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Mortgage and promotion

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  • 12-08-2017 9:46am
    #1
    Jellymonster1
    Registered Users Posts: 5 ✭


    Hi all, hoping for some advice. I've been working for a public sector organisation since 2004. We applied for AIP last November with AIB and then renewed it again in May with no issues. I have recently been promoted in work and my new contract has the standard six month probation clause in it. We are hoping to put a deposit on a new build in the next few weeks with an estimated completion date of December. My question is... will my promotion affect the mortgage approval? Should I talk to the bank or just say nothing? Will they ask for updated salary Certs etc when moving from AIP to full approval?


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    #2
    BBMcQ
    Registered Users Posts: 1,324 ✭✭✭BBMcQ


    Jellymonster1 wrote: »
    Hi all, hoping for some advice. I've been working for a public sector organisation since 2004. We applied for AIP last November with AIB and then renewed it again in May with no issues. I have recently been promoted in work and my new contract has the standard six month probation clause in it. We are hoping to put a deposit on a new build in the next few weeks with an estimated completion date of December. My question is... will my promotion affect the mortgage approval? Should I talk to the bank or just say nothing? Will they ask for updated salary Certs etc when moving from AIP to full approval?

    Very unusual for an internal promotion to require a probation? You are running the risk of a bank checking with your employer at drawdown (the minority of banks do this - but still a risk).


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    #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    It depends on. If after the probationary period you don't work out in new role (worst case scenario) do you get your old job back? If so there should be no issue.


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    #4
    Sarn
    Registered Users Posts: 3,080 ✭✭✭Sarn


    My other half is on probation as a result of a recent promotion. It was a concern that we had as well. Her workplace didn't mention the probation on the salary certs. In her case she is a permanent employee and we are only looking for 2 or 2.5 x our income as a mortgage. If worst came to worst she would revert back to her old role and the negligible difference in salary would have no impact on our application.


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    #5
    Jellymonster1
    Registered Users Posts: 5 ✭Jellymonster1


    Thank you for the replies. Think I need to have a chat to salaries and HR and try get some clarity.


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    #6
    notharrypotter
    Closed Accounts Posts: 1,112 ✭✭✭notharrypotter


    BBMcQ wrote: »
    Very unusual for an internal promotion to require a probation? ).
    Public service its common.
    If you don't work out for some reason you simply revert to previous grade.

    You already have approval based on pre-promotion grade.
    so there should be no issues, unless for some unlikely scenario where you are been promoted with a pay cut.


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    #7
    catrionanic
    Registered Users Posts: 2,091 ✭✭✭catrionanic


    We had a similar situation with my husband when we first got approval. He had a chat with his boss, and the boss wrote a later saying that he was waivering his six month probation. Then the bank were happy. Worth a chat with your boss? If they've known you for a while then they may be happy to do that. Probation periods are often in contracts to protect employers against new employees who have never worked for them before and hence they might turn out to be useless!


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    #8
    kwat
    Registered Users Posts: 176 ✭✭kwat


    Had a similar issue when applying for our mortgage. Other half had just been promoted within Civil Service with one year probation attached. Was applying with two banks - red flags straight away when mentioned the promotion. One of the banks refused even after explaining if he didn't pass probation he'd just go back to previous salary, zero risk of loosing job etc. The person I was dealing with didn't have a clue - had to make a complaint about them and go through the whole process again with a different lender. Eventually got AIP.
    Other lender was more straightforward - just had to provide copy of contract stating worst case scenario (revert back to previous salary scale) and they were fine with that.


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    #9
    Jellymonster1
    Registered Users Posts: 5 ✭Jellymonster1


    kwat wrote: »
    Had a similar issue when applying for our mortgage. Other half had just been promoted within Civil Service with one year probation attached. Was applying with two banks - red flags straight away when mentioned the promotion. One of the banks refused even after explaining if he didn't pass probation he'd just go back to previous salary, zero risk of loosing job etc. The person I was dealing with didn't have a clue - had to make a complaint about them and go through the whole process again with a different lender. Eventually got AIP.
    Other lender was more straightforward - just had to provide copy of contract stating worst case scenario (revert back to previous salary scale) and they were fine with that.

    Kwat, can I ask which banks were these? Thanks


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    #10
    kwat
    Registered Users Posts: 176 ✭✭kwat


    Jellymonster1 wrote: »
    Kwat, can I ask which banks were these? Thanks

    Sure, AIB and EBS. Had more trouble with AIB but really think we were initially unlucky in who we were dealing with.


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    #11
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    BBMcQ wrote: »
    Very unusual for an internal promotion to require a probation? You are running the risk of a bank checking with your employer at drawdown (the minority of banks do this - but still a risk).

    Its the norm in the public sector- depends on the post- and the body- but a minimum probation period is 6 months- and it can be up to 2 years duration.

    OP- can't see why the promotion would have any effect/impact whatsoever on your mortgage approval- if anything- if you go back to them- you may get approval at a new enhanced level!


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    #12
    Jellymonster1
    Registered Users Posts: 5 ✭Jellymonster1


    The_Conductor wrote: »
    Its the norm in the public sector- depends on the post- and the body- but a minimum probation period is 6 months- and it can be up to 2 years duration.

    OP- can't see why the promotion would have any effect/impact whatsoever on your mortgage approval- if anything- if you go back to them- you may get approval at a new enhanced level!

    I hope not. Just concerned that the 'yes' box would be ticked when they ask about probation on a salary cert.


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