Any chance of a first time buyer getting a mortgage on a temporary contract?

DSB

I'm figuring the prospect is fairly unlikely, but I was wondering is there any light at the end of the tunnel, I want a mortgage and I've 5 thousand so far to put as a deposit, with my mother willing to go as a guarantor, I've been working for just 6 months. as an ongoing temporary contracted staff in the banking industry earning about 22k, I'm only looking for a 1 bedroom apartment so from the region of 100k-150. Have I any real hope? Is it worth the application?

Macha

Why?

Why, why why would you do this to yourself?

DSB

Haha elaborate.

JuliusCaesar

DSB wrote: »

I'm figuring the prospect is fairly unlikely, but I was wondering is there any light at the end of the tunnel, I want a mortgage and I've 5 thousand so far to put as a deposit, with my mother willing to go as a guarantor, I've been working for just 6 months. as an ongoing temporary contracted staff in the banking industry earning about 22k, I'm only looking for a 1 bedroom apartment so from the region of 100k-150. Have I any real hope? Is it worth the application?

22K X 4 = 88K.
5K will pay solicitor and legal fees maybe, just about.

http://www.drcalculator.com/mortgage/ie/ shows a repayment of 675pm if you borrow 150K - over 30 yrs at 3.5% interest.

Unlikely.

Do a lot of homework on this! There are lots of useful sites mentioned in other posts and here as well. Go get a mortgage pack from a bank, it'll give you an idea what they want. In the meantime, save like crazy.

Is there a sticky here on looking for mortgages/buying a house?

mikemac

At a minimum bank will give 90%, possibly 92%.
Though with apartments it could be even less.

You don't have this OP with your 5k.

All you can do is apply and ask them but I can see you getting rejected.
Plus banks are letting people go, Ulster Bank or one their companies are letting 750 people go.

Sorry for being so negative, just giving fair warning

JuliusCaesar wrote: »

5K will pay solicitor and legal fees maybe, just about.

Ah here now, it doesn't cost that much. And solicitors are desperate for business so competitive rates to be had

DSB

mikemac wrote: »

At a minimum bank will give 90%, possibly 92%.
Though with apartments it could be even less.

You don't have this OP with your 5k.

Apologies, this should probably be extended to 15 k given that my mother has pledged to put 10 k forward if I need it for a deposit.

eth0_

Chances of you getting a mortgage when you're not in permanent employment are low...even before the recession you would have had trouble.

Just keep renting and saving. Chances are a year down the line you'll be in a position to get a better property deal.

The_Conductor

Consolidation in the banking industry looks increasingly likely- and those on temporary contracts will be the first to be let go (as there is no cost associated with making them redundant).

Seriously advise you continue saving to the best of your ability.

BOI stated last week that they intend to return to traditional lending practices- that is 90% mortgage for certain professions, dependent on what and where they want to buy, with a salary multiple of 4.5 times primary and twice secondary. Unless you are a doctor or a civil servant- you can assume you will not qualify.

I would further hazard that apartments are a very bad idea in the current climate (if 1 beds get down around 50-60k and 2 beds around 80-100k I'll reaccess the situation). As it stands the legal issues surrounding apartments will probably be contested in courts for years to come- in particular management charges, lack of rights and/or services, double taxation etc.

Why do you feel that its appropriate for someone in a temporary post who has negligible savings to make such a large commitment in the current climate?

John Mason

You are only on a temporary contract. why would you want a mortgage. what if you contract doesnt get renewed ? how will you pay the mortgage?

i would keep saving and wait until you are a permenant SECURE job before you put yourself under that pressure

you are only young anyway, you should be enjoying yourself and weighing yourself down with a mortgage

curlysues89

DSB wrote: »

I'm figuring the prospect is fairly unlikely, but I was wondering is there any light at the end of the tunnel, I want a mortgage and I've 5 thousand so far to put as a deposit, with my mother willing to go as a guarantor, I've been working for just 6 months. as an ongoing temporary contracted staff in the banking industry earning about 22k, I'm only looking for a 1 bedroom apartment so from the region of 100k-150. Have I any real hope? Is it worth the application?

Im wondering how you got on did you ever get a mortgage.Im in the same position as you at the minute.Ive been in temporary with the HSE for 3years now and Im thinking about a mortgage

The_Conductor

Find out how likely your contract is to be renewed, before saddling yourself with debts you may have difficulty servicing down the road......

fearandloathing

0% chance of even getting considered by AIB on anything other than a permanant contract, dont know about the other banks but id be shocked if they we're operating any differently. even part time permanant staff are not being considered as a second income on applications these days.

jetski

JuliusCaesar wrote: »

5K will pay solicitor and legal fees maybe, just about.

How did you manage to come to that conclusion?

OP take this advise with a large pinch of salt.

An expensive solicitor will cost you less than half that.

connundrum

smccarrick wrote: »

BOI stated last week that they intend to return to traditional lending practices- that is 90% mortgage for certain professions, dependent on what and where they want to buy, with a salary multiple of 4.5 times primary and twice secondary.

I always wanted to know this but, what happens where both parties earn nearly exactly the same +/- €20 per fortnight?

D3PO

seriously why would you even consider it?

its unbelieveable that people are still willing to put themselves in stupid financial situations, you want a mortgage and you dont even have a permanent job.

why ?

Kipperhell

D3PO wrote: »

seriously why would you even consider it?

its unbelieveable that people are still willing to put themselves in stupid financial situations, you want a mortgage and you dont even have a permanent job.

why ?

While working on temp contracts I earned 5 times what I would have for about 3 years. I paid more off my mortgage reducing the years substantially. I can stay out of work another year on my income form the last few years.

So the stupid financial situation I am in is what exactly?

It really depends on your work and the type of income you have from doing it. Most banks won't do it unless you can show a good record of income. If it is true contract work and you have a company set up they might do it

D3PO

Kipperhell wrote: »

While working on temp contracts I earned 5 times what I would have for about 3 years. I paid more off my mortgage reducing the years substantially. I can stay out of work another year on my income form the last few years.

So the stupid financial situation I am in is what exactly?

It really depends on your work and the type of income you have from doing it. Most banks won't do it unless you can show a good record of income. If it is true contract work and you have a company set up they might do it

what your saying isnt really addressing my point. Im not disputing that you can earn more on contracts (or can do the op is only earning 22k a year on his), the point is your not sure to have that work constantly. Im sure its fair to say you didnt get a 3 year contract you probably had 6 month or 12 month contracts that were regularly renewed. Besides which the OP should really be referring to himself as a temp rather than a contractor going by his opening post.

either way being a contractor a few years ago versus being a contractor today cant be compared as the financial landscape was very different.

The_Conductor

connundrum wrote: »

I always wanted to know this but, what happens where both parties earn nearly exactly the same +/- €20 per fortnight?

Randomly pick 4.5 times one, and add twice the second one......?

curlysues89

im temporary and looking for a mortgage because my rent is 600euro a month and im saving at least 400 a month on top of it.a mortgage will not be much more.the market is a buyers market at the minute.the house im looking at has dropped 150k since it went on the market.but im long term temporary.we are on month to month contracts now.they are renewed every month but will a bank see month to month and think no way?

Tech3

curlysues89 wrote: »

im temporary and looking for a mortgage because my rent is 600euro a month and im saving at least 400 a month on top of it.a mortgage will not be much more.the market is a buyers market at the minute.the house im looking at has dropped 150k since it went on the market.but im long term temporary.we are on month to month contracts now.they are renewed every month but will a bank see month to month and think no way?

Whats the value of the house your looking at?

It's a temp job no matter which way you look at it.

Have you provided a safety net on top of the deposit to cover possible increases in interest rates?

Firetrap

In the current climate, I'd have thought no bank would touch someone with a temporary job with a bargepole.

curlysues89

tech2 wrote: »

Whats the value of the house your looking at?

It's a temp job no matter which way you look at it.

Have you provided a safety net on top of the deposit to cover possible increases in interest rates?

house is valued at 230k.have deposit plus about 5k in another account. i have paid 20k in rent for the past 3years.imagine that going into a mortgage. im working with the HSE.

_Kooli_

JuliusCaesar wrote: »

.
5K will pay solicitor and legal fees maybe, just about.

You can get that for less than €1000
Just google it.

Thats the problem with people making ridiculous assumptions on things they obviously know nothing about.

Firetrap

You're working on a temporary contract with the HSE? I hate to rain on your parade but how do you know that you won't walk into work next week and they tell you "Sorry but we don't need you after the end of this month?". Especially when they start putting the Bord Snip recommendations into action.

Tech3

Firetrap wrote: »

You're working on a temporary contract with the HSE? I hate to rain on your parade but how do you know that you won't walk into work next week and they tell you "Sorry but we don't need you after the end of this month?". Especially when they start putting the Bord Snip recommendations into action.

True. After the budget many temporary positions look likely to be terminated. About time the public expendititure is going to be cut.

SLUSK

Please think of what you are doing, be careful about putting yourself into debts when you are on a temporary contract. They could get rid of you any day. Keep saving as much as you can until you get a permanent position? Also beware of property prices which will probably keep falling.

eth0_

No bank will give you a mortgage unless you are in permanant employment or have been a successful contract for a number of years and have the accounts to show them to prove this.

useurename

just got our mortgage rejection yesterday.ive got a permanent job earning25,500 and my fiance has a rolling 1 yr contract of job 20k 4 day a week.lookin for a 190- 200 k mortgage but wouldn't even look at it because of my partners contract job.pissed off but what can you do.waste of time at the mo.but hopefully the prices of the house we are interested in will come down even more to our level:cool:

The_Conductor

If its any consolation- prices are continuing to fall. Year to-date, they are down 19% in the Dublin area, and 12% nationally. Current falls are about 1.2-1.3% month on month.

It may well be a blessing in disguise- there is a lot of economic doom and gloom in the woodwork that hasn't impacted on things yet.......