Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Applying for a Mortgage

Options
  • 23-06-2010 10:21am
    #1
    Enygma
    Closed Accounts Posts: 1,651 ✭✭✭


    Hey,

    Is it pointless to apply for a mortgage in this day and age? My partner and I are taking in approx €75k a year and we've got a €25k deposit with no debts. Both of us are in full time long term employment (~8 years each) and we're both first time buyers.
    We're looking for a mortgage of €220K
    Anyone got any advise on which banks are best? What are the chances of getting approval?

    Cheers!


Comments

  • Options
    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Enygma wrote: »
    Hey,

    Is it pointless to apply for a mortgage in this day and age? My partner and I are taking in approx €75k a year and we've got a €25k deposit with no debts. Both of us are in full time long term employment (~8 years each) and we're both first time buyers.
    We're looking for a mortgage of €220K
    Anyone got any advise on which banks are best? What are the chances of getting approval?

    Cheers!
    You chances of getting approval for that amount are quite good.

    Assuming you're both earning €37,500 per year and you're not married, then your net income per month is roughly €5k. Which means that the absolute maximum you should be repaying on a mortgage is €1,600 per month.

    €220k @ 6% (worst case) over 25 years will cost roughly €1,400 per month. Which is inside your budget and leaves you some room to adjust if interest rates go mental. The long-term average for interest rates is roughly 3.2% (and is also the current fixed rate for 2 years for most lenders), which is €1,070 per month, which is well affordable between the two of you.

    Of course, these figures are for someone in the ideal position of currently living at home and having no expenses bar food, rent and utilities. They don't take into account a number of things:

    1. If either partner earns significantly more, the net take-home might be lower than I've said
    2. Current liabilities (car loans, etc) take precedence
    3. Your current monthly outgoings (do you have kids, etc).


  • Options
    #3
    Enygma
    Closed Accounts Posts: 1,651 ✭✭✭Enygma


    Thanks for the info, as I said we've no debts or loans. credit card is rarely used and paid off immediately. The salary split is pretty close so that's accurate enough. No kids at the moment, the only outgoings are rent, savings, food and utilities.

    Might as well apply and see what they say I guess, thanks for the lift in confidence! :) Was feeling a bit gloomy there reading about the banks.


Advertisement