chances of getting mortgage?

C

charlie2012

Guest
First time poster but long time lurker on this site so any help and feedback would be greatly appreciated.
Myself and girlfriend are going to start trying to seek mortgage approval.We are both first time buyers looking at houses in the 185-200k price range. We currently have 18k saved as a deposit so far. She works in the civil service earning 26k a year and i am self employed sole trader earning 18k a year. I have a credit union loan of 3k paying back £125 a week so will be cleared by the end of june. We both have credit cards with no money owed on them and never missed any payments on credit union loans. What are our chances on getting approval?
 
Are €26K and €18K gross or net income figures?
How long are you in business and how stable has your salary been over that period?
Obviously clearing the CU loan will help any application.
When you have set out your monthly budget (incomings and outgoings) what sort of repayments do you think that you can realistically afford? Allowing some room for rate/repayment increases?
For what it's worth €180K over 30 years at 5% is about €1K p.m. ignoring TRS and other mortgage related costs (e.g. life assurance, home insurance etc.)
 
They are both net income figures.
I am self employed taxi driver the past 4 years.
Best to clear to loan before we apply then.
We could afford the repayments ,my loan is currently costing me £500 a month and we save roughly 600-650 a month at the moment so when the loan is gone we could manage it.
 
Just to be pedantic your CU loan is costing you €542 p.m. if you are paying €125 p.w. :)

If you can comfortably afford repayments of €1K p.m. on net income of c. €3.6K when all other essential expenditure is accounted for then - especially when the other loan is cleared - I would have assumed that this was all positive. I'd expect the lender to look carefully at your self employment though to see how secure that and the income stream was.
 
So the self employment could be an obstacle? Broke my leg in 2009 so my income was severly affected that year,they look back 3 years dont they? Would they look favourably on the girlfriend been permanent in civil service?
 
Not saying it's an obstacle but I presume that a lender will look at the applicants' employment and earning history and capacity and yours is lower and perhaps more volatile/less guaranteed than your partner's. I'm not sure how far back they look. I think that for a self employed applicant they will look for accounts etc.
 
Normally for self employed, either an accountants Report form showing the last 3 years or accounts for the 3 years is required.
 
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