Trying to get mortgage approval - IT Contractor

J

JamesS

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Hi,

Looking for some advice.

I'm an IT contractor (since 1999) on a very good daily rate, married, young baby. My wife is currently studying for a PhD. We also own a 2 bed apartment in Dublin 8, with excellent rental potential. We also have good savings. We're trying to get approval for about 200k.

We've tried Ulster Bank, but they're only willing to give us about 90-95k.

Is there any bank out there willing to deal with IT contractors, who take a look at the bigger picture, such as experience, the current daily rate, etc.

All help appreciated.
 
UB have dropped their rates recently, even for full PAYE employees, and by large amounts. The other banks have done similar.

Without knowing what you make, its difficult to give figures, but usually they look at income over the previous few years taking a lower average. You'll need full accounts too for the period.
 
Do you have mortgage on apartment in Dublin? How much savings do you have? These two things will also greatly determine your ability to get a mortgage.
 
We own an apartment, but also have good savings. The apartment is about worth about 40k less than what we owe on it. Would the banks seriously increase their amounts if we didn't own the apartment?
 
Hi,

My husband is an It contractor and recently got approved for a mortgage. He had to provide a lot of information including 3 years accounts prepared by an accountant and a profile of the company. I presume you're through a limited company ?

My husband has an apartment which has a lot of equity but they still deducted the full outstanding mortgage off the mortgage amount they would have offered. Savings were not taken into account with regard to the amount offered and neither was any rental for the apartment.
 
JamesS said:
We own an apartment, but also have good savings. The apartment is about worth about 40k less than what we owe on it. Would the banks seriously increase their amounts if we didn't own the apartment?
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Yes. You have monthly repayments to meet. Even if they are paid in full by the tenants, you may well run into difficulties if you get bad tenants.

You should consider doing a Money Makeover.

It seems to me that you should sell your apartment and free yourself up to buy a house.

Alternatively, especially if you have a cheap tracker, keep the apartment and rent.

Buy buying a second house, you are exposing yourself to falls in property prices and rises in interest rates.

Who is the apartment loan with? If it's with Bank of Ireland or Ulster Bank, and you have a tracker, they might let you sell the apartment and move the tracker to the new house.
 
Brendan Burgess said:
Yes. You have monthly repayments to meet. Even if they are paid in full by the tenants, you may well run into difficulties if you get bad tenants.

You should consider doing a Money Makeover.

It seems to me that you should sell your apartment and free yourself up to buy a house.

Alternatively, especially if you have a cheap tracker, keep the apartment and rent.

Buy buying a second house, you are exposing yourself to falls in property prices and rises in interest rates.

Who is the apartment loan with? If it's with Bank of Ireland or Ulster Bank, and you have a tracker, they might let you sell the apartment and move the tracker to the new house.
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I think we'll likely sell our apartment (if we can). That's really our best option. We have a tracker mortgage with Bank of Ireland, so we would consider renting. However, by removing any outstanding debt, our mortgage options increase by quite a bit.
 
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