On contract and getting a mortgage

Tobecontinu

Phileas Frog wrote: »

Then you haven't a hope.

But I was in college and before that I was working abroad, could that be explained?

Phileas Frog

Your partner is better off applying on their own, presuming that you are not married.

Tobecontinu

Phileas Frog wrote: »

Your partner is better off applying on their own, presuming that you are not married.

Why is that?

Redser87

So €1600 into savings? Are you also renting? They will add rent and savings together to figure out your repayment capacity. You would need to be doing this saving for 6 months consistently and NEVER dipping into your savings.

I can't answer your question but I do know the feeling of stress when you have to wait for answers. If I were you I would spend today getting any paperwork you have and reading up on brokers to choose the best one for you. Then first thing tomorrow, make an appointment.

I hope someone can give you a more concrete answer but I do know that impatient feeling and I found the best way of dealing with it was doing something practical towards the mortgage.

ontheditch2

Tobecontinu wrote: »

I know people have said I should go to a broker but it's Sunday and I'm impatient. No one here will probably know the answers but I'll ask anyway. How would this look if applying for a mortgage?

Weekly earnings of 600 euro
200 of this into joint savings account

Partner does the same and has a permanent, full time job earning 50k.

Would that stand up?

Have ye the 10% deposit saved?

Regardless of your impatience, nothing else matters in the short term, so book into see a mortgage broker tomorrow to tell you what's needed

Redser87

Tobecontinu wrote: »

Why is that?

Because a couple applying together have to have €2050 disposable income left after paying the mortgage, a single person needs €1400.

Tobecontinu

Redser87 wrote: »

So €1600 into savings? Are you also renting? They will add rent and savings together to figure out your repayment capacity. You would need to be doing this saving for 6 months consistently and NEVER dipping into your savings.

I can't answer your question but I do know the feeling of stress when you have to wait for answers. If I were you I would spend today getting any paperwork you have and reading up on brokers to choose the best one for you. Then first thing tomorrow, make an appointment.

I hope someone can give you a more concrete answer but I do know that impatient feeling and I found the best way of dealing with it was doing something practical towards the mortgage.

No, both of us are living with our parents currently in order to save up. I'd love to book an appointment in the morning but both of us are working Mon - Fri. Thanks for the message, it is stressful!

Tobecontinu

ontheditch2 wrote: »

Have ye the 10% deposit saved?

Regardless of your impatience, nothing else matters in the short term, so book into see a mortgage broker tomorrow to tell you what's needed

Yes, we have 50,000 available for deposit. That will help surely?

Tobecontinu

Redser87 wrote: »

Because a couple applying together have to have €2050 disposable income left after paying the mortgage, a single person needs €1400.

So my partner earns 4,000 per month, I'd be earning 2,400 per month. That is way over 2050 if you take away a really high mortgage repayment even.

shamrock55

Tobecontinu wrote: »

No, both of us are living with our parents currently in order to save up. I'd love to book an appointment in the morning but both of us are working Mon - Fri. Thanks for the message, it is stressful!

So your partner is earning 50,000 yet can only save 200 a week, and is living at home, whats he doing with the rest of it

ontheditch2

Tobecontinu wrote: »

Yes, we have 50,000 available for deposit. That will help surely?

That's an unbelievable amount of money to have saved when you were recently in full time education and having no income.

Tobecontinu

Mr.S wrote: »

Being in college doesn't make a difference, banks just want to see you have been employed, on a good wage and history of savings.

Sounds like you are fairly new to your current contract job - which won't help your application. Best just chat with a broker - there are to many factors in play.

To answer your question - yes it's possible to get a mortgage on a contract role, but length of experience / experience / earnings / come into it. From what you've said, I would say you might struggle - wait 2-3 years and have steady work and savings and you should be in a much better place.

Or go the route suggested if you aren't married and have your partner be a sole applicant.

But a sole applicant on 50k won't get much in Dublin! Would it improve our case if I was in permanent full time employment instead of contract?

Tobecontinu

shamrock55 wrote: »

So your partner is earning 50,000 yet can only save 200 a week, and is living at home, whats he doing with the rest of it

No, we haven't started the savings account yet, I was just using that as an example. They could put 400 or 500 in it.

Tobecontinu

ontheditch2 wrote: »

That's an unbelievable amount of money to have saved when you were recently in full time education and having no income.

It's my partners money. I'm letting the side down here.

Squall Leonhart

Tobecontinu wrote: »

Yes, we have 50,000 available for deposit. That will help surely?

Depends if the 50K can be shown with a track record of saving it or if it was all gifted.

If your girlfriend is on 50K, she can borrow 175, plus the 50 you have leaves 225, less solicitor fees stamp duty etc and you're probably buying in the region of 215K as a sole applicant.

I did similar, single applicant, but really we were buying as a couple. Our solicitor drew up something for us so partner was protected in the purchase as she was putting in deposit money (smoke and mirrors with the bank..), and we've married since.

Tobecontinu

Squall Leonhart wrote: »

Depends if the 50K can be shown with a track record of saving it or if it was all gifted.

If your girlfriend is on 50K, she can borrow 175, plus the 50 you have leaves 225, less solicitor fees stamp duty etc and you're probably buying in the region of 215K as a sole applicant.

I did similar, single applicant, but really we were buying as a couple. Our solicitor drew up something for us so partner was protected in the purchase as she was putting in deposit money (smoke and mirrors with the bank..), and we've married since.

No, the 50k is all savings. My partner's savings. Unfortunately, we can't get much for 215k in Dublin.

Tobecontinu

Mr.S wrote: »

Yes, you are the variable at the moment due to the contract job. The risk is that if you don't get another contract after the current one concludes - how are you going to keep up with repayments? You can counteract this if you have lots of experience, decent CV, history of repeated contracts / projects etc but sounds like you are new to it and won't have that.

Easiest option would be to look for a permanent role, and in Dublin that shouldn't be the hardest in this market.

I've worked in the same field abroad for 2 years, this current contract is for a year, it's online work. I have about 5 years experience in this area. I've worked for the company my new role is in previosly.

ontheditch2

Tobecontinu wrote: »

I've worked in the same field abroad for 2 years, this current contract is for a year, it's online work. I have about 5 years experience in this area. I've worked for the company my new role is in previosly.

You said earlier that you returned to education before this job?
So, you were working and back in college, at the same time?

Tobecontinu

ontheditch2 wrote: »

You said earlier that you returned to education before this job?
So, you were working and back in college, at the same time?

No, I wasn't working when I was in college, it was a year long course.

Redser87

<SNIP>

This is a mortgage broker based in Limerick that do phone advisory sessions. A friend of mine (living in Dublin) used them in a similar situation to yourself.

Tobecontinu

Redser87 wrote: »

<SNIP>

This is a mortgage broker based in Limerick that do phone advisory sessions. A friend of mine (living in Dublin) used them in a similar situation to yourself.

Thanks very much. I got the link before it was deleted.

Redser87

Redser87 wrote: »

<SNIP>

This is a mortgage broker based in Limerick that do phone advisory sessions. A friend of mine (living in Dublin) used them in a similar situation to yourself.

Sorry, didn't realise that wasn't allowed.

Stheno

Tobecontinu wrote: »

So my partner earns 4,000 per month, I'd be earning 2,400 per month. That is way over 2050 if you take away a really high mortgage repayment even.

It's 2050 of net not gross income

Tobecontinu

Mr.S wrote: »

From the banks eyes it's still a risk as not consistent. Not impossible obviously but just talk to a broker / banks and see what they say, there's to many other factors at play.

If I was you, I would look for a permanent gig either way - as presumably you want the job security.

Yes, I'll talk to a broker.

I actually like the job I'm doing and although it's a contract, it's pretty permanent.

Tobecontinu

Stheno wrote: »

It's 2050 of net not gross income

Still over that limit!

Tobecontinu

Mr.S wrote: »

But it's not - on paper, and that's your problem! Why not push them for a permanent contract - will make the process a lot easier.

Yes, that's true. I'm going to push them for a permanent contract. Do you think that I have to pay tax through self assessment will have an effect? I know, I should be asking a broker these questions.

Tobecontinu

KylieWyley wrote: »

I'm on contract and Ulster Bank were willing to take a portion of my income into account (we weren't looking for 3.5x of combined income).

To help build the case, they asked for history of past earnings and a CV to show potential for future earnings.

Any extra info you can provide to strengthen your case will help.

Does anyone have any more information on something like this? I mean, having one main applicant and someone helping them.

SozBbz

OP frankly this all sounds ridiculous.

You can say you're impatient all you like, but that won't matter a jot to the banks.

You're on a relativly low income, and you need to be saving to pay that tax bill when it rolls around. Even if you earn 600 a week, you need to hold some of that back, it won't count as savings to the bank.

You need a consistant track record as a contractor, I'd say 2-3 years, but that could be less with a really constant employment history (which you don't have).

Even if you were to get a permanent job in the morning, the bank would want you to have passed any probationary period anyway, typically 6 months.

The amount you earn is very low to be trying to buy in Dublin.

I think there needs to be a bit of a reality check.

Speak to a broker, find out what you need to do to make yourself a more attractive candidate. Be prepared for it to take time. You don't need to go to one in person, make an inquiry by phone.

Tobecontinu

SozBbz wrote: »

OP frankly this all sounds ridiculous.

You can say you're impatient all you like, but that won't matter a jot to the banks.

You're on a relativly low income, and you need to be saving to pay that tax bill when it rolls around. Even if you earn 600 a week, you need to hold some of that back, it won't count as savings to the bank.

You need a consistant track record as a contractor, I'd say 2-3 years, but that could be less with a really constant employment history (which you don't have).

Even if you were to get a permanent job in the morning, the bank would want you to have passed any probationary period anyway, typically 6 months.

The amount you earn is very low to be trying to buy in Dublin.

I think there needs to be a bit of a reality check.

Speak to a broker, find out what you need to do to make yourself a more attractive candidate. Be prepared for it to take time. You don't need to go to one in person, make an inquiry by phone.

Oh yeah, obviously I won't get it straight away. I said I was impatient about finding out what I have to do. I'm not expecting to walk into the banks in the morning and get a mortgage.

Some people said that my partner is better off applying on their own. I was looking up stuff and the certain amount of exemptions the banks are allowed to give. I know there's not a huge amount but if my partner was ready to go in January with everything ready, would the chances of getting close to 4.5 times their salary be reasonable? Again, I should speak to a broker but just asking in case anyone else has information on this.

Phileas Frog

Tobecontinu wrote: »

Oh yeah, obviously I won't get it straight away. I said I was impatient about finding out what I have to do. I'm not expecting to walk into the banks in the morning and get a mortgage.

Some people said that my partner is better off applying on their own. I was looking up stuff and the certain amount of exemptions the banks are allowed to give. I know there's not a huge amount but if my partner was ready to go in January with everything ready, would the chances of getting close to 4.5 times their salary be reasonable? Again, I should speak to a broker but just asking in case anyone else has information on this.

Please go talk to your broker or your bank. 4.5 on a salary of 50k isn't going to happen.