chances of mortgage approval

S

sillyaboutmo

Registered User
Messages
94
Hi all,
In March this year we approached BOI for mortgage advise. Our stats are as follows
Married with 2 children
single income of 30K+
overtime of 5K guaranteed.
have no debts whatsoever.
save 350pm
pay 563 rent pm thats is dd'd from ac every wk.

Have 14K in savings 12 of which was gifted.

At the time we were looking for a mortgage of 120k and the advisor said it would be tight on 1 income but possible.
She advised us to Show a savings record. we have dd set up weekly of 80
she also said that if my wife got a job, just a few hrs, that it would help with application.
She did get a job 20hrs a wk but sadly was made redundant, she only had 12wks work and then she fell ill and the company ceased trading while she was sick. she is currently on disability.

Anyway the 6months is up and we are due to return to the bank to get a mortgage. What do think are the chances we will be approved.
We have started looking at properties under 100k and we would be willing to ask for less.
what in your opinion will we get?

Thanks in advance

Mo
 
Hard to say. I'd be inclined to apply for €90,000 of a mortgage over 30 years, assuming you're both under 35 years old. At 6% interest (the common "stress-testing rate" that banks use) the repayments would be €540 per month, or close to what you're currently paying in rent. So you can prove affordability.

In addition, the 10% deposit on a €100,000 property plus fees is about what you have in savings.

However, a bank may take the view that €30,000 or €35,000 is a low enough salary for four people to live on.

Try for €90,000. Good luck.
 
thanks LD,
We have been looking at properties at below 80K even. A typical 3bed semi. Its not our Dream but we will have to compromise. We are fed up renting and The property we were after in march is sold so we had to look again anyway.
Yes are both under 35...just. we're both 33.

Thanks for replying.

Mo
 
Hi i went to those links and those posts are from 2009. or did i do something wrong.
Anyway We did approach AIB in March and they did tell me that a family of 4 needs a disposable income of 2500 after mortgage so you are correct there. I havent heard anything about BOI's having criteria like that.
Maybe someone else will chime in and clear it up.

Thanks
Mo
 
sillyaboutmo said:
Hi i went to those links and those posts are from 2009. or did i do something wrong.
Anyway We did approach AIB in March and they did tell me that a family of 4 needs a disposable income of 2500 after mortgage so you are correct there. I havent heard anything about BOI's having criteria like that.
Maybe someone else will chime in and clear it up.

Thanks
Mo
Click to expand...

That's the joining date of the poster. The first link is a posted started in August 2012.
 
ok my bad, but still i dont see it written that BOI are looking for 2500 net disposable income in that 2nd post.
this is the criteria outlined by BOI
My experience with BOI is that they will lend the lowest of
1) 90% of the property or
2) 9 x the deposit or
3) 3.5 x the annual gross salary or
4) For 20 year mortgages 140 x (monthly net salary – 2500)
5) For 25 year mortgages 155 x (monthly net salary-2500)


MO
 
sillyaboutmo said:
ok my bad, but still i dont see it written that BOI are looking for 2500 net disposable income in that 2nd post.

4) For 20 year mortgages 140 x (monthly net salary – 2500)
5) For 25 year mortgages 155 x (monthly net salary-2500)
Click to expand...

That is what the 2500 in those formulas relates to.
They are for a stress test at 6%, with the amount in the brackets being the mortgage payment.
 
Berni said:
That is what the 2500 in those formulas relates to.
They are for a stress test at 6%, with the amount in the brackets being the mortgage payment.
Click to expand...


Sorry i couldnt see it there. thanks for pointing it out.


jeez thats devastating news.

BOI was the only bank that would entertain us.


BACK TO SQUARE ONE AGAIN.
 
I think BOI will entertain you actually.
We recently got approval from them in past couple of weeks - single income 43k, 2 kids (but we are older than you so have less time to pay it off).
From what I gathered the criteria with BOI for 2 adults, 2 kids is you have to have 1700 left a month after paying the mortgage payment. I saw it written down on the sheet myself. With AIB it is 2500.
Big difference. I'd certainly go back to BOI if I was you.
Whoever said the same criteria applies for both banks, that's wrong.

Also I went into my local BOI branch and the approval took less than a week to get the letter out (now I did have all my papers p60, savings records etc with me).
 
thanks Sadie,
Phew, i was panicking there. 1700 is more like it?
Do they include children's allowance? i know they dont count social welfare payments.

can i ask what size of a mortgage did you get and what age you are.
Mo
 
We are mid 40's and got 100k. Repayments would be 518 or something like that. Not sure if they count children's allowance as income. We pay 620 rent out of 2890 take home, and to be honest we'd near enough spend all of the rest. We do dip into savings for car insurances for 2 cars for example.
But then again we pay private health insurance so I suppose if we didn't have that, then that extra bit would pay for the car insurances each year.
Because AIB only allow you to borrow up to age 65, BOI allow you to borrow up to age 70, so that's another reason BOI appear to lend 'more' than AIB.
 
Thank for the info Sadie,
Im booking an app with mortgage advisor for next mon so we'll see then whats what. fingers crossed.

MO
 
I've been recently approved by BOI 130k 'n AIB 110k. 27 year old, 30k a year,no children,no loans, permanent job. Saved 500 a month for the past 8months plus 280my monthly rent. 16k saved. Not sure if this helps you, but yeah BOI seem to be a bit more "generous".

Best of luck!
 
thanks mihaela,
that sounds promising.

beetroot
when i visited a mortgage broker in 2010 they counted the childrens allowance but i guess times have changed.

mo
 
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