On contract and getting a mortgage

Tobecontinu

I'm hoping someone can help me. I recently started a job that's described on the contract as a part time consultancy. I have a one year contract. The hours aren't fixed but I generally make between 500-600 per week. The company I work for aren't Irish. My partner works in a full time, permanent job that pays 50k per year. We're hoping to get a mortgage in the future, what are the chances of my earnings being counted towards being granted one? What do I have to do?

Samuel T. Cogley

Try KBC our main earner was on contract and they were willing to accept it.

riclad

Go and see a mortgage broker .
Keep your bank statements , save x amount every month in 1 bank account.

Tobecontinu

Samuel T. Cogley wrote: »

Try KBC our main earner was on contract and they were willing to accept it.

Thanks for the reply. Did your main earner have a fixed income? And were you given a mortgage of 3.5 times your combined earnings?

Tobecontinu

riclad wrote: »

Go and see a mortgage broker .
Keep your bank statements , save x amount every month in 1 bank account.

You mean a joined account?

Samuel T. Cogley

Tobecontinu wrote: »

Thanks for the reply. Did your main earner have a fixed income? And were you given a mortgage of 3.5 times your combined earnings?

Fixed income in an industry that typically works on contract. AFAIK we got an exemption over the 3.5 limit.

KylieWyley

I'm on contract and Ulster Bank were willing to take a portion of my income into account (we weren't looking for 3.5x of combined income).

To help build the case, they asked for history of past earnings and a CV to show potential for future earnings.

Any extra info you can provide to strengthen your case will help.

Tobecontinu

Samuel T. Cogley wrote: »

Fixed income in an industry that typically works on contract. AFAIK we got an exemption over the 3.5 limit.

The fixed income was key I'd say. Did they need a lot of past records can you remember?

Tobecontinu

KylieWyley wrote: »

I'm on contract and Ulster Bank were willing to take a portion of my income into account (we weren't looking for 3.5x of combined income).

To help build the case, they asked for history of past earnings and a CV to show potential for future earnings.

Any extra info you can provide to strengthen your case will help.

By a portion do you mean something very small? Below 50% of your income?

Samuel T. Cogley

Tobecontinu wrote: »

The fixed income was key I'd say. Did they need a lot of past records can you remember?

No but they could see a fairly good career progression and no gaps etc.

Tobecontinu

Samuel T. Cogley wrote: »

No but they could see a fairly good career progression and no gaps etc.

I haven't got that. So your CV is very important? Do you have to verify all past employment?

Tobecontinu

Oh yeah, I should have said, with this being an overseas company, I'll be paying tax through self assessment. Will that have any effect?

Phileas Frog

I'm a contractor too and the banks just wanted my CV. The 3.5 multiple was based off the average of my last 3 P60s

Tobecontinu

Phileas Frog wrote: »

I'm a contractor too and the banks just wanted my CV. The 3.5 multiple was based off the average of my last 3 P60s

But like I said, I've just started this job. Before this, I returned to education and before that I was working abroad.

Stheno

Tobecontinu wrote: »

Oh yeah, I should have said, with this being an overseas company, I'll be paying tax through self assessment. Will that have any effect?

They may look for three years accounts

Tobecontinu

Stheno wrote: »

They may look for three years accounts

What if my accounts show I've not made much money in the past 3 years?

Samuel T. Cogley

Tobecontinu wrote: »

I haven't got that. So your CV is very important? Do you have to verify all past employment?

As the post above I think they'd look at you as self employed.

Stheno

Tobecontinu wrote: »

What if my accounts show I've not made much money in the past 3 years?

If you are currently self employed and you have three years accounts for your company they will probably take the lower figure

Tobecontinu

Stheno wrote: »

If you are currently self employed and you have three years accounts for your company they will probably take the lower figure

I've already stated that I just started this job and I was in education prior to this.

Tobecontinu

Samuel T. Cogley wrote: »

As the post above I think they'd look at you as self employed.

Will having little in my accounts for the past few years but having 600 per week from here on count for much? I mean, how long will I have to be earning decent money for a bank to even consider me for a mortgage? I understand if you don't know the answers to these questions. Thanks for you help.

Samuel T. Cogley

Tobecontinu wrote: »

Will having little in my accounts for the past few years but having 600 per week from here on count for much? I mean, how long will I have to be earning decent money for a bank to even consider me for a mortgage? I understand if you don't know the answers to these questions. Thanks for you help.

No idea I'm afraid.

Stheno

Tobecontinu wrote: »

Will having little in my accounts for the past few years but having 600 per week from here on count for much? I mean, how long will I have to be earning decent money for a bank to even consider me for a mortgage? I understand if you don't know the answers to these questions. Thanks for you help.

So to give you a comparison I was self employed as a contractor for several years.

I applied for a car loan and had to supply three years accounts to show consistent income for that time.

If you can't do that you may struggle. Go talk to a broker.

bee06

Tobecontinu wrote: »

Will having little in my accounts for the past few years but having 600 per week from here on count for much? I mean, how long will I have to be earning decent money for a bank to even consider me for a mortgage? I understand if you don't know the answers to these questions. Thanks for you help.

Your best bet would be to talk to a mortgage broker to understand what exactly you need to do going forward to be a good candidate for a mortgage.

Stheno

How long are you in your current job?

Squall Leonhart

As a sole applicant who was contracting, I got a mortgage with bank of Ireland in 2017. I had a letter from my employer stating I had been working with them 18 months and would be working for them for the foreseeable future. I'm still working for them, but now a permanent staff member

Tobecontinu

Stheno wrote: »

So to give you a comparison I was self employed as a contractor for several years.

I applied for a car loan and had to supply three years accounts to show consistent income for that time.

If you can't do that you may struggle. Go talk to a broker.

I'll need to talk to a broker but I think going in for this mortgage with someone in full time, permanent employment should help. I hope anyway.

Tobecontinu

Squall Leonhart wrote: »

As a sole applicant who was contracting, I got a mortgage with bank of Ireland in 2017. I had a letter from my employer stating I had been working with them 18 months and would be working for them for the foreseeable future. I'm still working for them, but now a permanent staff member

Good to hear.

Phileas Frog

Tobecontinu wrote: »

But like I said, I've just started this job. Before this, I returned to education and before that I was working abroad.

I was only a contractor for less than a year too... As I said, 3 X P60s is what's important. Didn't have to provide any company accounts. Sole applicant too btw. EBS

Tobecontinu

Phileas Frog wrote: »

I was only a contractor for less than a year too... As I said, 3 X P60s is what's important. Didn't have to provide any company accounts. Sole applicant too btw. EBS

What if I don't have 3 x p60's? What if I don't have any?

Phileas Frog

Tobecontinu wrote: »

What if I don't have 3 x p60's? What if I don't have any?

Then you haven't a hope.

Tobecontinu

I know people have said I should go to a broker but it's Sunday and I'm impatient. No one here will probably know the answers but I'll ask anyway. How would this look if applying for a mortgage?

Weekly earnings of 600 euro
200 of this into joint savings account

Partner does the same and has a permanent, full time job earning 50k.

Would that stand up?

Tobecontinu

Phileas Frog wrote: »

Then you haven't a hope.

But I was in college and before that I was working abroad, could that be explained?

Phileas Frog

Your partner is better off applying on their own, presuming that you are not married.

Tobecontinu

Phileas Frog wrote: »

Your partner is better off applying on their own, presuming that you are not married.

Why is that?

Redser87

So €1600 into savings? Are you also renting? They will add rent and savings together to figure out your repayment capacity. You would need to be doing this saving for 6 months consistently and NEVER dipping into your savings.

I can't answer your question but I do know the feeling of stress when you have to wait for answers. If I were you I would spend today getting any paperwork you have and reading up on brokers to choose the best one for you. Then first thing tomorrow, make an appointment.

I hope someone can give you a more concrete answer but I do know that impatient feeling and I found the best way of dealing with it was doing something practical towards the mortgage.

ontheditch2

Tobecontinu wrote: »

I know people have said I should go to a broker but it's Sunday and I'm impatient. No one here will probably know the answers but I'll ask anyway. How would this look if applying for a mortgage?

Weekly earnings of 600 euro
200 of this into joint savings account

Partner does the same and has a permanent, full time job earning 50k.

Would that stand up?

Have ye the 10% deposit saved?

Regardless of your impatience, nothing else matters in the short term, so book into see a mortgage broker tomorrow to tell you what's needed

Redser87

Tobecontinu wrote: »

Why is that?

Because a couple applying together have to have €2050 disposable income left after paying the mortgage, a single person needs €1400.

Tobecontinu

Redser87 wrote: »

So €1600 into savings? Are you also renting? They will add rent and savings together to figure out your repayment capacity. You would need to be doing this saving for 6 months consistently and NEVER dipping into your savings.

I can't answer your question but I do know the feeling of stress when you have to wait for answers. If I were you I would spend today getting any paperwork you have and reading up on brokers to choose the best one for you. Then first thing tomorrow, make an appointment.

I hope someone can give you a more concrete answer but I do know that impatient feeling and I found the best way of dealing with it was doing something practical towards the mortgage.

No, both of us are living with our parents currently in order to save up. I'd love to book an appointment in the morning but both of us are working Mon - Fri. Thanks for the message, it is stressful!

Tobecontinu

ontheditch2 wrote: »

Have ye the 10% deposit saved?

Regardless of your impatience, nothing else matters in the short term, so book into see a mortgage broker tomorrow to tell you what's needed

Yes, we have 50,000 available for deposit. That will help surely?

Tobecontinu

Redser87 wrote: »

Because a couple applying together have to have €2050 disposable income left after paying the mortgage, a single person needs €1400.

So my partner earns 4,000 per month, I'd be earning 2,400 per month. That is way over 2050 if you take away a really high mortgage repayment even.

shamrock55

Tobecontinu wrote: »

No, both of us are living with our parents currently in order to save up. I'd love to book an appointment in the morning but both of us are working Mon - Fri. Thanks for the message, it is stressful!

So your partner is earning 50,000 yet can only save 200 a week, and is living at home, whats he doing with the rest of it

ontheditch2

Tobecontinu wrote: »

Yes, we have 50,000 available for deposit. That will help surely?

That's an unbelievable amount of money to have saved when you were recently in full time education and having no income.

Tobecontinu

Mr.S wrote: »

Being in college doesn't make a difference, banks just want to see you have been employed, on a good wage and history of savings.

Sounds like you are fairly new to your current contract job - which won't help your application. Best just chat with a broker - there are to many factors in play.

To answer your question - yes it's possible to get a mortgage on a contract role, but length of experience / experience / earnings / come into it. From what you've said, I would say you might struggle - wait 2-3 years and have steady work and savings and you should be in a much better place.

Or go the route suggested if you aren't married and have your partner be a sole applicant.

But a sole applicant on 50k won't get much in Dublin! Would it improve our case if I was in permanent full time employment instead of contract?

Tobecontinu

shamrock55 wrote: »

So your partner is earning 50,000 yet can only save 200 a week, and is living at home, whats he doing with the rest of it

No, we haven't started the savings account yet, I was just using that as an example. They could put 400 or 500 in it.

Tobecontinu

ontheditch2 wrote: »

That's an unbelievable amount of money to have saved when you were recently in full time education and having no income.

It's my partners money. I'm letting the side down here.

Squall Leonhart

Tobecontinu wrote: »

Yes, we have 50,000 available for deposit. That will help surely?

Depends if the 50K can be shown with a track record of saving it or if it was all gifted.

If your girlfriend is on 50K, she can borrow 175, plus the 50 you have leaves 225, less solicitor fees stamp duty etc and you're probably buying in the region of 215K as a sole applicant.

I did similar, single applicant, but really we were buying as a couple. Our solicitor drew up something for us so partner was protected in the purchase as she was putting in deposit money (smoke and mirrors with the bank..), and we've married since.

Tobecontinu

Squall Leonhart wrote: »

Depends if the 50K can be shown with a track record of saving it or if it was all gifted.

If your girlfriend is on 50K, she can borrow 175, plus the 50 you have leaves 225, less solicitor fees stamp duty etc and you're probably buying in the region of 215K as a sole applicant.

I did similar, single applicant, but really we were buying as a couple. Our solicitor drew up something for us so partner was protected in the purchase as she was putting in deposit money (smoke and mirrors with the bank..), and we've married since.

No, the 50k is all savings. My partner's savings. Unfortunately, we can't get much for 215k in Dublin.

Tobecontinu

Mr.S wrote: »

Yes, you are the variable at the moment due to the contract job. The risk is that if you don't get another contract after the current one concludes - how are you going to keep up with repayments? You can counteract this if you have lots of experience, decent CV, history of repeated contracts / projects etc but sounds like you are new to it and won't have that.

Easiest option would be to look for a permanent role, and in Dublin that shouldn't be the hardest in this market.

I've worked in the same field abroad for 2 years, this current contract is for a year, it's online work. I have about 5 years experience in this area. I've worked for the company my new role is in previosly.

ontheditch2

Tobecontinu wrote: »

I've worked in the same field abroad for 2 years, this current contract is for a year, it's online work. I have about 5 years experience in this area. I've worked for the company my new role is in previosly.

You said earlier that you returned to education before this job?
So, you were working and back in college, at the same time?

Tobecontinu

ontheditch2 wrote: »

You said earlier that you returned to education before this job?
So, you were working and back in college, at the same time?

No, I wasn't working when I was in college, it was a year long course.

Redser87

<SNIP>

This is a mortgage broker based in Limerick that do phone advisory sessions. A friend of mine (living in Dublin) used them in a similar situation to yourself.