Obtaining a mortgage while in probationary period in work

Sprites

Hi,

Anyone any experience of drawing down a mortgage while on probation in work.

Myself and my husband are looking to trade up and I had an initial call with the bank to see what options I'd have with obtaining a mortgage (we have a mortgage on our current home).

Anyway,I've been in my job for thr last 8 months so have 4 months probation left. The banks employee said I wouldn't be able to draw down any funds until my probation is out.

At the rate the market in my desired area is moving there is no point in me looking now if I cant draw down for four months.

Anyone been In a similar situation and found a work around?

Trish56

You can make an application for a mortgage and get approved however you cannot drawdown that mortgage until you are finished your probation and submit a letter from your employer confirming your probation is complete and you are now a permanent employee.

Four months is not really a long time to submit and have your mortgage application processed and have a Loan Offer issued and funds issued. Can you not agree a closing date of 4 months with the Vendor's as sometimes with delays on the legal end it can take that long.

celt262

Could he talk to his employer and see would they give him a letter to say he was passed his probation?

rsl1976

Sprites wrote: »

Hi,

Anyone any experience of drawing down a mortgage while on probation in work.

Myself and my husband are looking to trade up and I had an initial call with the bank to see what options I'd have with obtaining a mortgage (we have a mortgage on our current home).

Anyway,I've been in my job for thr last 8 months so have 4 months probation left. The banks employee said I wouldn't be able to draw down any funds until my probation is out.

At the rate the market in my desired area is moving there is no point in me looking now if I cant draw down for four months.

Anyone been In a similar situation and found a work around?

We are in the exact same position and Bank won't budge until i pass probation.
Asked employer about possibility of passing it earlier but it's not company policy.

Sprites

Trish56 wrote: »

You can make an application for a mortgage and get approved however you cannot drawdown that mortgage until you are finished your probation and submit a letter from your employer confirming your probation is complete and you are now a permanent employee.

Four months is not really a long time to submit and have your mortgage application processed and have a Loan Offer issued and funds issued. Can you not agree a closing date of 4 months with the Vendor's as sometimes with delays on the legal end it can take that long.

We haven't even viewed any properties yet. I'm just worried that we wouldn't be attractive buyers to vendors if we cant actually complete for four months and given the current competitive state of the market we will miss out on properties. Conscious that the market is in the up in my area, property prices are rising quickly for what we are interested in.

Thanks for the reply, worth obtaining approval and looking anyway I suppose

Sprites

rsl1976 wrote: »

We are in the exact same position and Bank won't budge until i pass probation.
Asked employer about possibility of passing it earlier but it's not company policy.

Not a hope of that in my situation either unfortunately. Just save like mad over the next few months I suppose to have a chance of keeping up with the market

rsl1976

Sprites wrote: »

Not a hope of that in my situation either unfortunately. Just save like mad over the next few months I suppose to have a chance of keeping up with the market

Good luck, hope it all works out for you:)

Jim2007

celt262 wrote: »

Could he talk to his employer and see would they give him a letter to say he was passed his probation?

An employer would be completely mad to do such a thing. The probation period is unusually long for there is a good reason for it, the employer would be his rights during the probation period etc...

SozBbz

For what its worth OP, I don't think theres any point in you doing anything now. I don't know any bank that allows people borrow ahead of their probation being signed off, and regardless, as a seller I wouldnt want to engage with anyone on that basis.

Besides, look at where we are in the year. Things will wind down soon now for Christmas and won't pick up again until 4-6 weeks into the new year. By then you'll nearly be through your probation. Very little if anything new is going to come onto the sales market this late in the year, so from a timing perspective, you're probably not missing much.

Sprites

SozBbz wrote: »

For what its worth OP, I don't think theres any point in you doing anything now. I don't know any bank that allows people borrow ahead of their probation being signed off, and regardless, as a seller I wouldnt want to engage with anyone on that basis.

Besides, look at where we are in the year. Things will wind down soon now for Christmas and won't pick up again until 4-6 weeks into the new year. By then you'll nearly be through your probation. Very little if anything new is going to come onto the sales market this late in the year, so from a timing perspective, you're probably not missing much.

Makes sense.

It's just frustrating when there are 3 properties on the market now meeting our criteria and I can't do anything about it because , as you said no vendors will realistically engage with us in the position we are in at the moment.

No guarantees that similar properties will be available in four months time when we could move forward.

Something I should have considered before switching jobs really.

rsl1976

The 1 year probation is frustrating. By any chance are you a civil servant? I am and the bank said a lot of companies will pass someone early for the mortgage but not a chance of it happening where i am.

Sprites

rsl1976 wrote: »

The 1 year probation is frustrating. By any chance are you a civil servant? I am and the bank said a lot of companies will pass someone early for the mortgage but not a chance of it happening where i am.

Yes, civil servant so no way that will happen in my case

rsl1976

We must have started around the same time

SozBbz

Sprites wrote: »

Makes sense.

It's just frustrating when there are 3 properties on the market now meeting our criteria and I can't do anything about it because , as you said no vendors will realistically engage with us in the position we are in at the moment.

No guarantees that similar properties will be available in four months time when we could move forward.

Something I should have considered before switching jobs really.

You say that and I'm sure its frustrating but I really don't see much changing in the next few months, and its reasonably likely that some of whats on the market will be withdrawn and then relisted in the new year.

Maybe if you plan to start looking in Feb, when the wait is down to weeks rather than months? Chances are it will take time to find what you want, view it a 2nd time and then start bidding, so hopefully following that timeline it will all fall into place.

Trish56

I would recommend that you get mortgage approved now as an 'approval in principle' will last for up to 12 months and once your probation has ended you will have no delays in drawing down the mortgage once you have found a suitable property.

Sprites wrote: »

We haven't even viewed any properties yet. I'm just worried that we wouldn't be attractive buyers to vendors if we cant actually complete for four months and given the current competitive state of the market we will miss out on properties. Conscious that the market is in the up in my area, property prices are rising quickly for what we are interested in.

Thanks for the reply, worth obtaining approval and looking anyway I suppose

theteal

Is the probation policy different from bank to bank?

Different country and scenario granted, but I'm my probation period now and we went through the process to move mortgage to a new bank over the last month, all set up now for the start of the year when the existing fixed period expires. No issues at all.

SozBbz

theteal wrote: »

Is the probation policy different from bank to bank?

Different country and scenario granted, but I'm my probation period now and we went through the process to move mortgage to a new bank over the last month, all set up now for the start of the year when the existing fixed period expires. No issues at all.

I think you answered your own question there.

MrMusician18

Sprites wrote: »

Hi,

Anyone any experience of drawing down a mortgage while on probation in work.

Myself and my husband are looking to trade up and I had an initial call with the bank to see what options I'd have with obtaining a mortgage (we have a mortgage on our current home).

Anyway,I've been in my job for thr last 8 months so have 4 months probation left. The banks employee said I wouldn't be able to draw down any funds until my probation is out.

At the rate the market in my desired area is moving there is no point in me looking now if I cant draw down for four months.

Anyone been In a similar situation and found a work around?

KBC allow you to draw down during public sector probation.
At least that's what my broker told me.

rsl1976

MrMusician18 wrote:

KBC allow you to draw down during public sector probation. At least that's what my broker told me.

I'm in the public sector and have to wait till my probation is finished

MrMusician18

rsl1976 wrote: »

I'm in the public sector and have to wait till my probation is finished

We must've gotten KBC on a good day so

Sprites

Trish56 wrote: »

I would recommend that you get mortgage approved now as an 'approval in principle' will last for up to 12 months and once your probation has ended you will have no delays in drawing down the mortgage once you have found a suitable property.

Thanks, yes I'm going to go ahead with getting approval in principle

SozBbz

Sprites wrote: »

Thanks, yes I'm going to go ahead with getting approval in principle

Yeah sure do as much as you can to get ahead of the process, but I still think you probably couldnt actually bid until you're nearer being able to draw down.

From a sellers POV, if there was any risk that you couldnt follow through, why would they want to spend money on legal services etc.

Cork981

PTSB, KBC and EBS will all go to loan offer while on probation but won’t release funds till probation ends unfortunately.

You can still move everything along while on probation like getting loan offer signed, life insurance and so on.