opinion on getting a small mortgage

J

julianuary

Registered User
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6
hi guys

id like your opinion please.
Male aged 31. 2 dependants (my partner and our 4 year old).
In full time permanent work for 3.5 years, very secure private sector employment with prospects. (Prior to this I was on the dole for about a year.)

3 years ago took a job with salary €25k to get a foot in the door. thankfully things are going great, very secure job, salary now €40k plus €8333 guaranteed bonus, nett take home €2550. (since november pay rise).

I want to buy a house beside work for €55k. My dad will give me the deposit. I have a couple of grand in my current account. Have been paying rent of €825 in kildare for a few years now and have not managed to save but am in a better position since my raise.

I wondered as the mortgage is so small, around 1 years salary if the lack of savings would be a huge deal? I dont want to make applications and get turned down and have black marks on my ICB.

My debts are a car loan of €9000, outgoing €215 per month. I will be moving beside work and saving around €400 on diesel costs as I have quite the commute at present.

Also...about a year ago (salary was €34k) applied to my bank AIB for loan to buy house of €60k and they declined me. They were very positive in the pre screening call and discussions so thats why I applied. During my student years I missed a few student loan payments and they have clearly held it against me. Not wise, I know. Afraid that will now be on my ICB.

My other option is to go rent near work (around €750pm) and start saving the commuting costs and try again later. I just didnt want to keep paying more rent, and this house seems like a great buy. My repayments would be very small, half of what i pay in rent now and no more diesel bills
 
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julianuary said:
My other option is to go rent near work (around €750pm) and start saving the commuting costs and try again later. I just didnt want to keep paying more rent, and this house seems like a great buy. My repayments would be very small, half of what i pay in rent now and no more diesel bills
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I'd see if a broker could get me a mortgage. If not then the 'rent near to work and save' option sounds good. In that event perhaps your dad will clear your car loan in lieu of the deposit so you can save a deposit while paying a lower rent (you might be able to do this within 12 months). Your child is a dependant, not your partner.
 
To build our house on family site, we borrowed 40k from credit union as had savings but banks not interested as site not transferred, we lived in mobile home for 18months..

Could ye move in with someone as the rent money would soon add up...moving if reducing costs great but i know somrone who bought beside work and now in area they dont like and work long gone...

is your four yr old on ECCE so perhaps your partner could seek employment...national school on the way soon anyway or any opportunity to wotk from home...two wages best way to save
 
Julianary,
You could well now be caught on 20% deposit rule.
Means you need k11 as deposit.
For clarity;
1. You do not get (black) marks on ICB for applying or being declined on a loan.
2.I presume you can show ongoing clear car loan payments ,that is a plus.
3.The slow student payments may well now be cleared from ICB system.
Go on-line to Irish Credit Bureau and apply for your own ICB report.
At least then you will know where you are on ICB.
4. Your father sounds supportive ,so maybe with family help you can get round this, because from your post this loan makes financial sense.
 
Gerry Canning said:
Julianary,
You could well now be caught on 20% deposit rule.
Means you need k11 as deposit.
For clarity;
1. You do not get (black) marks on ICB for applying or being declined on a loan.
2.I presume you can show ongoing clear car loan payments ,that is a plus.
3.The slow student payments may well now be cleared from ICB system.
Go on-line to Irish Credit Bureau and apply for your own ICB report.
At least then you will know where you are on ICB.
4. Your father sounds supportive ,so maybe with family help you can get round this, because from your post this loan makes financial sense.
Click to expand...
Thanks for the advice. I got the icb report and it showed my clear loan payments from my current loan and an old loan now closed. It didn't provide a score.
 
Sandals said:
To build our house on family site, we borrowed 40k from credit union as had savings but banks not interested as site not transferred, we lived in mobile home for 18months..

Could ye move in with someone as the rent money would soon add up...moving if reducing costs great but i know somrone who bought beside work and now in area they dont like and work long gone...

is your four yr old on ECCE so perhaps your partner could seek employment...national school on the way soon anyway or any opportunity to wotk from home...two wages best way to save
Click to expand...
Yeah my partner is doing some crafts from home and selling them, not making a fortune but better than nothing. It would be great to move in with someone but unfortunately our family are miles away. The little guy is in school in September so that will hopefully allow my partner to work more, appreciate your input
 
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