Mortgage advice please

biff316

im working full time and earning 30k pa my girlfriend is working fulltime but on the books for partime and if she gos fulltime we would be down over 100 euro pw, the bank manager as good as said were prime candadates for a mortgage but weve told him she was fulltime weve saved over 10k since our last meeting with him im wondering should i tell him the truth now or should she go fulltime on the books or is there another way thanks

Slydice

hard to tell when you don't say:
- how much the house you wanna buy is
- how much your gf earns
- how likely you two are to keep your jobs
- what industry your jobs are in

actually, buying a house is still a big deal even in the recession. I recommend you think alot about your situation before deciding anything.

strandroad

She should go full time anyway, mortgage or no mortgage. My friend has been made redundant recently and she was in the same situation, turns out that she was in big trouble having not enough social welfare stamps despite working for a long time - just off the books. Hugely complicates your life.

the groutch

there's no "other way", if you get caught out lying on the application the sh!t will most certainly hit the fan.
if you come clean and say she's only part time on the books, then you might get offered less.
but if she goes on the books as full time she might lose money, but you might look a more attractive proposition for the bank to loan to..
it's largely down to whether you are stretching yourself to borrow every penny you can, or if you're borrowing a fair bit less than the bank would be likely to offer you.

biff316

the house is about 130k at most she earns 25k and no way of loosing our jobs

biff316

Slydice wrote: »

hard to tell when you don't say:
- how much the house you wanna buy is
- how much your gf earns
- how likely you two are to keep your jobs
- what industry your jobs are in

actually, buying a house is still a big deal even in the recession. I recommend you think alot about your situation before deciding anything.

the house is 130k at most she earns 25k and no way of loosing our jobs im construction shes hair and beauty

biff316

the groutch wrote: »

there's no "other way", if you get caught out lying on the application the sh!t will most certainly hit the fan.
if you come clean and say she's only part time on the books, then you might get offered less.
but if she goes on the books as full time she might lose money, but you might look a more attractive proposition for the bank to loan to..
it's largely down to whether you are stretching yourself to borrow every penny you can, or if you're borrowing a fair bit less than the bank would be likely to offer you.

thats true thanks

biff316

mhge wrote: »

She should go full time anyway, mortgage or no mortgage. My friend has been made redundant recently and she was in the same situation, turns out that she was in big trouble having not enough social welfare stamps despite working for a long time - just off the books. Hugely complicates your life.

that also happened me about five years ago

skafish

biff316 wrote: »

im working full time and earning 30k pa my girlfriend is working fulltime but on the books for partime and if she gos fulltime we would be down over 100 euro pw, the bank manager as good as said were prime candadates for a mortgage but weve told him she was fulltime weve saved over 10k since our last meeting with him im wondering should i tell him the truth now or should she go fulltime on the books or is there another way thanks

One of the reasons the country is having such a hard time getting out of the current mess is because of the so called black economy...... people like your gf not paying their fair share of taxes.
I appreciate the ammounts concerned in your case are quite small in the grand scheme of things, but it all adds up.
Also, consider the effect on your morgage if your gf is found to be evading taxes. Revenue will charge the tax due, plus interest and penalties.... which will cost a lot more than the tax due now.

Otherwise, if youe employment is secure, now is probably just about the best time to buy.

Good luck with it.

Slydice

Hmmm, well first I think that capital spending (roads etc) is gonna get hit in the budget so that might affect you ... maybe a paycut down the line

Then there is rumour of a lot of money being cut in the budget and a vat hike which might mean reduced spending into the economy so that might affect your gf ... maybe she goes fulltime ... maybe on less than you expect ... maybe a paycut down the line

On a side note, you're not married so it's hard to tell your level of commitment to each other (i.e. you could be hugely committed or not but with marriage you can't get divorced for seven years so it comes across as a big enough deal) so have a good think on that as buying a house with another person is a pretty big commitment

If you've only got 10k saved, I recommend saving a bit more before buying... maybe try to get to 25k at least. Banks will want to see you showing a good deposit and you'll also need some cash for fees and other practical stuff like furniture and all the other stuff that goes into a house (hardly gonna sleep on the floor?). Plus if it takes you a few months or even a year to get it together... the price of the type of place you are looking at may have come down

Next up, be careful when going for your house. don't get hung up on a single place and pay over the odds. Be wary of estate agents saying there are other bidders.

Advice is a bit all over the place but I hope some of it is useful to ya

biff316

Slydice wrote: »

Hmmm, well first I think that capital spending (roads etc) is gonna get hit in the budget so that might affect you ... maybe a paycut down the line

Then there is rumour of a lot of money being cut in the budget and a vat hike which might mean reduced spending into the economy so that might affect your gf ... maybe she goes fulltime ... maybe on less than you expect ... maybe a paycut down the line

On a side note, you're not married so it's hard to tell your level of commitment to each other (i.e. you could be hugely committed or not but with marriage you can't get divorced for seven years so it comes across as a big enough deal) so have a good think on that as buying a house with another person is a pretty big commitment

If you've only got 10k saved, I recommend saving a bit more before buying... maybe try to get to 25k at least. Banks will want to see you showing a good deposit and you'll also need some cash for fees and other practical stuff like furniture and all the other stuff that goes into a house (hardly gonna sleep on the floor?). Plus if it takes you a few months or even a year to get it together... the price of the type of place you are looking at may have come down

Next up, be careful when going for your house. don't get hung up on a single place and pay over the odds. Be wary of estate agents saying there are other bidders.

Advice is a bit all over the place but I hope some of it is useful to ya

the cuts wll effect other people in our jobs but not us , iv saved 10 k with that bank and about the same maybe a bit more in the credit union and all this is in the planning for over two years and were very much together for the long haul:) we did get a bit hung up on one place like you said but were gonna wait until about june to go for it thanks for the advice

whippet

Banks are going through each and every mortgage application with a fine tooth comb .. lies won't wash with them. Every claim has to be backed up with hard evidence.

Plus what they will lend out is nothing near what was offered before.

My self and the missus have applied for a mortgage (just to see what our options are) and it was actually amazing what we were offered.

In our situation we have a 3bed semi (rented out on RAS scheme) which covers current mortgage (although the house is in neg equity of about 20K).

we were looking at keeping that house and maybe buying a new one.

Joint earnings are just over €170k per year, one dependent (child) with €42k savings. Short-term borrowings of about €15k (car loan and others).

two banks wouldn't even entertain lending to us, while one offered €200k mortgage while the best was €270k.

We both have secure jobs (i'm with same company 11 years, she 7 years) in fairly profitable industries.

it makes our decision easier, we'll rent out our own house and avail of the great value outside of dublin in large family rentals.

I get the feeling that the banks don't want to or can't actually give out mortgages .... except to a certain demographic (first time buyers with 20%+ deposits etc)

Fingers crossed the market will keep tumbling and we will be ready to jump when suits.

the groutch

whippet wrote: »

Joint earnings are just over €170k per year, one dependent (child) with €42k savings. Short-term borrowings of about €15k (car loan and others).

that's why they don't want to loan to you.
such a small amount of savings with such high earnings doesnt paint a great picture.

whippet

the groutch wrote: »

that's why they don't want to loan to you.
such a small amount of savings with such high earnings doesnt paint a great picture.

that is liquid savings.

There are other investments (stock portfolios & private pension pots)

Banks are not interested in anything but liquid savings. It seems they still see property as an investment and want people to have all their savings/investments lined up to property

Zamboni

Why on earth would a couple earning mega bucks like that need short term borrowings for a car loan?

Bullseye1

biff316 wrote: »

the house is about 130k at most she earns 25k and no way of loosing our jobs

Mind me asking how its impossible to lose your job?

whippet

Zamboni wrote: »

Why on earth would a couple earning mega bucks like that need short term borrowings for a car loan?

Why not?

Rather than taking €30k odd out of a savings pot in one swoop, having a set payment each month for 2 years makes sense.

Sand Wedge

whippet wrote: »

Why not?

Rather than taking €30k odd out of a savings pot in one swoop, having a set payment each month for 2 years makes sense.

Because you are likely only getting 3-4% on your savings while paying 10% on your loan.

Financially you would be have been better buying car out of cash and putting the money you are repaying on the loan into savings.

whippet

Sand Wedge wrote: »

Financially you would be have been better buying car out of cash and putting the money you are repaying on the loan into savings.

but I wouldn't have had access to the money if needed ... like buying a house and needing a deposit.

The car loan is paid from a car allowance and mileage expenses from work.

biff316

Bullseye1 wrote: »

Mind me asking how its impossible to lose your job?

because im good at what i do,and work very hard at it, and no matter what ill be earning money for the rest of my life if it means going around picking up cans ill always earn a living

royaler83

biff316 wrote: »

because im good at what i do,and work very hard at it, and no matter what ill be earning money for the rest of my life if it means going around picking up cans ill always earn a living

I'm sure that line would wash with the banks mortgage department :rolleyes: