Applying for a mortgage.... in the future!

purplecow1977

I have been renting for the past 10 years in various places.
Some of which have been direct debit, others (last 2 years) are paid cash.

Direct debit isn't an option as landlord prefers cash in hand.

If I were to look for a mortgage in a few months/next year, would the fact that I withdraw my rent from an ATM & therefore no 'proof' that I am paying rent go against me?

Also, is it better to have a regular savings account rather than transferring a lump sum at end of every month?

What other things should I be conscious of?

Finally, is there an age limit on mortgages? My partner is almost 40 & already owns a house.

Roselm

I was the same paying cash in hand. I went with BoI for mortgage and they asked for a letter from landlord confirming the amount of rent Ihad been paying. Was surprised as I thought it would be a big problem!

Roselm

I think banks will usually give you a mortgage up to your 65th year. So maybe a 25 year mortgage if your husband is 40. If you're younger than your husband I don't know if that makes a ddifference.

purplecow1977

Thank you. I'm 10 years younger so I imagine if there was an issue, I could just apply on my own?

Didn't think a letter from landlord would be sufficient but that is good to know!

Thanks.

Rabbo

If you're into gambling, make sure theres no evidence of it on your bank statements. Big red flag for mortgages

Stavro Mueller

Would your landlord be happy to sign a rent book? Depending on how much rent you're paying, it could be a problem.
The most important thing is to show that between the rent you're paying now and the money you're saving every month, that you can afford to pay a mortgage. It's better if you don't end up having to dip into your savings account but are allowing it to build up. Oh, and if you enjoy the odd flutter, do not use your credit card for online gambling.

Also be aware that when it comes to applying, you might need to give them up to 12 months worth of bank statements and several months of credit card bills. Not to mention payslips and other bits and bobs.

purplecow1977

Thanks all. It's not something I'm planning just yet (nowhere near the required deposit yet!) but I'd like to know the type of things I should be doing. I lodge €10/€20 to Paddy Power maybe once or twice a year. Is it really that much of a no-no?

Rabbo

Apparently it can be a problem alright. there's been plenty of stories on this site of it causing an issue. Save yourself some hassle and hold off using your bank account/credit card for gambling transactions for at least 6 months before applying for the mortgage

tonic wine

purplecow1977 wrote: »

Thanks all. It's not something I'm planning just yet (nowhere near the required deposit yet!) but I'd like to know the type of things I should be doing. I lodge €10/€20 to Paddy Power maybe once or twice a year. Is it really that much of a no-no?

You can top up you PP account over the counter at any PP shop.

purplecow1977

I'm not that interested in placing bets but the convenience of online for the grand national once a yr or so saved a bit of hassle! Will refrain in future though!

Stavro Mueller

Another thing I just thought of - make sure all your loans/credit cards are paid on time every month.

Woshy

One thing I recommend to friends who want to apply for a mortgage in the future is to make sure there aren't any returned direct debits on the 6 months of bank statements you provide. We had two on ours (due to carelessness on my part - not moving funds around in time etc, not lack of funds) and one bank (PTSB) said if we had not had them they would have offered us €50k more.

Rabbo

Rabbo wrote: »

If you're into gambling, make sure theres no evidence of it on your bank statements. Big red flag for mortgages

I'm hearing this but is there any evidence of people who say lodge 20 euro here, 20 there and maybe a bigger lodgement 100 or so euro an odd time actually having hassle. Id imagine it's people lodging money daily or 100's every week that would be a problem as opposed to a person having a couple of bets of a Saturday.

In any case just to be sure I do all my lodging and withdrawing to my online paddy power account in the shops now. It's handy as you can run your online account with no bank statement evidence. I'm not actually applying for a mortgage or anything at this time but don't know when I will so want to keep my account clear of this stuff incase they don't look kindly on it when the time comes.

Stavro Mueller

My guess is that an odd tenner or twenty here and there probably wouldn't cause a problem. Having said that, it'd be better not to go looking for trouble and draw attention needlessly.

sKeith

I do also do about 10 to 20 quid a year using credit card to paddy power. Never came up as issue when applying for mortgage.

Stavro Mueller

Stavro Mueller wrote: »

My guess is that an odd tenner or twenty here and there probably wouldn't cause a problem. Having said that, it'd be better not to go looking for trouble and draw attention needlessly.

Yeah that's what I'm thinking.

sKeith wrote: »

I do also do about 10 to 20 quid a year using credit card to paddy power. Never came up as issue when applying for mortgage.

I would probably lodge about 10 to 20 euro a week on average (I tend to withdraw any winnings rather than keeping a balance so I end up lodging more often) then maybe a 50 here or there or maybe a bit over a 100 for bigger events like Cheltenham. I don't think it would bother them too much but at the same time its easy to lodge in the shop or else just bet in the shop and they are none the wiser.

chris85

purplecow1977 wrote: »

Thank you. I'm 10 years younger so I imagine if there was an issue, I could just apply on my own?

Didn't think a letter from landlord would be sufficient but that is good to know!

Thanks.

Are you married to your partner? If so you will not be able to apply on your own. Married couples need to apply together. If you are not married than could apply as sole applicant.

purplecow1977

Stavro Mueller wrote: »

Another thing I just thought of - make sure all your loans/credit cards are paid on time every month.

Thanks.

I've a great credit rating and have never missed a payment.

Have had a loan for 5 years and paid it each month.

I clear my credit card 100% each month via my current account.

At the moment I have no direct debits & no loans!

purplecow1977

chris85 wrote: »

Are you married to your partner? If so you will not be able to apply on your own. Married couples need to apply together. If you are not married than could apply as sole applicant.

Not married no. Didn't realise married couples would have to apply together so thanks!