Likelihood of mortgage?

fleet

Hi all,

I want a mortgage to buy a property in Dublin. It's a doer upper, it's city centre and, before anyone jumps down my throat, it's probably as cheap as it'll ever get because of this.

I need 90k.
I have 17k saved, but loans of 6k to the credit union.

I've a stable (permanent) job for the last 2 years. My gross salary is just over a third of principal required. Good credit record (I applied for it).

Would the load be likely to be approved?
Which bank would be my best bet?

Opinions welcome

will1977

Whoever you apply to I wouldn't mention anything about the Credit Union loan.
As far s I know they have no way of checking.

amiable

Hi OP, go in and meet as many as you can.
See what they have to say to you and don't be afraid to play them all off each other.
I'd imagine there's a good chance but depends on a few factors

Good luck OP

who what when

My gut instinct is no they wont give you a mortgage
This is for two reasons;
1- Your existing debt. These days banks are insisting on no debt and excellent credit ratings
2- Although the property is just 90k you dont seem to have factored in how much its going to cost to do it up The bank will want to know this.

My advise would be keep saving, clear your debt an then apply for a mortgage. You'd never know the property might be cheaper this time next year

CarrickMcJoe

Go to a broker, I reckon you have a fair chance.
That way you only give all details once and leave the rest to him.
He has all the contacts.

Oh, and dont mention the CU loan, I know my broker didnt.

chris85

CarrickMcJoe wrote: »

Go to a broker, I reckon you have a fair chance.
That way you only give all details once and leave the rest to him.
He has all the contacts.

Oh, and dont mention the CU loan, I know my broker didnt.

Legally you have to mention the CU loan and fraudulant applications are not good. also his CU may be an ICB member anyways. He must declare his other debts.

We all blame the banks and then we give stupid advice like this. Get some sense.

OP you have a chance but be open. see a broker and see what they think.

Assassin saphir

Don't give up. I got approved yesterday and i have a car loan!:)

BuffyBot

This may be a good point in time to remind people about this part of the forum charter

No Dishonest Dealings.
Don't ask how to get around repaying debts/defaulting/giving false information for loans etc - basically if it's not above board, and legal, it's not allowed. This includes advising posters to do it/how to do it.

stepbar

fleet wrote: »

Hi all,

I want a mortgage to buy a property in Dublin. It's a doer upper, it's city centre and, before anyone jumps down my throat, it's probably as cheap as it'll ever get because of this.

I need 90k.
I have 17k saved, but loans of 6k to the credit union.

I've a stable (permanent) job for the last 2 years. My gross salary is just over a third of principal required. Good credit record (I applied for it).

Would the load be likely to be approved?
Which bank would be my best bet?

Opinions welcome

The max a bank would offer you would be 5 times gross earnings (at present anyhow). That assumes you have no debt. The more debt you have, the lower the mortgage. The bank will give you the amount you need to do the place up as long as it comes within the 5 times multiplier and you have repayment capacity at a stressed rate (variable + 2% - however I would use an interest rate of 7% - 8% all in). I suspect that you are purchasing the property for 90k? and have not budgeted for renovations etc. I would also pay off a chunk of the loan (if not all). Also worthwhile considering that legal fees can be 1 - 2k, so you need to budget for that.

Also curious as to the property you are thinking of purchasing, as from what I can see at that price bracket, there's nothing but junk.

wmpdd3

Bit off topic but I'm shocked at some of the questions my friend was asked when she applied for her mortgage, about the same details as above, she had 2 paid off and closed credit cards with another bank. they asked her what did she run a bill of 2 grand on.

She said her wedding and a course. Then they delved into nearly every purchase over the last 4 years. She never missed a payment. She had two paid off car loans with the credit union too.

She had no other outstanding credit. Her husband had no credit history to speak of and they left him alone.

They had 40k and they got the 70K in the end but they really didn't expect such scrutiny.

I'd be afraid to darken their door with my credit history!

I would say apply with a broker asap as the further information they now require could delay your application for so long you may miss out on your house.