probation and mortgage

billy111

Hi, looking to apply for mortgage for a self build. Site in my name already. I'm on 33k with bonuses of approx 12k per year which are not guaranteed but have been paid without fail for the last 4 years. Other half recently started new job in health service paying 42k per year. This job comes with a 1 year probation period. (11 months away). Job is specific requiring masters degree and plenty of experience so no doubt this will be a permanent role. Savings of 15k. Gift available of 8k. Looking for 230k approx.

Rent history of €500 per month for last 8 years, saving €650 into savings account each month. 1 loan of 8k, repaying 300 per month for the last3 years.

Approached bank but very dismissive due to other half on probation in her job. Will i get same response from all banks?

Rob Thomas

Was it your own Bank that knocked you back? If so, it's very difficult to see another Bank being favourable to the application.

It's frustrating because you clearly have a good savings, repayment and rent record so you would imagine that you are the kind of couple who this country needs to have the courage to borrow money and generate work through a house build.

Unfortunately, mortgage underwriting is still being influenced by legacy arrears issues and there is a generally negative stance where probation periods are concerned in employment, no matter how much of a formality it may be that the job will become permanent.

You may be able to source a broker who can advise if any of the Banks are favourable to people in your position.

Your best bet might be to keep the head down for 11 months and save as much more as you can. This will minimise what you borrow when the time comes and you can use the year to properly plan and research your self-build. You may end up with a better overall outcome.

It can seem like its a long time but 11 months is nothing when you compare it to the length of time you will actually be paying back the debt.

SBarrett

For self builds, EBS will look for 1 year, not on probation.

PTSB will look for 6 months.

You have to sell it to the bank as you stated here that the position is highly skilled and she has all the qualifications required.

I can't see you getting a mortgage with her in the job just a month. Frustrating, I know but the banks have done a complete 180 from their wreckless lending policies.

Steven