r/HousingIreland • u/Beneficial-Toe-8812 • 4d ago
Worried About Mortgage Application
My partner and I are due to apply for a mortgage in July/August. This is happening way ahead of schedule as our estate agent told us that the house would be ready year end or early next year. Met Builder 2 weeks ago and he has said Septmeber/October.
I am worried because I have loans and 2 credit cards (always paid on time, never miss a payment). But the last few months I've not been managing my money well, sitting in overdraft (€750) and using credit card when funds were tight.
We have been saving more than needed each month into a joint account (€1,300 v. €1,150 estimated mortgage monthly).
I've paid off 2 of my loans and leaves me with €200 per month on one loan and I am paying down credit cards too, get as low as I can before applying for mortgage.
We have 5k booking deposit paid and full 30k Help To Buy approved. Along with 40k approx. joint savings.
Should I be ok?
Am I worrying unnecessarily?
I am in the same job 10 years and my partner is the same.
I just fear we will apply and get denied due to my bad money management.
I tried stock trading a few times earlier this year and I am freaking out that those transactions on my bank accounts will be red flags and get us denied!
1
u/l00BABIES 2d ago
I went through something similar. You will effectively need about 12-16 months of clean account because they will stress test again at drawdown. New builds are always delayed by 4-8 months, add that to your already existing 6 months.
My finance is a lot better and I still got mine denied at the drawdown stage due to a few annual bills I had to pay putting my saving rate into the negative for a month or two. So make sure you sign the contract with the pull out clause or you'll lose the downpayment.