Do we stand a chance to get mortgage?

Creamy Goodness

bunderoon wrote: »

next recession is just around the corner. Don't buy in an overheated market.

This is a pretty large gamble, who’s to say banks will give mortgages in the recession to any but the highest of earners.

MIKEKC

Lily_Aldrin7 wrote: »

I’m just researching this now and I’m not entirely clear on it, it’s the first time we would ever get any money from anyone so we’re not over the 325 k limit but I feel like I must be misunderstanding it!

No you are not misunderstanding it. It was e350,000 before the crash, then dropped to E300.000 Recently increased to E325,000

jlm29

I assume you’re not married as you’ve said partner rather than husband. It would probably be more straightforward if you got married

silver2020

mycro2013 wrote: »

The loan rates being charged by the credit unions are extortionate. Credit unions are fine for small loans but
once the sums increase they are not competitive.

To the OP a trip to your local county councillor would also be beneficial as the rebuilding Ireland loan is administrated by the local authority.

Those offering mortgages are about 4%
https://www.wexfordcreditunion.ie/loan-calculator/

Higher than the bank, but may make sense for the OP as they are only looking for about 80k and the monthly mortgage of just €500 for 80k over 20 years will get them their house without an onerous repayment

Lily_Aldrin7

jlm29 wrote: »

I assume you’re not married as you’ve said partner rather than husband. It would probably be more straightforward if you got married

No, we’re not married but if being married would make it any better, we can do it (how romantic!)

Lily_Aldrin7

silver2020 wrote: »

Those offering mortgages are about 4%
https://www.wexfordcreditunion.ie/loan-calculator/

Higher than the bank, but may make sense for the OP as they are only looking for about 80k and the monthly mortgage of just €500 for 80k over 20 years will get them their house without an onerous repayment

I will definitely look into it, our savings are in a credit union. Our credit union currently doesn’t do mortgages but who knows, maybe that will change

mycro2013

silver2020 wrote: »

Those offering mortgages are about 4%
https://www.wexfordcreditunion.ie/loan-calculator/

Higher than the bank, but may make sense for the OP as they are only looking for about 80k and the monthly mortgage of just €500 for 80k over 20 years will get them their house without an onerous repayment

The rate being offered is over double the rbi loan rate of 2%. The ethos of credit unions being for their members benefit is well and truly gone. They charge a premium for the service they provide.

jlm29

Lily_Aldrin7 wrote: »

No, we’re not married but if being married would make it any better, we can do it (how romantic!)

I’m not very romantic either, I’m more of a practical kinda gal! . But if you’re the one with the wage, and he’s the one with the deposit, especially if the deposit is being gifted, it seems as though it might make things more straightforward if ye were married, in terms of tax liability etc. In fairness, with two kids, it’s a sensible thing to do anyhow.

silver2020

mycro2013 wrote: »

The rate being offered is over double the rbi loan rate of 2%. The ethos of credit unions being for their members benefit is well and truly gone. They charge a premium for the service they provide.

They do charge a premium.

No chance of the OP being able to get 2% rate - or anyone for that matter. The lowest variable rate on the market is about 3%.

On circa €30k income the banks will not entertain the OP. Neither would the CU except for the fact that the OP will have 50% of the price of the house.

So, yes, its more expensive, but a hell of a lot better value than renting

deisedevil

jlm29 wrote: »

I’m not very romantic either, I’m more of a practical kinda gal! . But if you’re the one with the wage, and he’s the one with the deposit, especially if the deposit is being gifted, it seems as though it might make things more straightforward if ye were married, in terms of tax liability etc. In fairness, with two kids, it’s a sensible thing to do anyhow.

Just a heads up on the whole gift situation. I bought a house from my parents. They gifted me some equity in the house. I wasn't married to my partner. We married the following year and I was about to put her name on title of house also. Broker and solicitor both said they would have imagined it was fine to add spouse and not have revenue looking for tax on the gift the spouse was now to be the beneficiary of. I checked with revenue just to be sure. I was passed from one Dept. to another before someone very knowledgeable explained that I could not transfer the gift even to my spouse until 3 years had passed from the time that I had received the gift otherwise tax would be due, if it was noticed. So we had to wait. Solicitor looked into it further and indeed this is the situation. To avoid the tax you would need to go 2 in mortgage-1 in title. Not all banks are willing to do this. It was a right nuisance. I had to stay on much higher rates than were available out there just to wait for the three years to be up.

deisedevil

jlm29 wrote: »

I’m not very romantic either, I’m more of a practical kinda gal! . But if you’re the one with the wage, and he’s the one with the deposit, especially if the deposit is being gifted, it seems as though it might make things more straightforward if ye were married, in terms of tax liability etc. In fairness, with two kids, it’s a sensible thing to do anyhow.

Just a heads up on the whole gift situation. I bought a house from my parents. They gifted me some equity in the house. I wasn't married to my partner. We married the following year and I was about to put her name on title of house also. Broker and solicitor both said they would have imagined it was fine to add spouse and not have revenue looking for tax on the gift the spouse was now to be the beneficiary of. I checked with revenue just to be sure. I was passed from one Dept. to another before someone very knowledgeable explained that I could not transfer the gift even to my spouse until 3 years had passed from the time that I had received the gift otherwise tax would be due, if it was noticed. So we had to wait. Solicitor looked into it further and indeed this is the situation. To avoid the tax you would need to go 2 in mortgage-1 in title. Not all banks are willing to do this. It was a right nuisance. I had to stay on much higher rates than were available out there just to wait for the three years to be up.

Bandana boy

If you have history of 900 a month rent , and looking to borrow 80K against a 160K house you will have very little trouble securing a morgtage , even on a low income.

Over 30 years this would be under 400 a month and you have shown ability to pay 900 .
The risk to banks is small with such high equity in the house.

Billythekid19

Lily_Aldrin7 wrote: »

We have around 10 k saved but it’s old savings from before we had children.
We have no debt, we’ve never had credit cards, debit cards only- is this a good or a bad thing ?

This might sound cynical but your better off applying for social housing, might as well milk the system like everyone else does. Fastest way of getting a free house is to go homeless, will likely be housed in a 3 bed within 6 months.

theteal

Bandana boy wrote: »

If you have history of 900 a month rent , and looking to borrow 80K against a 160K house you will have very little trouble securing a morgtage , even on a low income.

Over 30 years this would be under 400 a month and you have shown ability to pay 900 .
The risk to banks is small with such high equity in the house.

This would be my thinking on the situation also but I have no experience of the Irish market. Surely that's just common sense.

In the UK, we had a deposit for ~22% equity (saved in Euro from my previous life), very little to show in regular GBP savings but the monthly mortgage would be >£400 less than the rent we had been paying for 6+ years. No issue whatsoever, even with one little dependent accounted for.

Loveinapril

Billythekid19 wrote: »

Fastest way of getting a free house is to go homeless, will likely be housed in a 3 bed within 6 months.

You have absolutely no idea what you are talking about.

silver2020

Bandana boy wrote: »

If you have history of 900 a month rent , and looking to borrow 80K against a 160K house you will have very little trouble securing a morgtage , even on a low income.

Over 30 years this would be under 400 a month and you have shown ability to pay 900 .
The risk to banks is small with such high equity in the house.

Banks won't even consider an applicant that is earning under €30k. My brother in law tried it a couple of years ago - he had 30% deposit, only needed 80k but was earning 28k.
The apartment was €110k - they now sell for 150k+ (ouch)

Billythekid19

Loveinapril wrote: »

You have absolutely no idea what you are talking about.

While local authorities do not have a statutory obligation to house people, they do have general responsibility under the Housing Act 1988 for the provision of housing for adults who cannot afford to provide it for themselves. They may help with accommodation either by providing housing directly or through arrangements with voluntary housing organisations and other voluntary bodies. They may also provide funding to voluntary bodies for emergency accommodation and for long-term housing for homeless people.

viclemronny

Lily_Aldrin7 wrote: »

Oh no, I didn’t realise that the help we get would be taxable! This was my only hope really! Thank you so much for letting me know, I will do a bit of a research!

There is a certain allowance with Capital Acquisition Tax. It's a life time limit that you can be gifted/inherit without paying tax on it. Check with citizens information maybe for more details.

Newuseruntaken

Bandana boy wrote: »

If you have history of 900 a month rent , and looking to borrow 80K against a 160K house you will have very little trouble securing a morgtage , even on a low income.

Over 30 years this would be under 400 a month and you have shown ability to pay 900 .
The risk to banks is small with such high equity in the house.

Yeah the partners dole would be 900 a month so that alone will easily cover the mortgage

NIMAN

Newuseruntaken wrote: »

Yeah the partners dole would be 900 a month so that alone will easily cover the mortgage

Sorry but these are two words which shouldn't be in the same sentence.

If either person trying to buy a house is on the dole, you have zero chance of being cleared for a mortgage.

I think the OP has no hope, might be harsh but thats the reality.

Sleepy

silver2020 wrote: »

Banks won't even consider an applicant that is earning under €30k. My brother in law tried it a couple of years ago - he had 30% deposit, only needed 80k but was earning 28k.
The apartment was €110k - they now sell for 150k+ (ouch)

That's where the Rebuilding Ireland home loans step in: you're only eligible if 2 main banks have refused you a mortgage.

In OP's scenario with a 90k gift and 10k savings, they'd easily pass the central bank rules for a 60 - 70k mortgage which would give them a circa 150 - 160k budget for the property leaving 10k to cover legal fees, surveyors reports, basic furnishings etc.

Newuseruntaken

NIMAN wrote: »

Sorry but these are two words which shouldn't be in the same sentence.

If either person trying to buy a house is on the dole, you have zero chance of being cleared for a mortgage.

I think the OP has no hope, might be harsh but thats the reality.

If both of them went on the dole, got children’s allowance and whatever else is available to them, they would be bringing in over 2k a month. If the mortgage is 400 a month that’s easily affordable, you could live quite comfortably on the remaining balance of 1,600 a month especially if you don’t have childminder fees and commuting costs etc. You’d also get free travel cards and medical cards.

So even though you may be right about banks not touching someone on the dole, in my scenario above, in financial terms they would be very low risk.

Not saying the op should go on the dole btw, I’m just making a point.

Bandana boy

silver2020 wrote: »

Banks won't even consider an applicant that is earning under €30k. My brother in law tried it a couple of years ago - he had 30% deposit, only needed 80k but was earning 28k.
The apartment was €110k - they now sell for 150k+ (ouch)

of course they will , there might have been several factors in your Brother in laws application that might have been the reason they rejected his offer.

Op start applying to banks but on the face of it you have an attractive application .

Billythekid19

Newuseruntaken wrote: »

If both of them went on the dole, got children’s allowance and whatever else is available to them, they would be bringing in over 2k a month. If the mortgage is 400 a month that’s easily affordable, you could live quite comfortably on the remaining balance of 1,600 a month especially if you don’t have childminder fees and commuting costs etc. You’d also get free travel cards and medical cards.

So even though you may be right about banks not touching someone on the dole, in my scenario above, in financial terms they would be very low risk.

Not saying the op should go on the dole btw, I’m just making a point.

My exact point, if they both go on the dole along with claiming childrens allowence, medical card, free travel, back to school allowence, fuel allowence, xmas bonus ect they will take in close to 60k net each year. Its a no brainer to pack in the jobs and get the state to house you

Lily_Aldrin7

NIMAN wrote: »

Sorry but these are two words which shouldn't be in the same sentence.

If either person trying to buy a house is on the dole, you have zero chance of being cleared for a mortgage.

I think the OP has no hope, might be harsh but thats the reality.

None of us is on the dole.

Thank you all very much, I just wanted to hear some opinions. I will make an appointment with AIB after Christmas and talk to somebody just to explain the circumstances etc. Once we get the money I guess we can dive into the different options but I like the Rebuild Ireland option very much

NIMAN

Lily_Aldrin7 wrote: »

None of us is on the dole.

Apologies, I had just read post#50 and seen it mentioned 'partner on the dole'.

Best of luck with your meeting.

lainey_d_123

NIMAN wrote: »

Sorry but these are two words which shouldn't be in the same sentence.

If either person trying to buy a house is on the dole, you have zero chance of being cleared for a mortgage.

I think the OP has no hope, might be harsh but thats the reality.

Agreed. I find it hard to imagine how they're even getting by on that little money. I'm on far more than that with a professional job and am a single adult with no-one else to support and I haven't a hope in hell of getting a mortgage anytime soon.

Lily_Aldrin7

lainey_d_123 wrote: »

Agreed. I find it hard to imagine how they're even getting by on that little money. I'm on far more than that with a professional job and am a single adult with no-one else to support and I haven't a hope in hell of getting a mortgage anytime soon.

Yeah it isn’t easy, we just budget every cent we get. We have a certain budget for food every week and if anything at all is left, we put it aside for other things like clothes or gifts. I’m not feeling sorry for myself or anything, we are very happy and grateful for what we have. My partner can possibly get a full time job for minimum wage but then we will have the cost of childcare for the 2 kids and it will be around the same money wise.

bush

silver2020 wrote: »

Banks won't even consider an applicant that is earning under €30k.

This is not true at all.

silver2020

Bandana boy wrote: »

of course they will , there might have been several factors in your Brother in laws application that might have been the reason they rejected his offer.

Op start applying to banks but on the face of it you have an attractive application .

Nope - all the banks have a minimum income level of €30,000 to start a mortgage application. He also checked with a broker.