Mortgage advice!!

aid123

Hi all, myself and my partner are going looking for a mortgage this week. Im self employed and earning 42000 gross per annum and my parner is a pernament teacher earning circa 38k gross. we are currently renting and want to buy a site we have been looking at to do a self build. I have no other debts except for business loan which has always been kept up to date. My partner has car loan and credit card . Car loan is circa 9k and credit card of 4k. I have circa 30k in savings and my partner has 15k in savings. We are buying site for 120k and building house for 190k. total mortgage needed circa 280k. we could do it for less. All advice welcome on how to approach bank???

3DataModem

Salaries 42 and 38, net savings 30k, mortgage requirement 280?

I advise approaching bank in a DeLorean.

3DataModem

In all seriousness.... thats 3.5 times combined salary for a 90% mortgage... with a business loan somewhere in there too.

Up to 2006/7... no problem.

In 2011... imprudent for the bank, possibly imprudent for you.

Whatever you do please self-stress at an 8% interest rate. Also I suggest your wife uses savings to clear card and probably loan too before applying.

highgiant1985

aid123 wrote: »

Hi all, myself and my partner are going looking for a mortgage this week. Im self employed and earning 42000 gross per annum and my parner is a pernament teacher earning circa 38k gross. we are currently renting and want to buy a site we have been looking at to do a self build. I have no other debts except for business loan which has always been kept up to date. My partner has car loan and credit card . Car loan is circa 9k and credit card of 4k. I have circa 30k in savings and my partner has 15k in savings. We are buying site for 120k and building house for 190k. total mortgage needed circa 280k. we could do it for less. All advice welcome on how to approach bank???

first thing to do I imagine before applying would be to pay off the car loan/credit card as I've seen other people on here mention that any debt you have counts heavily against you when working out the amount you can borrow.

aid123

Meant to say my partners parents have said they would clear off car loan for her. I suppose really what i need to know are the banks approving anything or what our chances are?

Dempo1

aid123 wrote: »

Hi all, myself and my partner are going looking for a mortgage this week. Im self employed and earning 42000 gross per annum and my parner is a pernament teacher earning circa 38k gross. we are currently renting and want to buy a site we have been looking at to do a self build. I have no other debts except for business loan which has always been kept up to date. My partner has car loan and credit card . Car loan is circa 9k and credit card of 4k. I have circa 30k in savings and my partner has 15k in savings. We are buying site for 120k and building house for 190k. total mortgage needed circa 280k. we could do it for less. All advice welcome on how to approach bank???

Ironic, i know a similar couple in a similar position albeit the teacher is still teaching on a temp contract. There on their 4th mortgage provider and not a single offer of a mortgage. Self employment unfortunately seems to be the main obstacle coupled with only a temp teaching contract.

It was difficult enough to get a mortgage without a recent development whereby some lenders have stated publicly they will not even look at mortgages in certain rural locations. I assume your site is rural.

Its a real challenge to be honest and Brokers are not much use unless you consider sub prime (which i hope all right minded people would stay clear of)

aid123

the site is only 1.5 miles from city and was sold originally 2years ago for 280k. will having a pernament contract make a big difference?

Dempo1

aid123 wrote: »

the site is only 1.5 miles from city and was sold originally years ago for 280k. will having a pernament contract make a big difference?

I am really sorry to be negative but your sites previous value wont matter in the slightest, it is its current value that will be taken into consideration, in addition building costs have also reduced.

Your real dilemma is being self employed, you will require mountains of documentation from your accountants and on a points scale for approval, self employment ranks very low. As i said, my friends, One self employed the other a teacher fully qualified but on a temp contract has been turned down 4 times to date, the real problem now for them is being refused also has a negative impact on further applications. Finally the fact your building also requires additional paper work etc. I wish i could be more positive and helpful but sadly this is my friends experience and i might add they had substantial deposits at their disposal.

aid123

Has anyone been approved lately???

marvsins

What square footage is to house planned to be and on what size site. My friend is single, late 20's and self employed and has had no problem getting a mortgage. She has been looking for a year to buy but may self build now.

aid123

hey house is 2350sq feet. what bank did your friend deal with? did she apply to many. My business is doing well and i have regular savings.

marvsins

My wife thinks its ptsb.I guess she has always dealt with them. Personally i'd run a mile, they are purposely pricing themselves out of the mortgage market. We went with EBS in '05 they did mortgages tailered to the self builder at the time. As people said before clear the other debts if u can, specially credit card. Personally i think u should get that house up for 130k-140k.

Praetorian Saighdiuir

I earn roughly €38k per annum, my partner is self employed and she earns roughly €50k.

I have no debts, she has a business loan, we have savings of €44k.

We have been approved for a mortgage of €296k.

We have gone sale agreed on a house today....yaay.

We got the best quote from KBC.


oooh and thats a 90% mortgage.

aid123

benwavner wrote: »

I earn roughly €38k per annum, my partner is self employed and she earns roughly €50k.

I have no debts, she has a business loan, we have savings of €44k.

We have been approved for a mortgage of €296k.

We have gone sale agreed on a house today....yaay.

We got the best quote from KBC.


oooh and thats a 90% mortgage.

Hey i know TSB are very expensive at the moment. i expect the rest of banks will follow suit. What bank approved you? Did you use a broker? All advice welcome!!

Praetorian Saighdiuir

aid123 wrote: »

Hey i know TSB are very expensive at the moment. i expect the rest of banks will follow suit. What bank approved you? Did you use a broker? All advice welcome!!

Hi,

Yeah we used Irish Mortgage Brokers, that Karl Deeter guy works there.

It was KBC who gave us the €296k.

AIB would not quote us, BOI, Ulster etc came back with offers of €220k - €250k

Good luck with it all.

okiss

1. Get all loans paid and credit cards paid off.
2. Once you do this contact the Irish Credit Bureau on www.icb.ie and get a copy of both your credit history's.
You need to check that all your credit information is correct ie that credit cards and loans have been paid on time. I know someone who paid a loan each month with no problems but on the credit history it was showing they missed a payment. They only found this out when trying to another loan at a later date.
If you discover this you can have a note put on your credit history stating that this has been an error.
3. Get a note from the credit companies informing you that your loan and credit cards have been paid off.

Rebel1977

She would have to pay a chunk or clear her car loan as banks dont like seeing that when applying for a mortgage, if self employed ensure you accounts are up to date for the last few years and you would also need a tax confirmation letter.

Dempo1

marvsins wrote: »

What square footage is to house planned to be and on what size site. My friend is single, late 20's and self employed and has had no problem getting a mortgage. She has been looking for a year to buy but may self build now.

Is she living in Ireland? self employed being approved for a mortgage, surely a myth?

aid123

After a lot of paper work and two appeals to AIB they approved us last week.