Advice on Mortgages for planning

sfwcork

Hi All

Im looking for advice on how to keep a clean record for when I do decide on a mortgage..lets say 18mths down the line

Im 27 and herself is 28. I have around 12k saved and Am due around 5k in july from Shares. I work in IT sales and I earn around 36k per yr.Im forecasting between 25-30k when i do take the plunge

The only loan i have ever had is a car loan which has never been late.

Herself is from slovakia and works for another IT company in accounts and earns 32k per year. Her saving would be very mimimun as she pays a large loan for her parents back home on their house

What should i keep an eye out for. I do enjoy a flutter on a horse or soccer but ive been told tha bans watch this. So when or If i do make a lodgement i will do so via a 3rd party vendor

I know this is down the line but given the current environment and constant changes its v difficult to get concrete info

My questios are

1- if we wanted a 180k mortgage what kind of saving would give me a strong hand
2- Do banks look at complete savings or individual savings..
3-what else should I look out for

Im not in a rush as In my opinion house prices will go down again and hopefully things will settle.just be nice to know what to avoid and what to concentrate on

killers1

sfwcork wrote: »

Hi All

Im looking for advice on how to keep a clean record for when I do decide on a mortgage..lets say 18mths down the line

Im 27 and herself is 28. I have around 12k saved and Am due around 5k in july from Shares. I work in IT sales and I earn around 36k per yr.Im forecasting between 25-30k when i do take the plunge

The only loan i have ever had is a car loan which has never been late.

Herself is from slovakia and works for another IT company in accounts and earns 32k per year. Her saving would be very mimimun as she pays a large loan for her parents back home on their house

What should i keep an eye out for. I do enjoy a flutter on a horse or soccer but ive been told tha bans watch this. So when or If i do make a lodgement i will do so via a 3rd party vendor

I know this is down the line but given the current environment and constant changes its v difficult to get concrete info

My questios are

1- if we wanted a 180k mortgage what kind of saving would give me a strong hand
2- Do banks look at complete savings or individual savings..
3-what else should I look out for

Im not in a rush as In my opinion house prices will go down again and hopefully things will settle.just be nice to know what to avoid and what to concentrate on

There are 2 parts to a mortgage application. The first part is that your salaries need to qualify you to borrow the amount required based on the banks income calculators. In your case you have no issue here as your combined salary based on your ages (assuming you have no dependents) would allow you to borrow in excess of €300k. The second part to the mortgage application is proving that you can afford the repayments. The bank look at the stress repayment on the mortgage amount requested and in your case the stressed repayment on €180k amounts to circa €910pm. In order to obtain mortgage approval the following things are taken into account when proving affordability;

1. Current Rent
If you are living in rented accommodation this is an advantage as you are used to paying utility bills, food bills etc and show the bank that you are used to covering the cost of living. It is important to pay your rent by Standing Order from your Bank account so that you have a full record of the payments being made each month. If you are living at home you and pay rent you need to start paying this by Standing Order to your parents on a weekly or monthly basis in order for the bank to include the figure towards proving affordability.
2. Savings
You should try and save a consistent figure on a monthly basis and try not to dip into the account at all during the period up to you make your application.
3. Existing Loan Repayments
The monthly cost of your loans will also go towards proving affordability if the loan is due to be completed before the mortgage draws down.

If when you add up all of the above on a monthly basis and they are totaling in the region of €1,200pm and have been in excess of the previous 6 months or longer you will be in a good position to apply. I would be sure to have no description of a loan that your GF is paying on her parents property or at least be prepared to provide documentary evidence to show she is not liable for the loan and her payments home are not obligatory and can be ceased at any time of her choosing. In relation to the bookies I would suggest that you try to keep lodgements & withdrawals with a Bookmakers name as the description to an absolute minimum or none at all. If you are looking to buy for around €200k and want a mortgage of €180k then you will need €20k in savings as your deposit. The bank will also want to see that you have the €2k stamp duty, circa €1,500 for your legal fees and some funds left over for the fit out of the property. All in all if you have over €25k savings you should be in a good enough position to gain approval. The banks look at your overall combined savings as opposed to on an individual basis. Last thing in relation to your bank accounts is to ensure that your account stays in credit or within any agreed overdraft facility. You should ensure there are no 'referral fees' or 'Unpaid' fees on your statements as this is an immediate red flag for an underwriter. I hope this points you in the right direction and if you have any queries let me know.

nacimroc

My wife and I are days away from signing a house contract. Got approval for mortgage and jumped through all the hoops. We are almost identical to your situation. I got the saving the wife got the big loan for the car (typical).

You hear myths about this and that and certain banks are giving mortgages others aren't. All complete BS. Every word of it. All banks seem to be fighting for our business (constant phone calls to us etc). We got approved within 3 days from the bank everyone said we had no hope with (AIB). They are picky and you both must have permanent jobs. (this bit was true)

IMO a few things for you to do / watch out for:

1. Apply to the CRO http://www.icb.ie/credit_rating.php to get your credit rating. Although I had paid my loan perfect, they had mistakenly marked me down as being 3 months behind at one point and that would have derailed the whole process had I not noticed I reckon.

2. Keep all your bank statement as the thieving scumbags banks charged us 3.40 for the first page and 2.80 for each page thereafter. 6 accounts cost us a bloody fortune. (small thing but wasted money all the same)

3. We noticed banks weren't all too fussed about savings as long as you have the 8% + stamp duty and legal fees. They were more concerned about your ability to repay (as stated stress test the %). So getting a few grand from parents/selling stuff off to make up the amount wasn't a problem.