First time buyer questions

My partner and I want to buy a house.

She has €5000 saved already and we hope to save €900 per month for the next six months which will give us €10400.
My parents will be giving me a gift of €10000 so we will have €20400 to put down for deposit and fees.

Our joint income is circa €56000 p/a before tax.

We owe in credit union loans about €13000 between us, paying off €600 p/m.

The house is the area we want to buy are selling for around €165,000.

Will we be successful in getting a mortgage?

With your credit union loans its unlikely.

I would concentrate on clearing those loans before applying for a mortgage as the amount you can borrow is dependent on the income you have. If you have an outstanding loan of say 600 Per month, that is 600 euros less you can afford on a mortgage.

if we didn't have the loans, how successful do you reckon we would be with the same conditions as mentioned.

the €20400 would go towards the deposit and fees (solicitor etc.)

You would certainly have a stronger application without the loans. Are both jobs permanent and full time?

keep in mind the banks also like to see that you can save - once the loans are cleared you should be trying to prove your repayment capacity to the banks by putting aside the mortgage amount each month.

Clear off the credit union, then add what you usually pay to that loan on to your normal monthly savings. In one year alone that would give you €18000.00 in savings and a much stronger application to put to the bank.

Thanks for your advice