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Mortgage application, not much left in acc at end of month!

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  • 23-04-2018 11:44am
    #1
    jc11
    Registered Users Posts: 175 ✭✭


    Hi all,

    We are selling our house at the mo, using proceeds of sale towards next house. We wil hopefully have 250000 to put to next house so looking for mortgage of around 100k. We pay 420 on mortgage currently and save 400 extra per month.

    Between car loan, bills and just a few months with loads of outgoings (estate agent fee, communion and mothers 60th amonst other things) we seem to have feck all coming up to payday. All bills paid and not going into overdraft. Save 400 pm without fail.

    Will this be frowned upon by banks? Hoping the fact we will have large deposit will go in our favour.

    Just cant seem to get on top of it at the mo

    Cheers


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    #2
    ando
    Registered Users Posts: 5,398 ✭✭✭ando


    They stress test your proposed new mortgage at about 2% and also take into account all your outgoings and take it all away from your net income. They also make sure nowadays that you have enough per month to live a 'normal lifestyle' as they would see it after all your bills are paid.. Repayment capacity is what they look for basically..

    Its too difficult to say if you would get it or not, there's not enough info in your post and all banks are different on how they calculate repayment capacity. One bank rejected me two years ago, but only a few days later another bank gave me to go ahead... shop around if you have trouble.


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    #3
    f@steddie
    Closed Accounts Posts: 68 ✭✭f@steddie


    Your loan to value will be well below 50% so you have a lot to lose if you don't pay the mortgage (i.e. you'll have skin in the game). The new mortgage repayments should come in at less than the 820 you currently have for mortgage + savings. Without more details I think you're in a very good position to get a new mortgage.


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    #4
    breeno
    Registered Users Posts: 756 ✭✭✭breeno


    I recently sold and bought using equity as deposit. I had been consistently saving a set amount as well as repaying another loan (cleared in full in advance of drawdown) and between those two I was paying almost double the amount of the proposed new mortgage payment. Like you I was very tight coming up to payday and even snuck into overdraft( had a €200 overdraft approved by bank) and still went a tad over that or generally down to near 0 by end of the month. I never had any missed payments or gaps in savings otherwise and I was approved without any problems. Our LTV was good at 60% which helped us too.
    As our broker said, the underwriter isn't too worried about penny pinching at the end of the month once you can show capacity to comfortably meet the new mortgage payment (and in my case any existing mortgage/loan etc was cleared).
    Best of luck


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