What are my chances of getting loan approval?

[sparkle82]

Hi everyone,

I currently live in a 2 bed in Balbriggan. It was bought through the affordable housing scheme. It is half an hour away from the train station and I don't drive so have to walk there and back everyday. (I bought it with my ex who drove).

I currently take home around 1450 a month. The mortgage repayments are 858 a month. I have been paying this on time for nearly the last year (when my ex and I broke up). Currently I am in the process of having his name removed from the deeds. What are my chances of being approved for the loan? I am also with somebody new now and am currently 3 months pregnant. Will a baby have any effect on the councils decision? My current partner wants to move in with me when the baby is born and help me pay the mortgage. My ex has already received a sum of cash, a car and a few other valuables. Considering the distance from the train station and other factors ie. childcare, school, would it be better for me to sell the house?

Sorry about the long post. I'm just so lost here. I spent the last few years of my life in a terrible relationship and I don't want to lose everything I have left over it.

 

[samanthajane]

Re: What are my chances?

I really dont think the fact that you live 30 mins away from the train station is going to make any difference in your loan application.

To sell the house you will have to take into account the claw back that you will have to pay.

I think i know where you live since i'm in balbriggan myself, there is a bus that would stop not too far away from you that you could get that would take you very close to the train station.

Can your new partner not apply for the loan with you? You would stand more of a chance of it being approved with 2 incomes, and your borrowing allowance will go down now because your'll have a dependant soon.

 

[sparkle82]

Re: What are my chances?

Hi samanathajane. Thanks for your reply. I included the stuff about the distance from the train as it's a nuisance and therefore a factor for me to sell. Sorry I should have been more clear about it Anyway asking my partner to go in on the loan does sound like a good idea. Will the council allow me to do this? Effectively it means removing my ex's name from the deeds and putting my current partners on them. I think I'll have to ring the council. Thanks again

 

[mathepac]

Re: What are my chances?

... Currently I am in the process of having his name removed from the deeds. What are my chances of being approved for the loan? ...

... Anyway asking my partner to go in on the loan does sound like a good idea. Will the council allow me to do this? Effectively it means removing my ex's name from the deeds and putting my current partners on them...

I'm sorry if my knowledge of the situation is incomplete, but you seem fascinated by adding and removing people's names from deeds as if the loan follows the names on the deeds, which sounds odd.

Surely as with other properties, the process is to make a loan application and the approval process dictates whose names need to go where, the deeds being the last documents to be considered?

There are other issues that occur to me here but maybe as they are OT I'll leave space for others to raise them.

 

[sparkle82]

Re: What are my chances?

Hi mathepac. Well my knowledge of loans and deeds etc is very incomplete. That's why I started this thread. Any advise you can give me will be much appreciated

 

[samanthajane]

Re: What are my chances?

sparkle82 did you get the loan from the council, or from a bank?

If from a bank then it has nothing to do with the council anymore. It's like buying any other house, you wouldn't go back to the person/builder you purchased the house from to restructor your loan. It's all to do with the bank.

I think the OP is just wording things wrong when she say's deed's i think she means just to get her ex partner to have nothing to do with the house at all.

I hope you have had something legal drawn up, i'm asuming that the sum of cash, car and other valuables is in lieu of him having no financial hold over the house anymore.

The same process applys to an AH as that to any other house. For you to be the sole owner of the house you would need to apply for mortgage appoval in your name only. You can get this from the bank you orginally got the loan from or any other company. It's very likely that you wouldn't receive the loan soley in your name which is why i suggested you apply for loan approval with your current partner. You can by all means apply by yourself but i wouldn't be getting your hopes up about it.

Just remember by selling the AH you will never again be able to apply for this again and after sucha a short time you will have no equity built up in the house, the profit you make by selling it on the open market will all go back to the council.

If i was in your shoes i would stick with it for the moment, start saving what i could even if this was only €50 a month. Eventually in a few years time you and your current partner would be able to upgrade and move to somewhere else. Or you could use that money to buy a car for your self, even if it was just a little run around. I wouldn't worry too much yet about schools thats a long way off, you dont know where your going to be in 5 years time.

Congrats on the baby aswell....forgot to say that earlier.

 

[sparkle82]

Re: What are my chances?

Thanks samanthajane. I got the loan from the council so it's all in their hands. I have engaged the services of a solicitor as well who has drawn up a list of all the items the ex received in the settlement.

 

[Topsido]

Re: What are my chances?

I would say you should have a talk with the council. Can I ask how long you and your ex broke up? The reason I'm asking is because you said you have been paying the mortgage by yourself for a while. If you can show on your bank statement that you have been carrying the mortgage for ie over a year without missing a one, you might be able to get your ex's name off and only yours still on without triggering the clawback. It is a very long shot but doable.

Words of advice: You will need A WHOLE LOTS OF PATIENCE dealing with the council and a very good lawyer. Without sounding as a bearer of bad news, I would exhaust all the options first before comsidering putting another partner on your deed. What if you broke up (knock on wood)?