Mortgage chances?

john_cappa

Details.

Self build.
Will have and own a site (gifted to me).
60-80,000 savings
Joint income of less than 30,000 (that is not 30,000 each but joint income, both in jobs long-term, my income is 18,000 apprx 34 hour week, wife is 10,000 for 20 hours a week)
Looking for a loan of 80,000-100,000 to add to savings for build.
No other debts. Never had any loans except a couple of small personal loans of less than 2000 which were paid back in full and in advance of when there were supposed to be.
No children.

What are our chances? Will the low wage go against us alot or will the strength of savings/site be enough?

maddogcollins

The low income may well go against you, but with the site as security (roughly matching the value of the loan) you may be in with a chance. This added to what is some kind of job security (Nothing safe at moment) should help.

Using Bank of Ireland Mortgage calculator with the incomes you gave, it states you may apply for a maximum of €119,000.

http://personalbanking.bankofireland.com/mortgages/mortgage-calculators/borrowing-calculator/

But as always, you wont know until you try. Best of luck.

cookie1977

It's going to be tough to get a mortgage with those figures I'd imagine. Although your savings are impressive. Speak with a broker who maybe able to help you more than you on your own speaking with a bank. Maybe also go speak to the credit union if you're a member. Some of them were giving out large loans on the back of large savings and they maybe interested in dealing with you. No harm in trying.

john_cappa

cookie1977 wrote: »

It's going to be tough to get a mortgage with those figures I'd imagine. Although your savings are impressive. Speak with a broker who maybe able to help you more than you on your own speaking with a bank. Maybe also go speak to the credit union if you're a member. Some of them were giving out large loans on the back of large savings and they maybe interested in dealing with you. No harm in trying.

It will only be a small morgage (;)) though. 80,000-100,000 is fairly tame even these days.

You are right though. Asking in the wrong place. A broker is where I should be asking.

Brokers are typically free of charge to the customer yes? they earn their fee's from the bank assuming they can arrange the mortgage?

cookie1977

In general they were when the economy was good. But I do remember when I signed an agreement with IMC (irish Mortgage Corporation) it did say that I agreed to pay a fee of 300 euro for their services. Although this was waved back in 2008. Check the fine print or ask

john_cappa

cookie1977 wrote: »

In general they were when the economy was good. But I do remember when I signed an agreement with IMC (irish Mortgage Corporation) it did say that I agreed to pay a fee of 300 euro for their services. Although this was waved back in 2008. Check the fine print or ask

Makes sense that they would charge these days some sort of a fee. I imagine they can tell within a minute of you reeling of a fee figures what your actual chance are of success.

There seems to be better value in actually buying a house these days than building your own.

cookie1977

Depends on a lot I suppose (Building/buying). What I would say is that if the fee isn't too high it could be worth it using their services if they could secure you a good deal on a mortgage. Speak to some and see what they can offer. No harm in asking.

john_cappa

A fee doesn't bother me in the slightest really.

Cheers for your help!

cookie1977

You're welcome. Good luck

dudara

@chris85

If you don't have anything helpful to say, then please don't post.

dudara

naughtysmurf

I would definately have a chat with a good reputable broker first, brokers can often package your application in a way that looks a lot better to the lender than maybe an inexperienced applicant would do

Banks & building societies are very slow to release credit at the moment, on the positive side, you own the site, have savings & good credit history and are only looking for three times your income, I'd be reasonably confident but again, talk to a broker rather than making an error with your application and being refused which may be difficult to recover from

Self builds rarely come in on budget, my personal advice would be not to commit all your savings towards the project , again a good broker will advise on how much of your own funds you should use and how much you should borrow.

dragonbet

I think you would get money, your savings are excellent to say the least. There is very very few people in their 20's or 30's with this level of savings. KBC and BOI appear to be the strongest in the market now and I heard recently that Ulster Bank are back lending, wouldnt be overly optomistic about AIB, as far as I can see the rest are closed for business.

KBC are looking at a 50% loan to value ratio for anything outside Dublin but you appear to qualify for that. I guess this site is in the countryside???

shinesun

Best of luck with your morgage john cappa. You have good savings so good as chance as any:)

BuffyBot

I've just had to clean up a lot of posts. Keep it constructive, folks - if you have an issue with a thread or post, report it, don't comment on thread.