Hi, long term reader, first time poster.
My wife and I met two years ago. Both of us bought apartments in Dublin in 2007. We're looking to buy a family home in Dublin now. We haven't formally applied for a mortgage as of yet and are looking for some guidance given that branch staff may not be able to address some of our queries.
3.5 times our joint earnings (excluding bonuses) is €515k. We save €3.5k per month. We have no children but in an ideal world will have - wife is bigger salary if that will have an effect.
We have two properties (both bought as PPRs)
- The one we are living in is worth €180k to €250k - no mortgage
- The other is worth €120k to €140k - mortgage of €160k against it
- The second is rented out at €950/month and is fully compliant with PRTB and taxes etc.
Q1/ I'd prefer not to take the hit on the negative equity of the second and continue to rent it out. What effect would this have on what a bank would be willing to lend?
Q2/ Deposit wise we don't have anywhere near enough cash to get to 20%. In terms of bidding, we would be more attractive if not in a chain.
a/ Are banks willing to fund equity (at a low gearing level) on a property on the understanding that the property will be sold as soon as possible?
b/ There is scope for parental loans (again on the understanding property is sold as soon as possible) but no scope for gifts (we wouldn't want it). Is this something a bank can point to for the cash or will they only consider it if it is a No Strings attached gift.
I've completed the info from the key post. Thanks for your help.
Is this a single or joint application.
Joint
Type of Property. 2/3 bedroom house/apartment.
3/4 Bed house
Value of Property
€700k
Amount of Mortgage
€500k
Term of Mortgage.
30 years
Amount of savings and over how many years
€40k - 1 year
Is there a lump sum from any other source? If so give full details.
No
Age of Applicants.
35 and 33
Employment situation. Public sector/Private sector/Self employed/Contract.
Public sector - financial services
Semi-state - financial
How long are you in current position and are you permanent.
3 and 2 years - both permanent
Have you any children.
No
Have you any court orders or Judgements.
No
Have you any other loans and if so full details of amount/period/% rate and repayment amounts.
No personal loans
Cr. Card situation. Full disclosure.
Paid off each month.
Have any of your existing loan or credit card monthly repayments been paid late over the past twelve months, even if you made the repayment in full a few days later? If so, how many times in the past twelve months?
None
Any previous negative Cr. history by either applicant.
None
Are your savings and rent clearly visible and identified as such in your bank accounts each month
Yes
Have you gone over your overdraft limit in the past six months, even if only for a day or two?
No
If so, how many times in the past six months?
If you have been refused a mortgage please give exact reason of why and address why you think you should not have been.
No
Did you use a Mortgage broker or are you applying directly?.
Directly is preference
Any other relevant information.
What reason has the bank given to you for refusing you?
Have you checked your ICB record to make sure it's clean?*
Not yet
Which bank(s) have you applied to?
Before applying for a mortgage remember you will have a lot of other expenses associated with moving into a house such as furnishing it/repairs/mortgage protection policy/house insurance/property tax/new telecommunications charge/new water charge/possibility a management co charge as well as the usual utilities fees. Also stamp duty, legal fees for a solicitor, bank valuer's fee, engineer's report.
My wife and I met two years ago. Both of us bought apartments in Dublin in 2007. We're looking to buy a family home in Dublin now. We haven't formally applied for a mortgage as of yet and are looking for some guidance given that branch staff may not be able to address some of our queries.
3.5 times our joint earnings (excluding bonuses) is €515k. We save €3.5k per month. We have no children but in an ideal world will have - wife is bigger salary if that will have an effect.
We have two properties (both bought as PPRs)
- The one we are living in is worth €180k to €250k - no mortgage
- The other is worth €120k to €140k - mortgage of €160k against it
- The second is rented out at €950/month and is fully compliant with PRTB and taxes etc.
Q1/ I'd prefer not to take the hit on the negative equity of the second and continue to rent it out. What effect would this have on what a bank would be willing to lend?
Q2/ Deposit wise we don't have anywhere near enough cash to get to 20%. In terms of bidding, we would be more attractive if not in a chain.
a/ Are banks willing to fund equity (at a low gearing level) on a property on the understanding that the property will be sold as soon as possible?
b/ There is scope for parental loans (again on the understanding property is sold as soon as possible) but no scope for gifts (we wouldn't want it). Is this something a bank can point to for the cash or will they only consider it if it is a No Strings attached gift.
I've completed the info from the key post. Thanks for your help.
Is this a single or joint application.
Joint
Type of Property. 2/3 bedroom house/apartment.
3/4 Bed house
Value of Property
€700k
Amount of Mortgage
€500k
Term of Mortgage.
30 years
Amount of savings and over how many years
€40k - 1 year
Is there a lump sum from any other source? If so give full details.
No
Age of Applicants.
35 and 33
Employment situation. Public sector/Private sector/Self employed/Contract.
Public sector - financial services
Semi-state - financial
How long are you in current position and are you permanent.
3 and 2 years - both permanent
Have you any children.
No
Have you any court orders or Judgements.
No
Have you any other loans and if so full details of amount/period/% rate and repayment amounts.
No personal loans
Cr. Card situation. Full disclosure.
Paid off each month.
Have any of your existing loan or credit card monthly repayments been paid late over the past twelve months, even if you made the repayment in full a few days later? If so, how many times in the past twelve months?
None
Any previous negative Cr. history by either applicant.
None
Are your savings and rent clearly visible and identified as such in your bank accounts each month
Yes
Have you gone over your overdraft limit in the past six months, even if only for a day or two?
No
If so, how many times in the past six months?
If you have been refused a mortgage please give exact reason of why and address why you think you should not have been.
No
Did you use a Mortgage broker or are you applying directly?.
Directly is preference
Any other relevant information.
What reason has the bank given to you for refusing you?
Have you checked your ICB record to make sure it's clean?*
Not yet
Which bank(s) have you applied to?
Before applying for a mortgage remember you will have a lot of other expenses associated with moving into a house such as furnishing it/repairs/mortgage protection policy/house insurance/property tax/new telecommunications charge/new water charge/possibility a management co charge as well as the usual utilities fees. Also stamp duty, legal fees for a solicitor, bank valuer's fee, engineer's report.
