In reviewing an application we take the following criteria into account

1.We need to see clear evidence that you can afford the mortgage repayments.This can be established through the following:

· Steady build up of Savings

· History of regular Rent payments

· Strong current accounts .If you have an overdraft facility accounts should be seen to be regularly in credit.

· A minimum of personal borrowing clearly helps an application .Short term borrowings may significantly limit your maximum mortgage facility level.
When you use the above calculator you can test the results for the impact of short term borrowings on borrowing capacity.

· You must be seen to operate reasonable spending habits( Yes lenders look closely at how you spend your money)

2. Employment must be secure

WE are looking at full time permanent positions.

· Length of current employment

· What did you do before this occupation

· What sector are you employed in?Is it especially exposed in recession?

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· Has there been redundancies in your company/sector?

· Is your job construction related?

3. Income

· Is all your income basic wages?

· What are the chances of achieving bonus /overtime in current environment

· What commission is reasonable in the current environment

· Can you vouch any additional income

4. Credit history

· Do you have loans?Have they been maintained up to date.

· Have you a clean credit history?

· Do you have large credit card balances?

5 .Life style issues

· Lenders look closely at your current account statements

· Are you overspending on luxuries such as eating out to often?

· Other spending such as on line gambling will not help

· Have you money left over at the end of each month?

· How would the accounts look if a monthly mortgage was applied

Guarantors

A guarantor can help get a mortgage across the line.But this really should only be to secure slight increases in borrowing capacity or perhaps allow you get a mortgage now in anticipation of clear evidence of the potential for future increases in earnings.

Gifts for deposits

Very often parental gifts form part of the deposit.However lenders still like to see some element of savings .For example if the 8% deposit was 20 k it would help to have savings of around 10 k and a gift for the balance.

Hopefully this gives you a good feel for what are the basic lending criteria.They are not written in stone but there must be no doubt that you can afford the repayments.

It may well be that you do not qualify at the moment.Perhaps your savings are not adequate or you are on probation.Even so it wont be long before you will be ready ,so please keep careful control of your finances in the run up to an application at a later date.