loan/mortgage

mickeyodee

Hi all,in need of some info badly here,so me and my girlfriend have decided to buy our first home together.Engagement is secretely in the pipe line:D.anyway,we need a mortgage loan of 100 thousand.I am a qualified carpenter but am only working part time and have decided to go back to college to qualify as a physical therapist,whilst doing this I will recieve back to education allowance of 188 a week and also work part time so looking at around 300-350 a week income.My girlfriend is a teacher and is permanent in her job so no worries there,she is 26 and I am 25 we both have just over 10 thousand each in savings and would comfortably be able to pay the mortgage monthly in our current financial state which is only going to improve as I hope to qualify as a physio and the possibility that carpentry work will improve.
My question is,will the bank actually give us the mortgage or do i have to give up the physio course???

pmaguire

How did you get on?

Your girlfriend would probably qualify for the mortgage on her own. They access people differently pre versus post marriage.

Scortho

Your girlfriend could possibly get a mortgage on her own. It'll depend what her income is.
You're considering going back to education to train as a physio. So 4 years in order to do that.

If it was me, I'd continue to rent and save what yee can. When you qualify, you'll be in a much stronger position financially to take out a loan together. Just because you're on the verge of proposing/tieing the not, doesn't mean you have to OWN your own home.
You're still young and trust me that 10 k that you have in savings will be a lifesaver when you're in college when you hit hard times. All students do.

Lastly if you were to buy now, and worse comes to worse and the relationship breaks down, what would happen to the house if the mortgage is in both your names. With a mortgage you are both jointly and severely liable.

mickeyodee

Cheers lads,havent tied the knot just yet:D,,I know students come under severe pressure with fees and all that,but I wont as the only fee I have to pay is for books (around 300 quid) get a grant for the course fee and the BTEA of 188 a week plus part time working to bring it up to maybe 350 a week.
Thanks for all the advice guys much appreciated,but does anyone know if we could possibly get a mortgage together in our financial state???
As I said in our current financial state we could afford it no problem monthly,we want 100 thousand of a mortgage aswel,so not something sky high like the average mortgage that would have been given out in the good ole days:rolleyes:.
Any more advice guys would be great thanks lads.

Scortho

mickeyodee wrote: »

Cheers lads,havent tied the knot just yet:D,,I know students come under severe pressure with fees and all that,but I wont as the only fee I have to pay is for books (around 300 quid) get a grant for the course fee and the BTEA of 188 a week plus part time working to bring it up to maybe 350 a week.
Thanks for all the advice guys much appreciated,but does anyone know if we could possibly get a mortgage together in our financial state???
As I said in our current financial state we could afford it no problem monthly,we want 100 thousand of a mortgage aswel,so not something sky high like the average mortgage that would have been given out in the good ole days:rolleyes:.
Any more advice guys would be great thanks lads.

It depends what your girlfriend earning. As far as I remember its generally 2 times the higher salary and 1.5 times the lower, or 3 times the salary if single application. They then stress test your ability to pay if x, y and z were to occur. As far as I know it'd be harder for an unmarried couple to get a loan than a married couple to get a loan if all the other factors are the same.

No offence but personally I'd rather give a loan to a couple where one was a teacher and the other a physio student than give one to a couple where one is a teacher and the other is an unemployed chippy.

Your best bet to see if you'll get a mortgage or not is apply for one. If they approve you, well then you know yes they will. If they refuse you well then you know that it's back to the drawing board and saving up a bigger deposit.

roro2

It depends on a lot of factors. You could well get €100k, assuming your girlfriend is earning about €30k. Your income will likely be excluded from calculations and potential future income will not matter here. Also assuming no other debt/commitments, etc.

What will be important is demonstrating a savings history that covers the stressed mortgage repayments. You (your girlfriend, really) will need to show surplus cash of about €600 per month to meet the mortgage repayments (approximate stressed mortgage repayment) on a consistent basis, plus extra for bills, living expenses etc. A history of renting would be helpful here and these rent payments would be included. If you don't have this type of savings record, it may be best to start building this history.

€20k of current savings also does not leave much to spare. About €15k would be required for the purchase between the equity input of 8-10% and costs. This doesn't leave much left with one guaranteed income.