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Mortgage - Good LTV and LTI but Probation

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  • 29-01-2015 6:21pm
    #1
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭


    Hi,

    My other half and I are looking for a mortgage. The LTV would be about 65% Max and LTI of about 2.2

    The snag is I have another 2 months of a six month probation to serve. Any banks out there that will take things on a case by case basis given the probation or is it a flat out no? Ulster Bank are to come back to me and KBC need me to pass it, haven't checked out more.

    Thanks.


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Madison Little Grasshopper wrote: »
    Hi,

    My other half and I are looking for a mortgage. The LTV would be about 65% Max and LTI of about 2.2

    The snag is I have another 2 months of a six month probation to serve. Any banks out there that will take things on a case by case basis given the probation or is it a flat out no? Ulster Bank are to come back to me and KBC need me to pass it, haven't checked out more.

    Thanks.

    I think lenders may approve your mortgage however you will not be able to draw it down until your probation is complete.


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    #3
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Probation is largely meaningless since an employer can let you go at any stage during the first year without reason. That said, on paper still being in a probationary period is higher risk than being out of probation.

    However, if it was a straight out exclusion, the bank would say that rather than allow you to submit an application and then refuse you. It may impact on the amount you are permitted to borrow, and as said above they may attach conditions where you must submit written confirmation from your employer that your probation is officially complete, before they will let you draw down.

    In this regard, your credit history plays a much bigger role, as a solid history of proving that you repay your debts shows that you tend to be in stable employment and you don't find yourself in periods without any income.


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    #4
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭um7y1h83ge06nx


    Thanks lads. Yeah I agree that passing probation doesn't mean much unless it's the public sector.

    Just a bit frustrating as all the hard figures look good and I've had, thankfully, full continuous employment since I left college almost 10 years ago and the new role is a step up in both salary and career progression. And I stress tested ourselves to +4% just to be cautious. Our savings history is very during too with no debt issues.

    But that's the way it is. I do have an agreement in principle letter but of course that's ultimately not much use.

    I'll see if I have any joy convincing them to take a whole view of the application. Will post back as it could be useful to others.


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    #5
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    They won't make an exception

    It's only 2 months , relax


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    #6
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭um7y1h83ge06nx


    Was told today that given our details and my employment history that they can overlook the probation issue and they would be happy to give us approval in principle to the max they will lend us.

    Great that we can get the ball rolling on things, the 7 weeks or so might not make a bit of difference but I'd hate to possibly lose out on something good for the sake of not exploring all the options with the bank. Murphy's law would dictate that it would be just the time for something to happen.

    The major things was the long continuous employment record I have and the fact that it's in the same industry i.e I haven't been jumping around different careers.

    Thanks to all the posters and hopefully this might be a help to others.


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    #7
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    That's great news. You did mention in your post 30th January that you had agreement in principle do you mean there are now willing to issue you with a Loan Offer and allow you draw down the mortgage before your probation is up? Or have they issued you with an Approval in Principle and your probation will have to be completed before you can draw down the funds.


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    #8
    um7y1h83ge06nx
    Closed Accounts Posts: 5,029 ✭✭✭um7y1h83ge06nx


    Trish56 wrote: »
    That's great news. You did mention in your post 30th January that you had agreement in principle do you mean there are now willing to issue you with a Loan Offer and allow you draw down the mortgage before your probation is up? Or have they issued you with an Approval in Principle and your probation will have to be completed before you can draw down the funds.

    They are willing to fully waive the probation period, so we'll get our approval in principle and they're willing to go to loan offer too before the period is up. Will bring in contracts, P45, CV etc. to the meeting just to have them.


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