Which would be better for getting a mortgage?

audi02

Hi guys,

Just wondering when it comes to getting a mortgage would it look better when going to a bank if:
A: You've already had loans with them and they can see you can meet the repayments and have it cleared on time or,
B: You've never had a loan with a bank, in which they wont know if you can reach payments or not?!

Thanks,
audi02

killers1

audi02 wrote: »

Hi guys,

Just wondering when it comes to getting a mortgage would it look better when going to a bank if:
A: You've already had loans with them and they can see you can meet the repayments and have it cleared on time or,
B: You've never had a loan with a bank, in which they wont know if you can reach payments or not?!

Thanks,
audi02

When you apply for a mortgage there are 3 variables....

1. Your salary needs to allow you to borrow the amount required based on the banks calculator.

2. You need to meet their criteria in terms of having a sufficient disposable income to live on each month after the payment of all mortgage/loans

3. You need to have proven that you can afford the stressed mortgage repayment for the amount required.

It's point 3 where your question comes in. If the stressed repayment on the mortgage you are applying for comes to €1,000 that is the amount upwards you need to show you can afford. If you are renting say for €700pm & repaying a loan of €400pm that totals €1,100 and shows you can afford outgoings of €1,000pm. If on the other hand you are paying rent of €700pm and saving €400pm you are in the exact same position so the fact that you may or may not have had loans in the past can be irrelevant....

audi02

killers1 wrote: »

When you apply for a mortgage there are 3 variables....

1. Your salary needs to allow you to borrow the amount required based on the banks calculator.

2. You need to meet their criteria in terms of having a sufficient disposable income to live on each month after the payment of all mortgage/loans

3. You need to have proven that you can afford the stressed mortgage repayment for the amount required.

It's point 3 where your question comes in. If the stressed repayment on the mortgage you are applying for comes to €1,000 that is the amount upwards you need to show you can afford. If you are renting say for €700pm & repaying a loan of €400pm that totals €1,100 and shows you can afford outgoings of €1,000pm. If on the other hand you are paying rent of €700pm and saving €400pm you are in the exact same position so the fact that you may or may not have had loans in the past can be irrelevant....

Thanks that makes it a bit clearer,
So say I'm looking for a mortgage of 150000, how much would I be stress tested on do you think?!

killers1

audi02 wrote: »

killers1 wrote: »

When you apply for a mortgage there are 3 variables....

1. Your salary needs to allow you to borrow the amount required based on the banks calculator.

2. You need to meet their criteria in terms of having a sufficient disposable income to live on each month after the payment of all mortgage/loans

3. You need to have proven that you can afford the stressed mortgage repayment for the amount required.

It's point 3 where your question comes in. If the stressed repayment on the mortgage you are applying for comes to €1,000 that is the amount upwards you need to show you can afford. If you are renting say for €700pm & repaying a loan of €400pm that totals €1,100 and shows you can afford outgoings of €1,000pm. If on the other hand you are paying rent of €700pm and saving €400pm you are in the exact same position so the fact that you may or may not have had loans in the past can be irrelevant....

Thanks that makes it a bit clearer,
So say I'm looking for a mortgage of 150000, how much would I be stress tested on do you think?!

What age are you? What's your salary? Do you have kids?

audi02

killers1 wrote: »

What age are you? What's your salary? Do you have kids?

I'm 25 this year, Salary is 25000 per year after tax, no kids!

polly27

hi does anyone know if when you want to get a mortgage and you have other loans can they all be put into one loan with the mortgage, myself and my partner earn 70k a year between us but have personal loans, wondering could you put all into one and have just one payement, would make life so much easier plus we would only have one repayment of a mortgage every month?

Liam D Ferguson

polly27 wrote: »

hi does anyone know if when you want to get a mortgage and you have other loans can they all be put into one loan with the mortgage, myself and my partner earn 70k a year between us but have personal loans, wondering could you put all into one and have just one payement, would make life so much easier plus we would only have one repayment of a mortgage every month?

If you don't already have a mortgage, you can't refinance existing short-term loans into one.

If you do already have a mortgage, it's possible to roll a certain amount of short-term debt into a mortgage if you have equity in your home. But you need to be very careful about doing this - you don't want to be paying for a 5 year loan over 25 years, as it works out very expensive to do that. Refinance short-term debt over a short term.