Mortgage query - providers and employment

Mindfulness

Not a first time buyer.

I'm looking to get a (very) small mortgage that will amount to approximately 23% of the purchase price of a house (meaning that I have a deposit of approximately 77% of the house price).

I started a new job in March this year, in full-time, permanent employment. I won't be passing my probation until September of this year. I already have a history of paying (and overpaying) my previous mortgage for over 7 years before I sold my previous house.

So with that in mind...

Can anyone tell me the likelihood of mortgage providers giving such a mortgage to someone who has not yet passed probation in a job and is in it less than one year?

If so, what mortgage providers would you recommend? Who is currently perceived as the "best" provider in terms of ease of access to loans.

I've already booked an appointment with my own bank but I firmly believe in looking for the best deals so any recommendations would be good.

Stheno

Nil.

Too much risk in any loan given you are still on probation imo

Mindfulness

What about with someone who will guarantee the loan?

Stheno

Mindfulness wrote: »

What about with someone who will guarantee the loan?

Still unlikely I'd say. Why the rush?

The_Conductor

If you can convince a parent to go guarantor on the mortgage- they will have to meet specific conditions themselves- employment, age (as in- be below the age of the payment of statutory old age pension entitlements- at the end-date for the mortgage etc etc.

Its not the case that you waltz into the bank and say- hi- my Dad is willing to go guarantor on the mortgage- those days are long gone........

You could get a guarantor and get the mortgage on those grounds- but you're better off not putting someone else through a financial check- and just waiting.

murphaph

It's some crazy broken system that won't lend with a 77% deposit! No matter what the employment status etc. the bank shouldn't be able to lose on that deal but of course they need to be able to efficiently repossess for that to be the case!

The_Conductor

In a nutshell.
Until the silly situation where its nigh impossible to have full recourse on secured assets happens- its not going to happen. Can't see it happening either- as its politically unacceptable.

Mrs OBumble

Depending on the purchase price of the house, is there any possibility of doing it as an unsecured personal loan?

Probably not if you want 23% of 500k. But if the house price is a lot less, it may be an option.

lolosaur

Just dont mention the probation. as fas as you, the bank and the world is concerned, you have a ftp job.

you have the propensity to repay. you will be fine.

That or bin the bank and go with the credit union.

Simular rates if you are going for such a small number?

mfergus

lolosaur wrote: »

Just dont mention the probation. as fas as you, the bank and the world is concerned, you have a ftp job.

?

That wont work. The bank look for a salary certificate from your employer. The first couple of questions are usually:

How long has this person been employed by you?

Is this person on a probation period?

MouseTail

Depending on how much you need to borrow, you may be better off keeping some of the cash on deposit in Credit Union, and getting a secured loan and aggressively paying it down.

etymon

I was approved for a joint mortgage with my partner last week, I only started work on Monday after being in college past four years. So it can be done if you go in and plead your case. I went with copies of the estimated salary scale for the next ten years and signed contract of employment and it was fine.

We had called banks on the phone and they all said no if I hadn't worked for 12 months prior but that was a scripted response because if you meet with the bank the mortgage advisors are far more approachable. PS it was BOI who gave it to us and they are apparently the most conservative!

(just to add: I have no probation period and perhaps would not have got it on my own, though I didn't try)

tenifan

Mrs OBumble wrote: »

Depending on the purchase price of the house, is there any possibility of doing it as an unsecured personal loan?

Probably not if you want 23% of 500k. But if the house price is a lot less, it may be an option.

One of the few helpful responses in the thread..

Grandpa Hassan

tenifan wrote: »

One of the few helpful responses in the thread..

I think the other responses have been helpful. Just not what the OP wanted to hear as a response to whether an approval was likely.

A single person applying on a probationary period is a long shot, no matter the LTV. LTV is no good if the bank can't get their hands on the property. The OP is going to have to be prepared to shop around every provider to find one that might help

Maximum unsecured is generally €25k

Mindfulness

Sorry it took me so long to come back but I am delighted to be able to say that AIB have approved a mortgage of 23% of the asking price I had to supply a lot of details, more than would be usual for a mortgage request. I had to show earnings over the past 10 years (P45's sample salary slips etc) and provide the bank with a copy of my current contract. I guess that's because they knew I was still in my probation period. I also supplied an Experian credit report which had a score of 999/1000

They also know I'm still on probation, my employer made it clear on the salary certificate that my probation ends in mid-September, that's as much as they were willing to do despite me cheekily asking if they would write a letter saying that I would pass my probation when the time came. That request didn't go down too well but I'm of the opinion that if you don't ask, you will never get and all they could do was to say 'No'. Which they duly did.

Thanks to all who replied on the thread, even if some of you were less than hopeful (to put it mildly ). Now to start a new thread in this forum...

The_Conductor

Glad to hear your good news. Wishing you happiness in your new home.