mortgage

triple nipple

Hi all,

I'm currently in the process of applying for a mortgage. Myself and my partner have worked hard to save our deposit over the last year and are nearly ready to buy (finally)

The problem is that since we had the bright idea to step onto the property ladder, house prices have gone absolutely mental! We now find ourselves completely priced out of the market (like many others unfortunately)

So my question is, if we buy a property down the country (2 hour journey each way aprox) would the bank take issue with this and rescind the offer based on the distance we would be required to travel every day.

The real plan would be to buy something we can afford and get jobs there as soon as possible.

Has anyone else had a similar experience?

TIA

traveller0101

I'm not sure if the bank cares how much you travel everyday. For your own sake, do not travel 4 hours a day for work...

eh i dunno

traveller0101 wrote: »

I'm not sure if the bank cares how much you travel everyday. For your own sake, do not travel 4 hours a day for work...

Listen to this. Be madness. Keep saving or look for a smaller house. 4 hours driving a day doesn't leave time for much else

triple nipple

Thanks for your replies. I have absolutely no intention of commuting 4 hours a day!

A broker told me recently that the bank would have an issue with me living so far from my job

Was just wondering if this was true or if anyone had experience of this?

Personally, I wouldn't have tought the bank would give a fudge as long a they're getting paid.

Wheety

That would be a crazy commute and you will grow to hate it very quickly. Then what do you do?

How are you saving at the moment? Living at home or paying rent? Maybe continue a bit longer and keep saving. I know quite a few people who bought outside Dublin during the last boom because it's all they could afford. Then they found themselves in negative equity in a place they didn't want to be and couldn't sell and move to Dublin. They're still there and regretting it.

Think longer term rather than you have to buy a house now just because you have a deposit saved.

catrionanic

Wheety wrote: »

Think longer term rather than you have to buy a house now just because you have a deposit saved.

This.

And with all the Brexit uncertainty on the horizon, you might be glad you waited a while and saved a bit more.

There's not much point in getting onto the property ladder just for the sake of it and because you're feeling panicked. Wait a while and save for longer if you want to stay in Dublin, or else get a job in the country first and rent for a little while, and then make a decision about where to buy.

triple nipple

Agree 100% with everything that has been said!

I feel like my question may be getting missed though

Will the bank have an issue should i choose to buy far away from where i work?

Again the plan is to get a new job once the house is bought.

368100

triple nipple wrote: »

Thanks for your replies. I have absolutely no intention of commuting 4 hours a day!

A broker told me recently that the bank would have an issue with me living so far from my job

Was just wondering if this was true or if anyone had experience of this?

Personally, I wouldn't have tought the bank would give a fudge as long a they're getting paid.

I think your broker must have some other motive for saying this....bank won't care what you're travelling....not known for their caring about customers wellbeing!

TheShow

As long as you're reasonably within the commuter belt it shouldn't raise an eyebrow. It would only be an issue if you were buying in say Leitrim and commuting to Dublin, or some other extreme example, as its not sustainable in the long run.
Don't believe everything brokers tell you, they serve a purpose but are only there to fill their pockets.

triple nipple

TheShow wrote:

As long as you're within the commuter belt it shouldn't raise an eyebrow. would only be an issue if you were buying in say Leitrim and commuting to Dublin. Its not sustainable in the long run. Don't believe everything brokers tell you, they serve a purpose but are only there to fill their pockets.

Definitely wouldn't be in the commuter belt. There is a direct train though (2 hour journey)

Why would the broker tell me not to buy further out? He still gets his commission from the bank regardless of where I buy

368100

triple nipple wrote: »

Definitely wouldn't be in the commuter belt. There is a direct train though (2 hour journey)

Why would the broker tell me not to buy further out? He still gets his commission from the bank regardless of where I buy

Higher the mortgage value, more commission possibly?

TheShow

triple nipple wrote: »

Definitely wouldn't be in the commuter belt. There is a direct train though (2 hour journey)

Why would the broker tell me not to buy further out? He still gets his commission from the bank regardless of where I buy

For your own piece of mind, is 4 hours a day on the train something you can see yourself doing? Early starts and late evenings getting home. Give it serious thought before you commit. If you could save a bit more for a bit longer you might get somewhere a bit closer.

triple nipple

triple nipple wrote:

The real plan would be to buy something we can afford and get jobs there as soon as possible.

TheShow wrote:

For your own piece of mind, is 4 hours a day on the train something you can see yourself doing? Early starts and late evenings getting home. Give it serious thought before you commit. If you could save a bit more for a bit longer you might get somewhere a bit closer.

Definitely not something I would be doing. You're all correct, it is to far to be travelling every day!

I reckon I could pick up another similar paying job once I arrive there. So a possible commute isn't something I'm planning on.

I don't want to pick up a job down there first only to wait another 6-12 months to pass probation to find that houses are now out of my price range!

I just want to know if the bank will rescind or alter the offer if they see I'm trying to buy so far away

Dee01

I don't know what the bank will do with the offer to be honest, I don't see why a broker would lie, but I'd check with the bank prior to making any commitment with a bid etc.. I know you think people are missing your point, but I think they're trying to point out the scenario where you and your partner don't get jobs where you're planning to move. How would you cope then?

Bank aside, you'd also need to consider your social and family circle. Are you looking at moving to somewhere you know people or will you be on your own? In the last boom, any of my friends who were based in Dublin and moved out to an affordable house on the commuter belt or beyond majorly regretted it and have spent the last 10 years trying to get back in. It's all fine on paper, but the reality is very different.

One_Of_Shanks

Best way to look at it is that the bank want to know that you're going to be a good bet to repay the loan.
So if you were the one loaning the money here would you loan it?

So if you're working in Armagh and buying in Kerry then of course they'll be asking a question.

Likewise with this, they'll smell a rat and reject the application I would imagine.

Is there another way around it? I'm not suggesting anything illegal here but a relative maybe and you do a deal.
It's not that difficult if you have the right person helping.

We had some "issues" with ours and look I'm just saying there is a way around things sometimes.
But I'd be amazed if they accept the application as it is.

theboringfox

I got my mortgage whilst me and my girlfriend were both working in Dublin and we bought in Cork. They did ask about it but we just said we were happy we could get jobs back there. We borrowed well within the rules though too to allow for a potential pay reduction so that may have helped. I think the concern for banks with a far away location is they question will you potentially have to move jobs at some point. Banks in general hate uncertainty.

Wesser

Yes I have experience of this and was told by several banks that I would have to.buy within 100km of my job.

Atlantic Dawn

Before you make a decision some week day take a day off work and do the commute on the train to see how it works out.