Getting approved as first time buyers?

Hi all,

We're looking to get a mortgage in 6 months time and wondering if we will qualify for what we're hoping for?

We're first time buyers and are looking to buy a house valued at 310,000. We have our deposit for 25,000 saved. My wife has no loans or credit cards, while I currently have a loan - in 6 months time I estimate the outstanding loan amount to be 5,000. I have no credit cards.

My wife was made redundant recently and is currently looking for a new job. Pending all going well, although we know nothing is a given with working these days, she will hopefully be in a job at least 4 months by the time we apply. Given this, our combined salaries should be approx. 60,000.

Couple of questions?
- Given how banks are lending these days, do you think we'd get approved for the 285,000 we'd need to borrow with the above criteria?
- Will my wife's situation where she may only be working a few months having been made redundancy this year be a stumbling block? Is there a minimum term someone must be in the same job in other words?
- If my wife ends up getting a part time (permanent) job would this disqualify us? Do both parties need to be working full time?

Thanks in advance for your advice

How much are you paying in rent and managing to save per month?

Your wife will have to be full time and not on probation for her income to be taken into account. There is no minimum term but most lenders require you to be a year in the same job unless the rest of your application is very strong.

You don't need to be both full time but it would help. Lenders are cherry picking, only the most risk free applicants are being approved.

www.moneybackmortgages.ie

Hi,

Many thanks for the reply. We're paying 1,000 per month in rent and saving about 1000 per month, sometimes more. We'll have been saving solidly for 18 months by the time we apply. I'm in my job 3 and a half years perm. with 42k salary, I would be the main earner. We're hoping she would only be there 3 or 4 months wont count against us. So are you saying if she gets a part time permanent job her income wont count?

Thanks

Your repayment capacity (how the lenders will look at your ability to pay the mortgage) is strong due to the rent and savings.

Unfortunately it is impossible to say whether you will be definitely approved as the 3/4 months employment will weaken your application.

You don't need to be both full time but it would help. These days lenders are looking for ways to decline cases more then trying to approve them.

Thanks mate, its helpful to know roughly where we stand. I think we will go ahead in 6 months and apply and see what happens. Do you recommend going through a broker? I guess they can help "sell" us to banks?

No worries, do a search of bank v broker on askaboutmoney and you'll see the pros and cons of each.