House purchase on single income?

D

deltrotter

Registered User
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Hi All,

I have a very quick question and was wondering if somebody could please answer it for me?

So my wife and I have seen a property we would be very interested in. My wife however is working through becoming permanent in her position. We have more than 20% deposit. Could we qualify for 4 times one persons salary and parents would be willing to loan us the rest or would the banks not entertain this sort of proposition? We have another property which is about 38k in negative equity not sure if this would have any impact on this.

Thank You
 
Last edited:
Sounds messy.

Have you a tracker on your home? If it's with one of the main lenders you can carry it with you although the margin will be increased by about 1%

Brendan
 
Is it a case that you're both working, but your wife is not permanent?

Is the other property rented?
 
Some employers will make a person permanent earlier if asked. It can help with mortgage applications.
 
You could try that route but the funds from parents would have to be declared as a gift, not a loan. You may not have to resort to that option, though. If you don't need to borrow close to the maximum amount that your combined incomes would allow, then some of the banks would be happy to approve an application where one applicant is still on probation. For example, if the affordability works on, say, your income and 50% of your wife's income, then I would be positive about the chance of getting approval. It would help if she is in the same type of job.

Even if you need her full income to be included to qualify for the required amount, any bank would issue an approval in principle with a condition that probation is completed before a loan offer is issued for a particular property. This can bring things forward by a month or two, compared to what you may have expected.

The property in negative equity doesn't help, but it may not damage your prospects too much if you have decent rental cover on it, i.e. excess of rent over the mortgage repayment (helpful if you have a tracker, of course).

Best regards,
Dave Curry (broker)
https://www.linkedin.com/in/davecurryirl
 
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