looking to get a mortage

sparky89

Hi me and my partner are lookin to buy our 1st home.
we are both in our earily 20's

i am currently unemployed with an income of 10,000 a year and i have 15,000 in savings
my partner is in full time employment but is on a 3 day till business picks up, he has an income of between 15 to 20,000 and has about 5,000 in savings

i currently have no loans just the normal bills to pay and my partner has a 20,000 loan with the credit union
We both have good credit history.

the houses we have been looking at are around 250,000

what are our chances of gettin a loan?
How much deposit would we need ?
how much of a mortage would we be able to apply for?

any help would be great

gogo

Honestly, your chances are nil im afraid. Im presumming your income is social welfare payments which banks do not consider as income, they would take note of the social payments but your income would be recorded as zero. So then its down to your partners wages and unfortunaley his wages are not high enough, not even close to high enough actually.

For example, A typical variable rate mortgage of a €100,000 over 20 years costs €556.22 per month (APR 3.10%). The cost of your monthly repayments may increase. A 1% interest rate rise will increase this repayment to €607.37 (APR 4.10%).

So his wages are 20k(thats the high end), about 1400pm after tax minus mortgae payment of 570, leaves ye 830 to live on, from this you will have to pay life assurance, home insurance both of which are mandatory.Then you have the whole pletra of bills, food and the like. Not to mention whatever he's paying back on the loan with the cu.

Your saving combined would be used up fairly quickly for a deposit and legal fee's.


Unfortunatley, its just not an option for you at the mo, but if you do get a job and your partner days increase, look into affordable housing with your local county council, gorgeous houses going on the cheap if you qualify.

Good luck!

tHE vAGGABOND

Your deposit should be 8% to 10% of the purchase price of the house.. [so if your new place cost €250000, you need a deposit [up front] of between 20k and 25k]

Most lending institutions are pretty strict about that these days [so they say in public anyway]

As with previous poster, I would not even be thinking about it until your both in full time employment tbh

sparky89

going on what alot of people are saying to us. were best to hold off for a year or two

we have a deposit saved so were best just leaving it till i find employment again.

we really want out own home and with houses selling at really good prices we taught it would be a good time to buy but the only option for us is renting at the moment.

just hope its going to be worth the wait

thanks for the help

dlambirl

Honestly? Your chances are nil on getting a mortgage.

Best to wait a couple of years, get a job hopefully and save up a good deposit.

Xcellor

sparky89 wrote: »

Hi me and my partner are lookin to buy our 1st home.
we are both in our earily 20's

i am currently unemployed with an income of 10,000 a year and i have 15,000 in savings
my partner is in full time employment but is on a 3 day till business picks up

Early 20's. Unemployed. Partner on a 3 day week.

If any bank gave you a mortgage it would prove they really hadn't learned anything. You are exceptionally high risk (by todays standards) and I would say you would have problems getting a credit card let a lone a 250k mortgage.

If you had of bought your house a few years ago then you may have had a chance. The missus and me were in our early 20's, both had a job but she was only in the country for a year. Our jobs were not really high paying. We got a mortgage approved oh and it was 100% one as well... Gone are those days.

Drumpot

Not just that, you would want to be working full time permament employment for at least 6 months before they will factor your wages . .

TBH I am recommending that clients hold off buying a property unless they have to or desperatly need to. . House prices are only going one way and in the best case scenario I cant see a house costing anymore in 2 years time then it would today . .

Hang in there, while buying a house with a partner is exciting, sometimes its harder to see what you should really do and whats more financially prudent . .

Blackjack

sparky89 wrote: »

going on what alot of people are saying to us. were best to hold off for a year or two

we have a deposit saved so were best just leaving it till i find employment again.

we really want out own home and with houses selling at really good prices we taught it would be a good time to buy but the only option for us is renting at the moment.

just hope its going to be worth the wait

thanks for the help

Wait a year, or the two. Two years from now houses will be cheaper still. There's a few years to go before things bottom out.

chris85

i agree to waiting. I am getting to the stage where i am thinking of buying but will be another year at least. I will consider it at end of next year. Will be keeping a close eye on the housing market.

keithclancy

You'll save money renting at the moment.