No deposit €

xxbrady

Finding it very hard to save for a mortgage been renting years
In the job 18m +
Wife +1 child (wife works part time-served money for herself. Bad credit history and can't go in on mortgage with me)
Car loan of 350 pm
Rent 550.
I pay for rent + all bills + any car expenses
My wages are 35000 pa
I get expensive and overtime which no bank will consider.
I have €2000 in savings
Looking to get a mortgage of 130 thou
Is there any bank that deal in less than 10%
The mortgage would possibly be less than rent give or take

Stheno

To be honest it's unlikely, you need to fill the 3.5 income and 10% deposit criteria in most cases.

So for a mortgage of 130k, you'd need a ten percent deposit and to be earning 33.5k

You also have no choice but to include your wife on the application as you are married, and that will negatively impact you if she has a bad credit rating.

Can you focus on sorting out her credit rating in the next five years by clearing all debt asap, and then saving for five years to get the deposit?

FortySeven

xxbrady wrote: »

Finding it very hard to save for a mortgage been renting years
In the job 18m +
Wife +1 child (wife works part time-served money for herself. Bad credit history and can't go in on mortgage with me)
Car loan of 350 pm
Rent 550.
I pay for rent + all bills + any car expenses
My wages are 35000 pa
I get expensive and overtime which no bank will consider.
I have €2000 in savings
Looking to get a mortgage of 130 thou
Is there any bank that deal in less than 10%
The mortgage would possibly be less than rent give or take

I had trouble getting 116000 with 29000 down. Combined income of 50000 and zero debt. Good credit ratings.

I would get rid of the car. That's a lot per month.
Clear the finance and pay cash for a small, cheap runaround. 350 a month will boost your deposit fairly quickly.

ted1

Sell the car and just get a focus or something reliable that costs 1500. There's an extra 350 a month. becsuse you have a kid your mortgage repayment ability is downgraded by about 500 euro per month

newacc2015

xxbrady wrote: »

Finding it very hard to save for a mortgage been renting years
In the job 18m +
Wife +1 child (wife works part time-served money for herself. Bad credit history and can't go in on mortgage with me)
Car loan of 350 pm
Rent 550.
I pay for rent + all bills + any car expenses
My wages are 35000 pa
I get expensive and overtime which no bank will consider.
I have €2000 in savings
Looking to get a mortgage of 130 thou
Is there any bank that deal in less than 10%
The mortgage would possibly be less than rent give or take

Why are you driving a car that you have a loan on it? You can pick up decent cars for €2000-2500 cash. It might not be what you like. But it will be a decent and comfortable car. You are spending €4,200 after tax on a car. That is nearly 15% of your income per tax If you didnt have that loan, within 3 years you would have close to €13k saved. There is your 10% down.

Banks will loans to people with bad credit for premium and if you have a flawless credit rating for 2 years.

ted1

ted1 wrote: »

Sell the car and just get a focus or something reliable that costs 1500. There's an extra 350 a month. becsuse you have a kid your mortgage repayment ability is downgraded by about 500 euro per month

A 1500 euro car and reliable are two words that are rarely seen in the same sentence.

The op could be doing a lot of driving for work and needs a proper comfortable car, people saying get rid of the car are living in dream land.

newacc2015

Cecilia Spicy Temptation wrote: »

A 1500 euro car and reliable are two words that are rarely seen in the same sentence.

The op could be doing a lot of driving for work and needs a proper comfortable car, people saying get rid of the car are living in dream land.

There is tons of affordable and reliable second hand cars. Anything with "expensive car tax" is a steal. You dont need to spend €350 a month to find a reliable car. You can find Skoda Octavias on Donedeal for €2500 with around 130k km on them. How is that not reliable and affordable

Can you think of any other way of OP saving €4200 after tax without a year without a serious lifestyle change?

endacl

Cecilia Spicy Temptation wrote: »

The op could be doing a lot of driving for work and needs a proper comfortable car, people saying get rid of the car are living in dream land.

People are saying the OP should cut his cloth to suit his measure.

I don't think 'living in dream land' means what you appear to think it means...

SeanPuddin_

I thought married couples had to go joint application on the mortgage or am I wrong?

xxbrady

Stheno wrote: »

To be honest it's unlikely, you need to fill the 3.5 income and 10% deposit criteria in most cases.

So for a mortgage of 130k, you'd need a ten percent deposit and to be earning 33.5k

You also have no choice but to include your wife on the application as you are married, and that will negatively impact you if she has a bad credit rating.

Can you focus on sorting out her credit rating in the next five years by clearing all debt asap, and then saving for five years to get the deposit?

Bank in process of repossession of a property with an ex. It's been going on for 6 years + don't see it being sorted soon
I met with ulsterbank and no issue with getting mortgage or without her but they won't take extra income into consideration

desertcircus

Cecilia Spicy Temptation wrote: »

A 1500 euro car and reliable are two words that are rarely seen in the same sentence.

The op could be doing a lot of driving for work and needs a proper comfortable car, people saying get rid of the car are living in dream land.

You have zero evidence for any of this.

xxbrady

newacc2015 wrote: »

There is tons of affordable and reliable second hand cars. Anything with "expensive car tax" is a steal. You dont need to spend €350 a month to find a reliable car. You can find Skoda Octavias on Donedeal for €2500 with around 130k km on them. How is that not reliable and affordable

Can you think of any other way of OP saving €4200 after tax without a year without a serious lifestyle change?

350 pays for 2 cars. 2 second hand cars. Loans to be paid off in next 3 years

thirtythirty

You need to have a look at your finances and goals.

You currently earn ~€2300 net per month

Less €550 rent
Less €350 car (I'll come back to this point in a minute!)
Less ~€250 - €300 estimated for food
Less ~€80 petrol
Less ~€350 bills (estimated 150 p/m energy, 50 mobile, 50 tv / internet, 100 health or other ins.)
Less ~€400 "living" expenses (100 each week)

Leaves another €300 free per month. Where's that currently going? And that assumes I haven't over-estimated the above, because your partner earns also by the sounds of it so may take a chunk out of some of those costs.

For your deposit, if you targeted having the cash in 3 years, that's ((13k - 2k) / 3)/12 = ~€300 per month you need to save to reach your goal. That's seems do-able. Additionally any overtime & expenses should also be thrown in that fund.

And then to the car, you've already broken the "1/10th rule of thumb" by a wide margin in that you should keep car purchases to 1/10th of your gross yearly salary (3.5k in your case), unless you have no other commitments or cash requirements.

At 350 per month that is a HUGE load on your monthly take home - 60% of the cost of your housing! Assuming you got a 3 year term (because anything above that would have a huge amount of interest and would not be a good idea) it seems like you got a ~10k car, with about 2.5k interest payment-ish? Regardless of the exact figures, that's ~30% of your yearly gross. I would consider selling, clearing the debt, and getting a 4k car of which you could get a nice '06 something and have no monthly drag from payments.

Additionally the debt payments will count against you for a mortgage because even though your mortgage might conceivably be less than your rent, your income would be stress tested up a % or 2, and you don't have much breathing room with your current finances.

Hope this helps

Edit: just saw the loan is for 2 cars, in that case, sell one. You will be able to adapt to one car.

bleary

thirtythirty wrote: »

Edit: just saw the loan is for 2 cars, in that case, sell one. You will be able to adapt to one car.

In a rural area (which I assume with 550 rent pm the op is living in) and one person gone all day working there quite possibly is a need for 2 cars.

However since they are renting they could possibly move into a town and then get rid of the car but may pay higher rent.

In terms of what the OP has set out, they are looking for 4 times the salary with <10% deposit,
banks can apply for one exemption or the other but cannot apply LTI and deposit exemption.
Also if you are married (rather than cohabiting) to your partner, they will usually have to be included in the mortgage application.The banks want to be able to claim your property in the event of default, your partner would also have a claim to the property.

There is a possibility that you could take an investment mortgage in your own name , this would be at a higher rate of interest .
See this post for a similar situation
https://www.workplacerelations.ie/en/Cases/2013/March/DEC-S2013-001-Full-Case-Report.html

Get your partner to sort out the other property , could she look into bankruptcy etc?
Start saving more to get the 10/20% deposit together , if your partner has a property before she would probably be counted as a second time buyer.
Try again in a few years when your income and deposit and situation have increased.
There may be some version of social /affordable housing in the future again, this might be your best option

ted1

Cecilia Spicy Temptation wrote: »

A 1500 euro car and reliable are two words that are rarely seen in the same sentence.

The op could be doing a lot of driving for work and needs a proper comfortable car, people saying get rid of the car are living in dream land.

That's rubbish, plenty of car out there for 1500 which are reliable

FortySeven

ted1 wrote: »

That's rubbish, plenty of car out there for 1500 which are reliable

When I was saving for a mortgage I got rid of a bmw and got a fiat seicento. Paid 600 for it and drove it for nearly 3 years with only basic maintenance. With two small kids in car seats for the school every morning.

Depends how much you want it really.

PhoenixParker

xxbrady wrote: »

350 pays for 2 cars. 2 second hand cars. Loans to be paid off in next 3 years

Can you refinance the loans or otherwise reduce the amount of interest/timeline of the car loans? Even if you don't sell the cars, there may be a way to save yourself money long term. The sooner you can get the cars paid off completely the sooner you can really start saving for a deposit.

Tax is another thing I'd check. Given your wife's part time income and your own E35k salary it's worth checking that you're not over paying income tax.

SarahMollie

OP Im sorry to say it, but with the banks only having a limited number of exceptions so they're going to give them to their best loan candidates, and you wouldnt fall into that camp.

The car loan stands out for me also. Its very extravagant from a family on €35kpa. Thats quite a low income for a family of 3, and like it or not, your circumstances don't make you the best candidate for a mortgage.

Further, your savings wont even cover stamp duty +legal fees etc.

Why do you need to own your home? It sounds to me like you cant afford it really.

gl0Rob

SeanPuddin_ wrote: »

I thought married couples had to go joint application on the mortgage or am I wrong?

No that is correct. As they are Married both would have claim to the equity in the house. The bank would require a joint mortgage.

Caliden

ted1 wrote: »

That's rubbish, plenty of car out there for 1500 which are reliable

Have to be careful picking a car nowadays as a lot of insurance companies won't insure a car that's over 15 years old and if you plan on keeping it for a year or 2 insurance costs could offset the amount your 'saving' by downgrading car.

Tasden

Caliden wrote: »

Have to be careful picking a car nowadays as a lot of insurance companies won't insure a car that's over 15 years old and if you plan on keeping it for a year or 2 insurance costs could offset the amount your 'saving' by downgrading car.

Don't you also have to nct every year once it's over ten years?

xxbrady

xxbrady wrote: »

Bank in process of repossession of a property with an ex. It's been going on for 6 years + don't see it being sorted soon
I met with ulsterbank and no issue with getting mortgage or without her but they won't take extra income into consideration

I am surprised they said that. You might get a different answer once a formal application is made.

sozbox

FortySeven wrote: »

When I was saving for a mortgage I got rid of a bmw and got a fiat seicento. Paid 600 for it and drove it for nearly 3 years with only basic maintenance. With two small kids in car seats for the school every morning.

Depends how much you want it really.

This^^^

You need to clean up the balance sheet. I did the same as above, fancy car sold, bus pass bought. Debts cleared. Cash flow vastly improved. Mortgage granted.

athtrasna

Mod note
The car point has been made and laboured. Can we move on from motor discussions now please