What are our chances of getting a mortgage?

Hi all,
I'll be applying for a mortgage in a few weeks for a self build in Co.Kildare and am a bit worried after hearing all the horror stories of the banks being closed!
We were pre-approved by AIB about 16 months ago but times have moved on by all accounts.
We're both in late 20's, no dependants, I'm in a permanent job in public sector (yeah I know...boo hiss etc) earning 40k and he's in a permanent private sector earning 37k.
Savings of 27K (arch, planning etc cost 3k over the last few months)
Car loan of just under 4k.
I paid off my credit card (900ish) over the last few months.

We're hoping to pay 60k for site and 180-190k for build.

What do you think our chances are? I'm a bit sick of the thought of the whole process and am a bit clueless.

Thanks a million.

Hi IW,

Assuming that your car loan repayments aren't that high, that your current account statements show no skeletons (like going overdrawn at the end of the month without authority, meaning things are getting bounced), that your repayment history on all previous loans is perfect and that you can show affordability (current rent and regular savings pattern = proposed mortgage repayment), you should be fine.

Expect to wait a while and expect plenty of queries before you get approved, but stick with it.

Regards,

Liam D. Ferguson

I think you're chances are good - it seems from reading your post that you want to borrow €225k on a salary of almost €80k. You have good savings and an extra in your favour is the fact that one of you has a govt. position. Therefore, you are going into this with a strong hand.
Just make sure to keep your savings up between now and the time you apply and also make sure that you keep your credit history clear as Liam says don't exceed your overdraft or miss a loan payment, direct debit etc.
Also keep your paperwork in order eg copies of bank statements, your P60 etc. You will be asked for loads of this during the application process.
Try to relax, you are in a very strong position, your chances are better than most. You have covered everything that's in your control, you can't see the future or know how your application is going to be viewed, so don't worry about it.

Get a Quantity Surveyor to price your build cost competently for the current market.
Go in seeking a mortgage based on this and your other costs to complete the house.
Ask for more now rather than under-estimate and have to go back to the bank later.


ONQ.

you've got a reasonable chance but bear in mind it is likely to be for no more then 90% of the cost,

Thanks all. Didn't really understand all the huge out of pocket expenses even before so much as a block has been laid untill recently. Everything is huge money!!

I'd a quantity survey needed to fill out the quantities form for the mortgage application or will our contractor or architect be able to do that?

Your architect or engineer fills out the forms for the mortgage, but I'd still agree with onq's advice 100% - get a Quantity Surveyor to give you an accurate estimate of the actual costs, then add at least 10% for unexpected items. Get your figures done accurately before you apply for your mortgage. If you don't need to draw down the full amount you've been approved for, that's no hassle and you just end up paying less. But if you end up needing a higher loan mid-way because your budget wasn't accurate, that can be a pain as the lender may require you to justify the extra and possibly provide revised proof of income etc. You'd also have to revisit the life insurance for an increase.