have i any chance of a mortgage?

E

ejdg9

Registered User
Messages
16
since the price of houses has dropped, there are now some that have become affordable to me, but i am unsure as to wether i would even get a mortgage from any bank

i am single and i earn about 25k a year
i have about 30k in savings, i have no outstanding loans and i am a bit of a scrooge and dont mind living on the cheap

my problem is my job
i have been working the same job for almost 6 years now, but it is in the leisure industry and has been hit fairly hard by the downturn
most of us have been put on a three day week but i havent, and i reckon that i wont be put on three days because i am the last person working in my department,there will always be enough work for me
however, given the nature of the industry we work in, i think i would have trouble convincing the bank that my job was safe

i know that with my lowsy wage i need to be looking at houses on the bottom end of the scale, my head isnt in the clouds or anything (i wasnt looking at anything over 150k)
and i have i think a nice wee nest egg there and a good record of saving over the years
so would that balance out the somewhat dodgy job situation, or would i be seen as too big a risk?

i know that the banks are really the ones who have all these answers, but i dont want to be laughed out of there if my request is unreasonable



thanks for any help you guys can give me
 
neve mind the bank- are you REALLY sure that your job is safe?
 
well it is as safe as it can be
the way it is at the minute, if my boss sacked me then that would mean he was shutting up shop completely
i would be one of the last people he would get rid of

business has been picking up lately but in the current climate, there are no guarantees for pretty much anyone
 
I dont understand why people ask on the internet or ask others if they can get a mortgage or a loan.
I know several people who have asked me. They have been told by other people that they wont get one.

My advice is - ask the banks. Only they know. And only they will have your full financial info when you give it to them. They are the only people who can tell you for sure. Go to every bank or lender - apart from sub-primes (never ever borrow from those scumbags).

And guess what? All of the people i know who went to the banks got their loans or mortgages in the end.
 
agree with minion that only the banks can tell you for sure.

But you have a good deposit already saved and if you were looking to buy around €150k that would only mean €120k mortgage. As a ftb there are a few good intoductive rates around. I have a €230K mortgage and an interest rate of 3.99% and i pay just under €1200 a month. So you'd be paying around half of that give or take. You also have the option of taking the mortgage out for longer, depending on your age you could get a 35 year term which could lower the repayments that bit more. I only took out a 24 year mortgage.

You have no other out goings so thats a plus for you. I dont think you would be laughed at for applying for a mortgage, and if you dont try you wont know.

Good luck.

Minion what are sub-primes?
 
samanthajane said:
depending on your age you could get a 35 year term which could lower the repayments
Minion what are sub-primes?
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Thirty five years mortgages are a bad idea, a very bad idea.And if you are thinking of getting a mortgage, do not make the mistake of judging it on teh first year or two- base it on the rates after the initial more attractive inroductory offers have expired.

Sub Prime lenders lend to those who would not get loans off mainsteam lenders, but their rates are a lot higher.
 
i dont have any intentions of ever borrowing from those sub prime gangsters
so no worries there, but what is wrong with getting a 35 year mortgage?
it is more expensive in the long run i know, but i thought that was what one does when buying for the first time
i dont want to be living in the same house forever, i would hope to be moving on up the property ladder in a few years time
so why put myself under pressure to meet larger payments if i will most likely be getting another mortgage in 5 or 6 years time?
 
Snarrig said:
Thirty five years mortgages are a bad idea, a very bad idea.And if you are thinking of getting a mortgage, do not make the mistake of judging it on teh first year or two- base it on the rates after the initial more attractive inroductory offers have expired.

Sub Prime lenders lend to those who would not get loans off mainsteam lenders, but their rates are a lot higher.
Click to expand...

I think 35 year mortgages can be a good and bad idea. I had the option of getting a 35 year mortgage because i was very young when i got my mortgage but just chose against it. Yes in the long run if you stuck the 35 years out you would pay more in interest, but you dont need to stick to the 35 years.

Dont know how old the op is but it would a way of him getting on the property ladder now if for the next few years the repayments were that little bit less.

What you said about the interest rate changing after the initally ftb period i hope the op was aware of it, if he wasn't then he is now. But lets look at things in a positive way and say that in 2 years time things will be more stable in the property market than what they are now and also where his job is concerned, and when getting the mortgage he will know what rate he will be changing to ( give or take the base rate ) so he can factor that in as well.

I dont think he'd be putting himself into a bad situation, he's not looking to buy a €400k house. I may be way off the mark but i'm guessing that the op is only in his mid 20's and buying the house himself. Like he said in 5-6 years time he might look to trade up and he could be in a totally different situation, have a partner so there would be 2 incomes to get the new mortgage, i would of thought in 6 years time his wage would of gone up also.
 
i agree - we got a 35 year mortgage as it was the only one going. We have since overpaid and its down in term. Its not uncommon to do this I would have thought.

from the sub-prime horror stories that are out there i would take it as an indication that you can't afford a house if they only mortgage you can get is sub-prime. yet.
 
samanthajane said:
I think 35 year mortgages can be a good and bad idea. I had the option of getting a 35 year mortgage because i was very young when i got my mortgage but just chose against it. Yes in the long run if you stuck the 35 years out you would pay more in interest, but you dont need to stick to the 35 years.

Dont know how old the op is but it would a way of him getting on the property ladder now if for the next few years the repayments were that little bit less.

What you said about the interest rate changing after the initally ftb period i hope the op was aware of it, if he wasn't then he is now. But lets look at things in a positive way and say that in 2 years time things will be more stable in the property market than what they are now and also where his job is concerned, and when getting the mortgage he will know what rate he will be changing to ( give or take the base rate ) so he can factor that in as well.

I dont think he'd be putting himself into a bad situation, he's not looking to buy a €400k house. I may be way off the mark but i'm guessing that the op is only in his mid 20's and buying the house himself. Like he said in 5-6 years time he might look to trade up and he could be in a totally different situation, have a partner so there would be 2 incomes to get the new mortgage, i would of thought in 6 years time his wage would of gone up also.
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yes i am 25 at the minute, and i hope that my situation will be different somewhere down the line, i think you have me spot on to be honest

as for the introductory offers, i am quite wary of the banks and i plan on doing a lot more research on the whole thing
i dont intend on being fooled by tricks like that, but thanks for the warning all the same

all i wanted to know was if i had my head in the clouds by even thinking about a home of my own
thanks for your help you guys
 
ejdg9 said:
yes i am 25 at the minute, and i hope that my situation will be different somewhere down the line, i think you have me spot on to be honest

as for the introductory offers, i am quite wary of the banks and i plan on doing a lot more research on the whole thing
i dont intend on being fooled by tricks like that, but thanks for the warning all the same

all i wanted to know was if i had my head in the clouds by even thinking about a home of my own
thanks for your help you guys
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You seem to be going into this with a decent head on your shoulders, so it doesn't sound like you have your head in the clouds. You're yound enough to wait if you need to.
 
pennypitstop said:
i agree - we got a 35 year mortgage as it was the only one going. We have since overpaid and its down in term. Its not uncommon to do this I would have thought.

from the sub-prime horror stories that are out there i would take it as an indication that you can't afford a house if they only mortgage you can get is sub-prime. yet.
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Did the same on our first mortgage.
Took a 30 year term as we werent sure if we could manage it. And made overpayments as we earned more and ot bonuses etc. Mortgage was paid off in 10 years, but it was easier at the start when we werent as flush. Its quite common and i advise everyone to do it.

Also means if you fall on hard times you have built up a substantial amount of pre-payments, sometimes years worth, so your mortgage is not so much of a worry to you.

You have to weigh this up against the nice fixed rates available now though. You cant overpay on a fixed as far as i know.
 
You can overpay on a fixed rate mortgage but you are restrictedto 10% or so of the monthly repayments
 
obviously it will be the banks that decide what mortgage you can get but you will be looking at a mortgage of at least 5 times your salary which in an unsecured job is likely to be higher than most banks will bear at the moment.

are you currently renting? how much do you pay? if your mortgage is likely to be significantly higher than that per month at present you could have difficulty, also should the ECB rate rise by 2% what effect would that have on your ability to pay?
would you be able to get a lodger to move in, how much is that likely to bring in?
 
Hi I work in mortgage brokerage and to be honest more people have said to me recently that they would consider buying but everyone is telling them the banks have no money to lend- myth. Strong candidants & I would include you in this category for many reasons, job security aside (no one is secure these days not every public servants) but you have strong savings record, leisure industry is going to be very much in focus in the next decade with rising obesity levels etc. If I were you I would package up an application form for a independant mortgage broker (one application form up to 14 lenders) they will revert within a few days with feedback from the lenders on how much if any they are prepared to lend (AIP) based on your circumstances then you can start looking at houses/apartments. You have nothing to lose by doing this expect the time investing in putting application together,the AIP is generally valid for 3 months. There are minimum income and minimum property value restrictions depending on where you live but there is one lender that I thinks fits the bill for you.
 
Hi, you say you would like to trade up in a few years. I think you should bear in mind that if the property market is anything like it is now you may be unable to sell when you wish to, at the price you bought the property for.
I'm in a similiar situation as yourself and would advise you to research the property issue, not just on this site but others like [broken link removed].
Imagine, for example, if you bought your property for 150k, using your 20k deposit and borrowing 130k. 6 months down the line the house/apartment next door sells for 130k. How would you feel then? Your 20k savings wasted.
Speculation on house prices in banned on AAM so I would strongly advise you to check out various sources of information and opinion.
 
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hello again, sorry i havent replied sooner but i thought this thread was finished with

let me try and reply to you all now

i know i said that my job wasnt 100% secure at the minute, but perhaps i overstated that a little
there is no knowing what way my job will go but its not like i am working in a factory where everyone knows they are up for the chop next month
business has been really slow since christmas, but in the last few weeks it has picked up a little again
the longer days has been a factor in that for sure
and i am the last person in my department now, not because of people being let go, but because people have left themselves for different reasons
and i know that i have been busted this week with work so its not all that grim on the job front

as for being able to handle the repayments, i am fairly confident that with the amount i would be able to borrow, i would be able to handle the repayments
i dont have a big car loan or huge credit card bills and i never have done
i have gone over the numbers a lot, taking into account every bill i can think of and i cant see it as being a big problem
famous last words perhaps but i have thought it through

and if a house next door to me did go for 20k cheaper then i would be sick of course, but not that sick
im not buying a house as an investment, im buying a house to live in
its somewhere to call my own, not somewhere to sell on as soon as the market recovers
so im sure i would be annoyed a bit by that but i like to think that it wouldnt keep me awake at night

how independent is an independent mortgage broker though?
i would have some reservations about those companies
and wouldnt you have to pay the broker to do that running for you?
 
ejdg9 said:
and if a house next door to me did go for 20k cheaper then i would be sick of course, but not that sick
im not buying a house as an investment, im buying a house to live in
its somewhere to call my own, not somewhere to sell on as soon as the market recovers
so im sure i would be annoyed a bit by that but i like to think that it wouldnt keep me awake at night
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Hi. Fair enough. Like I said, I'm in a similar situation to yourself - I've suddenly found myself in a situation where I might be able to get a mortgage and buy my own home due to the falls in house prices. I just mentioned the fact that prices are likely to fall further because you said in one of your earlier posts that the property you would buy would be a temporary home and you hoped to trade up later on. And you can only trade up if you can find a buyer for the existant property.

Obviously it's not all about money. I would like the security and stability of owning my own home and being able to do it up as I want. But given the huge changes in the last year I personally think it's wise to hold on a while longer. Prices certainly aren't going to go up in the short or medium term.
Please don't rush into anything - you're only 25.


Best of luck whatever you decide to do.
 
ejdg9 said:
how independent is an independent mortgage broker though?
i would have some reservations about those companies
and wouldnt you have to pay the broker to do that running for you?
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Before doing business with any mortgage broker, you should ask for a copy of their Terms of Business letter and ask them to show you the list of which lenders they do business with. There should be at least half a dozen. Avoid mortgage "brokers" who only deal with one or two lenders.

Once the broker recommends a particular lender, ask them to explain to you why that lender's rate and product is more suitable for you than the other lenders on their list.

Many brokers get paid commission by the lenders, so you don't have to pay them any extra.
 
Presuming you're a fitness instructor would it be worth your while getting a personal training/sports massage qualification before you jump into mortgage land and give yourself the opportunity to do some work on the side of the main gig or another option of your job or hours were cut in the future, then with the house maybe you could use a room in it for this business?

I used to work in the leisure industry pre/early celtic tiger and would never have considered such a purchase on those wages and the limited earning potential to be honest.
 
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