What do i need to do to get a mortgage

W

who, me?

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Hi. To cut a long story short im living at home and have access to some family land where i would very much like to build a house.
I would require a morgage of approx. €150,000.
My detals are as follows;

Savings- €3500 (credit union shares)

Debts - €11500 car loan, of which €6000 is still to be paid. Monthly repayments are €515.

Salary- Have been reduced to 3 day week so current net salary is €22500. Dont expect this to reduce any further. Hopeully will be back earning 30+ grand within the next year

Credit rating- Excellent as far as i know


Specifically my question is not whether i would i get a mortgage given my circumstances because i know i most likely wouldnt
Rather i would like to know what situation i have to get my finances in?
Any advice would be greatly appreciated
 
Welcome to AAM who, me?

You will need to

1) Pay off loan
2) Have savings for overruns on the build (5 - 10% of build cost)
3) Keep current accounts clean i.e not overdrawn, no referral fees
4) Do not miss a payment on the loan
5) Pray for salary increase

www.moneybackmortgages.ie
 
I'm not an expert but spending 500e a month on a car loan with a 22,000 salary seems very high....perhaps there is scope here for you to save money as you dont have large savings at the moment...I know people have different priorities but if you could manage with a cheaper car you could start saving money immediately....just a thought!
 
Thanks everyone for your replies.

Rosy- you are right in that its a large monthly payment for someone on my salary but you have to remember when i took out the loan i was on a higher salary. However saying that i have no problem meeting the payments in fact i normally save an extra €100-200 per month on top of it. Does this sort of thing stand in your favour when applying for a morgage?, ie. that despite taking a heavy paycut, loan repayments were still met?

Norfbank- you have me a little worried here. Is that a nice way of saying i havent a snowballs chance in hell? To respond to your points in order;
1 I dont see this being a problem barring a catastrophy, should be paid of this time next year.
2 My savings this time next year should stand at around €5500, not exactly spectacular i know! What do i need this figure to be?
3 Em other than about 5-6 referal fee's in the last 3 years i have been pretty good. Didnt realise they were an issue tbh.
4 Havent done and dont intend doing so
5 Ya this is a sticky issue alrite
 
who said:
Norfbank- you have me a little worried here. Is that a nice way of saying i havent a snowballs chance in hell? To respond to your points in order;
Click to expand...

It was but I thought you were thinking of going for a mortgage immediately!

You have a year to save and get your current account in order so this will improve your case.
In relation to savings, there is no exact figure but 5-10% of the mortgage amount would be useful.
To obtain a mortgage of 150k you would need to be earning 30k plus.

[broken link removed]
 
If you borrow 150K on a salary of 22K it would be equal to 7 times your current salary. You need to be very clear on what the building costs are going to be. In most cases it goes over budget quite spectacularly. Obviously the bank will take into account the site value when doing the mortgage application. What repayments did you think you could manage and also what mortgage term are you looking at.

Have you the site transferred into your name? I think you need to repay the car loan as soon as possible, check the penalty clauses for doing so and start saving as much of your salary as you can, which presumably is plenty as you live at home.
 
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