Getting A Mortgage?!

audi02

Hi All,
Looking or some advice from anyone who has experience on this topic.

In April myself and my partner plan on starting to build our own home. Just wondering do you think we'll be ok for getting a mortgage of 200k and which bank would you recommend. We have already spoken with some banks and they seem to think we wont have any problem but ya cant trust banks these days!!! Our situation is as follows:

Positives:
- We are both in full time, permanent jobs.
- My income before tax is 28000 and his is 42000.
- We have a site gifted to us valued at €40000 and will have €20000 in savings, at the min were saving €1000 each per month.
- I have continued paying my loan as per bank instructions every month and will have it cleared on time.
- My partner has met his mortgage repayments every month.
- Both 25 years of age.

And now for the Negatives:
- My partner has a mortgage of €120k already.
- I have an overdraft on my a/c which was used once in the past 6 months where a direct debit of €20 came out early? Should this effect me.
- Every week I use up all my money in my current a/c resulting it been at €0 come payday but I do save €250 a week.
- We both have credit cards which payments are been made on time but have a €600 debit on each one (2 in total).

Any info or advice would be greatly apprecited.

Thanks All.

audi02

Also are you allow touch your savings to pay for engineers etc?!

pjmn

Ye have gross income before tax of €70k. You are proposing to have mortgages totalling €320k. Well over 4 times gross income - too high in my opinion - do ye plan to sell second house?

audi02

pjmn wrote: »

Ye have gross income before tax of €70k. You are proposing to have mortgages totalling €320k. Well over 4 times gross income - too high in my opinion - do ye plan to sell second house?

Tryin to sell in but in the current climate its proving hard, but otherwise we do hope to rent it but if we cant we know we'll manage the 2 mortgages.

Stheno

audi02 wrote: »

Tryin to sell in but in the current climate its proving hard, but otherwise we do hope to rent it but if we cant we know we'll manage the 2 mortgages.

I suspect any bank would take a very different view tbh

audi02

Stheno wrote: »

I suspect any bank would take a very different view tbh

Strange when banks seem to think we wont have any problem?!

Stheno

audi02 wrote: »

Strange when banks seem to think we wont have any problem?!

Why start the thread so?

I doubt the banks after they stress test etc will give out a second mortgage in those circumstances.

audi02

Stheno wrote: »

Why start the thread so?

I doubt the banks after they stress test etc will give out a second mortgage in those circumstances.

Sorry I was more along the lines of looking for things people thought we could/should change. And advice from people who work in this profession,not from people who are just guessing.

pjmn

audi02 wrote: »

Sorry I was more along the lines of looking for things people thought we could/should change. And advice from people who work in this profession,not from people who are just guessing.

...I do work in this profession, and I'm not guessing...

cocobear

Has any bank actually made you a mortgage offer?
Take absolutely no notice of what initial feedback they give you, prior to them processing a full application, including the already mentioned stress tests
What they will offer you is a mortgage equivalent to 30 percent of your disposable income no more no less

cocobear

Sorry should have made that clearer
They will only lend you a maximum mortgage principal, on which the repayments do not exceed 30 percent of your disposable income
In other words they work back from your disposable income.

audi02

cocobear wrote: »

Sorry should have made that clearer
They will only lend you a maximum mortgage principal, on which the repayments do not exceed 30 percent of your disposable income
In other words they work back from your disposable income.

Disposable income been what we have left to spend every week/month etc???

cocobear

Yes
Money left over after all out goings and expenses have been paid each month.

audi02

cocobear wrote: »

Yes
Money left over after all out goings and expenses have been paid each month.

Thanks that gives me a clearer picture on how things work.

cocobear

Your welcome!
Just another word of caution, when determining your disposable incoming nothing will be out of bounds, factor in food, light, heat and phone, travel to and from work, entertaining, child care, clothes etc etc.