Mortgage for FTB

K09

Hi,

I am looking at applying for a mortgage. What are the best mortgage offers out there for first time buyers? Any advice or suggestions?

Thanks.

LEH

Hi there, also a recent first time buyer (bought with my partner) and just drew down on our mortgage from AIB three weeks ago. Your best bet is to go to a mortgage broker, who can break down the differences between the various lenders and rates etc.

You need to figure out if you want to go for a fixed or variable rate. I went for fixed rate, as i preferred the security of knowing exactly what I will owe for the next 5 years. Either way, the rate you get will depend on the LTV%, i.e. how much you are borrowing as a proportion of the total value of the house. The lower the LTV, the better rate you will get. Also what term are you considering?

Have you got all your documentation together? We were asked for P60's for the last two years, current account and credit card statements for the last six months, a salary cert signed by our employers confirming our salary and our status as permanent employees, proof of any savings, probably a few million other things i'm forgetting, it felt like a mountain of paperwork at the time.

You need originals for everything, and I needed to order a few statements, which take about a week or so to come out, so no harm in getting everything in order now. Don't even think of approaching the banks unless the monthly repayments for what you want to borrow is less than 35% of your income.

JuliusCaesar

K09 wrote: »

Hi,

I am looking at applying for a mortgage. What are the best mortgage offers out there for first time buyers? Any advice or suggestions?

Thanks.

Yes. Go search this forum for lots of similar threads and cautionary stories. Go look at the other sites that will be mentioned in these threads.

Do not borrow more than you can afford.
Have the biggest deposit possible.
Go to banks individually as well as going through a broker.
Learn as much as you can about the whole business of mortgages and house-buying before you go anywhere near a broker, bank, or estate agent.

It's probably the biggest purchase you'll make in your life - treat it seriously. Then make up your own mind, given all your newly acquired knowledge, without relying on any one single person's advice or opinion.

spockety

K09 wrote: »

Any advice or suggestions?

1) Look at a mortgage no longer than 30 years (do not be goaded into 35 years for "affordability")

2) If you are a 2 income household, look at what mortgage you could afford on only one of those incomes (the higher one).

3) Do not ask the bank how much you can borrow, work out for yourself how much you can afford.

4) Spend some time with a mortgage calculator (http://www.drcalculator.com/mortgage). Assume that interest rates will be as high as 7% when looking at your repayments.

K09

spockety wrote: »

1) Look at a mortgage no longer than 30 years (do not be goaded into 35 years for "affordability")

Any particular reason why not to go for 35 years?

plasmaguy

Hi K09, the only advice I could give is go through a reputable mortgage broker, recommended by word of mouth is probably best.

I went that way and was very pleased, the mortgage broker went through everything with me, didn't force anything on me and allowed me make all the decisions.

She filled out all the forms, did all the ringing up, organised all the insurance, etc.

For a FTB, it takes a lot of the hassle out of the process.

gurramok

K09 wrote: »

Any particular reason why not to go for 35 years?

It costs alot more.

spockety

K09 wrote: »

Any particular reason why not to go for 35 years?

Take the example of a 250,000 mortgage with an interest rate of 6.5%

Total cost of house (i.e. the sum of all your repayments):

25 years - 506,000

30 years - 569,000

35 years - 634,000

In retrospect I'd probably even say don't look at anything longer than 25 years, though I expect to be shot down in flames by the usual brigade of "Get the longest term you can and just overpay, like you know how humans have the discipline to take their disposable cash and put it into their mortgage on a continual basis..?".

ricman

TRY and get 80/85 per cent mortgage, variable standard rate.30 years max.SO save as much as you can, build up a savings record, dont take out a large car loan.Just cos you get clearance 4 250k, that does,nt mean to use it all, ie you can buy a perfectly nice 3bed in dublin for 190k in a quiet area.I know someone who got a mortgage by borrowing 10k from the credit union to build up his deposit.Remember , anything you buy now will probably lose 20per cent off its value in 2 years, ie the market is still declining.USE a bank like aib that,ll still be round in 30 years.
at this point its hardly worth buying a 2bed apartment if you are borrowing more than 150k, buy a house with a parking space, or garden.

K09

ricman wrote: »

TRY and get 80/85 per cent mortgage, variable standard rate.30 years max.SO save as much as you can, build up a savings record, dont take out a large car loan.Just cos you get clearance 4 250k, that does,nt mean to use it all, ie you can buy a perfectly nice 3bed in dublin for 190k in a quiet area.I know someone who got a mortgage by borrowing 10k from the credit union to build up his deposit.Remember , anything you buy now will probably lose 20per cent off its value in 2 years, ie the market is still declining.USE a bank like aib that,ll still be round in 30 years.
at this point its hardly worth buying a 2bed apartment if you are borrowing more than 150k, buy a house with a parking space, or garden.

3bed in nice area for 190k??? Where is this? I've been searching hard and what we seem to be settling with is 3bed semi-d for 350k.

Have 30k in savings. Had planned to get 92% mortgage for 30yrs. And keep some of our savings in reserve for furniture, etc...
We don't plan to live in it forever. Maybe sell on after 10yrs.

But you obviously think otherwise?

D3PO

K09 wrote: »

3bed in nice area for 190k??? Where is this? ?

Trust me after a while you learn to ignore Ricman's ramblings

spockety

K09 wrote: »

3bed in nice area for 190k??? Where is this? I've been searching hard and what we seem to be settling with is 3bed semi-d for 350k.

"settling with"? As in, you think that's where they will bottom out?

In 3 or 4 years from now you will be simply horrified at what used to sell for 350k, even in 2010, whatever about 2007.

Long, way, to go.

ricman

Theres nice 3bed homes going in clonsilla for 200k,just go to daft.ie search ,
for homes max price 220k.Or LOOK AT homes in stoneybatter or cabra, 350 seems very high to me.I UNDERSTAND some people will only buy on the southside ,which is more expensive.
A 350 k house now, will probably be worth 300 k in 2 years time.