First chat with broker

joey100

Looking for a bit of advice here,

Had the first chat with a broker around trying to get a mortgage. Me and my partner are still in process of saving and it was estate agent who we had rang recently put them in touch and we thought no harm in having a chat.

So they were asking about savings, we have them, not quite at the 10% yet but 2/3 months off. We are currently living with my parents to save money so he said the amount to money we are saving a month combined with the loans we are repaying (which should be up soon enough) would give us a good chance.

Then it got a bit complicated, our employment. I'm a public servant so in secure employment, my partner is currently on a fellowship after finishing her phd. This is for 2 years, he said that the bank will not take this as employment because it is not permanent. So we would have to go on my income alone and because we are together they would take money off what they would give me because I would have to support her. (she is currently earning the higher amount out of the two of us).

Before we go to the bank and see for definite I said I would ask here to see if anyone else has been through this? Other people in her job have recently got mortgages so don't know if there is a way around it or there was crossing of wires with the broker. Thanks for your help.

Michael D Not Higgins

It's the cautious nature of the mortgage market, I'm afraid.

What are your partner's employment prospects after the fellowship? If they could get a permanent job after this, you would be in a better place for a mortgage.

Could you rent for a couple of years until then? I know you probably had the dream of buying a house all laid out but you might be in a better place to do so in 2 years. Otherwise, can you see another broker and see what they say?

joey100

More than likely the fellowship will run into a research grant where she is based. But again this will be on a fixed term contract.

What would a bank consider permanent employment? I would have thought the only permanent job was one within the civil service or public sector?

If we are not approved for a mortgage we will be looking at renting, only fear would be if house prices continue to rise we may be priced out in the next year or two.

Thanks for the reply.

Eldarion

Private companies give permanent positions too. Contract positions and permanent positions are viewed very differently from a bank's point of view, it adds an element of stability.

You'd be better off applying for the mortgage solo in this case as the amount taken off your sole net income doubles if you apply together. Just a heads up before you go down that road, she might not be best pleased with the idea, but if you're living together for a year in the house there'll be no trouble getting her added to the deed and the mortgage if she's interested, the bank might not be best pleased then either though but she'd be fully entitled to half the residence regardless at that stage.

You might not get approved for as much as you'd like just on your own though.

crazy cat lady

We are currently awaiting a decision on an application we submitted 3 weeks ago through a financial adviser.

We are married with 2 kids and have made a joint application.

I am usually in full time employment on what I believe to be a fairly good salary + benefits. I am currently on Maternity Leave and due to return in a couple of weeks

My husband is in the final year of his Masters Degree in engineering so has zero income. But the job prospects are good when he finishes so this information has been provided to the lenders.

If we can make an application in our current circumstances, I see no reason why you wouldn't.

Of course we may yet be declined, but we've lost nothing by applying!

I believe if I were to make a single application, I would need to get legal documentation detailing my husbands entitlements to the property in case of separation/death etc..

Eldarion

crazy cat lady wrote: »

If we can make an application in our current circumstances, I see no reason why you wouldn't.

Of course we may yet be declined, but we've lost nothing by applying!

I believe if I were to make a single application, I would need to get legal documentation detailing my husbands entitlements to the property in case of separation/death etc..

Except each bank will keep a record of your previous mortgage applications and how many times refused, for what reason etc. When I speak to mortgage brokers they say they like to be 90%+ sure the application will be approved before they'll consider sending it off.

Different circumstances between buying a house with a boyfriend/girlfriend and buying a house with a spouse + kids. One relationship is legally recognised, the other is not.

In your case the house will be recognised as a "Family Home". In OP's case the house would be recognised as a "Shared Home"(if he does buy with his SO). In the case of a Family Home the bank will insist that the mortgage be in both names, and will straight refuse attempts to do otherwise (anecdotal). OP is not bound by such restrictions and can indeed apply on his own without any documentation regarding his SO (source: personal experience).

Disclaimer: IANAL.

crazy cat lady

Just to update, we got full approval with no conditions attached.

crazy cat lady wrote: »

We are currently awaiting a decision on an application we submitted 3 weeks ago through a financial adviser.

We are married with 2 kids and have made a joint application.

I am usually in full time employment on what I believe to be a fairly good salary + benefits. I am currently on Maternity Leave and due to return in a couple of weeks

My husband is in the final year of his Masters Degree in engineering so has zero income. But the job prospects are good when he finishes so this information has been provided to the lenders.

If we can make an application in our current circumstances, I see no reason why you wouldn't.

Of course we may yet be declined, but we've lost nothing by applying!

I believe if I were to make a single application, I would need to get legal documentation detailing my husbands entitlements to the property in case of separation/death etc..