Need mortgage!

Rock123

Hi guys,

I am looking to buy a home for my family. I have 70k in deposit and iam looking for 80k in mortgage. I am the only member of family who works, wife looks after the child.

I am on 25k basic + 5k in guaranteed extra income. When i use tools online for mortgage. Almost all the banks tell me that they can give me a mortgage but when i call them they refuse me and tell me that i am on a very low wage.:(

If there any bank or any private lenders or any options which i have to get a mortgage.

Please share your view, maybe i will get something.

thanks

Michael D Not Higgins

The underwriting of the mortgage will basically not allow them to lend you any money. The will take a basic amount of living costs for two adults (~2k) and a child (250) to be 2250 a month. You're netting probably the same as that, so you have no capacity for mortgage payments within their calculations.

Brioscai

If you are paying rent with a good track record, perhaps try that tack.

davindub

look into the home choice, which might be your best chance, but you are short of the income requirements. Can you get part time work or your partner get a job for a while?

Rock123

thanks guys for all you replies.

@ davindub - my wife is not well - she going through a treatment in st. james at the moment, so i'd imagine i will have to wait till she starts working.

I am paying 1500 euros rent since march of this year and it is killing me, we are at hand to mouth situation that's why i wanted to get a place to that we can kind of live.

Does home choice have relaxed rules to get the mortgage or they are same like other financial institution?

Thanks

Michael D Not Higgins

Rock123 wrote: »

thanks guys for all you replies.

@ davindub - my wife is not well - she going through a treatment in st. james at the moment, so i'd imagine i will have to wait till she starts working.

I am paying 1500 euros rent since march of this year and it is killing me, we are at hand to mouth situation that's why i wanted to get a place to that we can kind of live.

Does home choice have relaxed rules to get the mortgage or they are same like other financial institution?

Thanks

You need to earn over 45k as joint applicants for the home choice loans.

Lux23

If you have that much in savings maybe you need to start using some to ease your monthly outgoings? Sounds harsh but that is the system. You would probably qualify for the housing list although you will be a long time waiting.

lawred2

Fair play for saving 70k on that income..

Rock123

@ lawred2, these are saving for the past 10 years....

we have worked very hard to get that money saved up so don't want to spend it that easily but we would if there will be a need and that is what we are doing at the moment

GoneHome

Rock123 wrote: »

t

I am paying 1500 euros rent since march of this year and it is killing me, we are at hand to mouth situation

You would wonder about the merits of "saving" €70,000 in these circumstances

Rock123

would you have any idea about waiting times on housing list.....thanks

johny33

look at pepper mortgages through a broker. we were in a similar situation with a little bit higher salary and they gave us more that you need. we didn't buy at the end though.

Michael D Not Higgins

Rock123 wrote: »

would you have any idea about waiting times on housing list.....thanks

Over a decade.

Rock123

GoneHome wrote: »

You would wonder about the merits of "saving" €70,000 in these circumstances

we worked in Australia and that's how we saved this much...now moved backed to Ireland in march...

Rock123

johny33 wrote: »

look at pepper mortgages through a broker. we were in a similar situation with a little bit higher salary and they gave us more that you need. we didn't buy at the end though.

thanks for that...looks like a bit of hope....

would you recommend a broker?

thanks

listermint

I would examine ways of supplementing income, if not to increase the savings but to show higher earnings.

Anything really even food deliverys in the evenings.

a stint doing this for a few months would give some extra cash.

Mrs OBumble

Rock123 wrote: »

would you have any idea about waiting times on housing list.....thanks

Its varies, depending on where you live and what your needs are.

You should register for council housing anyway, because you don't earn enough to pay a mortgage and to maintain a house: If you buy a house, but then the roof leaks and you cannot afford to fix it, then you would be in a far worse position than you are in now.

Your wife being sick may help with the place on the housing list.

johny33

it looks like you can try without a broker - https://www.peppermoney. ie/calculator/
we used a broker in clondalkin, but they had quite a few around dublin.

Rock123

johny33 wrote: »

it looks like you can try without a broker - https://www.peppermoney. ie/calculator/
we used a broker in clondalkin, but they had quite a few around dublin.

thanks johny,

i called them and they are saying the same thing that they will not be able to offer me anything at the moment but if my wages are raised then they have asked me to give them a call back.

CiarraiAbu2

Might be of benefit

http://www.dublincity.ie/main-menu-services-housing/apply-mortgage

Conall Cernach

Would you consider moving area?

Here's a 4 bed bungalow in Co. Laois for €58k.
http://www.daft.ie/laois/bungalows-for-sale/rathdowney/bawnaughra-rathdowney-laois-1334853/

GoneHome

CiarraiAbu2 wrote: »

Might be of benefit

http://www.dublincity.ie/main-menu-services-housing/apply-mortgage

To qualify for the City Council mortgage he/she must be in permanent employment for at least two years. The OP indicated that he had only returned from Australia in March of this year.

CiarraiAbu2

Didn't see that, my mistake

daheff

slightly off topic, but on that small an income, have you looked into the family income supplement? I think (!) you would qualify for some payments.

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/family_income_supplement.html

Rock123

Conall Cernach wrote: »

Would you consider moving area?

Here's a 4 bed bungalow in Co. Laois for €58k.
http://www.daft.ie/laois/bungalows-for-sale/rathdowney/bawnaughra-rathdowney-laois-1334853/

its too far as i am working in citywest and wife is getting treatment in st. james...i'll be loosing a lot of money on petrol and time

but thanks very much for your advsie!

Stheno

Rock123 wrote: »

its too far as i am working in citywest and wife is getting treatment in st. james...i'll be loosing a lot of money on petrol and time

but thanks very much for your advsie!

Where are you hoping to buy for 150k?

Rock123

daheff wrote: »

slightly off topic, but on that small an income, have you looked into the family income supplement? I think (!) you would qualify for some payments.

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/family_income_supplement.html

thanks daheff...

i am going to apply for it anyway but still i don't want to be on government help...but will sure look into it

Rock123

Stheno wrote: »

Where are you hoping to buy for 150k?

I am getting 1 bed in and around tallaght, lucan and clondalkin ....i am also considering portarlington as an option

GoneHome

Rock123 wrote: »

I am getting 1 bed in and around tallaght, lucan and clondalkin ....i am also considering portarlington as an option

A 1 bed apartment for you, your wife and your child???? Portarlington is also in County Laois which you ruled out on the link an earlier poster sent you saying it was too far and would cost too much in petrol and time!

Rock123

GoneHome wrote: »

A 1 bed apartment for you, your wife and your child???? Portarlington is also in County Laois which you ruled out on the link an earlier poster sent you saying it was too far and would cost too much in petrol and time!

with portarlington i have direct connectivity to st. james and luas that's why we were thinking about it...there are some cheap houses in and around portarlington but they are also around 125-140k range...i can even go for them if i get mortgage.

i know one bed will be tight but we will manage somehow....

Stheno

Rock123 wrote: »

with portarlington i have direct connectivity to st. james and luas that's why we were thinking about it...there are some cheap houses in and around portarlington but they are also around 125-140k range...i can even go for them if i get mortgage.

i know one bed will be tight but we will manage somehow....

A one bed would be madness imo, you'd basically be burdening yourself with a home that will very shortly become far too small for your family with no guarantee that you'd ever be able to trade up.

Mrs OBumble

No bank is going to lend to you for a one bedroom in your situation. No matter how you ask them.


As regards not wanting government help: I bet you are getting child benefit , and you should be getting FIS too. When you send your kid to school, the government will pay most of the bill.

Etc. You are already getting government help.

StupidLikeAFox

Rock123 wrote: »

with portarlington i have direct connectivity to st. james and luas that's why we were thinking about it...there are some cheap houses in and around portarlington but they are also around 125-140k range...i can even go for them if i get mortgage.

i know one bed will be tight but we will manage somehow....

If you are happy with this line of thinking don't neglect the other towns on train lines to Heuston

Here is a quick search including some Kildare towns, which have a train line - you should be able to find a two bed easy enough without a mortgage for 75k, you could potentially buy a house if you upped it to 100k

http://www.daft.ie/kildare/houses-for-sale/athy,kildare,monasterevin,naas/?s%5Bmxp%5D=100000&s%5Badvanced%5D=1&s%5Bsort_by%5D=price&s%5Bsort_type%5D=d&searchSource=sale

Rock123

Mrs OBumble wrote: »

No bank is going to lend to you for a one bedroom in your situation. No matter how you ask them.


As regards not wanting government help: I bet you are getting child benefit , and you should be getting FIS too. When you send your kid to school, the government will pay most of the bill.

Etc. You are already getting government help.

@ Mrs OBumble - yes you are right i am getting child benefit....and i will look into FIS......but to have a home itself is always better...u never know when the rules are going to change...and me being a person have never ever claimed a red cent in my life...

listermint

Rock123 wrote: »

with portarlington i have direct connectivity to st. james and luas that's why we were thinking about it...there are some cheap houses in and around portarlington but they are also around 125-140k range...i can even go for them if i get mortgage.

i know one bed will be tight but we will manage somehow....

doesnt the train also go to portlaoise.

Im not sure how portarlington has access to the Luas.

edanto

I think you're doing well already running a household on that income; clearly you have a lot on your plate, and hopefully your wife will get better soon.

I don't think a mortgage is the right answer for you at the moment; for all the reasons above.

Getting a higher salary is a higher priority. Depending on your career; are there any training courses you could do that would lead towards a new job/higher salary? It might mean dipping into your savings to take some time off work, or to pay for training/exam.

Talk to your boss about the need to earn more, and find out what options there might be in your existing job to progress.

You should ABSOLUTELY apply for FIS and a local housing list, and anything else your family might be able to claim. Your hard working family is exactly the sort that deserves that support.

Rock123

edanto wrote: »

I think you're doing well already running a household on that income; clearly you have a lot on your plate, and hopefully your wife will get better soon.

I don't think a mortgage is the right answer for you at the moment; for all the reasons above.

Getting a higher salary is a higher priority. Depending on your career; are there any training courses you could do that would lead towards a new job/higher salary? It might mean dipping into your savings to take some time off work, or to pay for training/exam.

Talk to your boss about the need to earn more, and find out what options there might be in your existing job to progress.

You should ABSOLUTELY apply for FIS and a local housing list, and anything else your family might be able to claim. Your hard working family is exactly the sort that deserves that support.

thanks

pilly

Am I missing something here. If you only want to borrow 80k are the rules not 3.5 times your income?

Stheno

I was attempting to be helpful and went to look up how to apply for FIS for the OP.

The maximum you can earn with one child to qualify for FIS is 511 per week

So if OP has a P60 showing 30k including the guaranteed extra income, unfortunately he will not qualify as that's above the 511 limit.

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/family_income_supplement.html

Michael D Not Higgins

pilly wrote: »

Am I missing something here. If you only want to borrow 80k are the rules not 3.5 times your income?

Banks also have underwriting and won't lend 3.5 times income to a low single income family with a child.

pilly

Stheno wrote: »

I was attempting to be helpful and went to look up how to apply for FIS for the OP.

The maximum you can earn with one child to qualify for FIS is 511 per week

So if OP has a P60 showing 30k including the guaranteed extra income, unfortunately he will not qualify as that's above the 511 limit.

Is that not a net figure quoted for FIS though Stheno?

Stheno

pilly wrote: »

Am I missing something here. If you only want to borrow 80k are the rules not 3.5 times your income?

Yes but the banks also look at your financial commitments, for a family with one child the would want to see that they can afford the mortgage, and calculate other living expenses which is usually around 2-2.3k per month which would be most of the ops earnings, which mean it would show him unable to pay a mortgage, unless a bank were to factor in the rent that would no longer be paid.

edanto

I believe the 511 limit applies to income after tax. OP is probably using/entitled to wife's tax credits, so probably has take home of about 485 per week. I think the FIS would be worth about €20/week; and come next school year an additional €300; so essentially a pay rise of €1,800 per yr or so. Well worth filling out the forms.

pilly

Stheno wrote: »

Yes but the banks also look at your financial commitments, for a family with one child the would want to see that they can afford the mortgage, and calculate other living expenses which is usually around 2-2.3k per month which would be most of the ops earnings, which mean it would show him unable to pay a mortgage, unless a bank were to factor in the rent that would no longer be paid.

Seems very unfair when he's currently managing 1500 per month rent.

Stheno

pilly wrote: »

Is that not a net figure quoted for FIS though Stheno?

edanto wrote: »

I believe the 511 limit applies to income after tax. OP is probably using/entitled to wife's tax credits, so probably has take home of about 485 per week. I think the FIS would be worth about €20/week; and come next school year an additional €300; so essentially a pay rise of €1,800 per yr or so. Well worth filling out the forms.

Ye are right, I didn't spot that it's after tax.

Well worth applying so.

pilly

It's also worth getting on the housing list either way for a couple of reasons:

1. You may qualify for HAP
2. If god forbid anything were to happen with your job you would definitely qualify for HAP

Mrs OBumble

pilly wrote: »

Seems very unfair when he's currently managing 1500 per month rent.

Its actually for his own good: he cannot afford to keep a house maintained and insured on the current salary.

Rock123

thanks a lot to all of you people...

all of you were very nice...

i will take all the advise....and move on...and keep on trying with banks...

Ayuntamiento

GoneHome wrote: »

You would wonder about the merits of "saving" €70,000 in these circumstances

<mod snip: report don't retort>

OP, Is there any possibility that you could take out a large credit union loan to fund a purchase on top of your savings? I know somebody who did this recently. It was easier than getting a mortgage.

Mortgages also require life insurance protection. Your wife being ill could complicate this process for you. It's something to keep in mind.

Alkers

Woukd you be able to rent a place for cheaper in one of the areas where you're hoping to buy for 150k? Where are you renting currently? Have you any family here?

GoneHome

The point I was making was that the OP stated in an earlier post that he was living "hand to mouth", which doesn't make sense if he has €70,000 stashed away in savings. No one should be under that much pressure living day to day while at the same time having substantial savings.