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What counts as "monthly commitments" when applying for a mortgage?

  • 09-08-2017 5:42am
    #1
    greensheep777
    Registered Users, Registered Users 2 Posts: 219 ✭✭


    Hi guys,
    I'm a potential first time buyer hoping to apply for a mortgage in the next 12 months (maybe less) once I finish saving for my deposit.
    I'm also looking to get braces on my teeth. The braces would be on for the next 12-18 months, i.e. I may still have another few months of treatment to go on them when I apply for a mortgage.
    The braces will be paid for via monthly direct debit. Would these count as "monthly commitments" when applying for a mortgage? I'm wary that it may have an affect on my application and how much I can borrow and am considering postponing treatment until I've hopefully been mortgage approved.


Comments

  • #2
    Saint_Mel
    Registered Users, Registered Users 2 Posts: 2,598 ✭✭✭Saint_Mel


    Anything that's coming out of your account on a monthly basis... Rent, phone, TV subs, utility bills, loan repayment etc.


  • #3
    greensheep777
    Registered Users, Registered Users 2 Posts: 219 ✭✭greensheep777


    Saint_Mel wrote: »
    Anything that's coming out of your account on a monthly basis... Rent, phone, TV subs, utility bills, loan repayment etc.

    I was under the impression that when they ask about monthly commitments, it's commitments you'll have from when you begin the mortgage, is that incorrect? I wouldn't be paying rent if I have a mortgage as intend to occupy the property myself.


  • #4
    c6ysaphjvqw41k
    Closed Accounts Posts: 466 ✭✭c6ysaphjvqw41k


    This post has been deleted.


  • #5
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,632 ✭✭✭✭Marcusm


    greensheep777 wrote: »
    Hi guys,
    I'm a potential first time buyer hoping to apply for a mortgage in the next 12 months (maybe less) once I finish saving for my deposit.
    I'm also looking to get braces on my teeth. The braces would be on for the next 12-18 months, i.e. I may still have another few months of treatment to go on them when I apply for a mortgage.
    The braces will be paid for via monthly direct debit. Would these count as "monthly commitments" when applying for a mortgage? I'm wary that it may have an affect on my application and how much I can borrow and am considering postponing treatment until I've hopefully been mortgage approved.

    If it was a 5 year plan that you couldn't get out of the. They would have a reason to be interested. Otherwise, unless I mentioned health or similar expenses the. I would assume not.


  • #6
    dennyk
    Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭dennyk


    As Lorenna said, monthly commitments would be fixed monthly expenses that you must pay every month no matter what and can't generally be reduced or eliminated on short notice or on a whim, such as other loan payments or child support payments. If you are on a fixed payment plan for your braces for a long period of time, that may well count as a fixed monthly expense from your mortgage underwriter's point of view. How much it might affect your mortgage options depends on the length of the term and the payment amount, as well as all of the other aspects of your financial situation, though. If you only have a few months of payments left on your payment plan at the time you apply, I'd guess it wouldn't affect their decision much if at all, since you won't be paying them anymore by the time your mortgage actually goes through.

    If these "monthly payments" are just you paying for checkup/adjustment appointments every month, then that probably wouldn't be considered a "monthly commitment" for the purposes of a mortgage at all, as you could theoretically stop going to the orthodontist (and thus stop incurring that monthly expense) if you got into financial trouble and had to choose between that and your mortgage payments.


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