Help needed for first time buyer

denhamd2

Hi all,

I'm hoping to apply for a mortgage but am afraid that myself and my wife's outstanding loans might get us rejected.

Here's our background:
I'm 26 with a permanent job on €42,700
Wife is 26 with permanent job on €26,500
We can get letters from employers, salary certs, all documentation needed.
We want to borrow €300,000
Our savings is at only 1,500 at the moment but we will be going flat out over the next few months for a deposit
Personal loan €16,000 left, Credit card €2,000
Wife's personal loan: €12,000 left, Credit card €2,000

Please could anyone give me any advice on the best way to go about getting a mortgage?

Our personal loans won't be finished being paid off for another couple of years so we're a bit worried this would handicap us. Is is possible to consolidate this type of loan? What about joining the credit union to help get up a deposit?

Any advice would be greatly appreciated

bills

well you need at least a 8 % deposit so you will need to save for a lot more than a few months to get the required deposit. I would try & pay off the loans as they will reduce how much you can borrow. To give you an idea, total repayments per month to loans& mortgage should be 35% of income max.

gurramok

As he/she said in a nutshell.^^^^

Those loans and credit card bills will crucify ye on the amount you can borrow. Ye really need to pay them off asap to enable a bigger amount to be borrowed as you most likely be offered far far short of €300,000.
I'm afraid you will be waiting a while to get the amount you want to borrow as well as saving for a deposit.
The only advantage is that prices will continue to fall so you will not lose out when the time comes to get a mortgage you want.

denhamd2

I know what you mean. How about going through a credit union to get the deposit?

denhamd2

Thanks for the advice guys. I know realistically I won't be able to go for anything for at least a couple of years. How about going through a credit union to get the deposit? I know some people who did this before but I don't know if its harder to do this in the current climate?

am i bovvered

denhamd2 wrote: »

How about going through a credit union to get the deposit? I know some people who did this before but I don't know if its harder to do this in the current climate?

Even if you could, its a false economy as you are basicly trying to get a 100%mortgage along with a large personal debt. Try to learn from others mistakes, these "Boards" are full of people regretting this course of action.

What you should do is use your income to pay off your personal debt, at that stage who knows what the house your after will be available to buy at ?.

Its the harder way, but the correct way usually is. Good Luck

denhamd2

thanks mate. yes we well chip away at our loans and see how we are in a years' time