Mortgage advice please! (Permanment v contract job etc....)

palethinboy

Hi,

I’m looking for advice.

My partner & I are saving at the moment with the hope to buy a house in the next 12 months.
We are both full time permanent employees,
In our late 20's, no kids.
Around 60k a year between us.
We’ve been renting a place at 850eur per month for almost 2 years now.
We’d like 220,000 mortgage if possible.

Do we have a good chance of getting approved?

Our other option is that I could go contract meaning I could earn up to double bringing our total to around 85k a year between us.
However would the fact that I was on a contract effect our chances? I would prefer to go contract as this would help with our saving in a huge way, but I’m worried we’ll end up with our savings but no way of getting a mortgage?

Any help would be much appreciated.

Thanks!

Edit: Should also mention we are first time buyers & not married :-)

chris85

being on a contract and not permanent will have a big impact on your mortgage application so if you want a mortgage stay permanent.

Your income is average enough but ok. They say you can get about 4 times your earning as a morgage so that should be ok.

You will need about 15-20% deposit. 20% is being realistic. Some banks say they will loan up to 92% but generally they are only doing 80% mortgage so bear this mind when saving.

Keep a good record of savings and outgoings and so forth. Mould yourselves into good applicant over the next 12 months. Clear any outstanding debts. Keep regular savings.

palethinboy

chris85 wrote: »

being on a contract and not permanent will have a big impact on your mortgage application so if you want a mortgage stay permanent.

Your income is average enough but ok. They say you can get about 4 times your earning as a morgage so that should be ok.

You will need about 15-20% deposit. 20% is being realistic. Some banks say they will loan up to 92% but generally they are only doing 80% mortgage so bear this mind when saving.

Keep a good record of savings and outgoings and so forth. Mould yourselves into good applicant over the next 12 months. Clear any outstanding debts. Keep regular savings.

would going contract really have that big an effect? i hadn't thought it such a big deal. is it likely that i'd be refused a mortgage just on the basis of this? plus a 20% deposit, wow, i thought 10% would be good.

chris85

palethinboy wrote: »

would going contract really have that big an effect? i hadn't thought it such a big deal. is it likely that i'd be refused a mortgage just on the basis of this? plus a 20% deposit, wow, i thought 10% would be good.

One or two of the banks do 92% mortgages (8% deposit needed) but the word is its more like 80%. You can certainly apply for the 92%.

Also in terms of if you were on contract you must remember the banks are very strict on lending criteria at present. Your contract may not get renewed later down the road and given the details provided you would struggle to pay the mortgage if you were without a job. This is what the bank will have to consider. It will have a big impact.

nohow

all banks are very cautious about lending so you must have a permanent job and a clear credit rating.they will take into a/c the rent you are paying keep receipts etc.you will need about 20% savings .gone back to when i started in the 70 when it was ery hard to get a mortgage.Best of luck and keep working on your finances.