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Mortgage application after pay decrease

  • 14-05-2012 7:28pm
    #1
    Ritchi
    Registered Users, Registered Users 2 Posts: 319 ✭✭


    Hi,

    We are in the process of looking for a mortgage, but unfortunately one of us has recently had a small(supposed to be temporary, but who knows) pay decrease.

    This has only happened this month, and we were also planning on getting approval this month.

    We have the deposit saved, and had verbal approval previous to this, and have proven repayment ability to a larger amount that the mortgage we are looking for. The amount of the pay decrease should not affect our ability to repay, and we could afford larger decreases should they happen.

    I'm just wondering how the bank would look at this pay decrease? Should we wait three months(the payslips required) until we have a stable salary to show?

    Also, should be fail to get approval this time, would it affect future applications?


Comments

  • #2
    n900guy
    Registered Users, Registered Users 2 Posts: 288 ✭✭n900guy


    Ritchi wrote: »
    Hi,

    We are in the process of looking for a mortgage, but unfortunately one of us has recently had a small(supposed to be temporary, but who knows) pay decrease.

    This has only happened this month, and we were also planning on getting approval this month.

    We have the deposit saved, and had verbal approval previous to this, and have proven repayment ability to a larger amount that the mortgage we are looking for. The amount of the pay decrease should not affect our ability to repay, and we could afford larger decreases should they happen.

    I'm just wondering how the bank would look at this pay decrease? Should we wait three months(the payslips required) until we have a stable salary to show?

    Also, should be fail to get approval this time, would it affect future applications?

    I think that not being approved this time will only affect future applications if you have the same criteria which failed you again.

    Go with a 10% cut in both your salaries to factor in inflation for the next 2 years and tax/levy rises IMHO!


  • #3
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    Ritchi wrote: »
    Hi,

    We are in the process of looking for a mortgage, but unfortunately one of us has recently had a small(supposed to be temporary, but who knows) pay decrease.

    This has only happened this month, and we were also planning on getting approval this month.

    We have the deposit saved, and had verbal approval previous to this, and have proven repayment ability to a larger amount that the mortgage we are looking for. The amount of the pay decrease should not affect our ability to repay, and we could afford larger decreases should they happen.

    I'm just wondering how the bank would look at this pay decrease? Should we wait three months(the payslips required) until we have a stable salary to show?

    Also, should be fail to get approval this time, would it affect future applications?

    No reason why you can't still apply now. Banks will just base application on current reduced salary which is sufficient by the sounds of it. There's not many industries where applicants haven't suffered a pay decrease and banks will base your application on your current situation and not take future possible reductions or increases in salary into account.


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