How to get a a mortgage on low income

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Questionsquest

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What the title says.. single mother on low income(only due to only working 2 days, I am on 16 a hour but my contract is just 2 days) if I work another job the tax be crazy I did it before and was basically working for free and didn’t get literelly any loan parents at all nothijg

I’m really struggling been looking to rent a year can’t find anythitn
I’ve 10k saved but was told by a mortgage broker on Instagram I will never get a mortgage on 20k a year (my job and loan parent combined) I feel horrible, I’d qualify for help to buy and already have that saved but cause of my income it seems I’d have to get a mortgage for somewhere 4 times my yearly income so 80k. This doesn’t exsist.

Please anyone? Am I doomed to just be waiting for a council house, I really want a home :(
 
Your social welfare payment will not be taken into account as income for a mortgage, some payments are but only long term ones like invalidity and sometimes carers but only if it is a small part of overall income.

Really tax or no tax your best bet is a full time better paying job, not easy I know but if you want a mortgage from any of the main lenders then income will be the number one criteria.
 
Honestly you woild need to be working full time on a decent salary to have a good chance. It can be done, but might take some time. Can you access further education to upskill? There are companies still struggling to hire and some multinationals have targetted getting more women into the work place. I think that there may be some tax incentives if you come off social welfare, but check that out. Depending on what part of the country there may be apartments or small houses at a lower price point. Youve done incredibly well to have built up these savings and positioning yourself well for the future, and the biggest thing you can do is upskill (possibly with Springboard) to get a higher paying full time job. Best of luck
 
check daft/my home or cheap Irish homes and see what prices are.
You’d be surprised what is available for under €80k around the country.
 
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Pinoy adventure said:
check daft/my home or cheap Irish homes and see what prices are.
You’d be surprised what is available for under €80k around the country.
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Really? I just looked on Daft for non site properties up to €75k (they don't offer €80k as max price filter option) and most of the 190 results were uninhabitable.
 
Pinoy adventure said:
check daft/my home or cheap Irish homes and see what prices are.
You’d be surprised what is available for under €80k around the country.
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I would expect that many of those would require massive refurb, or may be in less accessible locations so transport costs would greatly increase and job opportunities msy be reduced. Its one thing living in a little town in rural ireland but another thing to live a few kms out, particularly in a single parent household.
If OP can stay part-time and return to education, they might have a really good opportunity to increase their salary which is the best way to position themselves for a mortgage. Theyve done extremely well to save that amount and if they can get their gross to 35k + they would definitely have more options and could continue to build up their savings. Very impressive how well theyve done on their current income.
 
Hi Questionsquest.
I would talk to a Credit Union too about a mortgage.
They might be a bit more approachable than a Bank or building society.
If you don't immediately qualify for a mortgage with them, they could give you some advice on their requirements on lending to you after a certain length of time.
 
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ClubMan said:
Really? I just looked on Daft for non site properties up to €75k (they don't offer €80k as max price filter option) and most of the 190 results were uninhabitable.
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The cheap Irish home would have more habitable properties but there is a few which would need a little upgrade to make habitable.
The op might qualify for the vacant home grant too.
dubdub123 said:
I would expect that many of those would require massive refurb, or may be in less accessible locations so transport costs would greatly increase and job opportunities msy be reduced. It’s one thing living in a little town in rural ireland but another thing to live a few kms out, particularly in a single parent household.
If OP can stay part-time and return to education, they might have a really good opportunity to increase their salary which is the best way to position themselves for a mortgage. Theyve done extremely well to save that amount and if they can get their gross to 35k + they would definitely have more options and could continue to build up their savings. Very impressive how well theyve done on their current income.
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Location may not be the best but younever know the op situation or desire to live rural.
That have done great so far,so perhaps stick with it and something will come along.
24601 said:
Ignore this.
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Why ignore this ?
There are plenty of beautiful rural homes throughout Ireland the the figures I quoted so I don’t see why it should be ignored.
Maybe have a watch at cheap Irish homes on rte this evening and see what gems are available.
 
If you're on 20 grand,a second job will NOT result in practically no extra money.That is simply not true.You may well get reduced lone parents,but that ends when the child reaches 7 anyway.
 
Questionsquest said:
Please anyone? Am I doomed to just be waiting for a council house, I really want a home :(
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If you really want a home, the key thing that will unlock it for you is more (earned) income. More income, more mortgage, more chance of being able to buy independently. Easier said than done, I know, but that's the key really. Relying on SW benefits might be worth your while in the short term, but at the cost of the ability to choose (the type of job you have, type of house, where you want to live etc.). The longer you need the benefits, the longer you draw out the process.
 
Outside of banks and credit unions another option could be a local authority mortgage.

However, as others have said, your low income is likely to be a limiting factor regardless of where you apply.

Put simply you want to make your finances look as attractive as possible. You might not take home a lot more now by working (extra income versus the loss of social welfare). However, it might make you more attractive to a lender if a lot of that social welfare is going to disappear in the future. It might also improve the chances of you getting a better paid job in the future.
 
ClubMan said:
I find this difficult to believe to be honest.
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With One Parent Family payment, it can be like "free" working.

€165 of earnings are not regarded. After that, 50% of earnings are used for means test calculation. I suspect the OP is on circa €200 from his/her earnings, possibly already eating a little into the OPF payment with a fiver deducted and a net €215

If the OP works another 16 hours and earns another €200 a week, a further €115 is deducted bringing the OPF payment to €100. and giving a net €85 for the additional 16 hours a week

This possibly brings the OP into PRSI & USC on all income, so net gain would be neglible.

For the OP, don't be embarrassed about trying for a council house or long term HAP rental.

I'd concentrate on providing as much support and education for your child, that in itself is a worthy "career". If your child reaps the rewards of the fairly good and nearly free education system in Ireland they can be in good employment in 15 or so years time. Similarly for yourself, maybe look at online learning and as your child grows up, the results of the learning can open a new career path for you.

Don't be rushing.
 
peemac said:
With One Parent Family payment, it can be like "free" working.

€165 of earnings are not regarded. After that, 50% of earnings are used for means test calculation. I suspect the OP is on circa €200 from his/her earnings, possibly already eating a little into the OPF payment with a fiver deducted and a net €215

If the OP works another 16 hours and earns another €200 a week, a further €115 is deducted bringing the OPF payment to €100. and giving a net €85 for the additional 16 hours a week

This possibly brings the OP into PRSI & USC on all income, so net gain would be neglible.
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Ok - thanks for outlining the situation in this regard.
 
peemac said:
With One Parent Family payment, it can be like "free" working.

€165 of earnings are not regarded. After that, 50% of earnings are used for means test calculation. I suspect the OP is on circa €200 from his/her earnings, possibly already eating a little into the OPF payment with a fiver deducted and a net €215

If the OP works another 16 hours and earns another €200 a week, a further €115 is deducted bringing the OPF payment to €100. and giving a net €85 for the additional 16 hours a week

This possibly brings the OP into PRSI & USC on all income, so net gain would be neglible.

For the OP, don't be embarrassed about trying for a council house or long term HAP rental.

I'd concentrate on providing as much support and education for your child, that in itself is a worthy "career". If your child reaps the rewards of the fairly good and nearly free education system in Ireland they can be in good employment in 15 or so years time. Similarly for yourself, maybe look at online learning and as your child grows up, the results of the learning can open a new career path for you.

Don't be rushing.
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I think lone parents stops when youngest child is 7 right? Not sure how thst would work if transitioning onto another payment and if OP would be down money at that stage.
I think theres some tax incentive though for first couple of years when returning to work. Theres also WFP which pays 60% of the diffetence.

I would stronly encourage OP to unskill, such that they have salary growth in the coming years. Take time now and there might be supports in place whole on lone parents.
 
Questionsquest said:
was told by a mortgage broker on Instagram I will never get a mortgage on 20k a year
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Not the main issue/question here but I would suggest that you be very careful dealing with financial advisors on social media - they may be genuine but there is a significant risk of engaging with scammers via such online channels. And obviously be wary of anybody suggesting anything that seems too good to be true as that's a big red flag.
 
These schemes may still be out of reach for the OP right now but may be something to aim for. Does anyone have any relevant experience of them?

First Home Scheme

This new national affordable housing scheme opened in July 2022. It helps first-time buyers and certain other applicants buy new homes.
www.citizensinformation.ie www.citizensinformation.ie

Local Authority Affordable Purchase Scheme

The Local Authority Affordable Purchase Scheme is a new affordable housing scheme, which helps people on moderate incomes buy homes at reduced prices. The local authority takes a stake in your home, which covers the reduction in price.
www.citizensinformation.ie www.citizensinformation.ie
 
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