Getting a Mortgage with €100,000 Savings

wicklow_hunter

Hi All,

Im hoping some one will help me out,
here is where i am at: 27 Male, Employed on a contract basis 50K Per Anum. Got 100K in savings.

Looking to borrow 50-60K to get my own gaff
Banks wont touch me as i am employed on a contract basis

I have tried BOI AIB and credit union all to no avail

Is there any options available aside from switching jobs. There is also a waiting period of a year with the company that u work with before they will even consider you...

Any opinions / advise is welcome

pawnacide

Talk to a mortgage broker, a good one. Ask killers1, he'll probably get around to answering you anyway but he seems to know what he's talking about.

draiochtanois

This post has been deleted.

killers1

wicklow_hunter wrote: »

Hi All,

Im hoping some one will help me out,
here is where i am at: 27 Male, Employed on a contract basis 50K Per Anum. Got 100K in savings.

Looking to borrow 50-60K to get my own gaff
Banks wont touch me as i am employed on a contract basis

I have tried BOI AIB and credit union all to no avail

Is there any options available aside from switching jobs. There is also a waiting period of a year with the company that u work with before they will even consider you...

Any opinions / advise is welcome

A couple of things on this... The €100k you have in savings, was that all built up from salary or does it include inheritances, gifts or lump sums of any description?

What industry do you work in? How long have you been on a contract with them? How long is remaining on your contract? What is the likelihood of your contract being extended?

In relation to being turned down by AIB, BOI & the CU did you make a full formal application submitting all your paperwork to them or did you just enquire as to their policy in relation to contract employees?

Would a guarantor be available i.e. a parent with a sufficient income to cover the borrowings until such time as you obtain a permanent position?

In relation to you switching jobs, the majority of banks will insist that you are in a permanent position and there at least 1 yr before they will consider you, AIB will consider once probation has been completed and you are there 6 months.

Depending on the answers to the questions above I wouldn't give up hope just yet of obtaining approval as things stand...I had a case recently approved for a guy on a contract, granted he had €200k savings but you are still looking to borrow well below 50% of the purchase price so that's in your favour. To be honest banks look on these types of applications purely on a case by case basis and if you can prove the merits of the application you stand a chance...

wicklow_hunter

The €100k in savings, was mostly from salary about 80% the other 20% gift.

Work in pharmaceuticals (engineering) ? Been with the company for a year and a half. I am on roling 6 moth contracts. Difficult to say if it will be extended really.

''In relation to being turned down by AIB, BOI & the CU did you make a full formal application submitting all your paperwork to them or did you just enquire as to their policy in relation to contract employees?''

No just spoke to them over the phone, They were not encouraging to even apply- it sounded very much like a closed shop.


Would a guarantor be available i.e. a parent with a sufficient income to cover the borrowings until such time as you obtain a permanent position?

There is the possibility of getting a guarantor ie a parent. Would a guarantor help my mortgage application?

Is there any benifit of tring a brooker?


Thanks in advance

newmug

You're 27 and have E100K in savings???????????:eek::eek::eek::eek::eek::eek::eek:????????

djimi

If you have managed to save €100k by the time you are 27 then why dont you keep on saving and buy a house mortgage free by the time you are 30? House prices are only going to get cheaper in that time anyway, so the €150k-€160k house you are looking at now will most likely cost a bit less than that in a couple of years.

killers1

wicklow_hunter wrote: »

The €100k in savings, was mostly from salary about 80% the other 20% gift.

Work in pharmaceuticals (engineering) ? Been with the company for a year and a half. I am on roling 6 moth contracts. Difficult to say if it will be extended really.

''In relation to being turned down by AIB, BOI & the CU did you make a full formal application submitting all your paperwork to them or did you just enquire as to their policy in relation to contract employees?''

No just spoke to them over the phone, They were not encouraging to even apply- it sounded very much like a closed shop.


Would a guarantor be available i.e. a parent with a sufficient income to cover the borrowings until such time as you obtain a permanent position?

There is the possibility of getting a guarantor ie a parent. Would a guarantor help my mortgage application?

Is there any benifit of tring a brooker?


Thanks in advance

Hi,
I wouldn't be too disheartened by the response from the banks you rang as they are only quoting credit policy and generally don't lend to contract employees but there are always exceptions particularly if a guarantor may be available or the loan to value is particularly low. The bank may take the view that if your contract isn't renewed what are your chances of securing alternative employment and how much of a salary is needed to service a loan of €50/60k. I'd suggest if you only have a short period left to run on your current contract that you try to find out whether it will be renewed. I certainly think it's worth pursuing if you decide to and there are strong merits to your application..if presented correctly to the bank you may have a good chance of approval...