Have mortage approval but partner may lose job.

darkdubh

Myself and my partner were granted mortage aproval from AIB some months ago of 76000.We have just paid a deposit on a property of 95000.However things are not looking good with my partners job,she hasen't been paid in two weeks and she says the law firm she works for is very short of business and might fold by Christmass.If she's not paid again this week she may have to look for something else or sign on.We're worried as to how this might affect our mortage approval.I earn 1600 per month and have over 40000 in savings while my partner works part time earning 280 a week and at the time of approval had no savings(though she since got 4000 from revenue which she atarted up a saving account with).Would it be likely that the loss of her weekly earnings would have much influence on the banks final decision or was she earning so little in the first place that it woulden't make much difference?

djimi

Id be more worried about your ability to repay said mortgage if I were you... Surely if things are uncertain then you are better off not buying until you know where you stand?

darkdubh

djimi wrote: »

Id be more worried about your ability to repay said mortgage if I were you... Surely if things are uncertain then you are better off not buying until you know where you stand?

Well the mortage we'd be paying is at least half of what we're paying at the moment on rent.We have been searching for an awful long time and we really want this house.

jimmycrackcorm

It all depends on your affordability. Can you afford the mortgage on your own?

darkdubh

jimmycrackcorm wrote: »

It all depends on your affordability. Can you afford the mortgage on your own?

I reckon I can.My main concern is what the bank's stance would be.

Milk & Honey

darkdubh wrote: »

I reckon I can.My main concern is what the bank's stance would be.

Apply to another (the other?) bank for a loan on your own.

Bigcheeze

darkdubh wrote: »

jimmycrackcorm wrote: »

It all depends on your affordability. Can you afford the mortgage on your own?

I reckon I can.My main concern is what the bank's stance would be.

Don't worry about the bank. If you're happy you can afford it go for it. Something else will turn up work wise for your other half.

fricatus

darkdubh wrote: »

Well the mortage we'd be paying is at least half of what we're paying at the moment on rent.We have been searching for an awful long time and we really want this house.

Seems to me like you've answered your own question.

Look at the question from another angle: if she does lose her job, will you still be able to pay the rent? If the answer is yes, then I wouldn't think affordability is a big deal for you, and that's really what you should be worrying about.

Don't worry about the bank - they're big boys. Just provide them with whatever information they ask for, such as bank statements, salary certs, etc. Be honest and provide complete and true factual information of course, but don't go any further than that and volunteer speculation which may or may not come to pass. I'm sure the employer is trying to move heaven and earth to stay in business after all.

As things stand, your partner is in employment, and the bank knows damn well that anyone's employment could go in the morning, or a babby could come along, or someone could be struck by a bus. She only has to tell the bank if she actually loses her job, so don't worry about something that might never happen.

Best of luck with whatever you decide!

orlaanne

If you can still pass the stress test without her wages you should be ok.

listermint

While agree with all the sentements above, also take into account what could happen if you may/could lose your own employment in the short term.


But those are the risks i suppose.

Monty Burnz

Any chance of kids in the next few years? They are expensive little b******, and will change the mathematics of your decision. What you can afford at present and what you can afford with a child or two may be two very different things.

darkdubh

Monty Burnz wrote: »

Any chance of kids in the next few years? They are expensive little b******, and will change the mathematics of your decision. What you can afford at present and what you can afford with a child or two may be two very different things.

No there won't be any pattering of tiny feet.We're both agreed on that.

darkdubh

fricatus wrote: »

Seems to me like you've answered your own question.

Look at the question from another angle: if she does lose her job, will you still be able to pay the rent? If the answer is yes, then I wouldn't think affordability is a big deal for you, and that's really what you should be worrying about.

Don't worry about the bank - they're big boys. Just provide them with whatever information they ask for, such as bank statements, salary certs, etc. Be honest and provide complete and true factual information of course, but don't go any further than that and volunteer speculation which may or may not come to pass. I'm sure the employer is trying to move heaven and earth to stay in business after all.

As things stand, your partner is in employment, and the bank knows damn well that anyone's employment could go in the morning, or a babby could come along, or someone could be struck by a bus. She only has to tell the bank if she actually loses her job, so don't worry about something that might never happen.

Best of luck with whatever you decide!

No probs thank's.

professore

Amazing how people's attitudes are now the polar opposite of what they were a few years ago. If you had told us the house was 5000 people would still have said the same.

It's a very reasonable mortgage, repayments on that should be of the order of 400/month or so over 20 years, you're not going to rent for anything like that. Even if you both become unemployed god forbid you should be able to handle those repayments, particularly with no kids.

OF course you have to factor property tax, but this will be tacked on to rent anyway going forward.