Would I get a Loan?

chops018

Just an idea bumbling around in myself and the gf's head.

We are planning on moving in together next April but most places we are looking at which are even half decent 1 or 2 bed apartments are €800 a month minimum.

However, some of the towns we are looking have 1 or 2 bed apartments from €80-120k, I checked the mortgage calculator online and if we had around €10k ish saved and got a loan of say €90,000 then repayments would range from €410-460 depending on the financial institution. These places are ideal as they are close to my hometown and closer to work than where I am now.

A bit about me: I am a trainee solicitor who will be on min wage during training from April - so I'll get around €1,400 a month until I qualify. The gf works for a jewelry company and just a bit better than min wage, 35 hour contract, and permanent (I think), although she is looking for a new and better job.

We both have a few bob saved, based on the above would we have any realistic chance of getting a loan?

Flatzie_poo

You should be good for what you're seeking - bear in mind they stress test you on repayments +3% so make sure you're saving at least that figure for a few months.

If she's not permanent however, they won't take her income into account, so make sure of that!

With your combined income, you should be able to borrow circa €120,000.

Best of luck.

chops018

Thanks.

Obviously we will contact a few banks etc. in the coming months to see what the story is and what we might do if we do indeed need to do anything more.

Just wanting to see if anyone on here might be able to tell me beforehand, or even tips/advice.

We might not even bother.. but seems like a good idea if we are planning on moving in rather than throwing €800+ at a landlord we would pay €400-500 in mortgage repayments and "own" something.

mattaiuseire

Every circumstance is different. The lender will take into account your credit history, work history, proof of solid financial management and ability to repay amongst other things.

The long and short of it is nobody can tell you until you make your application. Best of luck with it.

cat123456

Hi op,

You won't get mortgage approval based on trainee wages as they aren't permanent. You will get a mortgage based on your girlfriends wages if she is permanent. The most you will get is 3.5 times her yearly wage. Are you saving regularly? Or paying rent? They want to see regular monthly payments through savings or rent to demonstrate that you can meet the mortgage repayments.

cat123456

You also need to check what the minimum income is for a single person application. It used to be 30k but it might have changed under the new rules.

chops018

cat123456 wrote: »

Hi op,

You won't get mortgage approval based on trainee wages as they aren't permanent. You will get a mortgage based on your girlfriends wages if she is permanent. The most you will get is 3.5 times her yearly wage. Are you saving regularly? Or paying rent? They want to see regular monthly payments through savings or rent to demonstrate that you can meet the mortgage repayments.

I see.

So that's only around 70-75k based just on hers.

They don't take trainee salary into account at all? But they would allow me as a trainee to go down on the mortgage as a joint borrower?

Anyway as the other poster above said that each circumstances are different, so we will probably go in and apply and see what happens, no harm in it, then make decisions.

With regard rent etc, no, I have been living at home, so no proof of rent, before I took the traineeship I had a reasonably well paid permanent job and I have a bit of savings from my time there (but maybe that info won't matter to them for an application now). The gf has been renting the past 3 years though, and would be able to prove repayments etc. and also has a small bit of savings that she could show. We would hope to be able to show more in a few months if we did go ahead with it.

mattaiuseire

Are you currently working and if so for how long? Do you mean your sols training is starting in April '16 and do you mean you are being placed in a solicitors office while undergoing?

Depending on circumstances, being a trainee isn't a bad thing.

chops018

I'm in the "college" part of the traineeship at the moment, but I go back to the office in April 2016 and back to being paid, although only min wage but should workout around €1,400 every month.

We would be hoping for around 90-110k by the looks..although that could change in a few months and these places could go up.

mattaiuseire

Your situation will be taken into account - most banks take note that you are a trainee and will be earning more in the not too distant future, so as I said, it's not a bad thing. It isn't like you're a career traveller jumping from one job to the next.
Just be aware though that they might be wary about what the future holds for you, with passing the exams etc.
When the time comes and you have a solid job offer to show the lender, this will assist you greatly.

You might also consider asking your parents or someone else close and credit worthy if they would act as guarantor for you should that suit.

chops018

I didn't think of that - thanks for the response.

cat123456

I disagree with the last poster. (Sorry OP I'm not to be negative) we have been through the process with 6 different banks recently (2 x permanent jobs and good savings) and my friends who are qualified solicitors with permanent jobs have found it really tough. I also have a friend who was a trainee when applying and only her boyfriends income was counted. Banks don't count future earning potential. They get your employer to fill in a salary cert saying whether you are permanent or not and they also want to see your contract. The only way around it if you have a nice employer who will sign this form and say you are.

cat123456

I didn't think of guarantor either. This might be an option.

joey100

Me and my partner recently got a mortgage, she wouldn't be in permanent employment either but would be highly qualified and permanent employment wouldn't be the norm in her profession. They took this into account when we applied but where happy to give us a mortgage, made it a bit harder to get one but we did. Letters were needed from her employer along with job adverts showing the wage scale for her position. Try a few banks, in our experience AIB were the best to deal with and would offer us the most.

For your girlfriend though, for most banks you would need to be in employment for 6 months at least for them to consider you so if you want the mortgage soon now might not be the best time for her to look at changing jobs. On the other hand if she got a new job and you saved for 6 months you might be in a better position.