Declined Mortgage application- any advice?

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micheller

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Hi All,

We've gone through a broker and were declined 100% mortgage by all institutes. Basically due to my probation in this job not complete until April and partner is contract. We've been advised we really need to wait until he's in Business 1yr. We had lots of documentation with prev employment histories etc, but no result :(

Any advice on anything we can do at this stage or is it the long wait until next year? Any advice appreciated,

m.
 
I'm afraid 100% is going to be out of the question but do you have any savings(or the possibility of a gift) to get a 92% mortgage? You'd still need to have completed your probationary period but at least you wouldn't have to wait till next year.

Sarah

www.rea.ie
 
Thanks Sarah. Unfortunately, savings are out the window too as we're getting married this year. Why do these things always happen at once!?
Could you tell me anything about the EBS Family first mortgage or any other options we could think about?

Thanks for the response :)
Michelle
 
hi,
assuming that you are having a big wedding,forgive me if i am wrong.

look your beloved in the eye and say "suppose we have a small wedding now and use some of the wedding money as a deposit to buy a home" then-
if you are still speaking to each other you could at least crunch some numbers to see if savings could be made.

sudden
expect mild resistance.
 
No, not an extravagent wedding at all! Suffice to say we'll be able to cover it with our savings from now til then but it's by no means extravagent. Good advice tho- thx,m.
 
HAve you any savings at all?A bank isnt going to lend you 100% of the purchase price without evidence of savings or the very least a stable employment record.If you're flitting from job to job the bank are going to be worried about you paying them back!
 
Thanks for the advice. I was not 'flitting from job to job' - I have a total of ten years permanent employment records. Had just started a new job before the application.
This is from the end of last year, so we're on a different track now. Thanks all the same,

Micheller.
 
Sudden I disagree withthe streamline the wedding suggestion - you could end up regretting not spending a few quid on a day out for yourselves. We in the same situation and we had a wedding to rememeber in a shoestring - DIY all over for 150 people and all in it cost maybe €12-14k euro but we broke even a few months after. Then we bought our house. We were lucky because i was perm and my hubbie was not - we borrowed €20k from a family member (otherwise we would not have gotten decent mortgage approved because i earn much less than hubbie) and only one bank gave us a decent mortgage that could buy anywhere. we put the loaned cash towards the mortgage and now, less than 1 year on we have €7k left to pay on loan, SSIA's due next year and a home sweet home.

So my advice borrow whatever you can to help the cause - i know others will kill me for this but we decided we had to take the chance and borrow from family and for us so far so good, i also set up SO's so that the money was out of my account and into a savings account before i got to it.

If you are used to scrimping & saving for the wedding then you will continue to do it for a while after to get your house. It may seem horrible but people are immensly practical with wedding presents and we did get a lot of cash which we saved and paid wedding bills with.
The only downside is that we have had no really new clothes (save for penny's) in the past 2 years. :(
 
Yes nelly- agree, havn't bought anything new in what seems like an age. Wedding should come in ~17K. 7K paid already, 2k to pay month after and about 8K on day. This is all manageable through our savings.

Thankfully, we are in the position of being able to look at a comparibly low cost housing option due to the kindness of family (building) and will see some equity realisation to add to our mortgage 'input'.
I'm just crossing everything that the planning comes through. Hopefully that will fix us up for a while :) If it doesn't....:(
 
micheller said:
Yes nelly- agree, havn't bought anything new in what seems like an age. Wedding should come in ~17K. 7K paid already, 2k to pay month after and about 8K on day. This is all manageable through our savings.

Thankfully, we are in the position of being able to look at a comparibly low cost housing option due to the kindness of family (building) and will see some equity realisation to add to our mortgage 'input'.
I'm just crossing everything that the planning comes through. Hopefully that will fix us up for a while :) If it doesn't....:(
Click to expand...


Regardless of how low cost it might seem on paper..a self build is hugely expensive proposition and builders etc will require much ofthe money up front for supplies and labour.If you dont have savings in the tens of thousands,you will be iether able to get married or commence your build,but not both.
 
Wexfordguy, like I stated already, the equity realisation value will also help (of value of the plot we will be gifted if we get planning permisson, hopefully)
We will still be getting a mortgage to complete the build. We have already talked to banks about this and they seem quite happy.

So, hopefully, we'll get our planning permission. Thanks for your help though.
 
micheller said:
Wexfordguy, like I stated already, the equity realisation value will also help (of value of the plot we will be gifted if we get planning permisson, hopefully)
We will still be getting a mortgage to complete the build. We have already talked to banks about this and they seem quite happy.

So, hopefully, we'll get our planning permission. Thanks for your help though.
Click to expand...

But the original topic states that you were declined your mortage!Which is it?
 
Like I said to you in my first response earlier this morning, we're going down a different track now.

The Original post was from January this year.
When we were declined back then, we revised our plans to what I mentioned today. Almost June, 5 months later.
The thread might make more sense if you reread it now?
 
hey micheller, just curios as to how much it costs to self build? its an area i might just look into myself. and whats ur square footage gone be?
 
Hi msmyth, We're looking at sq ftg of 1410 for ourselves.
We also have to demolish & rebuild an extension on the existing house to make way for ours- the extension will be about 4x4m.
I say all this with everything crossed for the PP! I'm a bit of a worrier :)

I've been given a total max guideline for all this at around 240K. We're going to go through a contractor too. I've seen people on here given much lower figures for self builds- if you look in home and garden, there's some great people over there.
 
micheller said:
Like I said to you in my first response earlier this morning, we're going down a different track now.

The Original post was from January this year.
When we were declined back then, we revised our plans to what I mentioned today. Almost June, 5 months later.
The thread might make more sense if you reread it now?
Click to expand...

So did you get loaned the money for a self-build?
 
Mortgage process for the second situation is underway.
We cannot go any further until we know whether we have PP.
Why?
 
micheller said:
Hi msmyth, We're looking at sq ftg of 1410 for ourselves.
We also have to demolish & rebuild an extension on the existing house to make way for ours- the extension will be about 4x4m.
I say all this with everything crossed for the PP! I'm a bit of a worrier :)

I've been given a total max guideline for all this at around 240K. We're going to go through a contractor too. I've seen people on here given much lower figures for self builds- if you look in home and garden, there's some great people over there.
Click to expand...

so is it that your remodelling an existing derelict house?
 
No- basically existing res is built on a double sized plot.
Making changes to existing res and building in the remainder of plot. (hopefully!!!)
 
micheller said:
No- basically existing res is built on a double sized plot.
Making changes to existing res and building in the remainder of plot. (hopefully!!!)
Click to expand...

alright can see why ur concerned about pp then, you need to get permission to change existing house first off then to build ur house, could be tricky alright. by making the existing house smaller and takin away the garden are you not devaluing it? that combined with the cost of the build think dont think the few k that you'll be savin is worth it to be honest
 
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