Can you get a mortage with no income?

A

Aloysius

Registered User
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Might seem like a silly question but.....
I have just left a job and am looking for another and have seen a house I love (talk about bad timing!)
My husband is self-employed with a very low income.
Thing is we have no mortgage on our current house (worth about 320k) and have circa 200k in the bank.
the new house is circa 600. would need a mortage of about 120k. I am quite confident of getting a new job and being able to repay.
Would anyone give it to me in the current climate?
 

If your current income is next to zero between yourself and your husband, i doubt very much the bank woudl give it to you.

Basically - all teh bank want to know is do you have a way of paying off your monthly mortgage paryments. (while also assuming their capital is protected against the asset).
Going by what you have said it would appear you don't. (assuming you pt all your savings into this new house)

If you plan on keeping your current house and renting it out they may look on this as sufficient income.

You may need to show tenants for a few montsh first though.
 
If your current house is worth ~€320k and you have €200k in savings, and you want to borrow €120k, then that is a total of €640k. I presume the extra €40k accounts for SD, fees, etc?

If this is the case then you will be left with no savings and no income and a mortgage of €120k. So to answer your original question, no I don't think you would qualify for a mortgage with no savings and no income. However, the application will all depend on how much your husband is taking home each month.

Worth calling a few banks to get an idea. You will know soon enough if it's not going to happen.
 
So you don't think anyone would just take a chance on me? Maybe a bank I have been saving with?
I could hold back savings (maybe with the mortgage providor) to cover the first few months while I find a job?
Am I clutching at straws??????
 
Funny you should ask...

If you have a good relationship with your bank, you might just be able to do it. I'd get out looking for a new job asap though. I did get mortgage approval with little/no income but with large savings and the bank wanted letters from past employers etc that they'd hire me back if I wanted to go back. I also had to get my parents to go guarantor and the bank put a lien on some of my savings to cover 12 months of mortgage repayments.

However, I told my bank that I didn't want to get a job yet and that I wouldn't get a job "just" to buy a house - that was part of the initial discussions and I was/am immovable on that point. Your situation may be different - the bank can easily take 6-8 weeks to approve you for a mortgage in your circs and, if you do intend getting a job shortly, you may well have found one by the time they approve - and they may well insist on one if that's the case.

It's not like the houses are flying off the shelves right now though so you might be better viewing and keeping in contact with the EA while looking for a new job and getting your mortgage approval sorted. That way you can extend the time you need to get a new job before you put yourself under pressure to bid on the new house.

If you have to sell your own house in order to fund purchase of the new house, get a valuation straight away - I was in a v similar position and was quite taken aback with the valuation (even though I thought I was being conservative). Also, as you know, if you are in a chain, that will lengthen the process considerably.

Sprite
 

Aloysius said:
Am I clutching at straws??????
Click to expand...
Yes - I think you are. At least until you actually have a job which provides the income to service a c. €120K loan. Apart from having no income at the moment to service the loan there is presumably no guarantee in the current climate that you will sell your current house immediately and clear €320K (after any expenses etc.)? Emotional reasoning when it comes to a large/expensive purchase such as a house is a bad idea. Try to look at things more objectively or get the opinions of those who can ground you more in reality.
 
Aloysius said:
So you don't think anyone would just take a chance on me? Maybe a bank I have been saving with?
I could hold back savings (maybe with the mortgage providor) to cover the first few months while I find a job?
Am I clutching at straws??????
Click to expand...

ya - you could do that.
I reckon it still wouldn't cut teh mustard from the banks view point though.

You have to imaghine you were a bank.
WOuld you give your money to someone with no job or obvious income?

WHy don'y you just get a job now?
That way there would be little difficulty i'd imagine.
 
Thanks for the replys.
Yes I think I better just get a job!!! I am looking, but what might be best would be to just take the first thing that comes along just to get the mortgage. I will ring around.
I don't know if the house will move fast.
It is a Executor sale with the proceeds going to a charity, do you think this would make a difference to how fast it moves?
 
OP, how realistic is the 320k figure and is this net after legal fees and and estate agent? If you rely on making a lower offer on the house you want to buy you should also assume that anyone who wants to purchase your property will be doing the same.

Does the 600k figure include stamp duty, legal fees etc.

Has the bank said how long you need to be in the job before you can apply? Would the type of job you're after have a probation period?
 

I know I am in a very enviable position. I am happy enough in my own house but need to move closer to family for childcare and as some of them are elderly. There isn't a HUGE rush though so I reckon another 12months would make more sense.

rmelly I think (hope!) 320k is realistic (most are asking 350k) but no it doesn't include fees etc. The 600k doesn't include stamp duty but my budget does (ie 320 (my house) + 200 (savings) +120 (mortgage) = 640)

I'm going to wait. (unless of course my 500k offer is accepted ) My heart is ruling my head on this one - I just needed to hear it from someone else, thanks!
 
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