Re selling and buying new property and changing job at the same time

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No.1 Fan

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Hi
Hoping you can give me some advice. I am thinking of putting my property on the market and buying another new property with the sale proceeds. If I am successful in selling I would have about 120K of capital, I was hoping to close out of the existing mortgage and re-open a new one for about 10K more, would bring the mortgage up to 210K instead of 200K. I would be doing this at the same time of moving jobs, the new job is a permanent full time civil service position but would the fact I am moving jobs affect the mortgage application ?, also the salary is less than I am currently on (I wanted more of a work-life balance and the pension is more attractive)
Hope you can help,
Cheers

No1 Fan
 
Well lenders usually require or prefer the applicant to be permanent (i.e. having served any probationary period) so applying while moving jobs may well have an impact on your loan application.
 
You'll need to be permanent in the new job and not on any probation period before your new mortgage is drawn down.

I can't comment on whether or not your new salary will qualify you for €210,000 as you don't say what the new salary is.
 
Hi,

Salary would be circa Euro 57K, what mortgage would that enable me to get ? Would that be definite re probationary period ? despite the fact that new contract states it is permanent (albeit subject to probationary period), also would the bank not take into account my payment history and the fact that I would be contributing 38% of the total cost of the new property myself ?

Sorry for all the questions I just want to dot the i's and cross the t's :) and not do anything foolish :)

Cheers

No.1 Fan
 
On €57,000 you should be OK for €210,000 assuming you're not close to retirement age and have no other major loans, alimony payments etc.

Most lenders insist that you're off probation before they'll give you the mortgage, but there's no harm in your asking your own, making the points above.
 
Also - probably a good idea to make sure that you sell the original property before entering into a binding contract to buy the new one so that you don't run the risk of having to service two mortgages if a sale of the first one falls through. Probably obvious but just mentioning it in case...
 
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