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Mortgage Advice Please

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  • 29-05-2014 8:09pm
    #1
    dalmation12
    Registered Users Posts: 3 ✭


    Myself and my partner are looking to buy a house in the next few months. At the moment we are saving as much as we can but it varies monthly, between 1,000 and 1,600 per month.

    We also pay rent of 950 plus bills etc and one car loan of 300.

    I know the banks work out how much you can contribute monthly, adding all of the above. However I am a teacher and do not get paid July & August. So I will not be saving this month and have put aside enough money to get me through the summer (separate to our savings) however I wont be saving a penny between now and late September, My partner will still save 7/800 per month.

    My question is - if we are to go to the banks in Sept will they look at the past few months and decide we cannot contribute enough or would they take an average of the last year of saving?


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    #2
    niceoneted
    Registered Users Posts: 463 ✭✭niceoneted


    How much have ye saved so far? How much are gross earnings? How much are you looking to borrow? How secure are the jobs?
    What's remaining on the car loan? Could you clear it from savings and still have significant savings?
    These are all important questions before one could answer.


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    #3
    Tow
    Registered Users Posts: 7,415 ✭✭✭Tow


    dalmation12 wrote: »
    However I am a teacher and do not get paid July & August.

    This sounds like you are not permanent. The bank will have issues with this and may not take your earnings into account, unless you can prove otherwise.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



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    #4
    dalmation12
    Registered Users Posts: 3 ✭dalmation12


    niceoneted wrote: »
    How much have ye saved so far? How much are gross earnings? How much are you looking to borrow? How secure are the jobs?
    What's remaining on the car loan? Could you clear it from savings and still have significant savings?
    These are all important questions before one could answer.

    Thanks for the replies.

    We have saved €56,000 saved. Gross earnings are €45,000 and €65,000. We are looking to borrow as much as we can! Jobs are both secure, I'm not a permanent teacher but have been in the same school for 6 years and have a CID (Contract of indefinite duration) which the banks have been fine with in recent years for other teachers. Car loan has €2,400 remaining which can be cleared from savings.

    Also my partner bought a house in 2005 which is in negative equity & he cannot sell. He bought it with his brother and there is €290,000 left and the rent covers the mortgage apart from €50 they each contribute each month


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    #5
    wonski
    Registered Users Posts: 13,685 ✭✭✭✭wonski


    dalmation12 wrote: »
    Thanks for the replies.

    We have saved €56,000 saved. Gross earnings are €45,000 and €65,000. We are looking to borrow as much as we can! Jobs are both secure, I'm not a permanent teacher but have been in the same school for 6 years and have a CID (Contract of indefinite duration) which the banks have been fine with in recent years for other teachers. Car loan has €2,400 remaining which can be cleared from savings.

    Also my partner bought a house in 2005 which is in negative equity & he cannot sell. He bought it with his brother and there is €290,000 left and the rent covers the mortgage apart from €50 they each contribute each month

    I would be more worried about that second mortgage than the 2 months without a pay.
    If you speak to the Bank / broker they will advice you what the chances are. I know Ulster Bank looks at a whole year income rather than last 3 months. They will ask for a letter from employer to confirm that.


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    #6
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    You should have no problem getting a mortgage with a CID and lender will take average savings over a 12 month period plus rent paid as proof of repayment capacity. The big problem will be the house in negative equity as lenders will assume your partner is fully responsible for 100% of stressed repayments.
    I can run a few figures through the calculator for you however I need the following information - ages, how many dependents and ages, the value of the property in negative equity, the interest rate payable on the mortgage, the term outstanding and monthly rent received. Also confirm if both public sector employees and if not who is earning the 45k and 65k and how much is deducted for public sectors pensions.
    Also have you any idea what price range house you will be looking at.
    dalmation12 wrote: »
    Thanks for the replies.

    We have saved €56,000 saved. Gross earnings are €45,000 and €65,000. We are looking to borrow as much as we can! Jobs are both secure, I'm not a permanent teacher but have been in the same school for 6 years and have a CID (Contract of indefinite duration) which the banks have been fine with in recent years for other teachers. Car loan has €2,400 remaining which can be cleared from savings.

    Also my partner bought a house in 2005 which is in negative equity & he cannot sell. He bought it with his brother and there is €290,000 left and the rent covers the mortgage apart from €50 they each contribute each month


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    #7
    dalmation12
    Registered Users Posts: 3 ✭dalmation12


    Hi, thanks for your reply. Ill give as much details as i currently have to hand.

    I am 29 and my partner is 32. We have no dependants. His other property Is worth approx 240k and there is 290k left on a tracker mortgage with 28 years left on the mortgage. Monthly rental income of 950, which will be increased in the next 2 months to 1050, in line with other houses in the area, which would cover the mortgage repayments

    I am a teacher, so in the public sector on 45k but my partner is in the private industry with no public sector pension deductions on 65k. We are looking at houses between 240k and 350k. Hope this is enough info to get a rough calculation


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    #8
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Hi Dalmation12
    Based on the information you have given me you would qualify for a mortgage of circa 330k. This is based on the following :
    • The car loan is cleared from your savings
    • That the salaries you quoted are gross basic.
    • You did not quote the tracker rate you are paying so I assumed a rate of 1.75%
    • You did not state how much mandatory pension deductions are from your teachers salaries so again I assumed 4k.
    • I presume rent and savings are paid by standing order or bank transfer
    • You both have a good payment record on both car loan and the existing mortgage.
    Hope the above helps
    Trish56
    dalmation12 wrote: »
    Hi, thanks for your reply. Ill give as much details as i currently have to hand.

    I am 29 and my partner is 32. We have no dependants. His other property Is worth approx 240k and there is 290k left on a tracker mortgage with 28 years left on the mortgage. Monthly rental income of 950, which will be increased in the next 2 months to 1050, in line with other houses in the area, which would cover the mortgage repayments

    I am a teacher, so in the public sector on 45k but my partner is in the private industry with no public sector pension deductions on 65k. We are looking at houses between 240k and 350k. Hope this is enough info to get a rough calculation


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    #9
    blue star
    Registered Users Posts: 45 ✭blue star


    hello ... I have a question.

    I am a primary teacher not permanent and my partner is between jobs. Between us we have about 30.000 saved. do you think we would be able to get any money from a lending institution to build a house. loan of approx. 50.000??


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    #10
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    You need to provide more information such as have you a CID. Has your partner being working continuously for the past one or two years. Is he currently on probation. What are your earnings, do you have any dependents do you pay rent do you have any short term borrowings and how much do you save monthly.


    blue star wrote: »
    hello ... I have a question.

    I am a primary teacher not permanent and my partner is between jobs. Between us we have about 30.000 saved. do you think we would be able to get any money from a lending institution to build a house. loan of approx. 50.000??


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    #11
    blue star
    Registered Users Posts: 45 ✭blue star


    No I don't have a CID yet...! he hasn't been working continuously as he was a plasterer..! My earning are approx. 2000 a month. No rent or dependents. No loans etc! did take out a 5year loan for college paid back within a year and a half. Save minimum 1500 a month - usually more doh..don't have much expenses apart from running my car.

    Thanks for any advise


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    #12
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Unfortunately blue star you will not be considered for a mortgage until you have a CID or your partner is in permanent employment for at least 6 months. Keep saving though because once you get a CID you will be able to apply and will need to show that you can afford the mortgage by either showing savings or and rent. Also make sure you have a paper trail by transferring rent into landlords account and transferring savings from current account. Also looks like the construction industry is ready to take off again.
    Appreciate your thanks for the advice....nice that when you make an effort to do calculations for someone that at least it's acknowledged.:)
    Best of luck
    blue star wrote: »
    No I don't have a CID yet...! he hasn't been working continuously as he was a plasterer..! My earning are approx. 2000 a month. No rent or dependents. No loans etc! did take out a 5year loan for college paid back within a year and a half. Save minimum 1500 a month - usually more doh..don't have much expenses apart from running my car.

    Thanks for any advise


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    #13
    blue star
    Registered Users Posts: 45 ✭blue star


    thanks for the advise your very good Trish56.... Ireland is so depressing to live in these days...!!


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    #14
    millionmystery
    Registered Users Posts: 53 ✭✭millionmystery


    Hi,
    I'm a 28 year old teacher, working permanently for 7 year. Car loan 5600 and personal loan 3000. 47K per year. Never missed repayment. Looking for 90k . Savings of around 6000 and will have a gift donation of 6000 also. Pay rent in cash but have receipts. I save 350 monthly. Can anyone give me any idea of how my application might go. This is all very new to me and hoping that the provisional mortgage approval of 90000 from AIB will be accurate!
    T


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    #15
    whiteandlight
    Closed Accounts Posts: 2,359 ✭✭✭whiteandlight


    dalmation12 wrote: »
    Thanks for the replies.

    We have saved €56,000 saved. Gross earnings are €45,000 and €65,000. We are looking to borrow as much as we can! Jobs are both secure, I'm not a permanent teacher but have been in the same school for 6 years and have a CID (Contract of indefinite duration) which the banks have been fine with in recent years for other teachers. Car loan has €2,400 remaining which can be cleared from savings.

    Also my partner bought a house in 2005 which is in negative equity & he cannot sell. He bought it with his brother and there is €290,000 left and the rent covers the mortgage apart from €50 they each contribute each month

    I have never heard of a teacher with a CID who isn't getting paid for the summer?


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