Mortgage approval

Hi all,

As a new member id appreciate some feedback as whether we stood a chance of getting approval for a mortgage at this stage or are we still abit off. We are first time buyers and have not yet applied for finance from the banks. Detailed info stands as below

Its is joint application ,where we are both in full time employment and have being for over 2 years (partner is a teacher) , we are both 31. We make 76k a year between us. We have no kids or any missed loans payments . credit cards clear and no overdrafts.


Basically there is a 3 bed house for sale in rural area in cork we are keen with an asking of 115k but i know for 100% that a house in same park went for 100k in nov12.For agruments sake lets say a price gets agreed at 105k.

we have savings of 13k but of that, 10k is newly acquired lump sum so build up savings of 3k before this. The issue is we have 13k of debt between us but never missed a payment(we owe about 6.5k each weirdly enough).. the reason for small savings is we have being paying down our loans at a quicker rate than required to get them finished. we also have proof of paying rent of 350 each for the last 2 years.

Obviosuly with o/s loans would i be right in saying they would have to go first before approval granted or the fact that the mortgage would be less than the rent we have being paying for 2 years and beyond mean we might have a shout. We both have credit scores of over 500 on our icb reports that we just got back.

any thoughts or advice would be greatly appreciated as starting from very beginning here. Thanks in advance

Having just gone through the whole mortgage process myself I would advise clearing all your debt first. Start with a clean slate. Others may have different opinons about this but the banks want to see not only your ability to pay current and future loans but also any exisiting loans will be a mark against you on their score sheet.
We were in a similar position Sept last year - savings going here there and everywhere but we also had loans of approx €8k. Paid these off, saved and saved and sold our house last March and will be moving into our new house in a matter of weeks.

congrats on the move paul..

In a ideal world we had planned to do the same and clear all debts and save like mad and then look at houses but the unexpected 10k lump sum we got in tandem with this house coming on the market got us wondering if despite the outstanding very managable debt we have whether the bank would still potentially lend out for this small mortgage amount i outlined in my first post. The monthly repayments would be 200e less than our monthly rent at the moment.

I know a number of people who have had mortgages approved when one if not both had outstanding car loans at the time. Would you think we would have a shot of getting approved or simply a non runner?

I think you've every chance of getting a mortgage. If it were me I'd test the water by making an appointment with Ulster Bank re an application. But be organised re the documentation required and have a budget worked out on paper.

I feel we might have a shot as well. would you recommend potentially going through a broker first and getting their opininon? My concern would that we approach the banks and they say no, is it possible that no would count against you in thr future then? Thanks again for the feedback

I don't think UB work through brokers. I would chance them.

I would by all means go and try to get approval now. At the very least the bank will give you an indication to where you should be financially before they will release the mortgage you are looking for.
IMHO if you were unsuccessful now I wouldn't see this as a negative - it will give you realistic goals to achieve before you purchase.
UB don't work with brokers. Each of the banks use a different scoring system so getting approval in one won't gurantee approval in another (I know this first hand). I would try a bank first and as said already have all your documentation ready and up to date. When you go the make an appointment they will tell you what you need.
Oh - when you are getting a letter from work be sure that it says your position is fixed / guaranteed / permanent etc. If you work shift also make sure that all rates are mentioned inculding what would happen if you were to work basic only. This is what I needed to supply for my application.

You came on here looking for advice and so i suppose that it is not fair to make overly personal remarks, so here is some advice and my charge is that I get to make a modified personal comment.

Advice first, you are in a strong position particularly if your partners teaching job is permanent. You will be giving the bank valuable business, be choosy about what mortgage offer you accept. Remember the bank needs you at least as much as you need them, if they cannot lend to people in your situation who can they lend to.

Personal comment next. You are adults looking in getting involved in a commercial transaction, but you have the attitude of school children looking for a favour from a strict teacher. About your debt you say " but (we) never missed a payment". Well aren't you the good boy and girl.

Cremegg, sounds like youd love to starting the house hunt again rather than being stuck in the negative equity!!

I must say your comments are unappreciated and one of the stranger comments i have read here on this site, no need for it whatsoever.There are threads on the website far more deserving of the "school children attitude " you speaking off. Given we have 13k debt i felt it important to include the fact its managable and we have a good credit score not missing payments. I dont where in my posts your really picking up that line of thinking.

We are simply at the very first stages of thinking about buying a house and given we still have loans we felt we were still a 1-2 years away from buying but landing the unexpected lump sum had changed things. You mistake being polite on the thread with being naive to be honest, simply coming on here looking for advice before brokers and banks simply being prudent.Not sure why you felt the need to add in the last paragrap, it must be hard getting around with that chip on your shoulder

@paul, thanks for the advice. I start getting the forms together and set up an appointment. Cheers for heads up on work letter, must get onto the boss now and get that sorted also.

Just got approval for similar amount to yourself. Have more saving but also more debt. Same earning also as yourselves. You may need to save a bit more as you will need at least 10% deposit and there will be other expenses like furniture solicitors fees etc...