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Do we stand a chance to get mortgage?

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Comments

  • Registered Users Posts: 1,056 ✭✭✭dragonfly!


    Hi there
    Its been a few years since we applied for a mortgage but they operate quite similarity to insurance where as different banks "target" different areas of the market.

    We self built so its different to buying but we found EBS fantastic, whereas BOI gave us the runaround
    KBC wouldnt look at us as we didnt both earn over €30k

    Best of luck with your application!


  • Closed Accounts Posts: 2,878 ✭✭✭bush


    silver2020 wrote: »
    Nope - all the banks have a minimum income level of €30,000 to start a mortgage application. He also checked with a broker.

    I know for a fact they will.

    To the op the only way you will know for sure what your options are is by going to a few banks and talking to them.


  • Registered Users Posts: 2,045 ✭✭✭silver2020


    bush wrote: »
    I know for a fact they will.

    To the op the only way you will know for sure what your options are is by going to a few banks and talking to them.
    Might have changed then since 2016 - maybe op needs to chat to a broker and see what options there are. That way they'd get the right info


  • Registered Users Posts: 147 ✭✭Lily_Aldrin7


    silver2020 wrote: »
    Might have changed then since 2016 - maybe op needs to chat to a broker and see what options there are. That way they'd get the right info

    Any clue how much brokers charge? Is it better to talk to a broker or go to a few banks?


  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Any clue how much brokers charge? Is it better to talk to a broker or go to a few banks?


    Go directly to the banks, if you don't meet the criteria for a loan there is no point wasting money on a broker. Some don't charge but are limited in which banks they represent.


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  • Registered Users Posts: 350 ✭✭mycro2013


    From experience I would advise you to go to two different brokers from each bank. As I found out that different mortgage advisors seem to be more willing to get off their arse and do something.

    Document the minutes from each meeting. As I found out through my first application with my locals banks branch.


  • Registered Users Posts: 2,368 ✭✭✭XsApollo


    If your looking for a quick idea of how a bank will react to you, KBC will do it over the phone for you pretty quickly , although the worst to deal with in my experience but You will get an idea of what kind of money you can borrow and how they calculate repayment capacity.

    Getting married would probably hinder your chance unless ye both have an income the banks can count on as the required cost of living for a married couple is 2k ( I think ) compared for a single of 1500 ( I think) a month and 250per child.
    So if you have 2 kids that’s 2k for yourself and kids a month and it would be 2.5k if you were married.

    Presuming you have no other debts or credit cards then everything over your living expenses would be classed as disposable income, which in turn would be you repayment capacity.

    One of the banks might take Rent payment as ability to save but you still need the repayment capacity.

    I think Ulster bank will take children’s allowance and class it as income, where as others won’t do that would help you.


    My advice to you.
    90k is not to be sniffed at ,
    Bank it and continue as you are , use a bit of the 90k to upskill, look into college courses or apprenticeships.
    Some college courses can be done online with 1 day a month at college and continue as you are until qualified.
    Then get a better job with a higher income for a mortgage with a big chunk of your 90k left for a deposit and furnishing and a nice holiday to thank yourself for a job well done.


  • Closed Accounts Posts: 226 ✭✭Steer55


    I can't for the life of me understand why banks don't take account of the high rents €800+ per month many couples pay often for years, into account. What is their logic, do they want to maintain a whole cohort of young people in their 20' 30' and even 40's to the detriment of the rental market for ever. How can families save if they paying in rent than they would mortgage repayments. I just can't fathom why this is.


  • Registered Users Posts: 3,818 ✭✭✭jlm29


    XsApollo wrote: »
    Getting married would probably hinder your chance unless ye both have an income the banks can count on as the required cost of living for a married couple is 2k ( I think ) compared for a single of 1500 ( I think) a month and 250per child.
    So if you have 2 kids that’s 2k for yourself and kids a month and it would be 2.5k if you were married.

    Up until a couple of years ago, it was €1050 per adult, not €1500. Marital status didn’t come in to it. Unless that’s changed in recent times.
    If there’s two of them going to live in the house, they need a joint mortgage. They can’t just pretend the other adult doesn’t exist. And if the lump sum comes from the OPs partner, and the income is from the OP, they certainly won’t be applying as a single applicant.


  • Registered Users Posts: 3,088 ✭✭✭aaakev


    jlm29 wrote: »
    Up until a couple of years ago, it was €1050 per adult, not €1500. Marital status didn’t come in to it. Unless that’s changed in recent times.
    If there’s two of them going to live in the house, they need a joint mortgage. They can’t just pretend the other adult doesn’t exist. And if the lump sum comes from the OPs partner, and the income is from the OP, they certainly won’t be applying as a single applicant.
    We drew down our Mortgage in September, single income house with 3 kids. They told me they considered my wife's contribution to the house was 2.5k per month because she was looking after the kids and we didn't have any childcare.

    Edit. Just realised this was not for the application but for income protection policy the bank were trying to sell me....

    Looked back over my paperwork and the €1,050 per adult and €500 per child dependent seems to be right


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  • Registered Users Posts: 2,368 ✭✭✭XsApollo


    jlm29 wrote: »
    Up until a couple of years ago, it was €1050 per adult, not €1500. Marital status didn’t come in to it. Unless that’s changed in recent times.
    If there’s two of them going to live in the house, they need a joint mortgage. They can’t just pretend the other adult doesn’t exist. And if the lump sum comes from the OPs partner, and the income is from the OP, they certainly won’t be applying as a single applicant.

    I have been through 2 house purchases in the last few years, one only 2 months ago so the figure is correct I’m nearly sure.

    Marriage comes into it through the fact that you will not get a single applicant mortgage while being married and being married increases the living expenses required and will reduce disposable income.
    If they aren’t married Sure one of them can apply as a single applicant as long as the other is happy to let them do so?

    Edit : actually it’s late and I don’t know why I focused on the marriage. Aspect as if they apply as a couple the figures will still apply.

    But it was mentioned earlier in the thread about getting married.


    But anyway they are the types of figures and how they work them. Best ring kbc and go through it over the phone she will get an answer pretty quick


  • Registered Users Posts: 27 MilaM


    what about the government mortgage scheme?

    http://rebuildingirelandhomeloan.ie/

    you should check it out.

    I have just seen that this was already suggested. Good Luck


  • Closed Accounts Posts: 183 ✭✭Wilfuler.


    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 ?

    It's supposed to be a good thing to have cards if you manage them correctly

    A financial advisor was saying it can improve your credit rating


  • Registered Users Posts: 3,088 ✭✭✭aaakev


    Wilfuler. wrote: »
    It's supposed to be a good thing to have cards if you manage them correctly

    A financial advisor was saying it can improve your credit rating

    I regularly see this when customers are applying for finance for a new vehicle, no credit rating can often be as bad as none at all but in my recent mortgage application I have no credit rating and was approved within a week of application being submitted and no mention of no credit rating so not sure it applies to mortgages. Their main points of focus were the amount of rent I paid plus the amount I saved per month after living expenses


  • Registered Users Posts: 782 ✭✭✭Dolbhad


    aaakev wrote: »
    I regularly see this when customers are applying for finance for a new vehicle, no credit rating can often be as bad as none at all but in my recent mortgage application I have no credit rating and was approved within a week of application being submitted and no mention of no credit rating so not sure it applies to mortgages. Their main points of focus were the amount of rent I paid plus the amount I saved per month after living expenses


    This also. I’ve never taken out a loan (I do have a credit card and have always paid in full any balance when due). I always saved to pay for college and my car etc. It wasn’t an issue for mortgage. All they cared about was if I met the stress test amount. However I had a cousin in the USA who applied for a mortgage as sole applicant. They had never taken out a loan before so was denied a mortgage as they had no credit rating. But doesn’t seem like a think here unless you have taken out a loan and had issues making repayments.

    It is tough cause most people can get a mortgage. However the value of the mortgage isn’t much and in reality, you can’t afford to buy anything.


  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Steer55 wrote: »
    I can't for the life of me understand why banks don't take account of the high rents €800+ per month many couples pay often for years, into account. What is their logic, do they want to maintain a whole cohort of young people in their 20' 30' and even 40's to the detriment of the rental market for ever. How can families save if they paying in rent than they would mortgage repayments. I just can't fathom why this is.


    Just because they are paying it doesn't mean it's prudent to lend based on it. Some people are at breaking points with rents leaving nothing in case something goes wrong with the property.


  • Registered Users Posts: 3,088 ✭✭✭aaakev


    Just because they are paying it doesn't mean it's prudent to lend based on it. Some people are at breaking points with rents leaving nothing in case something goes wrong with the property.

    They do take it into account, it's a huge part of their stress test coupled with ongoing saving


  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    aaakev wrote: »
    They do take it into account, it's a huge part of their stress test coupled with ongoing saving


    Yes, but it doesn't mean just because someone is able to pay X rent they automatically qualify for X mortgage and nor should it.


  • Registered Users Posts: 377 ✭✭Saudades


    Yes, but it doesn't mean just because someone is able to pay X rent they automatically qualify for X mortgage and nor should it.

    What about if X mortgage is less than X rent.

    If someone has been paying rent for 10 odd years, and they have a 10% deposit just sitting in their bank account, I cannot understand why that person is not allowed a mortgage at a rate which works out to being much lower than what they are currently already paying in rent.


  • Registered Users Posts: 428 ✭✭Compak


    Saudades wrote: »
    What about if X mortgage is less than X rent.

    If someone has been paying rent for 10 odd years, and they have a 10% deposit just sitting in their bank account, I cannot understand why that person is not allowed a mortgage at a rate which works out to being much lower than what they are currently already paying in rent.

    They are allowed.

    The issue is that rent, unlike savings, is money that cannot be used for a deposit. So this is what renters struggle to overcome; to pay rent and also get that 10 or 20% simultaneously.


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  • Registered Users Posts: 377 ✭✭Saudades


    Compak wrote: »
    They are allowed.

    No they're not allowed using that criteria; someone cannot get a mortgage based on their history of rent payments.

    They're based on a loan-to-income limit.

    Regardless of if they have been paying rent for 10+ years at X rate which is higher than what Y mortgage payment would be, and regardless of if they already have a 10% deposit saved, they still can't get a mortgage based on this history record if their salary doesn't make up to a 3.5 LTI difference.

    Which is what i cannot understand - if they have a decade long history of making a monthly payment of an amount higher than what the mortgage payment would be - what's the problem?


  • Registered Users Posts: 3,088 ✭✭✭aaakev


    Yes, but it doesn't mean just because someone is able to pay X rent they automatically qualify for X mortgage and nor should it.

    Never said it did, all I said was they take it into account. A couple meeting the income levels paying €1,600 a month rent and getting a gift of a deposit would easily meet the criteria for a mortgage on a €300k house.


  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    aaakev wrote: »
    Never said it did, all I said was they take it into account. A couple meeting the income levels paying €1,600 a month rent and getting a gift of a deposit would easily meet the criteria for a mortgage on a €300k house.


    It would depend on salaries, not what rent they're paying. I'm not sure why we're having this back and forth your reply to my initial post was a bit of a non sequitur.


  • Registered Users Posts: 3,088 ✭✭✭aaakev


    It would depend on salaries, not what rent they're paying. I'm not sure why we're having this back and forth your reply to my initial post was a bit of a non sequitur.

    To be fair that's exactly what I said above, if they meet the income levels. Your original post reads like paying rent is not taken into account when in fact it is. That's the reason I replied, we are here for a discussion are we not?


  • Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    aaakev wrote: »
    To be fair that's exactly what I said above, if they meet the income levels. Your original post reads like paying rent is not taken into account when in fact it is. That's the reason I replied, we are here for a discussion are we not?


    That wasn't what I was saying.


  • Registered Users Posts: 6,001 ✭✭✭handlemaster


    Steer55 wrote: »
    I can't for the life of me understand why banks don't take account of the high rents €800+ per month many couples pay often for years, into account. What is their logic, do they want to maintain a whole cohort of young people in their 20' 30' and even 40's to the detriment of the rental market for ever. How can families save if they paying in rent than they would mortgage repayments. I just can't fathom why this is.
    ..

    Ita not the banks social obligation what people should or should not be paying for rent. Banks lend money and expect a return, if itlooks unlikely they dont lend the money.


  • Registered Users Posts: 3,252 ✭✭✭deisedevil


    ..

    Ita not the banks social obligation what people should or should not be paying for rent. Banks lend money and expect a return, it that looks unlikely they dont lend the money.

    Exactly. It doesn't matter if the amount you have been paying for rent is above what you would be paying each month on mortgage repayments. What matters is if, given all the circumstances including children and job prospects etc., that when you are stress tested (a huge rise in interest rates) you still can show affordability.


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