FTB applying for a mortgage please help

C

curious20

Registered User
Messages
19
Myself and my partner have been saving for about 2 years and have about £20k at this stage (the bulk of this is from joint account savings).

We were going to rent for a year and then after much consideration, we decided this was a bad idea due to high rents and it being a waste of money etc.

My boyfriend is in the plumbing trade and is on temporary leave at the moment due to there being not much work in the industry. He is receiving the dole and hopes to be back in work in the coming weeks.

I am in a steady job with a multi-national company earning circa €34,500 P.A before bonus of in and around €3k.

We have found a decent house that we would like to purchase and would only need to secure a mortgage of in and around £150k. Due to the industry my partner is in, it is unlikely he will get approved for a mortgage for sometime so we are looking to go down the route of me applying for the mortgage on my own.

If I do this, is it likely that I might get the €150k (FTB) and also, would my deposit coming from joints savings be questioned? I would like to advise them the reason I am going on on my own but don't know if this would be frowned upon?? we would be looking to add my partner to the mortgage when he is in a position to do so.

The mortgage repayment would only be approx €800 per month and I should be well able to afford this (even on my own if worst came to worst).

Any advice would be greatly appreciated. I want to contact tha banks / broker asap and want to make sure I go about this right - as in what info I really should disclose etc.

Thank you :) Curious20.
 
It is not advisable to transfer a property to a person to whom you are not married unless you draw up a water tight agreement.

Do both of you want to purchase or is it you. Is he going along to make you happy.

Who saved the 20K and over what period. What is your current rent.
 
I wouldn't be transferring the property to him he would be going on the mortgage with me at a later date. The only reason we are thinking about applying in my name is that there is no way the banks are going to approve him if he is still an apprentice and also out of work at the minute.

The both of us want to purchase and have both saved an equal amount to get our deposit.

We are currently living at home paying €300 rent each and saving €200 each per week (well at least we were up until two weeks ago when he was let off work temporarily)
 
If you are applying on your own then the savings will have to come from you solely. You will have to prove this by showing the build up of the savings in an account held in your name only. If your partner is giving any of the deposit then he will be party to the mortgage and will have to join you on the application.

At the moment you are paying rent of €300 per month and saving €200 so you have a proven repayment capacity of €500. It is unlikely that you will get a mortgage where the repayments are greater than €500 per month.

As the €150,000 mortgage will have repayments of €800, the lenders will see this as being too expensive for you at the moment. If you can prove you can afford €800 per month (through rent/savings) for a sustained period of time then you will have a better chance of approval.
 
Its disappointing to hear that as the monies are from a joint savings account this will affect me applying on my own. Surely there is a way around thi s- for example he would sign to confirm given as a gift??

He would like to join on the application but given his current working position, if he was to apply alongside me it would be likely to get refused I would imagine. In saying that, he should be back to work shortly and when working, comes out with approx €560 after tax per week. Is it likely that they might accept an application from both of us (when hes back working) as realistically its a small enough mortgage to base solely on my income??

I may not have been clear in my previous thread - I pay rent of €300 per month and save €200 per week so that is outgoings to a total of €1,100 per month.

Thanks for all your help.
 
NorfBank said:
If you are applying on your own then the savings will have to come from you solely. You will have to prove this by showing the build up of the savings in an account held in your name only. If your partner is giving any of the deposit then he will be party to the mortgage and will have to join you on the application.

At the moment you are paying rent of €300 per month and saving €200 so you have a proven repayment capacity of €500. It is unlikely that you will get a mortgage where the repayments are greater than €500 per month.

As the €150,000 mortgage will have repayments of €800, the lenders will see this as being too expensive for you at the moment. If you can prove you can afford €800 per month (through rent/savings) for a sustained period of time then you will have a better chance of approval.
Click to expand...
She has said she's paying €300 per month in rent and saving €200 per week so around €800 a month in savings + the €300 in rent would mean a repayment capacity of around €1,100 per month which should be proof enough that she could pay the €800 a month.

Still think it could be an issue that if you're applying on your own then half your current savings(20k) could be looked at as a gift from your partner and it seems the bank look for consistent savings these days and seem to frown upon receiving gifts. However, if you've already saved €10,000 of the €20k yourself then if you continue saving €800 per month yourself, it won't be too long more before you'd have saved up the 8-10% deposit yourself (on a €150k house) and you could essentially ignore your partners savings and possibly use it at a later date to furnish the house or something.
 
curious20 said:
Its disappointing to hear that as the monies are from a joint savings account this will affect me applying on my own. Surely there is a way around thi s- for example he would sign to confirm given as a gift??

I may not have been clear in my previous thread - I pay rent of €300 per month and save €200 per week so that is outgoings to a total of €1,100 per month.
Click to expand...

A gift from an unrelated party will be queried.

You did make it clear, I just didn't read it properly. :eek: Sorry about that. Your ability to repay is evident so it's just your savings that are letting you down. If there is no rush to buy then just concentrate on increasing your savings and you will have a decent chance of approval.
 
My daughter was in a similar situation. She had got approval on her own and when her boyfriend who is a student was included she still got approval but with a reduced amount.
They wanted both names on mortgage and deeds because they were both contributing considerably to the deposit and were advised by solicitor accordingly.
 
Who is going to pay the boyfriend's rent of 300 if he is unemployed and what will happen the savings of 200 a week during the same period. I think you need to wait until he is employed for at least 6 months and see how this unemployed period affects the finances and the relationship for that matter.

It will give you an insight into what happens in a marriage when finances are tight etc.
 
Please get the idea that rent is 'dead money' or a 'waste'. In a falling house market you are sitting pretty.

I've been renting with my OH for the last 2+years, in that time we've spent circa €26k on rent but the houses we've been keeping an eye on have fallen circa 100k and in some cases more.

Therefore we didnt 'waste' €26k, instead we saved €70k+ by renting (and you can nearly double that when you consider the interest element saved).

The €400-€500pm less mortgage you ll have in year and halfs time if you wait it out and continue to let things fall will given you a significantly improved lifestyle with much more disposable income.

Be patient.
 
Also just to add your basing affordibility on now, have you factored in interest rate rises of 2-3%. The ECB rate is very low at present. a what if analysis is always advisable.

Have some fun
 
mth said:
My daughter was in a similar situation. She had got approval on her own and when her boyfriend who is a student was included she still got approval but with a reduced amount.
They wanted both names on mortgage and deeds because they were both contributing considerably to the deposit and were advised by solicitor accordingly.
Click to expand...

That is reassuring to hear. :) Ideally what I would like is to put him on the mortgage but base the amount they are willing to give solely on my wages. I'm wondering if this will be possible (I will wait until he is back working of course)

Thanks :)
 
curious20 said:
That is reassuring to hear. :) Ideally what I would like is to put him on the mortgage but base the amount they are willing to give solely on my wages. I'm wondering if this will be possible (I will wait until he is back working of course)

Thanks :)
Click to expand...
Why dont you just wait and rent for a while...this isnt the right time
 
I was referring to the fact that when you give people advice such as I have above (and do on other threads) and you have also and it doesnt match up with what they want to hear they seem to simply skip over it and reply to the bits they want to hear.
 
You must log in or register to reply here.
Back
Top