Chance of getting a mortgage

Andy19842012

Hi all, I am new to boards.ie. I was hoping to get some feedback on what my chances are of getting a first time mortgage. I will be applying for a mortgage on my own, I am a permanent primary teacher, I have 20,000 in savings, no loans or debts. I will be applying for a self build mortgage where I'll be building on a site with full planning permission beside my home house. I am currently renting with 3 others, rent is 200euro per month and bills are extra. I have been charged a few referral fees this last while because the esb and eircom comes out of my a/c- I'm worried that these could go against me, any advice or feedback would be very appreciated!! Would like to know what my chances are, I intend to look for a mortgage very soon.

coylemj

Andy19842012 wrote: »

I have been charged a few referral fees this last while because the esb and eircom comes out of my a/c- I'm worried that these could go against me

Do you mean direct debits from those companies bounced because there wasn't enough money in your a/c? Or were they alowed but you were penalised for going into the red without an approved overdraft facility?

ian87

I'm in a similar position to you. Permanent NS teacher but without same level of saving. I went for a chat with mortgage advisor last month and she was practically begging me to take a mortgage out there and then. She was offering up to 192000 no quibbles and when I said I'd only be interested in half that amount she was trying to convince me to buy in a "better" more expensive area to up my borrowing amount. I quote "your in a job with garaunteed security, you will get approval without a problem."

Worriedmind

Hi ian, which bank was that with? Sounds positive...albeit a bit 2006ish!!

Trish56

Referral fees are not looked at kindly by the lenders. In order to qualify for a mortgage you need to prove repayment capacity by showing a record of at least 6 months savings/rent equal to what your stress tested monthly repayments will be.
For example a mortgage of 150k over 35 years at a variable rate would cost approx. €700 per month and stress tested would be approx. €900 per month.
You need to show that you have savings or rent over a 6 month period of €900. You also need to show that you have a deposit of circa 10% of the purchase price.

Andy19842012

Thank you Trish, I have 10% for the deposit, I am savings 500euro fortnightly, paying 200euro off a loan fortnightly which will be cleared in November and pay 200 rent monthly, I am just worried about the referral fees, the eircom and esb is coming out of my a/c and the money hasn't been in the a/c on time because the other tenants havent given me their money on time.

Trish56

Andy19842012 wrote: »

Thank you Trish, I have 10% for the deposit, I am savings 500euro fortnightly, paying 200euro off a loan fortnightly which will be cleared in November and pay 200 rent monthly, I am just worried about the referral fees, the eircom and esb is coming out of my a/c and the money hasn't been in the a/c on time because the other tenants havent given me their money on time.

Hi Andy,
I think if you can show that you have such strong savings/rent and also a good repayment record on your loan as mentioned above, you will be able to explain the referral fees as your bank statements will actually show the direct debit's going out and payments coming in late from the other tenants so you should not have a problem.

To apply for a self build mortgage you need to have planning permission in place and a qualified Architect/Engineer will have to supervise the construction and will certify stage payments throughout the construction. The Architect/Engineer will also have to submit detailed costing's to the lender.
Hope the above helps.
Trish56

wench

You should probably not be running your current account so close to empty that the timing of payments is causing you to miss payments. Bring a couple of hundred back from your savings to give yourself a cushion.

ian87

Worriedmind wrote: »

Hi ian, which bank was that with? Sounds positive...albeit a bit 2006ish!!

I thought the same! BOI, haven't gone anywhere else as I'm still at the saving for a deposit stage..