whats the chances of getting mortgage???

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cornflakes1

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my husband and i have being renting for 6 years. we both work full time have being saving but only have 10,000 saved, we pay rent of 1000 a month which comes out of my husbands account. we are not looking obviously for a big mortgage, we have being lookin at houses for 120,000 or so. my hsband in the same job 3 years but we are waiting for a permanent contract for him which never seems to materialize. can we go for mortgage without this??his job is defo long term and a big multi national company but its not materializing. we are owed between 15 and 20 thousand which hasnt materialized either and probably wont!we could access a few thousand but the permanent contract is holing us back. could we geta mortgage anywhere. we are both 45. thanks you
 
Difficult to say, leaning towards the negative though several things in your favour. Some savings, currently demonstrating ability to pay a thousand rent. Can you prove a six year history of rent payments? Contract situation challenging but many companies roll contracts so appears a history of rolling contracts is a positive. Banks prefer full time so would need to prove a long employment history for both of you to have a chance.

Some things don't add up though here. Where you living or looking to buy? House renting at a thousand a month is not consistent with buying one at 120 grand? Are you looking to move or vey significantly reduce what you will live in? What was your husband doing prior to existing job? Did he have another job? Do you work full time?

Any kids or any planned? You need to clearly set out disposable income and all your income and outgoings?

Worth asking to a bank to get some advice though I do think it will be very challenging. Still if you don't try..........
 
hi gerard123!!thank yo so much for replying nd helping me out!we have one child, we both work full time, hubby being on lots of temporary contracts unfortunatley but has always worked and no gaps, i am only working full time the last 10 months but have permanent contract. i dont understand what you mean regarding rent of 1000 and inconsistency of mortgage of 120,000?what do you mean?thanks for replying x
 
Paying rent of €1000 per month would indicate that you live in an area where there is a demand for housing. A house price of €120,000 would indicate otherwise....
 
emeralds said:
Paying rent of €1000 per month would indicate that you live in an area where there is a demand for housing. A house price of €120,000 would indicate otherwise....
Click to expand...

I agree with this. If the houses truly were comparable, I'd expect an investor to have it snapped up long before anyone could get mortgage approval.
 
I kinda get you now!!we arent thinking of buying in this area thou as house prices too high. we are looking at a different area, my hubby will have a bit more of a drive to work, not too much but im hoping to find work in area, would bank be asking all these questions or will they just approve on present situation??thanks for help
 
From a monthly outgoings perspective it stacks up for you as a mortgage of €108,000 would cost about €750 with life insurance on a 20 year term. You would also have to factor in costs such as property tax, insurance and maintenance that you do not currently pay. What you pay in rent now should cover all of this. Unfortunately this does not mean that the affordability calculator that a bank uses would agree that the loan is affordable to you.

In terms of savings, you would want to be able to pay the deposit, legal costs and do whatever fit-out and furnishing is necessary for a house. It would also be advisable to have some form of 'rainy day' savings. As your savings do not cover a 10% deposit on a house of 120k, this alone is likely to impact a bank's willingness to lend.

The issue with the nature and length of the employment contracts is a challenge but can be overcome when other factors such as savings, the loan to value, level of earnings etc. are in your favour.

I would suggest that your priority should be to increase your savings.
 
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