Desperate for advice, fiancee lost job, hoping to get mortgage and getting married 2017.....

S

steven8719

Registered User
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9
Hi,

First time poster, am in a real conundrum. If anyone could advise it would be brilliant.

Myself and my Fiancee were due to apply for a mortgage in 6-9 weeks. Today, my Fiancee lost her job. This is naturally a tough time emotionally, but we have to figure out now what we can do for a mortgage.

With this in mind, I have a few questions. Any advice is welcome.

1) If my Fiancee got 1-year contract work - I assume banks still don't look on this too kindly and require a person to be in a permanent full time role to consider their income for the application?

2) If my Fiancee got a steady part time job, once her probation period was up would the banks take 3.5 times her salary into account, or because it's part time would they offer less?

3) If we were to apply together now, would we meet any criteria? My salary is 35k, permanent full time. Take home pay per month = 2343. Usual lending criteria is that 2k must be left over per month for expenses for two adults. This leaves 343 per month for a small mortgage. However, online calculators (e.g. KBC) say that this doesn't meet requirements for approval in principle. So, is it a non runner to apply jointly on my income?

4) As we are not yet married, I believe I can still apply as a single applicant? In this scenario, what are the legalities if I purchase alone and my Fiancee moved in after a time? I understand that after a certain period of time the person who moved in acquires rights to the property. That is fine and outside of the scope of my question here - my question is that if I apply alone on the basis that I would be the only person living in the property, purchase the property and ask my Fiancee to move in after a couple months, do the banks consider it a fraud application as two people would now be living there, and seek legal recourse to recover the loaned funds? In short, am I allowed under law to buy and then invite someone to live with me rent free?

Please help advise if you can.

Thank you.
 
We are due to get married Autumn 2017, will have had our finances in order etc to apply for a mortgage August of this year. It could take 1 year plus for my Fiancée to find a job, plus add probation time on that , we could be married with no home , thus looking for other options now for purchasing a small property in Dublin (not renting, both at home)
 
Why don't you move in together and rent for a year or two until you get back in order? To be honest buying a house now sounds like panicking, and your original post reads the same.
I'd suggest taking a step back, focus on wedding and getting jobs back, then refocus on mortgage when things settle down.
 
Being honest, renting is a no go. I'd rather get married with us both going home to parents after and saving more for our own home than to rent (can build a greater deposit that way). It's not financially prudent for us to get involved in renting at this time. I guess it's outside the scope of my queries any who, what we need to decide is the best course of action given current financial circumstances.
 
Fair enough, it was just a suggestion, as being newly married and living with parents is not a good place to be (again just my opinion, I'm not married so I don't know for sure :D). I know its not what you asked but just throwing it out there as an observation. Anyway, best of luck with whatever you decide to do.
 
Aye agreed, but being married and under the house rules of either parties parents as a married couple if living in each other's family home would be worse, as would losing money to renting that could be used for a deposit! Thanks very much for the support and alternative idea though, much appreciated!
 
It sounds like you live in Dublin. Buying in Dublin on your salary is going to be very tight, given Dublin house prices. And i'm not saying you have a poor salary!
Maybe consider moving down the sticks.
House prices are a fraction of what they are in Dublin.
And renting is much cheaper also.
Then either commute or get a new job / jobs.
 
@RichInSpirit: I'm Dublin city centre based, as is my job, family, friends, my Fiancee's family and friends are north Dublin but not too far. I'd only really be able to do that if working remote really.

@vandriver: Up until yesterday we were seeking 3.5 times our combined income. E.g. 185. Today my income if applying alone would be approved for about 120.
So far, we have the money set aside for the wedding, car, furnishings, fees, rainy day money. And 60k for a deposit, with me adding 1300 p/m.
If I apply alone, cancel the wedding, don't purchase a car and skimp on the furnishings and rainy day money I would have approx. 197 for a home if I obtained the mortgage of 120. This is very low for Dublin.
 
It is not easy starting off, but I am sure that your fiancee will find work again soon. You have time to revise your plans based on the new work situation.

I dont know the answer to your other questions but this one is straightforward.

steven8719 said:
4) As we are not yet married, I believe I can still apply as a single applicant? In this scenario, what are the legalities if I purchase alone and my Fiancee moved in after a time? I understand that after a certain period of time the person who moved in acquires rights to the property. That is fine and outside of the scope of my question here - my question is that if I apply alone on the basis that I would be the only person living in the property, purchase the property and ask my Fiancee to move in after a couple months, do the banks consider it a fraud application as two people would now be living there, and seek legal recourse to recover the loaned funds? In short, am I allowed under law to buy and then invite someone to live with me rent free?
Click to expand...

If you get a mortgage and buy a house in your own name, you can invite anyone you like to live there with you. The bank would not consider it fraud, even though this was your intention from the start and you didn't tell them. It would in no way be illegal.
 
@ Steven8719. I'm not really advocating the following but just throwing an idea out there. At the moment your fiancee is single with a good deal of time on her hands. Now might be a good time to start a family.
As a single parent with no income she'd probably get a house to live in, children's allowance etc. you'd have to keep a little bit of a low profile but i'm sure you could visit fairly often.
Postpone the wedding for a few years.
 
Steven - my advice - don't panic. The property market goes up and down and is probably a bit over-heated at the moment.
Get married. Rent for a year, or 3. Your wife will get a new job and will be permanent before you know it. You can then get your mortgage and your house, even if its a year or 2 later than you planned.

Enjoy your life. There's more to life than mortgages and houses. One of you has a full time job. You wont be on the streets.
 
RichInSpirit said:
@ Steven8719. I'm not really advocating the following but just throwing an idea out there. At the moment your fiancee is single with a good deal of time on her hands. Now might be a good time to start a family.
As a single parent with no income she'd probably get a house to live in, children's allowance etc. you'd have to keep a little bit of a low profile but i'm sure you could visit fairly often.
Postpone the wedding for a few years.
Click to expand...

You are joking, really?
 
JohnJay said:
Steven - my advice - don't panic. The property market goes up and down and is probably a bit over-heated at the moment.
Get married. Rent for a year, or 3. Your wife will get a new job and will be permanent before you know it. You can then get your mortgage and your house, even if its a year or 2 later than you planned.

Enjoy your life. There's more to life than mortgages and houses. One of you has a full time job. You wont be on the streets.
Click to expand...

Hey, thanks very much for the reply. However, I'm/we're not renting. We'd rather we push the wedding down the line or live apart when married than rent, it would allow us to build up more money for a bigger deposit. Right now I'm more interested in how we can purchase a home with the situation we're in, what the best way forward is.
 
Its unlikely that the banks will take your gf's new job in to consideration until she is made permanent. she will certainly need to be in the job for a few months before they will take it in to consideration.

There shouldnt be any problem with you applying as a single applicant. the banks application forms will ask you if you are single or married - they wont ask if you intend to get married in the coming months/years. However, you will be restricted to 3.5 x salary. You should talk to a broker or arrange a consultation with one of the bank's mortgage adviser. They will point you in the right direction.

Think carefully if you are planning on buying something cheaper now and then moving in a few years. If prices drop over the next few years then you will be stuck with it. Moving is also costly - I'm in the process of doing that now and I estimate it will cost 11k in legal, estate agent and stamp duty fees.
 
@JohnJay: Thank you very much. Ideally I'd be looking for something that could work us for at least 6-10 years, it's just finding something in budget now. For now I'll work on building up the deposit as much as is possible.
 
Have you considered Balbriggan (or Westport, Ennis, whereever) for a house purchase, it's a fine town (others may differ but that's just pure snobbery) with great train connections to the city centre, cheap as chips relative to all around it, you'd buy a house there on your budget! Best of luck, my siblings were in your position, they moved frm the city back home to the sticks and haven't looked back. A 450K dublin home for half the price (and a huge garden, minutes from beach, school, town) down the country in a great town, factor in the repayments, that's prob half a mil in savings, plus childcare, shorter commute times, That takes 10-15 years off their working life if they so wish.
I'm just looking at your wage of 35k (take home 2,343) my gf earns 57k (take home 2900) so taking a lower wage else where is really a low brainer to get out of dodge. Just my tuppence, good luck!
 
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