Mortgage stress tests

freshprince

Hi guys,

I'm young with a young child and was wondering about taking a mortgage as soon as it's available. I've been in a new job since January, and on a permanent contract for about 2 months.

I've been saving bits and pieces and plan to save 1000€ per month for the foreseeable future.

Aib said that they stress test based on a 130ish mortgage would demand that I had about 2300 after mortgage payments, left over each month. Obviously that's quite unreasonable for only one person working.

Is there other banks that have much more flexible stress tests? Basically who will offer mortgages to someone making below 40k and supporting a partner and kid?

I understand that trust must be built up, and I would want to show saving and money coming in etc. I don't want to keep going direct to banks now as I'm still 6 months away from having a deposit that I'm happy with.

GaGa21

Would you be eligible for the Rebuilding Ireland Home Loan? That may make things more affordable for you.

freshprince

GaGa21 wrote: »

Would you be eligible for the Rebuilding Ireland Home Loan? That may make things more affordable for you.

Thanks, I wouldn't be eligible though, my partner is studying so she's not working and would need to work for one year to qualify.

I'm also not in two years continuous employment (yet of course).

We don't currently live together, guess I could just process the application without them...

Trish56

If you're applying in your own name only which makes sense if your partner is not in permanent employment you need to have €1300 for a single person and add €250 per dependent after stressed repayments. All the lenders criteria are more or less the same.

freshprince

Trish56 wrote: »

If you're applying in your own name only which makes sense if your partner is not in permanent employment you need to have €1300 for a single person and add €250 per dependent after stressed repayments. All the lenders criteria are more or less the same.

Good reply thanks. That I would be able to afford.

I guess they've no way of finding out whether or not they move in or not, they don't check property right.

GaGa21

No harm applying as a single applicant. No one can tell if your relationship status will stay the same in the future or if your partner will return to work after study.
Your child will however be be taken into a.c. regarding maintenance etc.

freshprince

GaGa21 wrote: »

No harm applying as a single applicant. No one can tell if your relationship status will stay the same in the future or if your partner will return to work after study.
Your child will however be be taken into a.c. regarding maintenance etc.

Yeah I'm aware or that, thanks.