Will Bank approve Mortgage Application, Partner just returned to work?

[kellyr4]

My partner and I are seeking to purchase a property together. I own a property and am hoping to earn approx 100k profit on the sale of it, after the mortgage is cleared.

My partner has literally returned to work in the past week after a year out due to the birth of our child and then an illness. She is now working part-time for a new employer.

I earn 38,000 p/a and my partner is now earning 15,000 p/a.

My questions are:

Will her new income be taken into account by the bank, as she has no pay slips yet and her 2006 P60 will not show any earnings?

How much could we borrow based on our earnings?

My current mortgage is with AIB. With the sale of my property and when I pay off the mortgage, will AIB reward me for the early repayment by allowing me to borrow more than 4 times our joined salary?

In 2 years I never missed a mortgage repayment with AIB, will this increase my borrowing power with them?

Would AIB reward me for being a "loyal customer" or would I be better off shopping around?

Will having approx 100k to add to the mortgage amount increase my borrowing power?


I look forward to any information or opinions.

 

[Sarah W]

If your partner is permanently employed and has completed any probationary period (by drawdown of the new mortgage) her income will be fully included in the calculation. Assuming you have no other loans or commitments and can take a 35 year term your maximum borrowing capacity is circa €265,000 which is 5 times your joint earnings.

Your bank will not 'reward' you for not missing any payments - they kinda expect you not too! On a more serious note you should shop around for the best deal which may or may not be AIB; loyalty to a product provider - be it a mortgage lender or a grocery store should not be a contributory factor.

And finally your €100,000 might make €5000 of a difference as you will be below the indemnity bond level but affordability is the key issue when assessing a mortgage application.

Sarah

www.rea.ie