Self-employed - how much mortgage can we secure?

S

Soulking

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We would like to purchase an house in 2011.

I have started working for myself under the State Back to Work Enterprise Allowance. Business is slowly increasing and I am currently earning approximately 2,000 per month plus the BTWEA of 1,200 per month. My wife works part time and earns approx. 8,000 per annum. As far as I know our credit rating is unblemished, as we have always paid off the full monthly balance of our credit card. We also have evidence of paying 1,000 per month rent regularly for the past four years. Could this be used as a means of justifying that we could service a mortgage requiring this repayment?

We have savings of approximately 250,000, and would like to buy for around 300,000 / 350,000. Can anyone say what is the likely maximum mortgage that we might be granted? And what we will have to show the lender to secure this?

Thank you.
 
We have savings of approximately 250,000, and would like to buy for around 300,000 / 350,000.
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The discussion of future house prices isn't allowed on here.
Do you think you'll need a mortgage? - how much for?
 
I'm no expert, but surely with you going in for a mortgage with LTV of 28.5% they'd look favourably on you.
 
Would anybody know if there are lenders prepared to advance around €100,000 (less than 30%) in the situation I described originally i.e. myself self employed and my partner in part time employment?
 
As a rule, you need to be self employed for a minimum of two years before they will take your self employed income into account.

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Does that mean that it is impossible for us to get a mortgage until I have been self employed for two years?
Is there not some way, when we have so much equity?
 
I wouldn't say impossible but without knowing the full details of your personal circumstances it is impossible to give a definitive answer.

I know it's not what you're asking but are there no suitable houses around the €250k mark?

You should sit down with your local broker/bank and see what they say once they have seen your whole file.
 
I'm self-employed and my wife [was] part-time and we were approved for a mortgage with EBS. No-one here can answer your question though, there isn't a fixed answer. Follow NorfBank's advice.
 
really, a quick search on Daft shows 500+ homes with 3 beds between 200k and 250k in Dublin
 
NorfBank said:
I wouldn't say impossible but without knowing the full details of your personal circumstances it is impossible to give a definitive answer.

I know it's not what you're asking but are there no suitable houses around the €250k mark?

You should sit down with your local broker/bank and see what they say once they have seen your whole file.
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Thanks, I will try mortgage broker / bank / building society with full details.
I appreciate that there are properties for 250k but not 3 beds in area where we currently rent & children are at school.
 
I think with such a low LTV you should be able to get a mortgage, even in these times.
 
Thanks for your responses. I have checked with several mortgage brokers and banks and have been told that I have not a chance of a mortgage despite such a low LTV.

The mortgage industry seems to have gone from one extreme to the other.
How long until some common sense filters in ?
 
Soulking said:
Thanks for your responses. I have checked with several mortgage brokers and banks and have been told that I have not a chance of a mortgage despite such a low LTV.

The mortgage industry seems to have gone from one extreme to the other.
How long until some common sense filters in ?
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Interesting. Sorry don't know answer to your question, but to date ancedotal evidence suggested they were only lending <=80% LTV to A rated clients (permanent, pensionable job for 2+ years). Your post confirms it for me.

I'm in a similar position in that I'm an IT Contractor in Dublin with considerable savings from a previous sale. However, wife is permanent HSE staff, so we can get loan on her income alone. It would just be for much less than we would need to purchase a 4 bed in North Dublin. So choice is wait or buy 3 bed. Think I'll wait. Bear in mind I earn a considerable amount of money in an industry largely unaffected by the downturn.

IMO, it's a cash market with credit bubble prices.
NOTE: I'm not actually discussing future direction of house prices, as per directive.
 
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