Would an apprentice qualify for a mortgage ?

StephenRy30

Hi would i qualify for a mortgage as a apprentice? I'm going to be a 3rd soon and myself and partner have been saving. She is in full time employment aswell. Currently have just over 62k saved over 3 years my parents have given me some help as a gift.

We are going to be building when ever we go for a mortgage just outside Dublin so we can build what size we feel comfortable with and then add to it later in life. I have been told I should b other trades people who have also got a mortgage while in there apprenticeship its no problem once they see you saving .

Just looking for other peoples options thanks

Savings only factor if they are saved rather than gifts.

I would think a 3rd year apprentice would not be precluded from getting a mortgage. Combined salaries then come into play.

Tell me how

As an apprentice, isn't it the case that you're technically not in full time employment? So that could be an issue.

After that, it comes down to ability to pay mortgage. I understand that they won't consider someone for a mortgage if the monthly repayment exceeds about 40% of total income after tax.

Overtime and any 'additional' work that brings in money is likely going to be ignored with respect to calculating mortgage application and keep in mind anything you mention should have already been declared to Revenue, or will be in future.

62k on savings does sound positive so why not talk to the bank, you'll find out there from the horses mouth.

StephenRy30

https://www.boards.ie/discussion/comment/118240697#Comment_118240697

True if we save for another year which we probably will considering how building supplies and how construction is at moment. We will have around 90k saved 30k saved between us in a year . Going by our combined salaries we would be on just over 60k so that would give is a mortgage of over 200k along with our savings.

Mrs OBumble

How secure is your employment, ie will you still have a job once the apprentice is completed?

StephenRy30

https://www.boards.ie/discussion/comment/118243798#Comment_118243798

Yes I will have a job im doing a part time course in management at moment and they know im serious about moving up in the company I paid for the course myself aswell.

I think it will definitely help me in the future

StephenRy30

https://www.boards.ie/discussion/comment/118240715#Comment_118240715

We are definitely in full time employment just like anyone eles especially the back long for college phase the moment you work a full two years now on the job before going to phase 2 which is only 20 weeks which is the longest part in college after that your back on the job.

We are not looking fot a massive mortgage the less we ask from the bank the better we are going to be building something like a Scandinavian/ ICF home that's what we have been looking into the last couple of months

Tell me how

https://www.boards.ie/discussion/comment/118245837#Comment_118245837

You may be in full time employment, but just check if it counts as a permanent role. Apprenticeships (at least when I did mine) were classed as full time but fixed term and the practice then was to give people a new job once they were qualified. The bank could look at this as meaning you are not guaranteed to be in a job once the training is over and so have an issue with it.

Also, I think, though don't know for sure, that the bank might be concerned about a self build such as you are describing, purely because they may be less likely to have a meaningful asset on their hands if there is any issue with default.

But you don't have to tell the bank your plans specifically in the early conversations, in fact, it might be best not to. You, as any other couple, are entitled to have a conversation with them as to what is the most they are likely to give you in terms of a mortgage and then take it from there. Thousands of people have these sort of conversations with them (or mortgage brokers) every day without knowing exactly when or what they are going to buy, it helps couples determine their price range when looking at houses rather than falling in love with something and the bank then telling them they can't afford it.

billyhead

The bank will carry out a stress test. I think they don't for all mortgage applicants.

StephenRy30

https://www.boards.ie/discussion/comment/118247187#Comment_118247187

Thats true thats pretty normal for alot of mortgage applications

StephenRy30

https://www.boards.ie/discussion/comment/118246634#Comment_118246634

Thanks for advice. Yeah I checked it goes by your company they can put down i am full employment with record of payslip.

What apprenticeship did you do ?

Yeah true don't have to tell them everything cant see why is a problem if self building why should we pay way to much for a house for example 500k just to help the bank I have come across plenty of house that would cost less then 200k to build. But I do see what you mean wont be telling them to much anyway just play dumb as they say.