Mortgage drawdown while spouse on PUP?

D

dopeydave

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Hi all, would appreciate anyone with experience of this situation or expertise in the area. The sale of our apartment should close in the next couple of weeks. We are also sale agreed on a house purchase. We won't be closing on that for at least a couple of months due to planning retention to be resolved. Staying with family in the interim.

We'll be carrying ~200k in cash from the sale of our apartment have AIP from AIB for ~250k. The new house is ~350k and will need some work when we move in. We are AIB mortgage holders for the past 18 years. Good saving record. No other debts or loans. We've now supplied all the follow-up documentation for the mortgage and hope to have a Letter of Offer in the next few days.

My wife is on the PUP so all calculations and affordability for the new mortgage have been calculated solely based on my salary (PAYE). She has been on the PUP since last year and unlikely to be back in work (tourism sector, PAYE) until next year.

Interested in hearing if anyone in a similar position was able to drawdown with one spouse on PUP or if she will have to take some action in the next couple of months to get off the PUP in order to ensure we can drawdown? It would mean my wife quitting a job she loved doing and potentially missing out on a small redundancy (~10k).

Thanks,
Dave
 
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If your mortgage approval already takes account of the fact your wife is on the PUP surely you should be ok.

With mention of redundancy it doesn't sound like your wife's job is particularly safe. While having dependents will muddy the calculations are you planning on borrowing more than 3.5 times your income?

PUP aside, if your wife was to change jobs the bank may require her to pass probation before they will consider her income when assessing your repayment ability.
 
Thanks for the response. Yes, the approval is calculated solely on my income and we're not seeking to borrow more than 3.5x my income. Just concerned that my wife being on the PUP may still be a barrier come drawdown time.

My wife's potential redundancy is speculation on my part - her employer has been incredibly poor in terms of communication so it's an unknown currently. It would not be a surprise were it to come about though.
 
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