Any possiblity of getting a mortgage?

C

Cork Mum

Guest
Hi,
We have a mortgage currently, outstanding is 110K. We are outgrowning our 2 bedroom house and need to move however worried that we will have problems qualifying for new mortgage.
On selling our house we would hope to get approx 180K. we have savings of 40k and no debts other than our current mortgage.
At the moment we are a one income family on basic of 30K plus overtime and bonus of 15K

Our worry is that we will sell our house and have to rent while we look for a new house and may not be successful in getting a mortgage at that stage
Can anyone give me some advice on this situation?
At the moment it looks like we would be looking at a new mortgage of approx 200K

Thanks
 
Savings record is very good. However your income is low and allowance for overtime/bonus would be rerstricted to about 50% of the average over the last 3 years (depends on the lender). Look up a mortgage calculator on line to see what you would be entitled to. You should have no problem in getting a new loan but the amount might be an issue.
 
Thanks for your reply Brendan. Looks like we will just have to take the plunge and hope we will get enough from bank to trade up....
 
The only way to find out how much you would get is by actually going through the steps to get approval for a mortgage. You can ring their mortgage centres and they will go through it all. At least then you will be looking at the realistic figures. The online calculators don't give you the real picture. They give a picture for a couple aged early 20's with no kids.

For example on the phone we were told on a single income of 43k that we were eligible for 180k. However, because of our ages (which impact the no. of years allowed), plus the fact we have 2 kids etc meant that this was whittled down considerably when the facts of our circumstances are punched into the computer. I wouldn't have found this out though unless I'd persisted in telling the person I was actually looking to get written mortgage approval.
BOI offered us 100k about 6 months ago. As AIB have better rates we are applying to them also, they are trying to 'push it' to 100k for us seeing as we have a good bit saved, but if refused we'd have to go below 100k.
 
Sadie makes excellent points about looking for formal written loan approval - this will give you the real number a bank will lend to you, along with the terms and conditions of the offer (how much deposit they want you to have, and how many years to pay for example)

The written loan approval means the bank will lend to you, subject to no substantial change in your circumstances when it comes time to buy your new house, so it takes some uncertainty out of the whole situation for you.

There is a vital caveat though - if any of the circumstances on the original loan application you submit have changed, the bank will not be obliged to offer the loan - this includes the situation where you've changed your mind about the house you want to buy, and have found a new one - a fairly frequent occurrence.
 
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