Will banks lend if on Temp contract?

[Galwaygirl]

We are currently in the middle of selling our house and were planning on using the proceeds as part payment against a larger property. Running into problems with the sale and are now exploring the possibility of buying a new house and renting the current house.
My partner is on a salary of circa 47k and I am earning 21k. However my job is public service and is on a 3 month renewed contract basis (this is mainly due to headcount,there are people there who have been on temporary contracts for 5 years).
What are the chances of lenders giving us a mortgage of 320k (current house value 230k and owned outright)?
Many thanks

 

[Sarah W]

If you can show that your contract has been consistently renewed in the past then I don't think you should have a problem - lenders are aware of this type of set up in public services. Assuming you have no other loans you should be fine for a mortgage of €230,000. Do bear in mind however that you won't be able to offset any of the mortgage interest against the rental income if you secure part of the mortgage on the current house.

Sarah

www.rea.ie

 

[Galwaygirl]

Thanks Sarah, not entirely sure what you mean by not being able to offset mortgage interest against rental income?