Mortgage approval without regular savings

Lsleo

Hi,
Myself and my partner were going to apply for a mortgage towards the end of this year but a house we love has come on the market now at a good price fast forwarding mortgage applications.
We are looking for a mortgage of €240000 (210000 after deposit).
I earn €55000 a year (private sector) and he earns €40000 with the hse (but with allowances and overtime will generally gross €50000). Both jobs permanent.
My partner had 50k of which we will use 30k towards deposit. The problem is he saved his money in his current account rather than regularly putting money into a savings account.
Due to personal debt (loans from family) and clearing my credit card I only started to save this month and have set up a standing order of €1000 a month to a savings account. But obvioulsy this is not long enough.
I pay rent out of account of €550 a month and my partner paid €100 a week until last month when he transferred to move in with me.
We both have car loans (300 monthly) and credit cards are both clear. We would still have well over €2100 a month after mortgage repayments.

I suppose I was hoping that they will still consider my partners savings in his current account as savings. The mortgage stress tested at 2% would be approx €1400 a month and the rent we paid only amounts to €938.

Has anyone had any luck getting a mortgage when savings/rent were less than monthly repayment? I know the best thing would be to wait the 6 months for proof of regular savings but we don't want to lose out on this house!

Thanks.

Bank of Ireland: Nicola

Hi Lsleo, Nicola here from the Bank of Ireland talk to forum.

There are a number of factors that will be taken into account when you apply for a mortgage, these can include your income, any outstanding loans and your savings as well as the LTV.

We’ve plenty of information on mortgages available here and if you want to have a chat with one of our mortgage advisers you can Face time or Skype here.

There’s some handy home buyer tips on our website here that you might find useful, feel free to drop by our talk to forum if you have any questions, thanks.

Nicola

AlmightyCushion

Bank of Ireland: Nicola wrote: »

Hi Lsleo, Nicola here from the Bank of Ireland talk to forum.

There are a number of factors that will be taken into account when you apply for a mortgage, these can include your income, any outstanding loans and your savings as well as the LTV.

We’ve plenty of information on mortgages available here and if you want to have a chat with one of our mortgage advisers you can Face time or Skype here.

There’s some handy home buyer tips on our website here that you might find useful, feel free to drop by our talk to forum if you have any questions, thanks.

Nicola

Could you at least try and post something that's relevant to the OP?

PaulM1977

Hi Lsleo,

Combining the €938 and the savings in his current account, does this come to more than €1,400.00? If so, even though it is in your partners bank account, then you should be fine for approval.

I would speak with a mortgage broker rather than one bank directly, as they will be able to check with each of the lenders and get you the best possible deal available for you.

Trish56

Hi Lsleo,
I've checked your details and am presuming you are in your 30's and have no dependents. Your stressed repayments on a mortgage of 210k over 30 years would be circa €1260 and as you have evidence of paying rent of €938 you need to show savings of €322 monthly. Of course the lenders will accept accumulated savings in your partners current account. Just take the balance in his current account to the day prior to his last salary lodgement and subtract the balance in his account 6 months ago and this figure is his savings over 6 months, divide by 6 will give you the average monthly figure.
Example :
Balance at 30th April €12,300
Balance at 30th Nov € 6, 200
Difference € 6, 100
Average savings PM €1,016

You should have no problems qualifying for a mortgage and best of luck.
Trish 56

Lsleo wrote: »

Hi,
Myself and my partner were going to apply for a mortgage towards the end of this year but a house we love has come on the market now at a good price fast forwarding mortgage applications.
We are looking for a mortgage of €240000 (210000 after deposit).
I earn €55000 a year (private sector) and he earns €40000 with the hse (but with allowances and overtime will generally gross €50000). Both jobs permanent.
My partner had 50k of which we will use 30k towards deposit. The problem is he saved his money in his current account rather than regularly putting money into a savings account.
Due to personal debt (loans from family) and clearing my credit card I only started to save this month and have set up a standing order of €1000 a month to a savings account. But obvioulsy this is not long enough.
I pay rent out of account of €550 a month and my partner paid €100 a week until last month when he transferred to move in with me.
We both have car loans (300 monthly) and credit cards are both clear. We would still have well over €2100 a month after mortgage repayments.

I suppose I was hoping that they will still consider my partners savings in his current account as savings. The mortgage stress tested at 2% would be approx €1400 a month and the rent we paid only amounts to €938.

Has anyone had any luck getting a mortgage when savings/rent were less than monthly repayment? I know the best thing would be to wait the 6 months for proof of regular savings but we don't want to lose out on this house!

Thanks.

Lsleo

Hi..thanks for the replys, we went into the bank and his accumulation should hopefully be enough to show savings. The application is in now anyways so can only wait. I will update if we get it or not so may help anyone else who sees the thread!

Lsleo

We got approved today in principal so thank you all for your information!

PaulM1977

Great to hear, I hope they are good on rates.
If you have been approved by one bank then the others will more than likely do the same for you, so worth checking elsewhere if possible for you.