Mortgage Approval

Gooner84

Anyone have any thoughts on the chances of getting mortgage approval based on the below..

Savings €15,000
Gift €10,000
All previous loans/credit cards clear
No missed payments
My salary €31000 partners €13,000 (part time)

We would be looking at houses less than €140k

Any thoughts would be appreciated.

Thanks

Hugox1

Hi Gooner,

On a property purchase of 150,000 a deposit of 12000 would be required.

The cost of repayments for 138k over 30 years would be approx 600euro per month. So once you can show the affordability to make the repayments you should be fine. They will also stress test the ability of the repayments in case interest rates go up.

I have used a mortgage broker recently and they were very good, they got me 3 offers from the banks. If you want the number let me know.

Cheers

Hugo

chris85

Your salary would be the only one counted on this really as your partners part time income could realistically be lost at any point, unless its a permanent part time post but these arent very common so I will just make a brief assumption of that. Correct me if I am wrong!

Thus your income of €31k. A general rule of thumb would be you can get a mortgage of 4 times your income so be thinking the €120 mark for the mortgage.

Also some banks are swaying they give 92% mortgage but the majority are only doing 80% in general. This would be 20% deposit. A lot of people in mortgages would advise this is what is happening out there.

The more deposit you have the better interest rate you would avail of. This is where the loan to value (LTV) ratio comes in.

Show regular savings, no silly outgoings like gambling or anything on your account (this raises flags) and apply. Try a broker to save hassle shopping around.

nlgbbbblth

The proposed mortgage repayment plus other commitments (i.e. other loans) should not exceed 40% of your net monthly income. That's on a stressed basis (i.e. adding 2% to the standard variable rate). Ideally you want to be coming in around 34 - 35%.

Gooner84

chris85 wrote: »

Your salary would be the only one counted on this really as your partners part time income could realistically be lost at any point, unless its a permanent part time post but these arent very common so I will just make a brief assumption of that. Correct me if I am wrong!

The part time job is permanent and she has been working in the same place for nearly two years. Would this mean her salary would be taken into account?

Thanks for the replies

chris85

Gooner84 wrote: »

The part time job is permanent and she has been working in the same place for nearly two years. Would this mean her salary would be taken into account?

Thanks for the replies

It may be taken into account. Since its permanent thats a different story. I would imagine they will take it into account then.