Almost ready to apply for mortgage, Fiancée lost her job today. Options?

steven8719

Hi,

First time poster, am in a real conundrum. If anyone could advise it would be brilliant.

Myself and my Fiancee were due to apply for a mortgage in 6-9 weeks. Today, my Fiancee lost her job. This is naturally a tough time emotionally, but we have to figure out now what we can do for a mortgage.

With this in mind, I have a few questions. Any advice is welcome.

1) If my Fiancee got 1-year contract work - I assume banks still don't look on this too kindly and require a person to be in a permanent full time role to consider their income for the application?

2) If my Fiancee got a steady part time job, once her probation period was up would the banks take 3.5 times her salary into account, or because it's part time would they offer less?

3) If we were to apply together now, would we meet any criteria? My salary is 35k, permanent full time. Take home pay per month = 2343. Usual lending criteria is that 2k must be left over per month for expenses for two adults. This leaves 343 per month for a small mortgage. However, online calculators (e.g. KBC) say that this doesn't meet requirements for approval in principle. So, is it a non runner to apply jointly on my income?

4) As we are not yet married, I believe I can still apply as a single applicant? In this scenario, what are the legalities if I purchase alone and my Fiancee moved in after a time? I understand that after a certain period of time the person who moved in acquires rights to the property. That is fine and outside of the scope of my question here - my question is that if I apply alone on the basis that I would be the only person living in the property, purchase the property and ask my Fiancee to move in after a couple months, do the banks consider it a fraud application as two people would now be living there, and seek legal recourse to recover the loaned funds? In short, am I allowed under law to buy and then invite someone to live with me rent free?

Please help advise if you can.

Thank you.

nhunter100

AFAIK you won't get legal advice here. Probably best you go to an independent broker and see what they can do for you, it is however would probably be best if you gave it more time allow your partner acquire a job then seek to meet mortgage criteria again.Best of luck in whatever you decide.

MrDerp

Call and ask.

AIB gave my wife and I a mortgage while she was on a fixed term contract. This, it was explained to us, is very much on a case by case basis, depending on:
- the industry
- a history of permanent full time employment prior to taking up temporary work

Oddly enough, we were approved a few months into the contract because the contract didn't include a 6 month probation period on paper, despite being less secure overall.

What to expect:
- they will want to know the industry, it might need to be something like IT, pharma, public sector etc
- they will ask for a CV for underwriters to look at work history, education etc
- they will reserve the right to proportionately disallow some of her salary. We were told anything up to 50% to allow for contract risk. Didn't get a final figure in the end as the 50% was enough for what we wanted to borrow anyway.

But just ask around the banks yourself, or talk to brokers. Better to be in work than have a gap in savings and work history, in my opinion, but I'm only offering an anecdote at the end of the day.

steven8719

Thanks very much for the feedback guys!

With regards to someone moving in with me (anyone), after a house purchase, I'd have assumed that is OK (for example if a family member became ill and had to move in that would hardly count against terms of the mortgage I'd have thought).

Does anyone know if a part time job (when the employee is past their probation) can still account for the 3.5 income multiple?

killers1

steven8719 wrote: »

Hi,

First time poster, am in a real conundrum. If anyone could advise it would be brilliant.

Myself and my Fiancee were due to apply for a mortgage in 6-9 weeks. Today, my Fiancee lost her job. This is naturally a tough time emotionally, but we have to figure out now what we can do for a mortgage.

With this in mind, I have a few questions. Any advice is welcome.

1) If my Fiancee got 1-year contract work - I assume banks still don't look on this too kindly and require a person to be in a permanent full time role to consider their income for the application?

2) If my Fiancee got a steady part time job, once her probation period was up would the banks take 3.5 times her salary into account, or because it's part time would they offer less?




4) As we are not yet married, I believe I can still apply as a single applicant? In this scenario, what are the legalities if I purchase alone and my Fiancee moved in after a time? I understand that after a certain period of time the person who moved in acquires rights to the property. That is fine and outside of the scope of my question here - my question is that if I apply alone on the basis that I would be the only person living in the property, purchase the property and ask my Fiancee to move in after a couple months, do the banks consider it a fraud application as two people would now be living there, and seek legal recourse to recover the loaned funds? In short, am I allowed under law to buy and then invite someone to live with me rent free?

Please help advise if you can.

Thank you.

1) If my Fiancee got 1-year contract work - I assume banks still don't look on this too kindly and require a person to be in a permanent full time role to consider their income for the application? - Whether or not they take any of her income into account depends on qualifications, industry & working history. Possibly up to max 75% of her income could be used but most banks would be unwilling as she'll have just started the new role.

2) If my Fiancee got a steady part time job, once her probation period was up would the banks take 3.5 times her salary into account, or because it's part time would they offer less? - Once she is in a permanent part-time role with probation completed they will take her full income into account.

3) If we were to apply together now, would we meet any criteria? My salary is 35k, permanent full time. Take home pay per month = 2343. Usual lending criteria is that 2k must be left over per month for expenses for two adults. This leaves 343 per month for a small mortgage. However, online calculators (e.g. KBC) say that this doesn't meet requirements for approval in principle. So, is it a non runner to apply jointly on my income? You'll qualify for a very small amount with some banks and zero from others as a joint app with 1 salary of €35k

4) As we are not yet married, I believe I can still apply as a single applicant? In this scenario, what are the legalities if I purchase alone and my Fiancee moved in after a time? I understand that after a certain period of time the person who moved in acquires rights to the property. That is fine and outside of the scope of my question here - my question is that if I apply alone on the basis that I would be the only person living in the property, purchase the property and ask my Fiancee to move in after a couple months, do the banks consider it a fraud application as two people would now be living there, and seek legal recourse to recover the loaned funds? In short, am I allowed under law to buy and then invite someone to live with me rent free? Banks will have no issue with you applying in your sole name. You will need to be able to demonstrate affordability in your own right i.e. you need to show YOU can afford the stress tested repayment on the new mortgage. Your contribution to current rent/savings will need to be enough to match stress tested repayment & you won't be able to include any contribution your partner is making to rent/savings as evidence of you ability to repay the mortgage.

steven8719

Thank you very much, this is incredibly helpful and answers my queries, we'll have a think about what's next.

steven8719

killers1 wrote: »

1) If my Fiancee got 1-year contract work - I assume banks still don't look on this too kindly and require a person to be in a permanent full time role to consider their income for the application? - Whether or not they take any of her income into account depends on qualifications, industry & working history. Possibly up to max 75% of her income could be used but most banks would be unwilling as she'll have just started the new role.

2) If my Fiancee got a steady part time job, once her probation period was up would the banks take 3.5 times her salary into account, or because it's part time would they offer less? - Once she is in a permanent part-time role with probation completed they will take her full income into account.

3) If we were to apply together now, would we meet any criteria? My salary is 35k, permanent full time. Take home pay per month = 2343. Usual lending criteria is that 2k must be left over per month for expenses for two adults. This leaves 343 per month for a small mortgage. However, online calculators (e.g. KBC) say that this doesn't meet requirements for approval in principle. So, is it a non runner to apply jointly on my income? You'll qualify for a very small amount with some banks and zero from others as a joint app with 1 salary of €35k

4) As we are not yet married, I believe I can still apply as a single applicant? In this scenario, what are the legalities if I purchase alone and my Fiancee moved in after a time? I understand that after a certain period of time the person who moved in acquires rights to the property. That is fine and outside of the scope of my question here - my question is that if I apply alone on the basis that I would be the only person living in the property, purchase the property and ask my Fiancee to move in after a couple months, do the banks consider it a fraud application as two people would now be living there, and seek legal recourse to recover the loaned funds? In short, am I allowed under law to buy and then invite someone to live with me rent free? Banks will have no issue with you applying in your sole name. You will need to be able to demonstrate affordability in your own right i.e. you need to show YOU can afford the stress tested repayment on the new mortgage. Your contribution to current rent/savings will need to be enough to match stress tested repayment & you won't be able to include any contribution your partner is making to rent/savings as evidence of you ability to repay the mortgage.

Thanks very much again - just a quick follow on if I may?

We have a joint account with a decent chunk of change in it.

To go it alone, I'd have to take back out of the joint account what I put in.

Would this cause queries to be raised? e.g. where did the money come from, would I have to get my Fiancee to sign a doc saying she has no claim to the money, etc. (this wouldn't be a problem just not sure what snags could arise out of taking my own money back so to speak).

Cheers!

slowjoe17

steven8719 wrote: »

Thanks very much again - just a quick follow on if I may?

We have a joint account with a decent chunk of change in it.

To go it alone, I'd have to take back out of the joint account what I put in.

Would this cause queries to be raised? e.g. where did the money come from, would I have to get my Fiancee to sign a doc saying she has no claim to the money, etc. (this wouldn't be a problem just not sure what snags could arise out of taking my own money back so to speak).

Cheers!

I suspect that the joint account will prevent the single application. Talk to a broker - they actually should know what they are talking about, in contrast to forum folks, who don't deal with this sort of situation day-to-day.

Good luck, and try not to get into a situation where the banks don't trust you.

Villa05

steven8719 wrote:

Myself and my Fiancee were due to apply for a mortgage in 6-9 weeks. Today, my Fiancee lost her job. This is naturally a tough time emotionally, but we have to figure out now what we can do for a mortgage.

Was in similar scenario and got a mortgage as a single applicant

steven8719

Thanks very much all. We'd be closing the joint account completely if I was applying alone, I'd have my chunk of the cash out of that and I'd have statements to show it came from my personal account originally too.

steven8719

Hi all, as a related question to all this does anyone know of a guideline income I should be earning to get a mortgage on one income but applying as a married couple?

Playing around with the calculators on banks sites it seems 35k and above will give a small mortgage to a joint application married couple on one income. Is this reasonably accurate?

Michael D Not Higgins

Steven, as you mentioned in your original post, there's an underwriting process (which will have different policies for each bank) which requires ~2k for living expenses for two adults. AIB's calculator for instance will approve you for an 82k mortgage with €363 a month repayments. The exact underwriting conditions will interrogate your expenses and accounts and determine if this is viable for you.

steven8719

steven8719 wrote: »

1) If my Fiancee got 1-year contract work - I assume banks still don't look on this too kindly and require a person to be in a permanent full time role to consider their income for the application?

I've got approval as a single applicant and I'm on a fixed term contract so being permenant is not absolutely required. I'm in the same place for a good few years though, starting in a new place could be a bigger problem than being on a contract.

steven8719

@Michael D Not Higgins: Thanks very much, yes that makes sense and falls in line with any meeting we've had with banks so far. While my Fiancee tries to find a job, I'll try build up the deposit even more.

@Martin Deafening Octopus: Thank you, that's something at least, even if we had to push everything back a couple years.

steven8719

Hi All,

Following on from the above, if my Fiancee gets a job and we go for mortgage AIP in 6-8 months time, before we get married, progress to sale agreed on a house and before drawing down then get married, I assume this constitutes a change of circumstance for the lender?

And if so, does getting married during a house purchase process slow everything down/restart the application process, as your status changes from "single" to "married"?

Hazydays123

steven8719 wrote: »

Hi All,

Following on from the above, if my Fiancee gets a job and we go for mortgage AIP in 6-8 months time, before we get married, progress to sale agreed on a house and before drawing down then get married, I assume this constitutes a change of circumstance for the lender?

And if so, does getting married during a house purchase process slow everything down/restart the application process, as your status changes from "single" to "married"?

I do remember there being a section in our solicitor's contract about it being a 'family home'. We were required to give marriage certs to the bank and the solicitor. I didn't pay much attention to it as we're married anyway. The link I found below might shed some light on it..

http://www.citizensinformation.ie/en/birth_family_relationships/separation_and_divorce/family_home.html

I'd be surprised if it radically altered the mortgage app process for you though. Might be a bit of extra work for your solicitor and that will cost you money!

steven8719

Thank you very much, if I can ask how long after getting married can you get your marriage cert? e.g if its a slow process (a month or two), then the seller could back out of the sale and we'd lose the chance to buy a house owing to this.

Hazydays123

steven8719 wrote: »

Thank you very much, if I can ask how long after getting married can you get your marriage cert? e.g if its a slow process (a month or two), then the seller could back out of the sale and we'd lose the chance to buy a house owing to this.

I got married abroad but we had the cert posted from that country to us within 3wks. No idea what it's like in Ireland.

Marcusm

steven8719 wrote: »

Thank you very much, if I can ask how long after getting married can you get your marriage cert? e.g if its a slow process (a month or two), then the seller could back out of the sale and we'd lose the chance to buy a house owing to this.

Will you not simply receive your marriage certificate on the day?

steven8719

I'm not sure...anyway it doesn't seem like it'll cause a delay with drawing down hopefully.

Angel2016

steven8719 wrote: »

Thank you very much, if I can ask how long after getting married can you get your marriage cert? e.g if its a slow process (a month or two), then the seller could back out of the sale and we'd lose the chance to buy a house owing to this.

It usually takes a week for the marriage to be submitted to the offices who issue the cert you can then apply online its 20 I think for the actual cert it takes about 2 weeks to come out I think so if you are newly married it might take a month if it is submitted right away.

steven8719

Thank you very much, that's closer to what I thought.