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Second mortgage application

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  • 29-06-2006 10:48pm
    #1
    misty floyd
    Closed Accounts Posts: 1,905 ✭✭✭


    Hi There,

    Myself and my girlfriend bought a house off the plans in February (€330k). Its due to be built by the end of the year. We got our mortgage approval already but we will need to reapply the closer we get to the build date and signing off.

    With interest rates creeping up, do you think we could have problems getting approval the second time around? I'm just a little worried becuase another 0.25 or 0.5% increase would, I assume, decrease the amount that a bank would loan for a mortgage.

    It is possible that one of us may be moving jobs (slim but still a chance) which means there is a wage increase involved but "new to job" status acording to the banks I'm sure. Will this screw things up? We've both been with our employers for several years now.

    Thanks for any opinions or advice on this.


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    #2
    Lex Luthor
    Registered Users Posts: 11,220 ✭✭✭✭Lex Luthor


    If you already got approval on a variable rate, you probably won't have to re-apply, even though the date on the offer probably will expire by the time you draw down.

    I got loan approval on the 26th May for a fixed rate of 3.35% but the house won't be ready until end July. Fixed rate went up 0.6% on 1st June so got in just in time. I had a 45 day draw down date, which is I think the 10th of July. I plan to draw it down then even though there is a chance the house won't be ready for at least a month after, but the bank is giving me a 3 month moratorium so my 1st payment on the lower rate won't be until mid October. The difference in the 0.6% is about €80/month.


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