Getting A Mortgage

Aboard

Hello,

Would like some advice. A bit of background first. I have 43k saved, and will be able to put away 3k per month over the next 2 years. So I will easily have 100k saved to put towards a house in the next two years. I live overseas, earn 65k after tax, live with my wife to be who isn't working as it's difficult to get a working visa here. I bank with BOI and have the full savings record there. My job is a rolling contract renewed every 2 years and I'm on my 2nd contract so working away in my 3rd year. I'm 30, have no kids yet. My job here is secure. I have no debt. My wife has a small loan that's easily paid off but want to keep some activity in her accounts so we are slowly paying it down. We would be first time buyers.

We'd like to buy a house at home and eventually move back and settle back at home, however how easy will it be for me to get a mortgage? Will I have to wait until I move back home and secure a full time job and pass probation? In this day and age no job is permanent, I could move back get a job pass probation and then get let go easily at home with the way things are.

We are looking at houses 350k+. Ideally I'd like to save the 100k which we will in the next two years, get a house, renew my contract for a third time and then gradually move back when I find the right job. How feasible would this be, would the banks consider us for a mortgage? People laugh and say you have it sweet, don't come home it's **** etc but we both want to eventually move home. Any advice?

dissed doc

Aboard wrote: »

Hello,



We are looking at houses 350k+. Ideally I'd like to save the 100k which we will in the next two years, get a house, renew my contract for a third time and then gradually move back when I find the right job. How feasible would this be, would the banks consider us for a mortgage? People laugh and say you have it sweet, don't come home it's **** etc but we both want to eventually move home. Any advice?

Yeah of course they would. What they will not do is consider someone for the old type of mortgages from the boom - 100%+ borrowing, or even 92%. I think they will simply revert to typical borrowing style that you get a better rate if you have more cash and borrow less LTV, and you also keep the LTV under 85%.

At 350k, you'd need to put in 55k as a deposit. I am sure banks would be quite for your custom.

Aboard

Cheers dissed, Just reading here about people being refused mortgages as they are on contracts etc

Senna

dissed doc wrote: »

I am sure banks would be quite for your custom.

Not really, banks are only interest in ability to pay, having saved €100k is all well and good, but you are still looking for a mortgage of 250k which isn't small.
If you had saved that money while in the same job as when you take out the mortgage (and continue to service it) then you would have no problem getting a mortgage. But you wont be, so your mortgage application will depend entirely on the job you get here in Ireland. They will still look for job security and that is hard to find here for anyone starting a new job.

edit; sorry missed the bit about staying abroad while taking out the mortgage. Yeah banks will look negatively on that, especially if they think you will be moving home at some stage with no employment, that combined with working on contract rather than being permanent are all negatives.

Stheno

Ideally I'd like to save the 100k which we will in the next two years, get a house, renew my contract for a third time and then gradually move back when I find the right job.

If you are planning to stay abroad while getting the mortgage that will go against you iirc, the banks would prefer that you be here.

StillWaters

Stheno wrote: »

If you are planning to stay abroad while getting the mortgage that will go against you iirc, the banks would prefer that you be here.

I concur, if you are living overseas you will find it difficult to get a mortgage here, no matter whst the ltv.

Aboard

It's a tricky one, as the situation at home isn't going to improve anytime soon. I'm going to stay away for 2-3years anyway as it makes the most sense, I won't get what I am on at home and can save a large amount. I'd probably have to rent for a year with a new job when I get back which wouldn't be ideal before I'd get approval. It's a bit of a catch 22, at home can't really save job security isn't great but want to settle at home, out here can save a lot and job security is good but don't want to settle here.

Stheno

Aboard wrote: »

It's a tricky one, as the situation at home isn't going to improve anytime soon. I'm going to stay away for 2-3years anyway as it makes the most sense, I won't get what I am on at home and can save a large amount. I'd probably have to rent for a year with a new job when I get back which wouldn't be ideal before I'd get approval. It's a bit of a catch 22, at home can't really save job security isn't great but want to settle at home, out here can save a lot and job security is good but don't want to settle here.

Then you'll have to save, come back here, get a job here, and apply for a mortgage.

Given your earning potential where you are, I'd put off buying, save what you can, and come home, get a permanent job and apply for a mortgage.

Could you up your savings to buy in cash?

Aboard

I would have 150k saved by the end of the next 3years but I'd probably be looking for 200k off the banks still. It's a bit annoying as we'll probably start having kids in 1-1.5year and we'd prefer to have a house before or soon after.

fricatus

OP, why would you want to buy a house in a declining market and then not live in it for two years whilst paying the mortgage?

Surely you'd be best off saving like a beast (which - fair play to you - you're doing) and then rent a place at home while you sort out a job and then find the house?

You could be in for a spot of bother if you buy a place, and then your dream job is in a location too far to commute from your house.

Once you're home and employed/renting for six months, you should get a mortgage easily enough as long as you're permanent. An overall figure of €250k would get you a very nice house in most places, unless you're looking to live in the low even numbers in Dublin.

djimi

I am really struggling to understand your thinking behind buying a house now with a view to moving in in a couple of years?

Keep saving; the bigger the deposit the smaller the mortgage, and with the possibility of the house prices dropping further I really dont see the rush to buy now? If you end up renting for a year when you come back its hardly the end of the world, even if you have a child by then.