Trying to secure mortage..

[Dublin-2024]

Looking for some advice please on getting a mortgage.
We had our own site (paid 70k in 2019) and started to build 12 months ago using our own cash and credit union loan( high int rate) , our plan was to save and build in stages over the next 5 years but our family circumstances have changed completely so we are looking to accelerate this.
We have a combined income of 125k, both teachers both 15 + years in current jobs.
The problem is we have now have a loan, credit cards and our cash situtation is poor because the build to date has essentially drained us... We are currently paying about 90k ( cards , loan, various builder providers )
The house and garage are weather tight and we have a QS estimate of 180k to complete the build.
We are meeting all our repayments and saving about 400 a month on top of that but we cannot continue like this for 3 years until its all cleared... Well we can I guess, but for any quality of life we would prefer not to.
Any mortgage broker I have approached has basically said, we aren't showing ability to repay mortgage ( we are currently paying 3,700 on debt each month) and wont take an application any further.
I am wondering has anyone been in similar position or know any brokers that deal with complex situations ?
House is in a nice area in Meath, build to A rate standard and certified by an Engineer at each stage so build to current requirements.
Thank you

 

[Brendan Burgess]

We are currently paying about 90k ( cards , loan, various builder providers )

What does this mean?

That you have total loans of €90k
Or that your repayments are €90k?

OK, I see that you are paying €3,700 on debt each month.

It's better if you just list out your full liabilities.

Brendan

 

[Monbretia]

What you are really looking for is a refinance package mortgage plus extra borrowings, something that will strike terror into the heart of lenders after the last time that sort of lending was dished out left, right and centre! Does your CU do mortgages or if they do is the overall total of 270k too much for them?

 

[misemoi]

Do you have the ability to pick up extra money to bump up your income, corrections, grinds, part time work during school holidays? Short term would be challenging but no more so than waiting longer to get into your house. Or is there a possibility of heading abroad to earn more money than you can here as teachers for a couple of years? Or did either of you go into teaching after leaving a different but better paying career?

 

[ACER10]

Mark M in "Affinity" deals with Teachers mortgages specifically. He gets lots of praise on the Facebook group Teachers Financial Advice. Might be worth a shot.

 

[Dublin-2024]

What you are really looking for is a refinance package mortgage plus extra borrowings, something that will strike terror into the heart of lenders after the last time that sort of lending was dished out left, right and centre! Does your CU do mortgages or if they do is the overall total of 270k too much for them?

Our CU doesnt do self build mortgages right now, and wont be until 2026 .

 

[Dr Strangelove]

It would help if you could list each of your debts and the repayment schedule.

Our CU doesnt do self build mortgages right now, and wont be until 2026 .

You’re entitled to membership of your local CU and also a professional one. Have you inquired with both?

Your CU might be a bit more flexible about the self-build classifiation - it’s more of a renovation at this point

 

[_OkGo_]

We had our own site (paid 70k in 2019) and started to build 12 months ago using our own cash and credit union loan( high int rate) , our plan was to save and build in stages over the next 5 years but our family circumstances have changed completely so we are looking to accelerate this.

The problem is we have now have a loan, credit cards and our cash situtation is poor because the build to date has essentially drained us... We are currently paying about 90k ( cards , loan, various builder providers )
The house and garage are weather tight and we have a QS estimate of 180k to complete the build.

Not to rub salt into your wounds but what were you thinking when you started the build??? How did you think slowly building over 5 years was going to work?

If you are to have any hope of securing a mortgage then you need to present the course of events in the best light possible which means explaining how you've gotten to this position.

To improve your short term situation, you need to outline the amount, the interest and the term remaining on your current debt of €90k. Normally the right thing to do is pay off the highest interest loan but I don't think that is right for you because of cash flow.

You need to clear the smallest debt to remove it from your €3.7k monthly payment and you need to review the rest or consolidate with your credit union. If you significantly extend the term, you will reduce your monthly commitment from €3.7k down to something like €1.6k (e.g €90k at 10% over 7 years)

If you can do this then in 6 months your finances will be looking cleaner and affordability may not look as bad. I'm not sure whether any lender would allow you to consolidate the current debt into a mortgage especially on a self build so the most you may be able to borrow would be the QS estimate of €180k