Is this possible?

I'm a council tenant and have been offered the chance to buy privately with the Affordable Housing Scheme. The 3 bedroom house they have offered is valued above €200,000 but we have been offered it for €130,000. This is an amazing opportunity for us but the trouble is that the timing is awfull. We will have to borrow for the wedding as it is but at the moment we owe about €24,000 between different banks and credit unions. We would only actually be entitled to a mortgage of about €90,000 from a bank based on annual income. However we have never been late paying our loans or rent which total €940 a month. We could prove that we would be more than capable of repaying a mortgage if these debts were cleared as the mortgage would be considerably less than that monthly. To buy the house and clear these debts we would need approximately €155,000. Given that the house is valued above €200,000 does anyone know would any broker be capable of getting us this despite our annual income or are we going to have to pass up this amazing offer. (which the thought of makes me feel sick to my stomach)
Please, if anyone can offer some sound genuine help it would be very much appreciated.

What are your occupations and incomes? (Please break down between basic, overtime and any other taxable income).

Sarah

www.rea.ie

Hi Sarah,
I am a full time mother so my only income is €280 childrens allowance monthly. My partners gross annual income is around €24,000. I realise this is a problem so I need somewhere that will base it on our ability to make the monthly payments. If we were given the price of the house plus the amount to clear our debts we could prove that we can easily afford to pay the monthly mortgage as it would be considerably less than what we currently pay monthly on mortgages and rent and this amount would still not be near the current market valu of the house. My partner does not have the option of overtime so the above is his full income. He has been in his current job for 10 years and it is permanant and full time.
Do you think what we need is possible?

I'm afraid not - assuming you had no other outgoings the maximum mortgage on your partners income is €135,000. Given that you are in debt equal to your partner's annual income and you are intending to borrow more for your wedding suggests that you are borrowing to live which is not a healthy situation. Have you considered approaching MABS to see if you could restructure your debt to try and reduce it?

Sarah

www.rea.ie