Would I be able to get a mortgage

[Sean O Neill]

I was in my last job for a year and a half which I finished up in sept 2017. I got a new job yesterday as a software developer for 28K which has 6 months probation.

Have 28k in saving (22k my parents gave me years ago).

Have never had a loan of any kind.

I live at home so can save at least 800 - 1000 a month .

Have one child which does not live with me anymore, paying maintenance of 80 euro a month.

Houses in the area I want to buy are around 112k to 128k.

Would this be possible for me? Would I need to be in my job 6 months or does it need to be longer?

 

[RedOnion]

Hi,

I hope the below helps.

Realistically it will be tough to get a mortgage, but not impossible longer term if you do all the right things.

Firstly, probation. At your salary level, you need to finish the probation period before a bank will consider you. If you were on a much higher salary it's less of an issue.

Next, proving a savings pattern. Banks want to see that you can afford the repayment. Because you're not paying rent you need to do this with savings. You need to put away at least 500 per month, for at least 6 months, and don't touch it.

Even at that, central bank rules limit your mortgage to 3.5 times salary (98k). You need to have savings for the rest, and to cover legal fees, stamp duty, etc.

Then banks have their own affordability criteria - unfortunately they will say you would need about 1.5 - 2k left over each month, after mortgage and your child maintenance, to be able to afford to live. That's virtually impossible on your salary, but a bank might look at it if you fix the interest rate long term as it'll give certainty over repayment amounts, and you've a proven savings record I mentioned above.

So you need to think long term. You're hoping for a pay rise, or meeting the criteria for the new local authorities mortgage scheme if all else fails.

Thus scheme is designed for people in your situation, BUT you need to be in continuous employment for 2 years.
https://www.askaboutmoney.com/threads/local-authorities-to-offer-cut-price-mortgages-to-ftbs.206867/

 

[Betelgeuse]

Also, if you are looking at new builds, and you've paid income tax in the last 4 years you may be claim some of it back as part of the Help to Buy scheme.

 

[ReesesPieces]

Do you mean 800 euro a month, or are you really only paying maintenance of 80 euro a month? Is that a private arrangement? I'd be surprised if a bank underwriter didn't pull that up - that is insanely low maintenance given your salary (and ability to save 800 euro a month!) so I would say you would be open to a court challenge on that and a bank would expect a child to cost you more (because generally they do....)