Are We Eligible for a Mortgage?

Schmilco

Hi folks,

Not very savvy when it comes to finances and the like but am curious to know whether myself and my new wife would be in a position to apply for a mortgage?

We currently earn approx 42k each and are in full time employment (although i work as a contractor). We have zero loans and zero outstanding debts. We also have savings of 20k.

Would the above be sufficient to seek mortgage approval for a house in or around Dublin/Kildare?

I suspect we may need to have an additional 10/20k saved but would appreciate some feedback!

Thanks for reading

Paulw

Try contacting some mortgage brokers and see what they think. Also ask your bank.

It will vary a good bit, but having a solid deposit plus reliable earnings should stand to you.

Michael D Not Higgins

Your requirements are very broad, a 2 bed terraced house in Kildare is obviously going to be significantly cheaper than a 4 bed semi-d in South County Dublin.

Assuming you're first time buyers, on a combined salary of 84k, you could qualify for a mortgage of 294k, so a purchase price ~325k, with a 10% deposit of 32.5k. You may be able to qualify for an exemption to the mortgage lending rules, but it's worth speaking to the bank/broker to find out more, as Paulw has advised.

The_Conductor

Even if you're a first time buyer (you haven't clarified whether you are, or not)- you will need to supplement your savings. Ideally you'd need in the region of 30k as a FTB to qualify for a mortgage at the max of your Income multiple- or at least 50k- possibly as high as 60k, if you're not a FTB.

Well done for saving 20k- and not having any debts- but unfortunately- you do really need to keep saving, unless you get a waiver on the Income and deposit ratios- you're not going to buy in your current situation.

Talk to an independent financial advisor by all means- however, I suspect he will have a very simple message for you- Keep saving.

SozBbz

OP you really need to talk to a broker/mortgage adviser in the bank. The fact that you are a contractor makes this a non standard question. They need to assess the stability of your work to see if they'll lend on your income or not, or perhaps only part there of.

Also, keep in mind that you need more than just the deposit in cash. You also need to be able to pay for your solicitor, stamp duty and other up front costs.

My instinct is you need to save a bit more.

Bandana boy

Short answer yes , you will have very little issue getting a mortgage with Savings and a steady income.

Will you get enough to buy what you want is another matter.

LincolnHawk

You wouldn't be classed as in FTE if you're a contractor.
Have you got 2 years of accounts? That's what I was asked for and didn't have a problem with my salary once I could provide that

Askthe EA

Schmilco wrote: »

Hi folks,


We currently earn approx 42k each and are in full time employment (although i work as a contractor).

Thanks for reading

That there is the only issue....... I believe you will need two years of complete accounts