Do banks ever look beyond 6 months pay requirement for mortgages

Hello, I am just about to enter the workforce in 2 months time, but I have never had a full-time job before given that I've been in education and training schemes for most of my life up until now (I am 27). I'm actually in second year of a 3 year college academic course, however I have decided to take the year out in order to get onto the property ladder as I have come across a beautiful 2 bedroom apartment (which I have lived in before) in my local town marketed at only €70,000. My intention is to take a year out from college in order to get onto the property ladder as I both like this property, and fear a rise in property prices in future and/ or the property will be snatched up.

However, it's not that I am in an immediate rush to own my own property or anything, I just have a very great fear that a property marketed at that value will be gone before I have the time to put in an offer. While I've never had a job before, I did work in a FAS scheme for nearly a year between 2004 - 2005 (Maynooth Community Council), and was in receipt of about €280 a week (about €14,560 annually). Would this both (a) count as a sufficient background to apply for a mortgage for a €70,000 property, and (b) allow me to throw in my offer for the property straight away after finding a job?

The job I'm looking at also pays about €300 + bonuses, so again this would be bringing in a fifth of the properties worth per annum. Would I stand a chance of applying for this property on the spot after getting a job given this background, or would I be rejected?

Also, if the banks considered me ineligible for applying for a mortgage without 6 months of pay slips, would there be another institution willing to accommodate my circumstances?

Thank you for your help.

The short answer is no

You would need about 3 years continuous employment in your situation.
You would to be able to show savings of about 18k. 14k for a 20% deposit and 4k for costs associated with buying it.
Your mortgage repayments on 54K would be about €350 pm over 20 years.
You would need to be able to show that over the last 3 years you would have been able to comfortably meet the mortgage repayment as well as living costs and other outgoings etc.
You will have Mortgage Insurance to pay
You will have a Management Co fee to pay
You will LPT to pay.
You will have to pay for Electrity, Heating and water charges.
You will have to pay for some repairs from time to time.
You would need about double the amount that you are talking about earning and it in a permanent capacity with a pretty secure business.
You will have a small amount of tax and USC etc subtracted from your gross pay as well.
You sound like a person who has not lived away from home as there are a lot of hidden costs when doing so. I admire your ambition. Property is not going to jump anytime soon so do not despair. Save as much as you can in the meantime and be able to show how and where the savings came from

Ok, thank you for your responses. However I'm wondering if when I graduate and after a get a job and have 6 months behind me, then will I be eligable to apply for a mortgage?

Thanks for all help.

no.

QABM said:

Ok, thank you for your responses. However I'm wondering if when I graduate and after a get a job and have 6 months behind me, then will I be eligable to apply for a mortgage?

Thanks for all help.

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When you Graduate and get a Job, you won't be living in Ireland or worrying about the price of property here.

QABM, are you sure you will be able to get a job in this locality when you graduate? Do you plan on travelling at all? I knew there would be no jobs local to me when I graduated, so I'm baffled as to why you are trying to buy now.

QABM, oh, no, no, no.

I think the idea of 'taking the year' out in order to get on the property ladder is a crazy idea. Such a strategy would be wholly misguided.

I'm not speculating on house prices now, but put the idea out of your mind that the property price will move beyond your reach. Buy when you are good and ready and ideally have a few years of both savings and a regular, steady earnings record behind you.

I'm not sure if this is an ok question to ask here, but I'll go ahead and give it a shot. Is it possible for a relative or friend who are eligible for meeting the mortgage criteria to purchase a property, and to the sign over ownership to me? If this is possible, how long would I have to wait for such a outcome to come about?

Thank you.

If the relative or friend are able to purchase the property it really is a matter for them if they want to do this but they will not be able to sign over the mortgage with the house if that is what you are thinking.
You would be assessed by the lending institution to see if you would be able to meet the repayments etc as previous postings have indicated.
You will not get a mortgage on the criteria that you have given earlier.
Do you expect some relative or friend to buy this house for you as a present?.

Ok, fair enough, I now accept that I am inelligable for a mortgage, however can I take on this property in the form of an investment property?

You'd still need savings to pay a deposit on the house. Then the bank would need to be convinced that the rent would cover mortgage + expenses. From my understanding the BTL market has dried up and banks are very reluctant to lend for investment.

You have some excellent advice in this thread. Heed it and move on.