100% Mortgages and Low earners

L

Lou26

Registered User
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Hi,
I don't post very often but read the threads every day so I'm hoping someone can help me. My boyfriend and myself are looking at buying a run down property and doing it up. The cost is €260,000 and we have estimated it will cost around €30,000 to do it up. I earn €26,000, he earns €25,800 and we both earn around €5000 a year extra in overtime. This is pretty much guaranteed once we are willing to do it. I also get a bonus of €2000. The problem is when I went to see a mortgage broker he told us that we probably wouldn't qualify for a 100% mortgage because our gross earnings are under €60,000. We can get a gift of €30,000 to do up the house and have savings of €8000. No loans, overdrafts or any other debts. If we buy the run down property we can't use our savings or gift to buy the property as we will need this money to do it up. Does anyone give 100% mortgages to lower earners?
I am due an increase of €2000 in January and he is due an increase of €5000 in February. Sorry if I have rambled a bit in the thread. Thank you!!!!
 
Not all lenders have a minimum income - I reckon you'd qualify for €260,000 as long as both of you can show overtime as a regular payment on your payslips. The property may be a problem - to be mortgageable it must be readily saleable, i.e. have water, sewerage and electricity and be structurally sound. If it is just in need of upgrading and your have the funds (gift/savings) to do this it would be a good bet for a lender as the LTV would fall below 100% as soon as the work is done.

Sarah

www.rea.ie
 
Hi Sarah,
Thanks for replying. The property might be a problem so. What it is is a 3 bed semi with an unfinished extension. Half the house is liveable as in it has electricity, water etc but it needs upgrading.
The extension would add another reception room extend the kitchen and add a bedroom and a bathroom upstairs. It doesn't have electricity etc.
This wouldn't be a problem as my other half is an electrician. We would be able to do a lot of the work ourselves as we both have family in different trades. The house when finished would be a 4 bed semi in a good area. With the extension it is around 1400 sq ft. Do you think we might have a problem getting a mortgage for it? Thanks.
 
It will all depend on the valuation report so it might be worth getting a valuer (one that is on the panel of a number of lenders) to look at the house at the same time as applying for approval. The fee is generally €96-€127. It would be very useful to have a schedule of costed works available to show to the valuer so that he/she can comment on it and estimate a 'when finished' value.

Sarah

www.rea.ie
 
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