Mortgage Question

H

high26

Guest
Hi all,long time reader first time poster. Any advice on the following would be appreciated.

I am currently awaiting planning permission to come back for two storey house. Site is in my name and is valued at approx €65000.
I am with employer ( Dept.of Justice) for past 9 months, I am on a probationary period for 12 months then long term contract.
I am currently earning approx €32500 but this will increase to €40000 in a months time. I owe Credit Union €3000 and owe bank €2500.

My partner is with her employer (HSE) for two years (permanent) currently earning €33000 a year. She has a Credit Union loan of €15000.
We have about €5000 in savings,but are looking for about €240000 for a self build.

We have two kids also and we just need to get our own place as rent is dead money.

Do ya reckon banks would be willing to lend to us in the current climate with so little savings,or does the site act as like a deposit??

Thanks in advance
 
Some banks are still doing 100% mortgages for self builds especially seen you own the site already, you would need to contact them to find out exactly.

Seen you are still temporary, you might be better to wait till made permanent before going further. From your earnings you should have no problem getting a mortgage for 240k even with the debt you have. You should try and take as much off that debt before you apply anyway.
 
Hi, the banks will not lend to you while you are on a probationary period. I'd imagine it will be very difficult even when you go on a contract, even those in permanent employment are finding it difficult to get finance. It might help your case that you are working for a government department though. You would certainly pass affordability criteria even with your outstanding loans and some lenders will allow you to borrow 100% of build costs if you already own the site (as long as there is no loan outstanding for the site - I presume it was a gift/inheritance). The fact that you have some savings will help your case as lenders like to see that you have some cash available to cover any over-runs during the build. Hope this was helpful!
 
thanks for the advice,ya the site was a gift so no money owed on it. Will contact bank to see how it goes,cheers
 
You should also concentrate on paying down some of those loans - they'll seriously reduce your borrowing capacity because any bank will look at the amounts you're already committed to paying.

So, while on your combined salaries of - taking your apparent increased pay into account - €73,000, you should normally qualify for more than you're looking for, that will be decreased by your current loan commitments.
 
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