Are mortgage approvals confined to the city you work in?

D

DonCorleone

Guest
I was wondering are mortgage approvals (non-investment) confined to the city/area you work in?
I completely understand that you can get approval for mortgages for investment properties that can be located all over the world...but can I get approval for a house in a different city than I work in, if it's the only mortgage I am carrying?
 
Mortgage approval simily means you are approved for the money. The address of the property doesn't make any difference providing the mortgage amount is not more than the cost of the property.

In other words i could mortgage approval in Donegal for a house in Dublin!
 
The address of the property doesn't make any difference providing the mortgage amount is not more than the cost of the property.
Click to expand...

not strictly true.

for example if you work in Dublin and apply for a mortgage facility to purchase a property as your primary residence in Cork, the lender will query if this is in fact going to be your primary residence. lenders will approve you for a residential mortgage facility to buy a property as your primary residence once its within reasonable commute of your employment. if its not within reasonable commute, then the lender will query how you intend to continue working in your present employment , or will have to factor accommodation costs if commuting is not feasible. ( eg above, working in Dublin, but buying a property to live in Cork)
 
Not for all said:
Mortgage approval simily means you are approved for the money. The address of the property doesn't make any difference providing the mortgage amount is not more than the cost of the property.

In other words i could mortgage approval in Donegal for a house in Dublin!
Click to expand...

Really? Does the lender not ask how the borrower is going to live in a PPR in Donegal yet work in Dublin?

If the property is within reasonable commuting distance of the property (no, I can't define reasonable ;) ) then there should be no problem, otherwise the underwriter will assume the property is for investment purposes and will apply the appropriate criteria.

Sarah

www.rea.ie
 
Not for All

Re Quick switch and closing centre fee:

"I have never heard of these fees!-And i am a broker! I think they might be taking the hand at you."

Plus you have not heard of the reasonable commute rule.

Not for all, are you really a broker or are you "taking the hand at us"?
 
No i really a broker!! I have done mortgage fro clients who live in donegal and work in dublin. They stay in a shared home in dublin paying very little on rent cause there are so many in it and there employers pays towards it. There wife and family live in donegal. I have just got the 3rd one of these through!!!
 
Super.

Only a month ago you were asking

Not for all said:
I know this is prop done to death. I am look for a website/guide to what each banks guide lines/ underwriting details are. I.E. What their terms/max age/income details/ mortgage types etc etc are.
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and you're now a fully fledged broker.

Super duper.
 
Different criteria (and rates) apply depending on if the property is an investment property or a main residence. If you are going to say its a primary residence then the financial institution will reasonably look for details as to current employment and yes such things as distance from current employment will certainly be taken into account. That said, going back to your original question, if for e.g. you work in Dublin and the property is in Meath/Kildare a daily commute is feasible. If longer distances are involved, factors such as shift work are also taken into account. The main objective of the mortgage company is to establish that the property is indeed your primary residence.
 
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