Likelihood of Succesfull Application?

P

petermc1979

Guest
Hey, noobie here. I just want to get a rough idea if people think I have a good chance of getting a mortgage.

Details are as follows:

Joint Application

House value 260k.
Savings 38k but will only be putting 10% to deposit so need 234k total.
No loans or c/c debts.
I am a researcher (31) with 6 years continuous post PhD employment in various institutions, current contract has 2 years to run on 44k in UCC.
GF is trainee accountant (25), one year left, currently on 24k.

Thoughts?
 
Peter,

Unlikely due to the fact you are on a contract. It is almost impossible to get a mortgage for anyone who is not full time no matter how secure they think the contract is. It's usually a blanket no.

If you get two declines from mainstream lenders then you would have a shot at Home Choice Loans (government backed). They are apparently accepting contract workers - I have no direct experience of having one approved but it's worth a shot.

www.moneybackmortgages.ie
 
Thanks.
I figured the contract thing might be an issue. The way I view it, I'm almost more secure than a lot of people. The money for my entire contract's duration is in an account at the University already waiting to pay me for certain. Tons of people in industry with seemingly secure jobs could easily face redundancy or whatever else in the coming 2 years and yet they have a better shot.
Oh well, one can't question the wisdom of the banks!
Amazing that people were being loaned 16x their income a few years back and now <4x is a stretch!
I didn't know about that home choice loans service. Looks like a potential lifesaver.
 
Check with a broker to see if you have a chance. If not, your girlfriend might have a better chance in a year, when she qualifies as accountants are considered to be "professionals" and therefore desirable as mortgage customers, along with doctors and lawyers. At least it used to be the case. Even if not anymore, if your girlfriend manages to get a permanent job after qualifying, it will obviously help a lot with your joint application.

That, and saving all you both can to save a bigger deposit, 10% is rather low in the current climate. In the UK it's almost impossible for anybody to get a 90% mortgage, no matter how permanent their job is. I gather Irish lenders are still giving out 90% mortgages, but presumably only to the most secure applicants, in permanent jobs, with perfect credit rating.

I do understand your frustration as years ago (before the days of easy credit:)) we were in a similar situation, my husband being a researcher on non-permanent contracts, and nobody believed we could get a mortgage. We did get it, but only because of a large deposit and low income multiple.

That was before the days of easy credit. Now, after the days of easy credit, it may be even more difficult to get a mortgage than ever.
 
petermc1979 said:
I am a researcher (31) with 6 years continuous post PhD employment in various institutions, current contract has 2 years to run on 44k in UCC.
GF is trainee accountant (25), one year left, currently on 24k.
Click to expand...

We recently managed to get a loan letter and my boyfriend is in similar circumstances to you. He is a postdoc with 4 years continuous employment with the same uni and has a contract for another 2 years. I have a permanent job so I'm sure that helped. Don't really know about your girlfriend's job. We also ahve a 20% deposit which would have helped too.

Our experience was that BOI were the most -postdoc-friendly institution, and would loan on his full salary. AIB would only loan on something g like 60-70% of his salary since it was a contract. EBS would only loan on ~60% of the second salary but said this was the case for all applications and not due to contract work.

petermc1979 said:
Thanks.
I figured the contract thing might be an issue. The way I view it, I'm almost more secure than a lot of people. The money for my entire contract's duration is in an account at the University already waiting to pay me for certain. Tons of people in industry with seemingly secure jobs could easily face redundancy or whatever else in the coming 2 years and yet they have a better shot.
Click to expand...

I would agree that a guaranteed contract for the next two years is probably safer that some "permanent" jobs, where you could potentially be let go in the morning!!
 
Hey Peter, I agree with the comments so so although I have to say that even so called desirable mortgage customers are up for a potential set back in today's climate. I have dealt with GP's with 50% deposits and plenty of income to be within the 3x multiple who are being declined by the majority of lenders. The issue is with them being Partners in a practice - if the have moved to a new practice and have no certified accounts, lenders don't want to know as they are treated the same as any other self employed person setting up a new business!. There are of course the exceptions and a few lenders favour doctors but I know of only three who would look at a scenario like this.
 
doctorsifa said:
Hey Peter, I agree with the comments so so although I have to say that even so called desirable mortgage customers are up for a potential set back in today's climate. I have dealt with GP's with 50% deposits and plenty of income to be within the 3x multiple who are being declined by the majority of lenders. The issue is with them being Partners in a practice - if the have moved to a new practice and have no certified accounts, lenders don't want to know as they are treated the same as any other self employed person setting up a new business!. There are of course the exceptions and a few lenders favour doctors but I know of only three who would look at a scenario like this.
Click to expand...

This is an Irish site doctorsifa - I believe you are in the UK?
 
Thanks for all the replies. It seems like putting up every penny we have for the deposit and then hitting the plastic for furniture etc might be necessary. In fact when all is said and done having 10k less of a mortgage might work out with us paying less interest in the long run than having the furniture on the credit card for a few months?
 
We have recently applied for a loan and got the approval in principle from several lenders. Mind you they are only considering my wife's permanent job. I have a 5 year contract (public) and they are not giving us a penny for it.... And I am only in the first year!
 
petermc1979 said:
Thanks for all the replies. It seems like putting up every penny we have for the deposit and then hitting the plastic for furniture etc might be necessary. In fact when all is said and done having 10k less of a mortgage might work out with us paying less interest in the long run than having the furniture on the credit card for a few months?
Click to expand...

If you can afford to pay off the credit card within a few months - then yes, it will be much better than paying out the same amount over 20+ years as part of the mortgage!

By the way, it is not exactly necessary to spend a lot of money on furniture etc as soon as you buy a house. Some people just buy a few basic pieces second-hand, in charity shops or though private ads. Then save for proper furniture and appliances. My solicitor in Dublin did that:)

It's probably possible to pick up basic necessities (bed, table & chairs, fridge, cooker, washing machine etc) for 1000 euro, plus budget another 1000 euro for some initial repairs, plus money for legal costs of buying, stamp duty etc.
 
You must log in or register to reply here.
Back
Top