Mortgage Exception

jiminho

Hi folks. Just wondering if anyone knew anything about mortgage exceptions? From what I read, it is possible to get an exception to either the income multiple or deposit requirement for a mortgage but not both. I'll be looking for an exception on the income multiple but what are the specifics/requirements to get an exception and how far beyond the 3.5 salary multiple can they go?

A little about myself: one non-working spouse, two children, salary not determined yet but +€60k and deposit not determined yet but +€100k.

Thanks

syndrome777

I can only tell you for AIB thank I know, the same might be the case for EBS

NDI (net disposable income) after mortgage rep+childcare+maintenance+any load has to be 2200 for a couple + 250 per child ( and this goes higher for exceptions , something like 2500 + 250 per child)

they stress test 6-7% mortgage repayment.

try here https://mortgage.aib.ie/?a=2&m=M&d=2

and if you qualify for an exception it will show you here straight away, if not it will show you how much they will give you.

jiminho

syndrome777 wrote: »

I can only tell you for AIB thank I know, the same might be the case for EBS

NDI (net disposable income) after mortgage rep+childcare+maintenance+any load has to be 2200 for a couple + 250 per child ( and this goes higher for exceptions , something like 2500 + 250 per child)

they stress test 6-7% mortgage repayment.

try here https://mortgage.aib.ie/?a=2&m=M&d=2

and if you qualify for an exception it will show you here straight away, if not it will show you how much they will give you.

Thanks for that but there doesn't seem to be anything about an exception there. I put in some false numbers to bring my income to supply 2k under what I wanted for a mortgage and they wouldn't give me that extra €2k. I'll play around with it and see if I can get it to go beyond the 3.5 multiple

syndrome777

jiminho wrote: »

Thanks for that but there doesn't seem to be anything about an exception there. I put in some false numbers to bring my income to supply 2k under what I wanted for a mortgage and they wouldn't give me that extra €2k. I'll play around with it and see if I can get it to go beyond the 3.5 multiple

I know it work as I tried on my own situation.

I just played with your numbers but without the children. And it seems it shows less because you have one income, while if you divide your 60K between 2 applicants, and don't include children it gives you more then 3.5 multiple.

I think you might be better of going to a good broker, and they can give you the best advice across all lenders

CIARAN_BOYLE

jiminho wrote: »

Hi folks. Just wondering if anyone knew anything about mortgage exceptions? From what I read, it is possible to get an exception to either the income multiple or deposit requirement for a mortgage but not both. I'll be looking for an exception on the income multiple but what are the specifics/requirements to get an exception and how far beyond the 3.5 salary multiple can they go?

A little about myself: one non-working spouse, two children, salary not determined yet but +€60k and deposit not determined yet but +€100k.

Thanks

To me you look terrible value for an exception.

One income, three dependents.

Sorry.

They are for people that wouldnt meet the requirements but would have lower than usual expenses due to not having kids or would have redundancy because both partners work so if one person lost their job the other would have income in the meantime etc.

People who are particularly young and on upward career paths often get an exemption too.For example a friend of mine has 30k in bank, 30k salary, will qualify in 6 months (needs time served experience) and get a pay rise of 10-15 k on the basis of being qualified just got a pay mortgage for 120k to buy an apartment.

The bank figured he wasn't a risk because the parish would be pretty automatic in 6 months.

L1011

Salary not determined yet? What does this actually come down to?

You aren't going to get favourable treatment on contract work or other guessed at pay increases. If its a new job you're going to need to wait some months to a year.

Heroditas

If you get the exception on the deposit and have an income of 60k, you'll be able to get a house up to the value of 310k: 100k deposit and (3.5x60)

Heroditas

L1011 wrote: »

Salary not determined yet? What does this actually come down to?

Bonus related maybe? Banks won't typically include the bonus or overtime unless the applicant can show that it's been consistently awarded over a number of years. Even then, they can decide to steer clear.

Dr.Rieux

Heroditas wrote: »

Bonus related maybe? Banks won't typically include the bonus or overtime unless the applicant can show that it's been consistently awarded over a number of years. Even then, they can decide to steer clear.

The OP is not currently working in Ireland, see http://www.boards.ie/vbulletin/showpost.php?p=102487775&postcount=3238

Heroditas

Zero chance in that case.
They'll give up to 4.5 the salary if you have 20% or more of the value as a deposit or will let you have just a 10% deposit but the income will need to be 100k or more.
My wife and I got an exception last year with a 10% deposit and we bought a 415k house. Our combined income was well well north of 60k though and we'd been working in Ireland all our lives and had several accounts with the bank who supplied our mortgage. Even then, it took a very long time to get approval.

jiminho

Thanks all for the replys. I should have mentioned that I'm moving back from Canada and while I can't determine exactly what my salary will be, based on job ads and friends who are in similar positions salary I'm thinking €60k per annum. Bonus etc I would have no idea at this time. I've been in touch with BOI and they've said I need 6 months in then same permanent position and to be off probabtion.

In terms of exceptions, I've been doing some research and working backwards on what I'd need. Irish banks appear to stress test to 2% above approved mortgage rate...? Anyway, going by this logic, a €270k mortgage at 6% (4% fixed rate plus 2% stressed) would equate to approx €1,500 p/m and using your parameters above (2000pm + 250 pm per child), I would need to net €4K per month or €65k gross per annum. Thoughts?

Also, I'm hoping to have a good deposit of over €100k

CIARAN_BOYLE

jiminho wrote: »

Thanks all for the replys. I should have mentioned that I'm moving back from Canada and while I can't determine exactly what my salary will be, based on job ads and friends who are in similar positions salary I'm thinking €60k per annum. Bonus etc I would have no idea at this time. I've been in touch with BOI and they've said I need 6 months in then same permanent position and to be off probabtion.

In terms of exceptions, I've been doing some research and working backwards on what I'd need. Irish banks appear to stress test to 2% above approved mortgage rate...? Anyway, going by this logic, a €270k mortgage at 6% (4% fixed rate plus 2% stressed) would equate to approx €1,500 p/m and using your parameters above (2000pm + 250 pm per child), I would need to net €4K per month or €65k gross per annum. Thoughts?

Also, I'm hoping to have a good deposit of over €100k

The most they go is 4.5 times income. So you would be within that. Of course the big problem is that they don't like giving exceptions where one partner is fully responsible for the income or where there is children.

jiminho

CIARAN_BOYLE wrote: »

The most they go is 4.5 times income. So you would be within that. Of course the big problem is that they don't like giving exceptions where one partner is fully responsible for the income or where there is children.

Anyway to give them some ease of mind?

somesoldiers

Forget about the 3.5 multiple OP. Having 3 "drains on income" is a big issue here. I have been struggling to get a mortgage for months now and I have only two drains. On a salary of 80k the max I can borrow is 200k. I have been in my job 10 years have deposit and zero debt.

They have suggested that if my wife gets a job for 10k they will give me 250. 20k gets 300k, makes no sense to me as given change in tax credits cost of childcare she would come out with very little extra take home by doing this but anyway the way they look at it is she stops being a drain.any hope that your partner could have some earnings?

CIARAN_BOYLE

somesoldiers wrote: »

Forget about the 3.5 multiple OP. Having 3 "drains on income" is a big issue here. I have been struggling to get a mortgage for months now and I have only two drains. On a salary of 80k the max I can borrow is 200k. I have been in my job 10 years have deposit and zero debt.

They have suggested that if my wife gets a job for 10k they will give me 250. 20k gets 300k, makes no sense to me as given change in tax credits cost of childcare she would come out with very little extra take home by doing this but anyway the way they look at it is she stops being a drain.any hope that your partner could have some earnings?

Well if she works for 8500 a year it's 8500 net due to non transferable tax credits. 20k a year due to no transferable srcop would completly avoid the 40% band.

The way the mortgage people are thinking is if you lose your job she will have some money coming which might mean you can keep the mortgage being paid while you look for a job.

jiminho wrote: »

Anyway to give them some ease of mind?

Bigger deposits. A significant non guaranteed bonus built into your salary that you are likely to get. If you live in the city no one driving in the family.

athtrasna

Mod note

No need for a separate thread. You already got answers on the mortgage thread.