Mortgage single parent?

Lvstar

Good afternoon, before i ask and tel my problem i know i should call in to bank but im doing my research forst online.

So im soon to be single 26 year old woman with baby boy. Im going back from maternety leave in march. Im earning gross income of 20000 a year. And im very aware banks are looking at least 35000 a year.

Is there any other ways about this another ways to secure mortgage?

Its so fusturating that they think single parents shouldn't be able to barrow. I allways paid my rents on time never had issue so i dont get why minimum cut off is 35000 e yearly if im well able to pay 800e rent ?

Samuel T. Cogley

It's not really a salary they're looking for - although I'm sure some have a cut off, it's affordability. €800 rent on €20K a year is not affordable hence all the work on trying to stop rents increasing even further. It's a bummer but unless you have a huge deposit (50% or more) and are looking at a very low value property it's going to be difficult to get a mortgage on c.20K; when child care is factored in I think it might be impossible.

Boards is a great place to research this, there is a wealth of knowledge here on all sorts of circumstances, affordable housing schemes and brokers. A broker that does not charge a fee might well be worth a telephone call at least in this situation.

L1011

Lvstar wrote: »

Good afternoon, before i ask and tel my problem i know i should call in to bank but im doing my research forst online.

So im soon to be single 26 year old woman with baby boy. Im going back from maternety leave in march. Im earning gross income of 20000 a year. And im very aware banks are looking at least 35000 a year.

Is there any other ways about this another ways to secure mortgage?

Its so fusturating that they think single parents shouldn't be able to barrow. I allways paid my rents on time never had issue so i dont get why minimum cut off is 35000 e yearly if im well able to pay 800e rent ?

Single parents with the requisite income can borrow. 20k will get you a mortgage of 70k max, so with a 10% deposit you've got 77k to buy with.

Firing huge mortgages at people based on what they could spend in rent was one factor in the crisis last time. .5% interest rate rise and people couldn't afford it; property tax brought in and people couldn't afford it, etc, etc.

Samuel T. Cogley

OSI wrote: »

What house would you buy for €70,000?

Not everyone lives in Dublin.

http://www.daft.ie/ireland/property-for-sale/?s%5Bmnp%5D=50000&s%5Bmxp%5D=75000

L1011

Libertarian Kant wrote: »

Not everyone lives in Dublin.

http://www.daft.ie/ireland/property-for-sale/?s%5Bmnp%5D=50000&s%5Bmxp%5D=75000

Remove the sites, 1 beds and renovation projects there and you have very little that actually has any services available.

bmwguy

It's nothing against single parents, it's just about affordability. 20k a year is 1650 a month or about 380 a week before tax (I am aware it will be taxed very little) or you buy essentials for yourself and baby. It's more or less minimum wage territory.

I am actually glad you are ambitious enough to want to buy a house, but at that salary it's unlikely and I think there is a minimum of 30k salary for any single applicant to apply, regardless of dependants.

Best of luck

Lvstar

Oh allright. I actually live in cork so there is apartments and fixer uppers for about 70k . Its just disheartening that some people wont get to secure home for their children to grow up in . And rents are going up and up and up place i live in is 800e a month place before that i was paying 550e a month. I lived there for years and it was ok it could have done with bit of doing up but it was livable and cosy. Now house i live at now os cheapest around... 5 years later. Crazy times

Enigma IE

Lvstar wrote: »

Good afternoon, before i ask and tel my problem i know i should call in to bank but im doing my research forst online.

So im soon to be single 26 year old woman with baby boy. Im going back from maternety leave in march. Im earning gross income of 20000 a year. And im very aware banks are looking at least 35000 a year.

Is there any other ways about this another ways to secure mortgage?

Its so fusturating that they think single parents shouldn't be able to barrow. I allways paid my rents on time never had issue so i dont get why minimum cut off is 35000 e yearly if im well able to pay 800e rent ?

Have a look at the mortgage option from the local authorities, link.

Lvstar

bmwguy wrote: »

It's nothing against single parents, it's just about affordability. 20k a year is 1650 a month or about 380 a week before tax (I am aware it will be taxed very little) or you buy essentials for yourself and baby. It's more or less minimum wage territory.

I am actually glad you are ambitious enough to want to buy a house, but at that salary it's unlikely and I think there is a minimum of 30k salary for any single applicant to apply, regardless of dependants.

Best of luck

Ah i know nothing against single parents. I should have probably had better life choices and studied and gotten better job. Something to teach my boy while growing up i guess. Here is to hoping ill be ipdating this thread in case anyone is looking to get mortgage. Ah i hope it will work out for me ☺

bmwguy

Lvstar wrote: »

Oh allright. I actually live in cork so there is apartments and fixer uppers for about 70k . Its just disheartening that some people wont get to secure home for their children to grow up in . And rents are going up and up and up place i live in is 800e a month place before that i was paying 550e a month. I lived there for years and it was ok it could have done with bit of doing up but it was livable and cosy. Now house i live at now os cheapest around... 5 years later. Crazy times

You are 26, it's going to be hard work with a kid but you can train for something that pays higher and you might get into another relationship that will make it affordable in the future for you to have your dream of securing home ownership for your children to grow up in.

I couldn't afford a house at 26 on my own, I bought first just shy of my 30th birthday

Scraggs

It's not impossible, I know plenty of single parents that are home owners (all out of Dublin mind) Work on your savings and increasing your salary whether through job change or promotion. It might take a few years but I don't see it as hopeless. I find sometimes on boards people are too quick to jump on the negatives.

Parchment

Lvstar wrote: »

Ah i know nothing against single parents. I should have probably had better life choices and studied and gotten better job. Something to teach my boy while growing up i guess. Here is to hoping ill be ipdating this thread in case anyone is looking to get mortgage. Ah i hope it will work out for me ☺

Dont say you should have made better life choices! You sound like a great mom who only wants the best for her child - you have your head screwed on and are looking into your options. Dont be so hard on yourself!

Its a tricky market for someone on their own, let alone with a child. I hope you can find some way to have your own home.

Mrs OBumble

On your salary, you are eligible for council housing. You are eligible because you cannot afford to both pay a mortgage AND to maintain a house or apartment. Even if you buy something for 70k, there will still be management company fees, insurance, maintenance etc.

So - register with the council for their housing list.

Lvstar

Mrs OBumble wrote: »

On your salary, you are eligible for council housing. You are eligible because you cannot afford to both pay a mortgage AND to maintain a house or apartment. Even if you buy something for 70k, there will still be management company fees, insurance, maintenance etc.

So - register with the council for their housing list.

I am aware im entitled to different social welfare payments and schemes and social housing but i have purposly not applied for anything apart from maternety benefit and childrens allowance. Because that would dimmish my life long dream having my own home. My family never ever had their own homes and allways rented. I want a change.

Sleepy

Any maintenance payments you receive from your son's father would count as income for a mortgage?

L1011

Sleepy wrote: »

Any maintenance payments you receive from your son's father would count as income for a mortgage?

Pretty certain they won't be. Its not guaranteed to continue at the rate set.

GoneHome

Lvstar wrote: »

I am aware im entitled to different social welfare payments

You may be entitled to One Parent Family Payment or FIS due to your low income, you should consider applying for it even if it goes against your principles as you could put it towards saving for a deposit to purchase a house.

m'lady

Do the council still do shared ownership schemes (50/50), or has that been scrapped?

Op as another poster said, don't be downing yourself, you are a great mother who is trying your hardest, for that you should be commended.

GoneHome

m'lady wrote: »

Do the council still do shared ownership schemes (50/50), or has that been scrapped?

The Council's no longer do Shared Ownership or the Affordable Housing Scheme

m'lady

GoneHome wrote: »

The Council's no longer do Shared Ownership or the Affordable Housing Scheme

Ah ok, I had a feeling it had been scrapped but wasn't sure.

Lvstar

Lvstar wrote: »

I am aware im entitled to different social welfare payments and schemes and social housing but i have purposly not applied for anything apart from maternety benefit and childrens allowance. Because that would dimmish my life long dream having my own home.

How so?

I was in a similar situation to you at 26 but I had family support and then a good job in a country where childcare was free so I was able to save and eventually buy ... at 40.

You have enough on your plate raising your child at the moment and your focus should be on yourselves and a better job.

There's no need to pressurise yourself to buy now and no reason that I can see why you shouldn't utilise any supports that are available to you.

Mrs OBumble

Lvstar wrote: »

I am aware im entitled to different social welfare payments and schemes and social housing but i have purposly not applied for anything apart from maternety benefit and childrens allowance. Because that would dimmish my life long dream having my own home. My family never ever had their own homes and allways rented. I want a change.

If you get allocated a council house, you don't have to stay there forever.

In fact many taxpayers would be delighted if council tenants saved the difference between the council rent and the market rent and used it as the deposit to pay a house of their own. Ie a hand up instead of a handout.

On your current salary, you cannot afford to pay a mortgage AND pay all the other costs of home ownership.

Your options are to get educated and get a far better paying job or to make use of state assistance.

Sleepy

L1011 wrote: »

Pretty certain they won't be. Its not guaranteed to continue at the rate set.

The maintenance Mrs Sleepy receives from my step-son's dad was taken into account in our mortgage application (though we were advised by our broker to ensure it was being paid into her bank account rather than given over in cash).

GoneHome

Mrs OBumble wrote: »

If you get allocated a council house, you don't have to stay there forever.

Or alternatively if you are allocated a Council house you could buy it off the Council after a few years at a reduced cost under the Tenant Purchase Scheme

Mrs OBumble

Mrs OBumble wrote: »

many taxpayers would be delighted if council tenants saved the difference between the council rent and the market rent and used it as the deposit to pay a house of their own. Ie a hand up instead of a handout

Pretty sure that was the original intention of council housing but the badly designed system and some people taking advantage of it has left a bad taste, even for the OP.

OP, don't look at this from the point of view of how your family are, look at it from the point of view of how you will be.

L1011

Deleted User wrote: »

Pretty sure that was the original intention of council housing

Council housing came in, and became common, before house ownership was even vaguely common. Corporation started building flats in the 1910s and in huge bulk from the 20s onwards; with estates around the same time. It was intended to be housing for life as the main driver was a completely dysfunctional private rental system that provided slums or big "middle class" houses upwards in quality and nothing in between. Only the very wealthy bought.