FTB - What can we do to prepare for mortgage application in 6 months?

F

FTB2012

Guest
Hi,

Myself and my partner are planning on purchasing our first house next year (will probably start searching in March/April), and I was hoping for some advice on anything we can do now to increase the likelihood that we can get a mortgage then.

Current circumstances:

- First-time buyers
- Living in Ireland for 3 years now
- Current savings: E16000, will have E200000 saved by March for deposit
- Parental gift of E11000 for furniture/buying costs (solicitor, survey, stamp duty)
- 3 UK credit cards with zero balance for last 2 years, no current loans except UK Student loans of £21000 between us (currently paying extra to pay off- £400pcm, interest rate 1.5%)
- Joint wages E51000 + 4000 guaranteed bonuses
- Looking for house with maximum price of E200000, mortgage 90%
- Regular savings E400 a month, plus anything else left over at the end of the month
- Currently renting, rent E950 pcm

Any advice on things that may trip us up, or anything we can do to improve our application is much appreciated. I know it's a while before we apply but I want to be prepared!

Thanks :D
 
Seems like a small thing, but believe me it helps a lot - get a sturdy document wallet and keep the following items in there away from the other household bills, receipts etc.

- Bank Statements
- Credit Card statements
- Statements of Savings
- P60's
-Payslips
- If you are getting a parental gift, when the time comes you'll need a signed letter stating that.

One of the hardest admin jobs in applying for a mortgage is collating all the documents they will ask for! They will ask for 6 months of Bank statements, your P60's and some recent payslips. You'll also both be asked to get your Employer to sign a Salary Certificate (when you apply for the mortgage) stating how much you earn, and if your job is permanent or not.
Not sure if there are other requirements if you are not Irish Citizens - like proof of residency (utility bills, tax certificates possibly) for the 3 years or something.
 
I think the student loan might be a problem, because if your deposit is 20K and your loan is 20K your total debt would be 100%. I realise the student loan is on low interest. Also is it necessary to have 3 credit cards? Why is one income only 4K is that annually?

You could start talking to a couple of banks now so you can understand their thinking.
 
I presumed that the combined income for the (unhitched?) couple was €55K comprising €51K base + €4K guaranteed bonus(es)?
 
Thanks for the replies!

sadie- that's such a good idea that hadn't crossed my mind, currently everything gets put in a box. I will start keeping all the statements, bills and P60 separate so they're all to-hand when needed :D

Bronte- you're right, we don't need 3 credit cards, 1 is my partner's and the other 2 are mine, I don't even know the PINs for mine. Do you think that cancelling 1 or both of mine would assist the application?

The student loan is an income contingent loan, not sure if this type of student loan is available in Ireland. Basically all UK students can apply for it from the Student Loans Company, you don't start paying it back until your earn over £15000 and if you're earning less or unemployed at any time you don't pay any back during that time. The loan is wiped after 25 years if any is left unpaid. We are currently paying double the amount we need to for this. These loans accrue interest at the rate of inflation; 2 years ago I paid no interest at all :)

Do you think that loan will be considered the same way a normal bank loan is?

The 4k is guaranteed bonuses between us (2k each). 51k is the basic salary.

ClubMan, no we are not married, we have been together for 8 years, living together for 3. Is this another thing that may go against us?

I think it may be worth talking to the banks, I am just worried they will say "oh yes you'll be fine" but then we'll apply and get declined (as seems to have happened to a few people on this forum).

:D
 
FTB, when i was discussing with the bank before i came over here about getting a mortgage, they said to cancel my UK credit cards and ensure i had no debt over there whatsoever (i don't have student loans though). If you don't need the cards, get rid of them.
 
FTB2012 said:
ClubMan, no we are not married, we have been together for 8 years, living together for 3. Is this another thing that may go against us?
Click to expand...
No - the only reason I mentioned it was that it may have implications tax credits/net income.
 
You must log in or register to reply here.
Back
Top