Has it become easier to get a mortgage?

Lucy B

Just wondering considering the mini bubble going on in dublin at the moment? We are going for mortgage early next year and just wondering if anyone has any tips or share their experience? Especially for a self employed applicant, husband is the only earner and we have 2 kids. No debt, saving away, being as good as gold re bills being paid and not doing any unnecessary spending.

Eldarion

I would definitely say yes consider the banks are rolling out incentive campaigns to win mortgage business from each other.

That being said a self employed single income applicant with 3 dependents is not the most ideal candidate. You'll have to have a hefty % down payment saved, perfect credit rating and an unblemished, consistent savings history.

Villa05

Need incone of 1k per adult and extra 200 per child, any income after that can be used to repay the mortgage. might be worthwhile to engage a broker for self employed

Lucy B

Thanks for replies. We have a mortgage broker alright. We have been saving consistently since last march and have upped our saving in the last month, are paying rent and pay all bills on time online. We won't have a huge deposit though, just the 10%, thought that would ok?
It's because he is self employed that I worry about it.

leeroybrown

Banks are definitely lending but they're also looking for profitable "safe" loans. Employment security, large deposits, good LTV and most likely you'll need to be looking for a 30 year mortgage to appear profitable. Being self employed will definitely make the application more difficult. Villa's suggestion of using a broker may be worthwhile as they are always able to work the system better so you're on the right track already.

Lucy B

Thanks, we also are ok re that calculation of €1000 per adult and €250 per child, there is enough left over to cover mortgage and then some. It's just the self employed part that I really worry about for us, because he is a taxi driver, which is up and down, but the one thing we have been doing is making sure we lodge the same amount, give or take €20 every week to bank, so hopefully that will help things?

Edited to add, we will be applying for €160000 mortgage, have no intention of paying more than that.

custom_build

as above the self employed element could be an issue but the banks are certainly more accommodating than they were a few years ago. on a side note I have to ask is a taxi driver really pulling in around €4000 a month after tax? if so I'm in the wrong business.

TheMilkyPirate

custom_build wrote: »

as above the self employed element could be an isseu but the banks are certainly more accommodating than they were a few years ago. on a sode note I have to ask is a taxi driver really pulling in around €4000 a month after tax? if so I'm in the wrong business.

Was just thinking the same thing.

Lucy B

Lol, no you aren't in the wrong business. My husband has a contract collecting staff that is a big chunk of our income, downside is that he works long hours, very long hours to look after his family. And due to this contract has to be available at odd hours. Any other taxi driver that I know of all do the same. long hours equals more money, you can by all means do short shifts but you won't make the money. He works 6 nights out of 7, gets to bed when I am getting up with the kids and then gets up mid afternoon. He would also have a lot of regular customers that would ring him every night.

Wouldn't recommend our way of living to anyone, he is in college also at the moment studying to get a degree. So we won't have to live like this forever. He's one of those people that's always on the to and a hard worker, if only we could get our mortgage, the hard slog will have been worth it. Would love to be reporting back here saying we got it!!!!

custom_build

fair dues and best of luck with the mortgage

JimsAlterEgo

Lucy B wrote: »

Lol, no you aren't in the wrong business. My husband has a contract collecting staff that is a big chunk of our income, downside is that he works long hours, very long hours to look after his family. And due to this contract has to be available at odd hours. Any other taxi driver that I know of all do the same. long hours equals more money, you can by all means do short shifts but you won't make the money. He works 6 nights out of 7, gets to bed when I am getting up with the kids and then gets up mid afternoon. He would also have a lot of regular customers that would ring him every night.

Wouldn't recommend our way of living to anyone, he is in college also at the moment studying to get a degree. So we won't have to live like this forever. He's one of those people that's always on the to and a hard worker, if only we could get our mortgage, the hard slog will have been worth it. Would love to be reporting back here saying we got it!!!!

they might look for some permanency on this contract, there a good possibility your approval will be based on average earnings in the sector

Lucy B

Yes, we actually thought of that, he wouldn't have a problem getting it in writing from the company that he has a contract with them.
So do ye think it all sounds ok so far?

Pinkycharm

Lucy I think ye have a shot. as long as the savings are consistent and you can get he has more or less permanent work with that company it should be considered

Lucy B

Pinkycharm, thank you. It is good to hear something positive.
I'm a worry wart and I feel like the developers that we will be dealing with to buy this house (we are hoping to buy the house we are renting and they want us mortgage ready sooner rather than later, they're not planning on hanging around waiting for us) can just hear us coming with bells on! 1st time buyers alert!!

So keep everything consistent is the general advice.

Pinkycharm

I have a friend who does mortgages with a bank and he said as long as there are constant savings each month and have it put in writing that he has work on a constant basis or any contract or CID and that ye can survive on the minimum, ye can make repayments. You do have to pass a stress test but ye would be good candidates.

Freddie Mercurys Bolero

Sorry if I'm hijacking this thread, we have just begun to save for a deposit and was wondering if it's 1000 per adult,then 200 per child + the morgtgage repayment? Thanks

donegal.

also, to help with the hijacking, when you say you need to save consistently, how much are you talking about each month ?

Freddie Mercurys Bolero

Hijack bump ðŸ˜

Woshy

We applied for mortgages in the last couples of months. There's myself and my husband and a baby and only my husband works. He's on a decent enough salary on a permanent contract.

Tbh, none of the banks offered us a huge amount money. We had a very good savings record but most banks only offered a mortgage amount where monthly repayments would be half of what we had previously saved every month (as shown in our bank statements). We felt we could afford more but the banks did not agree, they're tied by their policies and that's fair enough I guess.

Now that we've bought a house we've chosen to pay more than the monthly repayments that the bank have stipulated because so we can to pay the mortgage off as quick as possible. We can pay a good bit more monthly then the bank has asked for.

We were ok because we had a bit of cash to buy, and quite a few banks did offer us a mortgage but it just wouldn't have been enough to buy a place with just a 10% deposit. We're in Dublin but we ended up buying a bit further out to fit into our budget. I think it worked out that we have a mortgage for 50% of the value of the property.

I guess it just depends where you're looking to buy. For us getting the mortgage wasn't an issue (although some banks said no) it was the amount that held us back a little bit.

Lucy B

Yes I heard that the banks are not offering what you would like, is it something like 70% of what you would be looking for I think. I'm dreading it. We are going to apply in April as that is when we will have our 10% deposits saved up. And we also will only have 2 years books, just to make it more fun!! Think kbc, ukster bank and bank of Ireland look for 2 years books, the rest 3.

Ya, this mortgage stuff would age you!

Freddie Mercurys Bolero

Lucy B

Freddie Mercurys Bolero wrote: »

Sorry if I'm hijacking this thread, we have just begun to save for a deposit and was wondering if it's 1000 per adult,then 200 per child + the morgtgage repayment? Thanks

Ya Freddie, think that in your current account they want 1000 per adult and 250 per child, so in our situation, it's 2500. So correct me if I'm wrong, but take your monthly wages, then take away the 2500 or whatever, and there must be your mortgage repayment and some leftover? That's my take on it anyway.

Freddie Mercurys Bolero

Great thanks, we should be alright so! Just about!

Lucy B

Like ourselves!!

Freddie Mercurys Bolero

Good luck with it and let us know how he get on 😊

dewhurst

I own a mortgage brokers, no longer involved in the day to day running of it but am sorry to tell you that banks no longer lend so easily.

Speak to your broker don't forget to mention any loans debts its amazing how many people do seem to forget. If the banks see anything now there not happy with they will not lend i.e undeclared debts, missed spell names anything small and silly.

Don't apply to lots of lenders if your broker is unsure who will do it find a new broker.

Most important point is if you have applied for a mortgage and you app is in with a lender DONT go online looking for house insurance via compare sites. It will show as you looking for credit on your file and can and has lost people there mortgage offer. Even had people had there offer taken back on the day of exchange because of it.

Best advice get a good broker is only way now a days.

mrs vimes

dewhurst wrote: »

Most important point is if you have applied for a mortgage and you app is in with a lender DONT go online looking for house insurance via compare sites. It will show as you looking for credit on your file and can and has lost people there mortgage offer. Even had people had there offer taken back on the day of exchange because of it.

Not in Ireland it won't - only ICB members have access to a person's credit record and there are no insurance companies which are members.

Lucyfur

Lucy B wrote: »

Ya Freddie, think that in your current account they want 1000 per adult and 250 per child, so in our situation, it's 2500. So correct me if I'm wrong, but take your monthly wages, then take away the 2500 or whatever, and there must be your mortgage repayment and some leftover? That's my take on it anyway.

For us, our bank wanted to see our rent and savings combined being more than what we wanted to borrow. We were never given an amount per person in the household.

Freddie Mercurys Bolero

Lucyfur wrote: »

For us, our bank wanted to see our rent and savings combined being more than what we wanted to borrow. We were never given an amount per person in the household.

Ok thanks.

Did you have children at the time?

Lucyfur

Freddie Mercurys Bolero wrote: »

Ok thanks.

Did you have children at the time?

Yes, just one though