Starting New Job need a mortgage straightaway

Hi,
I recently got a new job down in Cork and I am in the process of organizing my move down there. The issue is my girlfriend and I want to buy a two bedroom apartment for 320000 in Cork to live in. We do not want to rent. We have a 3 bedroom semi detached in Dublin which has appreciated in value by about 150000 over the last couple of years and which we intend to rent out for about 6-9 months before selling it next year. I have now been told by my mortgage broker that the banks have a problem giving me a 90% mortgage for the apartment (288000 euro) because my new job requires an initial 6 month probation period. My salary in my new job is 80000 approx and my girlfriend is a nurse so she will have no problem getting work in Cork (she has already been offered work). Can someone please tell me I can work around this and get the mortgage I require. I heard IIB homeloans might be an option. Surely with our incomes and positive equity I shouldn't have this hassle.

this sounds messy, but could you remortgage your Dublin house - seeing as you are planning to sell it in 6/9 months anyway and then possible get a smaller mortgage for the balance basing this only on your girlfriends income. When you sell the house i Dublin - mortgage paid with proceeds - smaller mortgage still on Cork property. I'm sure there are some holes in this plan but it might work.

Corklad,
It's just the banks covering themselves, it's a whole lot easier firing people when they are on probation than if fully permanent. They don't want to run the risk. Banks will go to loan offer stage with a condition that you must be fully permanent before drawdown. Don't take it personally but thems the rules.
Approach your personal banks direct and you may get more joy I'd say. On your salary plus the girlf being a nurse, they may turn a blind eye.

Thrifty said:

this sounds messy, but could you remortgage your Dublin house - seeing as you are planning to sell it in 6/9 months anyway and then possible get a smaller mortgage for the balance basing this only on your girlfriends income. When you sell the house i Dublin - mortgage paid with proceeds - smaller mortgage still on Cork property. I'm sure there are some holes in this plan but it might work.

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Indeed. Why bother renting out your current place atall, especially since you'll only be renting it out for only a 6/9 month period? Will renting it out expose you to a stamp duty clawback thus negating any gains you make on rental?

Renting out the dublin property may bring the stamp duty clawback into play,hardly worth it for 6-9 months rent.May be better to sell now,how long have you got the house ?did you buy it new ?did you pay stamp duty initially ?

the lenders will not balk at the amount, it's the probationary period that they are worried about.

I changed jobs in between mortgage approval and the draw down date. Was still on probation when drawn and no issue with bank - BOI whatsoever

Got aproved for a 100% when moving jobs. When straight away to my bank (as broker wouldn't even consider my application), and they were really helpful, as I was getting into a more qualified job, more money, etc etc. Also the fact that the OH is working more than 5 years with a well known employer help. It was all down to the pitching we did, and the FA at the bank was and still is very helpful (that was almost a year ago, and still trying to find the house, if you see my previous threads you can see I went sale agreed 4 times, but I still don't have a house!)

Its an unfortunate problem, but until a few years ago it wasn't uncommon for people to be dumped out of jobs even after a year or more. The lenders are only trying to protect themselves against a perceived risk. Would suggest talking to lenders directly as they may be more sympathetic.

pinkie123 said:

I changed jobs in between mortgage approval and the draw down date. Was still on probation when drawn and no issue with bank - BOI whatsoever

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Did you tell BOI that you'd switched jobs?

Yeah I did. Dealt with the manager in BOI rathmines directly. Very nice guy. New job was with more established company and more money as well. Although when I applied 1st for mortgage was on probabtion fwith another company! Apartment took 8 months to complete and in that time I got another job which is the job I had [and still have] when mortgage drawn down. Bank manager never said he was concerned.