Extending Mortgage Approval

tubbs26

I have mortgage approval until September. I am currently considering buying a house in an estate that will not be completed until October.

My wife is expecting a child at the end of September. Our income will be down from September as my wife will only be paid minimum maternity pay. We will though however save on childcare costs for our other child while my wife is on maternity leave.

Does anyone know if the bank will offer us the same mortgage amount or will they reassess the mortgage application completely? Or can the mortgage be drawn down before September(very risky I would imagine)

We would struggle to afford the house if the bank reduce our mortgage amount. Any advice greatly appreciated

Tefral

The way they do it is for every child they add €300 on to the minimum that you need after all your debts are gone. So for example AIB require something like 2100 for a couple to be left over after all things like loans come out. You would have been stress tested at €2400 as you already have one child. The second child will mean €2700.

Trish56

It really depends on the lender but you should be able to apply to get your mortgage extended for a further 6 months at the beginning of September therefore your circumstances would not have changed and there is no questions asked on any applications that I am aware of if someone is pregnant. If you cannot apply for an extension until October the lender will require additional information such (1) Does your wife intend returning to work and they will require a letter from her employer confirming same and confirmation if they pay maternity benefit and how much.

Regarding affordability you will need to have net disposable income of approx. €2550 per month for a couple and two children per month after paying stressed mortgage repayments and childcare plus any short term loans. Figure of €2550 quoted is Haven mortgages, permanent tsb would be €2660 so all lenders differ but not hugely.
Hope the above helps. My advice would be to contact your lender around end of August to see if you can extend your mortgage or do you have to reapply.

tubbs26 wrote: »

I have mortgage approval until September. I am currently considering buying a house in an estate that will not be completed until October.

My wife is expecting a child at the end of September. Our income will be down from September as my wife will only be paid minimum maternity pay. We will though however save on childcare costs for our other child while my wife is on maternity leave.

Does anyone know if the bank will offer us the same mortgage amount or will they reassess the mortgage application completely? Or can the mortgage be drawn down before September(very risky I would imagine)

We would struggle to afford the house if the bank reduce our mortgage amount. Any advice greatly appreciated

Confused ftb

Hi, I know this was a while ago, just wondering how you got on as I'm in the same position now?