Joint mortgage application - one is FTB, one is not?

CBear1993

Hi , I'm sure it's been covered a thousand times over on here!

I was a first time buyer last year with an apartment in Dublin. My other half still has first time buyer status.

• Do any banks take us on as first time buyers when we go for a house next year as a joint application? I have read that very few might consider it.. the 10% deposit would be massive versus the 20% for non-first time buyers... (not sure if that's correct?)
• If they don't I'm guessing our only option is to go for the mortgage for a house in her name solely, as she is first time buyer?

The problem there is that her salary would not allow us to purchase the house we want if they only looked at hers, our combined salaries I account for 70-75% of it.

• Can we go for it in her name, but still get a joint application i.e. our combined salary by 3.5/4?

Failing that, I guess for a house between 300-400K we will just have to save for another few years until we get a 20% deposit gathered, which could be some time. Is it always 10% for FTB and 20% for anyone else? Do you ever see 15% etc

Thanks in advance.

I don't want to sell the apartment as its in an upcoming area with future development planned and great transport. I could get about €2000 per month at least for it if I could hold onto it. However, if push comes to shove and we don't have the funds in the next 18 months for a house I may be forced to. I would get about €15K above what I paid for it, which isn't a whole lot. (but is to us as a couple in our 20s!)

un5byh7sqpd2x0

No, no one will consider it. If one party is not an FTB then none are.

A joint application is a joint application, you can’t have a single application with joint salaries.

Yes, it’s always 10% for FTBs, 20% for everyone else. No ifs buts or other exceptions.

CBear1993

OK, 100%. Thanks.

Appreciate the transparency.

Trish56

When one of you already have a mortgage then your application will be treated
as second time buyers however all lenders are allowed exceptions which means that once you qualify you can borrow up to 90% of the purchase price.

This year because of Corona Virus the exceptions will have been used up by all lenders due to lower lending volumes however you should apply in the first 6 months of next year and hopefully be able to borrow up to 90% once you comply with all other lender requirements.

CBear1993

Trish56 wrote: »

When one of you already have a mortgage then your application will be treated
as second time buyers however all lenders are allowed exceptions which means that once you qualify you can borrow up to 90% of the purchase price.

This year because of Corona Virus the exceptions will have been used up by all lenders due to lower lending volumes however you should apply in the first 6 months of next year and hopefully be able to borrow up to 90% once you comply with all other lender requirements.

Thanks Trish, makes sense now.

In the case you have mentioned, if we were lucky enough to get 90% LTV exception, could it be in both our names ?

Trish56

Yes application in joint names. All lenders have criteria to qualify for an exception which would be based on joint income, savings etc. and is easier to get in the first half of the year.