Keep saving, mortgage advice

S

Southkorean

Registered User
Messages
2
Long time viewer and first time poster. Looking for some advice on mortgage application. Currently 34 and recently married with one child. Looking to apply for a mortgage but just wondering if its realistic to do so. Currently earning 68k with spouse on 42k, savings of 25k. I suspect we lived beyond our means for some years but started saving in earnest last year and have topped up our savings by 10k(from15k) in the last 6months. No loans or cc overdrafts (I recently got a credit rating check and returned 'no credit history', is this strange? Am I a risk applicant with no history?). We are renting in Cork city at 1400 a month and saving another 1400 which I thought would show we are good applicants for mortgage?

I intend to keep saving until we have 30 -35k(hopefully in 6 months), properties we like are around 350k, is this beyond our means?
 
If you have a credit card then you should have a credit history. I presume you got the report from the Irish Credit Bureau as they are the only ones who can give you an actual report?
 
Well it looks like you can afford a mortgage of nearly 3K a month. You need to stress test yourself on this. Try and not go for too long a duration. You will have no credit history if you've never borrowed before.

If you both got good permanent employment there is no reason you cannot apply for a mortgage. It will give you an idea of what the banks are actually willing to lend.

Any tips on how you managed to reign in your spending?
 
ryaner said:
If you have a credit card then you should have a credit history. I presume you got the report from the Irish Credit Bureau as they are the only ones who can give you an actual report?
Click to expand...


Yes, I've had one for 10 years and used to only pay off 25% every month, I always had a balance but never over a thousand, it has been at zero balance since June last year and always clear straight away now, still thought this would show up n credit history.
 
Ten years ago cards were not on the ICB, I imagine the banks put all new ones on but doubt if they have got around to the back list. I know none of the credit cards I have had appear on my ICB.
 
Even if the card was on file ten years ago, the records for your ICB only go back five. So no credit card or loads in the last five years and you'll not exist as far as they are concerned.

Credit isn't like in the US however, so lack of a credit score shouldn't cause much of an impact. The banks have switched to an income based assessment instead of credit score or looking at assets. IMO it is a much better and safer system.
 
You must log in or register to reply here.
Back
Top