How hard is it to get a mortgage?

BailMeOut

Brioscai wrote: »

Bailmeout, who did you go with please? We have only been approved for our rent equivalent. This equates to under 20% net earnings as we failed to show enough savings.

AIB

Is your approved amount more or less than 3.5x income?

finooola

Michael D Not Higgins wrote: »

As per the original post, the OP's boyfriend is paid in Sterling, presumably working in the north.

No, he works from home in the Republic, but the company is based in London. Well, head office is in Japan but you get the drift! The bank were at pains to point out that this was just their own policy and that we probably wouldn't have the same issue with other banks. My bank is AIB, but I don't think there's much point me asking them right now since I'm not working (just had a baby the other day!).

BailMeOut

finooola wrote: »

No, he works from home in the Republic, but the company is based in London. Well, head office is in Japan but you get the drift! The bank were at pains to point out that this was just their own policy and that we probably wouldn't have the same issue with other banks. My bank is AIB, but I don't think there's much point me asking them right now since I'm not working (just had a baby the other day!).

congratulations on the baby!

I work for solely and get paid from USA companies in USA and live in Ireland and had no issues with AIB. Is your husband an employee or a contractor (sole trader)? Where is his income tax being withheld and paid?

Parchment

Afroshack wrote: »

my dad is a mortgage broker and he gave me some advice when I started saving for my own place.
save as much of a deposit as you can. gifts of money are common but a decent savings record is essential - it shows you can plan ahead, manage your finances and you will have a rainy day fund in case one of you gets sick or loses your job. small and regular is better than large chunks twice a year.
the x3.5 times your salary rule can be bent if you are in a permanent career where you are guaranteed to be earning more in 5-10 years (medicine, education, banking, tech)
a permanent job in a stable sector looks better than making a million being self-employed. He always found it easier getting loans for people who worked in penny's full time making 25k than a self-employed builder who can make 60k one year and 10k the next.
don't have ANY returned direct debits or bounced cheques - even if you were only a euro short it shows poor financial planning if you haven't got enough in your account on the right day
avoid using your debit and credit cards. take.out say 200 in cash every week for food/petrol and stick to it. they don't look favourably on small impulse purchases like 4euro coffees in Starbucks or 10euro in a pub, it all adds up

It seems like a lot, but it did help a lot of his clients. Those that were refused had 100s of small purchases made on cards, a returned DD or were just visibly spending money on random stuff (beauty salons, gadgets, pubs, lavish holidays) and dipping into savings to fund it.

This is spot on advice! It echoes everything we heard from each bank we applied to.

We both are in stable jobs (im a permanent public servant) but neither of us earn earth shattering amounts.We both save regularly, never use credit cards for "credit" purposes - just for paying for things online etc. We are pretty boring with money and dont do anything to rash with it.

The banks really need to see that you have capacity to pay out X amount each month - for us they saw it as we paid our rent, without fail, each month. Also they could see our regular savings leaving our bank accounts - then going into savings accounts.

They will question amounts - i lodged 1k into my savings & they queried where it came from (as it was out of the ordinary), i could show the transaction where i took it out and then my mom won some money on the lotto and that made up the balance!

Basically you need a visible track record of being sensible with your money. Car loans are a no-no from what i gathered and i know of two friends who were told it was best to clear theirs before applying for a mortgage.

finooola

BailMeOut wrote: »

congratulations on the baby!

I work for solely and get paid from USA companies in USA and live in Ireland and had no issues with AIB. Is your husband an employee or a contractor (sole trader)? Where is his income tax being withheld and paid?

He pays his tax in Ireland since May or June, I think it was. Before that we both lived in London and were getting paid and paying tax there.

BailMeOut

finooola wrote: »

He pays his tax in Ireland since May or June, I think it was. Before that we both lived in London and were getting paid and paying tax there.

ok so with AIB you may need more time here. They wanted three years of earnings and tax returns in Ireland from me before I could apply. As others said you should look at other banks or even better use a broker.

ibrahimovic

How long do you need to be in a full time job? I have been full time employed for about 4 months now, I presume that is too short?

Samuel T. Cogley

ibrahimovic wrote: »

How long do you need to be in a full time job? I have been full time employed for about 4 months now, I presume that is too short?

Longer the better, but considerations will be made after 6 months, but generally depends on your probation duration. If this is your first FT job that might be flagged also.

There's very little downside to starting to approach banks now, it'll be weeks/months in the applications stage so things may change.

ibrahimovic

Appreciate the reply thanks, no harm in contacting them good idea.

Zapperzy

How far back do the banks look through statements?
Set up a credit union account a month ago and putting away a set amount every week by standing order from my ptsb current account with the intention of applying for a mortgage in 2-3 years time (in FT work, waiting on permanent contract). Boyfriend is doing the same into a separate account. Are we doing right by all this? Should I have set up a savings account with my own bank or is credit union acceptable?

myshirt

Credit Union is absolutely fine.

Only thing I would say to you is your money won't work hard for you in a credit union. In other words the pace of inflation will beat the pace of what your money earns. If it is 2/3 years down the line, consider options to get that money working for you and not against you, so you're not swimming against the tide.

B-D-P--

Me and my partner, Unmarried, walked into bank, have 2 plus 30k jobs, no outstanding loans, Dont use credidcards and both in same job over 3 years.
Walked out easy with loan thats substantial enough, Easily build our 2 story home to good finish.

No issues at all, obviously it toke a little longer than 1 meeting but we didnt run into any issues.