Mortgage with 1 or 2 kids

Koala14

Hi, we've a deposit saved of 22k and hope to have 23k saved by end of April. Hoping to aim for 220k (going with BOI free stamp duty offer). We have 1 child, with another on way in August. Both in FTE -approx combined salaries of 75k. If we wait to apply for mortgage when am visibly pregnant, will I have to declare another kid on way? Also, are there any banks that give approval for longer than 6 months? As obviously it won't be ideal to moving at a time when there's only 1 wage coming in. Finally, are there any benefits at all in waiting until I return to FTE and then applying for mortgage(when we'll obviously have 2 dependents).
Any advice very much appreciated!
Thanks

ted1

Koala14 wrote: »

Hi, we've a deposit saved of 22k and hope to have 23k saved by end of April. Hoping to aim for 220k (going with BOI free stamp duty offer). We have 1 child, with another on way in August. Both in FTE -approx combined salaries of 75k. If we wait to apply for mortgage when am visibly pregnant, will I have to declare another kid on way? Also, are there any banks that give approval for longer than 6 months? As obviously it won't be ideal to moving at a time when there's only 1 wage coming in. Finally, are there any benefits at all in waiting until I return to FTE and then applying for mortgage(when we'll obviously have 2 dependents).
Any advice very much appreciated!
Thanks

I'm not sure about BOI but AIB want you to have 250 per child per month and 2500 for yourself. So basically after mortgage you need to have 3000 cash. So if you have 4000 they will only allow mortgage payment of 1000

Glenbhoy

ted1 wrote: »

I'm not sure about BOI but AIB want you to have 250 per child per month and 2500 for yourself. So basically after mortgage you need to have 3000 cash. So if you have 4000 they will only allow mortgage payment of 1000

it's currently €2,050 per couple, not €2,500 or at least that's what I was informed last week in branch by the mortgage adviser.

Truth is, I would expect the banks to ease this a little in light of the new deposit requirements in order that they can lend more.

The_Morrigan

OP for your own sake do not hide the pregnancy. The risk assessments and the stress tests are there for a reason.

mortimer33

Koala14 wrote: »

Hi, we've a deposit saved of 22k and hope to have 23k saved by end of April. Hoping to aim for 220k (going with BOI free stamp duty offer). We have 1 child, with another on way in August. Both in FTE -approx combined salaries of 75k. If we wait to apply for mortgage when am visibly pregnant, will I have to declare another kid on way? Also, are there any banks that give approval for longer than 6 months? As obviously it won't be ideal to moving at a time when there's only 1 wage coming in. Finally, are there any benefits at all in waiting until I return to FTE and then applying for mortgage(when we'll obviously have 2 dependents).
Any advice very much appreciated!
Thanks

I don't think KBC apply additional expenditure if you have kids.. They didn't last year anyway..

DrBass

PTSB are kid friendly, and we had no issues getting a mortgage when in very similar circumstances like yours.

They will want to see that you will be on paid maternity and a letter stating when you plan to return to work.

Koala14

Thanks to everyone for your replies, a lot to think about.

ted1

The_Morrigan wrote: »

OP for your own sake do not hide the pregnancy. The risk assessments and the stress tests are there for a reason.

I don't completely agree with you. If they went a few months ago they would be stress tested without the baby. Most couples who buy houses have babies shortly after and their not stress tested.
Si if they give a mortgage to a young couple and they then have a baby why don't the banks change the mortgage

The_Morrigan

ted1 wrote: »

I don't completely agree with you. If they went a few months ago they would be stress tested without the baby. Most couples who buy houses have babies shortly after and their not stress tested.
Si if they give a mortgage to a young couple and they then have a baby why don't the banks change the mortgage

To be honest with ya ted, I'd have to infract myself if I answered that question honestly.

I stand by what I said. There are a lot of implications to overstretched finances not factoring in the cost of another child or reduced income over maternity leave is somewhat reckless if all your savings are going into the deposit and you've no safety net if something doesn't go to plan.

fret_wimp2

ted1 wrote: »

I don't completely agree with you. If they went a few months ago they would be stress tested without the baby. Most couples who buy houses have babies shortly after and their not stress tested.
Si if they give a mortgage to a young couple and they then have a baby why don't the banks change the mortgage

This isnt a game about how much you can get, its about how much you can afford.

Stress testing in the current circumstances (sans kid) vs with a kid will yeild a different amount you can afford, and rightly so.

It doesnt do the bank or the customer any good if the child costs are not factored in. What happens when that child needs clothes, food, school books, medicine, trips to the doctor/hospital etc etc etc. Does the money to pay for all that just magically appear?

If you fail the stress test with a kid factored in, then guess what, you probably couldnt afford that property long term and so you have just been saved a huge amount of stress.

You are correct in saying that anyone can get a mortgage without factoring in a child and then have one a year later, but its up to that person/couple to know what they can afford and act accordingly.
Getting the maximum the bank will give ( not the max you can afford) and then throwing child costs on top of that is not acting responsibly.

Koala14

Just to interject here-knew there would be varying viewpoints on this-and I know the more fiscally responsible thing to do would be to wait til there are 2 of us in FTE before we buy-the fear is that this is our last chance-and that with 2 dependents no bank will give us a mortgage (also we are both early 40s). I'm not expecting it to be easy, but surely in a time when rents are constantly increasing, the best thing is to buy so that you at least have some stability in terms of what you're paying every month? Thanks again to all for advice!

DrBass

Koala14 wrote: »

Just to interject here-knew there would be varying viewpoints on this-and I know the more fiscally responsible thing to do would be to wait til there are 2 of us in FTE before we buy-the fear is that this is our last chance-and that with 2 dependents no bank will give us a mortgage (also we are both early 40s). I'm not expecting it to be easy, but surely in a time when rents are constantly increasing, the best thing is to buy so that you at least have some stability in terms of what you're paying every month? Thanks again to all for advice!

Is an au-pair an option? I was prepared for a battle with bank over childcare costs as we had 1 child in part time childcare 520pm while my wife was at home with new born. So when my wife would go back to work we would have two children in full time childcare at a cost of 1500p/m.

So when asked how much child cost were when we applied I told the truth which was 520p/m (my wife was a few weeks into fully paid maternity leave at this stage).

Banks mortgage adviser did not seemed too bothered about costs of childcare, cant remember what set costs they factored in for 2 dependents, but advised an au-pair would be a good idea.

The bank I mentioned before should offer you the same, plus for you they offer a loan up to the age of 70 (if you are paying into a pension) 65 if not.

We are about to get the keys in the next few days. We will be paying less on the mortgage than we are paying on rent. We will have our own house to do with what we want. We will finally have security and stability for our kids most important of all.

And hey! after 28 years, the house will be ours!! :-)