few questions that I hope someone can help me with please.

First off, based just on my salary, what is the absolute maximum mortgage I could get? (No other loans outstanding)
If I got my employer to say on paper that my salary was more than it actually is, say 32/33k, what then would my maximum borrowing power be? Is lying on your salary cert a very bad idea, or just a small bit risky?

Lastly, as my partner is contracting he does not have a p60 etc. If I wanted some help from him in trying to purchase the house, how could we show to a mortgage provider that his minimum income each year would be at least 20k? His current contract runs out at the end of March and he will have grossed 20k by then, so even if he doesn't work for the rest of the year (which I'm sure he will but worst case scenario) he will have that income.

Please help, I want this house!

Thanks.
 
Hi Buzz55,

First off the salary certificate has to match the payslips - if it doesn't the lender will take whichever is the lower figure so getting an inflated salary cert won't help. On your own your maximum borrowing capacity will be €160,000. I'm afraid unless your partner has a contract going forward from March for at least 12 months his income can not be taken into account. The only other option is if a parent (who must be working and have income in excess of their own mortgage and living expenses - the minimum is normally €50,000) is able to go as a joint applicant or guarantor. Sorry.

Kind regards,

Sarah

www.rea.ie
 
Thanks Sarah. With regard to the payslips matching the salary certificate, I could also do this as I know HR have 'fixed' payslips for other people before. Not very ethical I know, but sometimes the only means to an end.
Unfortunately both my parents are retired, so that's not really an option. I have a sister who may be able to come in on the mortgage with me, but ideally this would only be to secure the mortgage, I feel I would be able to manage the repayments myself or between myself and my partner. I would also intend to rent out a room.
Can I claim that my sister (current salary same as mine) is buying with me? If I do, would I then have to change the deeds further down the line to me being the only owner?
Thanks very much for your help with this Sarah, I really appreciate it.
 
Even if HR were to amend the payslips to the inflated amount, the bank could/would catch you out when comparing them to your current account statements, which will show how much was actually paid into your account.
Can I claim that my sister (current salary same as mine) is buying with me? If I do, would I then have to change the deeds further down the line to me being the only owner?
Click to expand...
You would probably need to talk to a solicitor about this; maybe there is a way that you can buy the house together with the possibility for you/your partner to buy her out in a few years. It would also mean that your sister would be giving up first time buyer status, which could cost her a lot in the future.
I don't want to sound too negative, but sometimes we just can't get what we want.
 
Thanks Chrisb.

I know we can't always get what we want. Problem is, with property prices the way they are, the longer I wait to purchase the further up the prices go. This is one of the very few houses I've seen in this area (which is where I really want to be) for less than 300k.
I'm starting to panic about buying before the SSIA payouts next year. I do not have an SSIA, was not in the country at the time they were introduced. I think house prices are going to rocket with a lot of people using their SSIA payout as deposits.
I read in the paper that in the last year alone that house prices in the area have gone up 25k. I'm just beginning to think that I'd be better putting myself in to debt sooner rather than trying to save like a demon for a house that is moving more out of reach each month that passes....

Just fed up of the whole thing I guess.

Thanks.
 
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