Yet another mortgage falling through...

j@utis

My mortgage application was turned down today.
I'm trying to get 160k as single applicant with annual gross income of 40k. No luck. I have deposit just a little bit over 30% of house sale price . Maximum I can get is 140k. I could borrow 20k from family/friend but that'd leave me with empty pockets walking into new empty house. My bf works on contract so he can't go onto application.

I can't decide what's the best thing to do now:

a) keep renting - our rent is 1100eur/month and we live in old freezing cold place with heating bills running up 300eur per month :mad: and basically pay someone else' mortgage. leave savings in the bank and wait for 'better' times.

b) borrow extra 20k and be broke for a year desperately trying to pay it off to family members/friends asap and move into a new house with no floors/furniture and with no funds to finish it off quickly... but mortgage repayments would be around 700eur and house has B1 energy rating, solar panels on the roof, reasonable drive to work, quiet location etc etc.

I really don't know what to do. I would feel uncomfortable having '0' in my bank account but living cheaper and paying off my own mortgage looks so tempting...

snubbleste

Move to a cheaper better rental property and keep saving.

gandalf

I agree look around for somewhere else to rent for the moment. Are you renting a house or apartment for that price?

hmmm

You're not "paying someone elses mortgage", rent is not "dead money" etc. Every day that goes by you are getting closer to your goal as house prices fall.

You can for a start get a cheaper place with heating that works for what you're paying.

j@utis

We need to rent a house because we have loads of things, animals, motorbikes etc etc.
I lived in 4 different houses over last 7 years and they all were cold. It's just the way houses are built here. This new house' highish energy rating is the most tempting thing, low bills, high comfort etc. I'm not dying to own a place. I just want to live in a place that doesn't feel like a cellar.

How much more new house prices can fall? 15k? If I don't buy now then I can only buy in two years time.

Degsy

See if your local authority do a Shared Ownership Scheme..

tapper

Firstly you should be able to borrow more than that. I'm on 39k and have been offered 195k in BoI.
secondly, neither of you should feel comfortable with only one of you on the deeds. Things go wrong in even the best relationships and it's not a good situation for either of you if things do go wrong.
thirdly, you're paying too much for your rent, which is never dead money, but you have to shop around and find a suitable home at a suitable price.

prettygurrly

just to give you some sympathy I have also been turned down for a mortgage.

It's painful. Particularly as we found a house that wouldn't cost any more per month than we're already paying in rent..

We're going to move, as our rent is only 600 pm we can afford to spend 700 pm on a bigger place with a garden and just wait it out. My bf has a fulltime permanent job but as he's in "construction" (even though he's not, it's a no go). Just save save save and hopefully things will look up.

I think you should be able to find better rental accomodation that what you have. My rental apartment I have presently is not cold and it's a listed building so there are gems out there...it's also hard to get good tenants so if you have a good history then you would be snapped up by a mortgage strapped 2nd home owner!

bailes

j@utis wrote: »

We need to rent a house because we have loads of things, animals, motorbikes etc etc.
I lived in 4 different houses over last 7 years and they all were cold. It's just the way houses are built here. This new house' highish energy rating is the most tempting thing, low bills, high comfort etc. I'm not dying to own a place. I just want to live in a place that doesn't feel like a cellar.

How much more new house prices can fall? 15k? If I don't buy now then I can only buy in two years time.

I've read your posts and from a mortgage perspective it doesn't add up, you are looking for 70% loan to value and presently earn €40kish. this should work. I am a Broker i don't want to peddle my wares but am wondering if you have presented the facts properly. there are probably only 4 banks lending at the moment so it is really just a process of elimination. depending on your age your repayment shouldn't be any more than €800 p.m. and yet you're paying €1100 in rent somethings not right.

if I can help P.M. me i don't want the business but i will steer you in the right direction

j@utis

a few months later....
KBC was the only bank that agreed to lend me and after two months of negotiations a cheque for 144k was finally issued... The problem was that I work shift and that raised my annual income higher than basic wage on the salary cert.
We moved in 3 weeks ago into our new place and we're more than 100% happy at the moment but it's probably a bit too early to say that. House is a new build with energy rating of B1, it's +20C inside all the time (I'm a heat lover, my partner can't sleep at night lol), solar collectors provide hot water everyday, quiet location etc etc.
We're planning to pay this mortgage back is less than 5 years, we pull around 60k-70k a year together, it should be possible... unless something goes wrong, for example a loss of income in form of little babies

mmc2010

Congrats j@utis well done!!!! you give hope to the rest of us!!!:D

Mr. Presentable

Great news OP. The value of persistence and shopping around.