Maximizing changes of getting mortgage approval

A_Sober_Paddy

So as the title says

What can me and my girlfriend do to maximize our changes of getting mortgage approval

Currenlty we earn 46k combined a year plus about 2.5k in commission

We have 30k in savings

Trish56

The maximum mortgage you will qualify for as first time buyers is 90% of the purchase price or 3.5 times your combined income = 161k whichever is the lower. Max. term is 35 years up to age 65 or 70 with permanent tsb.

To qualify you need to be in your existing employment for 1 year although permanent tsb will look at 6 months and others will consider if changing jobs in the same sector. You will need to prove affordability by regular monthly savings or rent to be not less than stressed repayments - this rate also differs hugely with all the lenders so I am quoting the highest at 6.50% = €972 pm. If paying rent you need to show it going out from your bank account.

You will need to provide 6 months current, savings and credit card statements, you need to show you can manage your finances so therefore it would not be advisable to be constantly using an overdraft, have referral fees on the current account or unpaid direct debits. You need to pay off you credit card on a monthly basis and if you have any short term debt such as a car loan or credit loan it would be advisable to clear same as it will reduce the amount you can borrow.

Hope the above helps and best of luck.
Trish

pacelut

What is the bank view if you are paying the rent in cash and landlord is signing the rentbook? Is the rentbook evidence of the monthly outgoing? If not, why are they still available to buy and use?

Jambonjunior

Trish56 wrote: »

You will need to provide 6 months current, savings and credit card statements, you need to show you can manage your finances so therefore it would not be advisable to be constantly using an overdraft, have referral fees on the current account or unpaid direct debits. You need to pay off you credit card on a monthly basis and if you have any short term debt such as a car loan or credit loan it would be advisable to clear same as it will reduce the amount you can borrow.

Can the details be hidden on the statements with just the amounts shown or do they need full details? Feels very invasive to hand over all that information.

Roselm

Jambonjunior wrote: »

Can the details be hidden on the statements with just the amounts shown or do they need full details? Feels very invasive to hand over all that information.

It is invasive but the banks are taking on a lot of risk in accepting you so they want to know that you are a safe bet.
I gave a copy of my statements which would have shown the details. They want to know where you are spending your money ie not gambling it away.

Trish56

The reason for a rent book has nothing to do with getting a mortgage it is condition laid down by the PRTB. A lender will want to see a paper trail of all transactions including rent paid and anybody can buy a rent book and input transactions.

pacelut wrote: »

What is the bank view if you are paying the rent in cash and landlord is signing the rentbook? Is the rentbook evidence of the monthly outgoing? If not, why are they still available to buy and use?