Mortgage approval?

[Dub85]

Myself and my partner are both aged 26. We both have clear credit histories and currently have no debt. By the end of 2012 we would hope to have roughly 100k saved between us. By year end, with pay review, I would envisage earning 40k, currently earn 36k. I have reasonable job security but am on fixed term contracts currently going to expire in 2014 but would be hopeful of renewal at that time. My partner is self employed so is more tricky but she is currently earning about 20-25k per year and seeking full time employment. All figures gross. She runs a car, I ride a bike and we both have private health insurance.

Realistically what are we likely to be approved for if we applied for a mortgage for a 25-30 year term? We're both conservative by nature so not looking to mortgage ourselves into our 70s. 3 bed in South Dublin is our ideal.

 

[LDFerguson]

Getting a mortgage while on a fixed-term contract is difficult. But it can sometimes be done if such contracts are very common in your particular field of employment. The example that springs to mind are Non-Consultant Hospital Doctors (NCHDs). Such doctors are always on fixed-term contracts but can still get mortgages.

There's also the following employment rule which might be relevant to you:

If an employee whose employment started after 14 July 2003 has been employed on 2 or more continuous fixed-term contracts, the total duration of those contracts may not exceed 4 years. After this, if the employer wishes to renew the employee’s contract, it must be an open-ended contract unless there are objective grounds justifying the renewal of the contract for a fixed term only.

If your partner is self-employed, she'll need to provide accounts for her business to verify her income.

Liam D. Ferguson