Chance of getting mortgage approval with 30K salary?

D

dubinamerica

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Hi
I'm about to take up a position with a company with a 30K salary. This is expected to increase over time.
How long do I need to wait to get mortgage approval?
Approximately how much may I be able to borrow? (assume no other loans)

Is a mortgage broker my best option or should I go straight to be current lenders.

Thanks
 
Assuming you are single, have no kids and are no older than 35, assuming a net income per month of approx €2,057, and assuming you can demonstrate consistently via savings and rent paid (if applicable) that you can afford €1,000 or so per month then you may get approval of €165,000 or so from AIB. Maybe a little more from BoI. Less from every other lender.

You need to be in permanent employment. Prospects of pay increases are not relevant for the application.

A good broker is not a bad idea, there are several threads on the merits of a broker or otherwise. Just be aware that not all lenders deal with brokers (BoI and Ulster Bank, for two).
 
People keep telling me the banks will only give a multiple of 3 of your pay these days is this incorrect?
 
queenlex said:
People keep telling me the banks will only give a multiple of 3 of your pay these days is this incorrect?
Click to expand...

Most banks apparently do not use such a "crude" calculation. Instead they are interested in your take home pay, and calculating how much you could repay should interest rates rise at least 2% from their current levels.

A bank has levels that it deems a person, couple or family need to live off. Taking these away from your net income (and not including child benefit etc) leaves the amount you could contribute to a mortgage.
 
in a recent chat I had with a bank, for a married couple they wanted both inpermanent employment and to have, after any regular payments of loans or credit cards etc, a disposable income of €2050 per month. I made the mistake of upping our loan repayments to 800 per month before christmas in an attempt to pay them off quicker, which I thought the bank would look on favourably, but no, it means out monthly disposable income falls below €2050 so application can't even be processed.
 
While I can appreciate you're seeking stability. I think I would take a longer term view. Over 25~30 years, when kids might leave, go to college, there maybe another partner, with other property, is it really wise to tie yourself to one property when your requirements might change and you may not have the spare income to trade up, or downsize should your requirements/location etc change. Something to consider anyway.
 
Hey, thanks for all the feedback on this.
I am separated from my husband nearly three years. He may be leaving the country in the coming months. I have just been offered a position and am starting work with the above salary. Up til now I had planned on approaching the lender to see what they may be able to do to reduce payments, but now the situation has changed. I am worried if I do this now I may not be looked on favorably in the future and am trying to look about a year down the road. I have an existing mortgage and I am looking into taking over this mortgage. My understanding is that if I go to court for judicial separation with mortgage approval in place then the judge may order a settlement in that house is signed over. So I could seek a new loan with any mortgage company rather than just stick with existing lender. Intersting to hear about how loan payments impact the loan offer and can hold things up. How about the below..

FULL DETAILS
Marital status: separated
Salary 30K
3 children - one in college who is self sufficient and two much younger.
small loan of 2K (this may be paid off).
Not receiving any maintenance
should be in receipt of Family Income supplement of approx 100 p.w.

how does this stack up with regards seeking a mortgage? Any help really appreciated.
 
Hey guys just looking at this in more detail again with fresh eyes. Did not have a good day yesterday so head a bit over the place.

Anyhow - here's answers comments below. if you have any further feedback would really appreciate it

vandriver - I'm separated from my husband. Three children, but one is now in college and pretty much supporting herself. Others are much younger.


bugler - I'm separated with 3 children and age 40 now, so will be 41 when I start looking for loans for this. I think my net income from salary will be about 2,200 p.m. and the FIS of less than 500 p.m. (these are my estimates ). Do you have any idea what sort of a loan I may be able to get based on those figures?

shigllgetcha - my initial contract is for six months and should lead to a permanent contract then. Do you know how long I would need to be in the company on a permanent basis to be considered ? would six months be enough, so bring me to a year from now all going well.

dereko1969 - I'm trying to explore all the options now. I have not been working over the past few years and have just gotten this position so I am hoping to turn things around. My ex may also be leaving the country so I'm looking at all option. Taking over the mortgage would give me some leeway to make a financial settlement. My ex is very difficult to deal with and is not willing to make decisions so unfortunately I will need to go through the courts.

kheed -do you mind me asking what they mean by disposable income? Is this your income after taxes and after other loans are paid? Do they look at other costs such as childcare in relation to this? For this 2050 figure did they consider children? Anyone know what the figure may be for a single/separated person with children?

AlbacoreA - I hear where you're coming from alright. We actually already have a mortgage on the family home. If that wasn't the case I certainly wouldn't be considering getting a mortgage til further along but I want to try and sort everything as my worst scenario is my ex leaving the country and then I'm struggling to pay a mortgage for years and then 20 years down the road I'm forced to sell and split the moneys in half. Would prefer to take a hit now and know where I'm at.


I really appreciate all the info on this. I'm trying to pull things together and explore all the options and now starting work may mean I can actually attempt to make a settlement and sort out the house.
 
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