2nd time buyers

Sunrise_Sunset

Hi, I plan on meeting with a couple of banks soon for a pre-mortgage meeting but I have a few questions before I do.
Myself and my husband own an apartment that looks set to be out of negative equity this year. We would like to buy a bigger home. We have 2 kids, he's employed in a permanent position on a salary of 80k, I'm a stay at home parent. No other loans or credit cards, savings of approximately 60k. We save between 500 - 850 per month. We are both aged 40.

What is the likelihood of getting a mortgage as a one income family?
Will our ages affect our chances?
Are any banks allowing tracker mortgages to be carried over, even in the short term, to the new mortgage?

Glenbhoy

lililanny wrote: »

Hi, I plan on meeting with a couple of banks soon for a pre-mortgage meeting but I have a few questions before I do.
Myself and my husband own an apartment that looks set to be out of negative equity this year. We would like to buy a bigger home. We have 2 kids, he's employed in a permanent position on a salary of 80k, I'm a stay at home parent. No other loans or credit cards, savings of approximately 60k. We save between 500 - 850 per month. We are both aged 40.

What is the likelihood of getting a mortgage as a one income family?
Will our ages affect our chances?
Are any banks allowing tracker mortgages to be carried over, even in the short term, to the new mortgage?

You'll get a mortgage, but whether it's sufficient for your needs is another matter. I'm presuming you're Dublin based? I can't see you qualifying for an income exemption, therefore you're stuck on 3.5 times 80k plus deposit. I think there is leeway for dealing with the negative equity however and I'm sure other posters may be able to fill u in there.
If there's potential for you to re-enter the workforce, it would make a huge difference, I know childcare costs may make it a difficult choice, but if there was a possibility of part time that could make all the difference, don't forget that you have a decent amount of income which can be earned at 20% tax regardless of your spouse's income (circa 24k iirc).
Husband has good salary, therefore probable good prospects etc, which strengthens your case.
Age won't be much of an issue, boi for example give mortgages to age 70 now.

Sunrise_Sunset

Yes, Dublin based.
An average 3 bed home valued at about 350-400k in our areas of interest.
I am re-training at the moment and hope to re-enter the work force on a part time basis, with an approximate salary of 20k. However the job position is not guaranteed at the moment. Childcare costs should be 0 as I could still manage it around my work hours.
If we wait a year, and our circumstances remain the same, we think we could manage to up our savings to about 80k. But if house prices increase we'd still be in a similar position.

Glenbhoy

lililanny wrote: »

Yes, Dublin based.
An average 3 bed home valued at about 350-400k in our areas of interest.
I am re-training at the moment and hope to re-enter the work force on a part time basis, with an approximate salary of 20k. However the job position is not guaranteed at the moment. Childcare costs should be 0 as I could still manage it around my work hours.
If we wait a year, and our circumstances remain the same, we think we could manage to up our savings to about 80k. But if house prices increase we'd still be in a similar position.

If you wait and you secure income of 20k p.a. you will be in a much stronger position. You would likely get approval for 350k and have a deposit of 80k.
Most predictions are for limited house price growth this year, maybe some at the start of the year as exemptions kick in, but little after that, of course, these are just predictions and nobody knows. That said, there does appear to be more possibility of downward pressure that upward over the next while, Brexit, increased supply, us economy slowing down etc...