Mortgage credit rating and best options

DarraghR

Hi there. I have built up some cash in my Credit Union account over the past 3 year. Not long ago I discovered that Credit Union savings have little or no affect on mortgage applications.

Now I feel I must transfer the majority of my Credit Union funds over too a bank savings account or something along those lines.

This is the first time in my life that I have started to really think about getting my own home so please give me any advice that may be of help.

As for my background I am in full time employment and on a permanent contract. On average I make 26,000 a year but other incentives in work would bring it up to 28,500.

Geuze

A history of regular savings helps in a mortgage application.

Very important to be able to show regular savings.

Your income is low if you are a full-time worker, that won't help. Mean earnings in 2016 were 45-46k.

The mortgage limit is 3.5x income.

DarraghR

When you say regular savings do you mean I must have an account with my back under the name Regular Savings? Currently with my Permanent TSB account I have a Flexi Saver Demand, Switch Current and a 21 Day Regular Saver.

Wow so all mortgages in Ireland require a minimum earnings per year of 35,000?

I live with my girlfriend so what about a joint mortgage

phormium

A mortgage bank is going to be looking for a record of regular savings, it won't matter whether it is with them, another bank or with a credit union. It's the statements showing the regular saving that is important and not the type of location of the account.

So by all means switch your credit union savings to a bank if you want but it won't buy you any extra brownie points.

theteal

DarraghR wrote: »

Wow so all mortgages in Ireland require a minimum earnings per year of 35,000?

I live with my girlfriend so what about a joint mortgage

3.5 times combined income + 10% deposit needed if both ftb

This is basic stuff, you've a fair bit of research to do

Geuze

DarraghR wrote: »

When you say regular savings do you mean I must have an account with my back under the name Regular Savings? Currently with my Permanent TSB account I have a Flexi Saver Demand, Switch Current and a 21 Day Regular Saver.

Wow so all mortgages in Ireland require a minimum earnings per year of 35,000?

I live with my girlfriend so what about a joint mortgage

Account name or location is not relevant.

What the lender needs to see is a history of you making regular, sustained savings.

Or else paying rent regularly, that will become your future mortgage repayment.

Earnings of 30k x 3.5 = 105k mortgage, this will get you a modest house in a provincial town, but obviously won't get you much in a city.

DarraghR

I would have references and records on my bank account from renting over the past 4 years.

My credit union savings are added to once a week for over 2 years and some weeks a bit extra.

My first and only loan was with the Credit Union and paid back well in advance of the allocated time.

105,000 is not that much for a 2 bedroom house where I would like to be located. Is it possible to get a mortgage and then also get a loan from the Credit Union so I might have 150,000 to put towards a house?

DarraghR

I was talking to one of my friends that works in a bank last night. She said I would want to be careful about applying for a loan at the age of 35 or older