Applying for a mortgage

Hi All

Just looking for some advice on applying for a mortgage.

Myself and my partner are looking to buy a house. The price is €142,000. We are both in full time permanent employment. I have a credit union loan which i pay back €350 per month, my partner has no loans or credit cards. All the saving is done out of his account and all bills and spending are done from mine. Sometimes my account might be overdrawn at the end of the month. He earns €24000 and i am earning €25000, he is a carpenter by trade but not currently working as one but does get some jobs on the side which adds a bit of extra income. At the moment we have approx €14000 saved. We have been renting the same property for the last 5 years and we currently pay €560 per month in rent. The house we are living in belongs to my partners father and we lodge the money to his account each month. Do you think this might go against us that the banks will not see a standing order come out? We do have all the lodgement slips.

Would you recommed him applying for the mortgage on his own because of not having any debt or would it be better for the 2 of us?

Thanks

ash26 said:

I have a credit union loan which i pay back €350 per month

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At the moment we have approx €14000 saved.

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Why not clear your CU loan with some of this money? It might look better when applying for a mortgage to be debt free. You could also then look at supplementing your lump sum/deposit savings by withdrawing your CU shares.

That is not an option as i dont have much savings in the CU...this is why i think it might be better if he applies on his own.

He will not get a mortgage of 135K approx on a salary of 25K pa. Joint income & savings record could bring you close to amount required but CU payment will reduce your capacity to repay. Go to a bank site & input your information to a repayment calculator to see what mortgage level you would be eligible for. make sure you input the CU loan repayments. Also, nixer income does not count for mortgage/loan purposes.

Thanks for your reply 44brendan...just went onto a calculator their and it said our borrowing limit would be €207k with the cu loan included so fingers crossed things will work out for us.

ash26 said:

That is not an option as i dont have much savings in the CU...this is why i think it might be better if he applies on his own.

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Still might be better to use some of the €14K to clear your CU debt and be debt free when applying for a mortgage.