AIP but baby arrived before loan drawdown - advice request

[jedentag]

Hi There,

I got some very helpful replies on here for a similar thread posted in Feb but things have moved on a little.

My partner and I got AIP for €440K 80% LTV in Feb, it expires in August.

She was 6 months pregnant at the time but we were advised not to highlight that if not asked directly at time of filling out mortgage application form.

My salary is €75K basic + €25K commission, hers is/was €33K and baby arrived start of May so she's been on Mat leave for a couple of months and we'll need to address that with bank at loan offer stage.

She is considering whether to go back full time and childcare implications of that, or she could do 24 hours a week at weekends, approx €20K per year and we would be able to manage without any childcare considerations.

In addition to that, we are 42 and 41 years old so only offered 23 year mortgage term which makes repayment on prospective new family home pretty stiff at €2,300 approx. per month. My previous mortgage on property I bought solo and is on the market to help fund sale offered me a term until 70 years old from same lender, I was told by this lender this is because I have a pension and she doesn't so only prepared to offer until 65 this time.

My questions are about an estimate on the likely haircut on AIP from €440K that bank is likely to offer based on dependent and part time return of my partner? What kind of things to they take into consideration so I can prepare before making that approach?

Secondly if anyone knows if the pension and loan term duration is something that varies bank to bank and worth my getting a broker involved, or if it's something that comes down from on high from Central Bank?

Appreciate any advice some of the informed people on here could offer and let me know if I need to post any further details, please.

We'd love to be in a family home before the end of this year if possible.

Thanks in advance.

 

[ClubMan]

which makes repayment on prospective new family home pretty stiff at €2,300 approx. per month.

That's almost 50% of take home on €100k - ignoring spouse's income in case she doesn't return to work. Are you sure that you can afford this property?

 

[NoRegretsCoyote]

Secondly if anyone knows if the pension and loan term duration is something that varies bank to bank and worth my getting a broker involved,

A broker told me recently that some banks would lend out to 70.

My wife and I have some DB pensions and he said that would be a positive factor but it depends on full circumstances.

 

[misemoi]

I would approach a broker now and see what scenario would work best. Eg would a larger salary - childcare costs work more in favour than a lower salary with no childcare. Plus consider that your partner might need to serve probation so this might delay things....how will this timing work in terms of selling and buying and where you might live in the meantime?

And not to be totally unromantic, but there are tax credits and inheritance benefits to being married. EUR 200 fee and a couple of witnesses and a simple paperwork marriage might also work in your favour in terms of using up unused tax credits and cut offs.

 

[jedentag]

That's almost 50% of take home on €100k - ignoring spouse's income in case she doesn't return to work. Are you sure that you can afford this property?

No I'm not! But I guess the childcare costs won't go on forever and she will be working part time and then full time considering the full 23 years of a mortgage rather than just the first 2 or 3 but it is daunting and certainly giving us both pause for thought.

 

[jedentag]

I would approach a broker now and see what scenario would work best. Eg would a larger salary - childcare costs work more in favour than a lower salary with no childcare. Plus consider that your partner might need to serve probation so this might delay things....how will this timing work in terms of selling and buying and where you might live in the meantime?

And not to be totally unromantic, but there are tax credits and inheritance benefits to being married. EUR 200 fee and a couple of witnesses and a simple paperwork marriage might also work in your favour in terms of using up unused tax credits and cut offs.

Thanks, must take a look at the difference in net take home that would make, can we still ask 200 people to put money in a card for us?