Getting a loan on mortgage - change in work hours

A

ALK

Guest
I wonder if anyone can help. We're hoping to take a loan out on our mortgage to do some building work on our house and to pay off some debts. When we originally took out the mortgage I was working full-time as was my husband. I have since had another baby and I'm working part-time. Does this matter when applying for the loan and will it affect the amount we can borrow.
 
ALK said:
I have since had another baby and I'm working part-time. Does this matter when applying for the loan and will it affect the amount we can borrow.
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In a word, yes. The amount you can borrow will be determined (primarily) by ability to repay-less work and less income implies less overall borrowing capacity.
 
Should I say I am still working full-time and fill in my own P60 and wage slips (as some-one adviced me to do) or should I be honest? Thanks for the reply
 
ALK said:
Should I say I am still working full-time and fill in my own P60 and wage slips (as some-one adviced me to do) or should I be honest? Thanks for the reply
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You should be honest-making up income that you don't earn will only hurt you-if you can't afford the repayments, don't borrow the money.
 
Should I say I am still working full-time and fill in my own P60 and wage slips (as some-one adviced me to do) or should I be honest? Thanks for the reply
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No. you wont get away with submitting fake P60 and Payslips. ( its also illegal to falsify the details on a P60)
 
I don't think I would have had the nerve to send in false ones anyway! We're hoping to get €25,000. This will clear credit cards and overdraft plus do the building work on our house. I'm just worried that this is too much to ask for if there is only one full-time and one part-time wage coming in. We will be able to afford the repayments once we have paid off the credit card debts. Does the increase in value of your house have any relevance? Ours has gone up by €160,000 in 3 years. Thanks for advice
 
Of course the value of your house will have a bearing on how much you can borrow. Be careful not to put short term debt (credit cards) over an overly long period. It is not really possible to say what you will/won't be allowed to borrow-that will be at the discretion of the lender. Better off applying to remortgage and then see what happens.
 
Should we say that some of the money is to pay off debts or not. What is the difference between re-mortgaging and a top up loan. Sorry, just not great with all of this kind of stuff.
 
Re-mortgaging and topping up are the same thing in the context of a mortgage.
 
Just on a quick calculation, you might still be ok if total borrowing is only 185k, combined salary is 40-45k and you have no other borrowings after refinancing.

[broken link removed]
 
Another option you could consider is switching mortgage provider, to avail of lower rates on offer, particularly from [broken link removed] (2 year discounted rate, ECB +0.45% for 2 years, rolling to ECB +1.0% thereafter). They also pay €1000 towards legal costs and €150 towards Valuation Report.

[broken link removed] also offer a 1 year discounted tracker (discounted by 0.5% for one year).

Possibly also available from other providers.

worth checking these out.
 
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