First time buyers

ck66

Hey, just wondering if anyone could offer some advice. Myself and my boyfriend are both working full time on a wage approx 75000pa. (i have only just started working full time as i finished my degree in the summer). i was wondering can we get a mortgage if we have have a long term personal loan out for around 8000euro which we are paying off monthly.
Also too because i have only just started working do we have to wait a certain amount of time before we apply? Soooo confused about all the housing stuff

really appreciate and advice at all

CK

trilo

Hey ck66, i think the best thing you should do is take taht step and go in and talk to a mortgage advisor.
Then you will know exactly where you stand in relation to getting a mortgage.
If it is not possible for you to get one now, at least the mortage advisor can give you some starter points in getting yourself and your partner ready to taking out a mortgage.

I myself went to mortgage advisor earlier this year for advice and it was the best thing i have ever done, he told me exactly where i stood now and what i could do to prepare to been accepted for a mortgage.

Couple months down teh line myself and the other half got a mortgage.

mini Maple

hey We just bought just over a year ago, and we had to pay off all our loans before we were able to get a morgage- but that depends on how much you borrow, they will take your loan into account if you still have it so it might mean you you will get offered a higher amount of finance without!... since i was just out of college and had just started my permanent job, i had to wait untill my probation was over.

But my sister had just started her new job a few months and went to a morgage adviser and they approved her without being permanent, i think it depends where you go!

have you started seeing online what you could borrow?

ck66

hey thanks all for replying

We have an idea what we can borrow but we still have to check whether me still being on probation (which is a year because i work in the childcare field) will allow us to borrow. I think we will have to shop around and to see what is better for us in the long term. We dont want to be crippled with debt but really want our own place. Lets hope the banks are nice

egan007

Why not visit a broker and remove the confusion?

ck66

yup thats the plan, was just getting peoples ideas before we went.:D

BendiBus

Don't forget to investigate trends in house prices.

You might come to the conclusion that you'll get a better home for a lower price if you wait a while. Deciding to wait until you're permanent and your loan is paid off may turn out to be the best option.

eek

Don't forget to investigate trends in house prices.

Definately. Buying a property is the single biggest purchase you will ever make. Don't rush into anything. Right now you are in a perfect position financially (a shared 8000 debt should be easy to clear). So do your research and take your time. Making the right decision now could save you a lot of money!

Some points you should consider:

House prices are falling

Bray People: Residents outraged by huge house price drop

I know many people don't want to admit this but the evidence is all around us, you just have to open your eyes.
Some resources which highlight this are ....
www.irishpropertywatch.com
www.thepropertypin.com - thanks to this site I got my money out of Northern Rock 3 weeks ago (well before the publicised bank run)

... and of course Google ! Google saves a copy of all the web pages it visits - this means that if you search for a property on google and use the "cached" link you can see if the price has changed since Google last visited the page.

Example:
Check out "21 Rushbrook Court". They were asking for 549,000 now they only want 500,000 that's a 9% drop. 50,000 covers a lot of rent money!

Current links:
www.daft.ie/dublin/houses_for_sale/templeogue/
http://www.daft.ie/searchsale.daft?id=285278&search=1

Google cache (about half way down):
http://64.233.183.104/search?q=cache:48VR6nl6CJgJ:www.daft.ie/dublin/houses_for_sale/templeogue/+%2221+Rushbrook+Court%22&hl=en&ct=clnk&cd=3&gl=ie

How far can they fall? Well personal experience of the last crash in London saw a 60% drop off the value of an investment property over the course of 2 years - took 12 years for it to get back to it's original value. Of course that couldn't happen here could it? This was on for 1.2 mil earlier this year!

Crisis in the credit markets

To answer the OPs original question I would be *very* surprised if you could get a 100% mortgage now. But if you can find one remember that interest rates are going up. Yes the ECB has currently put a hold on rate hikes but now the banks are raising rates independently of the ECB (www.independent.ie/business/irish/statesides-loan-gaffes-affect-us-all-1070779.html). For instance Start mortgages recently raised they're interest rates by about 1% which is equivalent to four European Central Bank rate rises. It's only a matter of time before other lenders follow.

Currently renting is cheaper

I know that not having your own place sucks but from a financial perspective currently renting is cheaper than buying. Rent money is not always dead money. This takes a while to get your head around but this link should help How 2 calculate if renting is cheaper?

Finally don't take my word for any of this, follow the BendiBus advice. Do your own research and make your own conclusions, but beware of stats produced from vested interests like Estate Agents and Developers. The information is out there you just have to look for it. Good luck!