A few mortgage queries

Tarzann

Hi,
I hope to be applying for a self-build mortgage in early-mid 2021.

A few details here and questions if anyone can be so kind as to shed any light:

My situation:
I am in full-time employment with 1.5 years in same company on a decent salary + 5% bonus. Have already been told by one bank that the bonus would only count as income if in the job for at least 3 years.

My wife is on the Invalidity pension with a few months as she cannot work due to a chronic condition. This is worth just over 10k per year. I was told by a broker that AIB will not accept that as an income to base the maximum mortgage on, but that some other banks will. Does anybody know what banks will accept this as income?

I have a few betting transactions on my account in the last year, all are withdrawals, have not made a deposit to any account with 10+ years. My current bank informed me that this will not be looked upon favourably, as it's just seen as gambling, even if I am winning in the long term. However a broker has told me to withdraw any further betting funds that I have right now (a significant amount of money) if I wish to use them towards the house, and in 6 months from now if I use another bank for the mortgage, they will not request to see statements going further back than 6 months. Is this correct?

A sibling wishes to gift us a sum of 5k, will a letter from them stating that this is a gift be sufficient, or will the bank request proof of its source?

Lastly, I am in my late 30's, it appears that AIB are willing to give the full 3.5 times my salary, however I have been told by broker that other banks will lend less than this due to my age. Can anyone shed any light on what banks will give the full 3.5 times salary please?!


I have no worries regarding making repayments as am currently saving far more per month than I would have to repay on a mortgage of 3.5x my salary.

It would be good to have an idea now of the maximum mortgage that I can take out, as we start to make plans with our architect.

The following 2 factors...
-does the bank include state payments as income
-does the bank lend less due to being in my late 30's

... can mean a difference of 50k to the house budget.

Many thanks for any advice given!

XsApollo

I didn’t have a problem Getting a mortgage last October with an exemption also at 39.
Just the maximum term gets shorter as you get older.

Tarzann

XsApollo wrote: »

I didn’t have a problem Getting a mortgage last October with an exemption also at 39.
Just the maximum term gets shorter as you get older.

I believe in my case, applying as a couple on one income, that after subtracting living expenses it reduced my ability to repay the higher repayments that occur with a shorter term. Although, not all banks treat it like this.

What do you mean by exemption?

Thanks

XsApollo

Tarzann wrote: »

I believe in my case, applying as a couple on one income, that after subtracting living expenses it reduced my ability to repay the higher repayments that occur with a shorter term. Although, not all banks treat it like this.

What do you mean by exemption?

Thanks

Of course your repayment capacity affects the amount you can borrow, just that age won’t affect the salary limit provided you can afford the repayments.

Their are exemptions on the deposit amount and also the salary amount, I got an exemption as a second time buyer on the deposit amount, which was 10% instead of 20%.

Trish56

Your Broker should be able to cover all these questions - Are you paying the broker a fee.

Majority of lenders will not take Social Welfare payments including AIB however I think that permanent tsb may take them into consideration. Your broker should confirm this.

You can borrow up to age 68 so deduct your age and that is the term can borrow over.

Bonus can be considered if guaranteed and if not guaranteed you need to show evidence over past three years by supplying P60's. Some Lenders will only take 50% of bonus into consideration.

Gambling is a red flag to all lenders especially if regular so I think I would take your Broker's advice and close all accounts as you will have to provide recent 6 months bank statements.

All lenders differ re a gift - some will accept the donor to submit a signed gift letter and others will also want to see the money lodged before issuing the first stage payment.

You don't mention if you have dependents so as a married couple you will need after paying stressed repayments and any other loans to have €2050 left over per month and you can add €250 per month for each dependent.

Your broker has access to a mortgage calculator for all lenders so should be able to input your details and let you know how much you can borrow.

phormium

UB used to take certain social welfare payments, depends on the payment of course, something that is temporary or means tested is unlikely to be taken. Case I know of which was maybe late 2018 was Carers Benefit which they accepted. Something like an Invalidity Pension is a long term payment based presumably on her prsi record so not means tested, a fairly safe payment in other words from an income point of view.

Trish56

Ulster Bank ceased all lending for self builds, extensions or anything structural at the start of Covid in March last. The OP is doing a self build.

phormium wrote: »

UB used to take certain social welfare payments, depends on the payment of course, something that is temporary or means tested is unlikely to be taken. Case I know of which was maybe late 2018 was Carers Benefit which they accepted. Something like an Invalidity Pension is a long term payment based presumably on her prsi record so not means tested, a fairly safe payment in other words from an income point of view.

phormium

Did they! Gosh that makes them a little useless especially in rural towns where an awful lot of mortgages are self build. Although their staff numbers are so small in some branches it's hard to imagine how they open at all, must be very little business being done!