Mortgage, a goer?

missmatty

Hey everyone,

Have been meaning to post this for a while but never really got around to it. I don't want to waste the bank's time (although I'm sure they've plenty of time these days ), so just wondering if i would have any chance of a mortgage.

Would be looking for a two-bed house in Dublin 8-ish. Working solidly since finishing college end of 2002, never been unemployed. With same employer since 2003, now earning about 49K. Spent seven years in college, have a degree and a masters. No debts whatsoever, clean credit record. My mother died last year and left me money, which combined with my own savings and my SSIA, would total about 70k. Only problem is I would be buying alone and my job is a rolling contract (semi-state, civil service) and not permanent, although if it came to it and I legally challenged them over the rolling contracts, I'd probably win.

At the moment I am still house-sharing, don't see the point in paying 7-800 a month for renting a tiny place. One of the couple I live with owns the house, and I'll probably be asked kindly to leave once they get engaged or married. Just totally sick of not having my own space/kitchen etc. Am single,33. Anyone who knows anything about the current mortgage situation who could help me? I've held out a long time but I just feel the correct time is approaching for me to have my own home, fed up sharing now!

irlrobins

Well you're prob better off than most people in that you don't have debts, have a lump sum for deposit, good salary etc. Assuming you're not looking for an amount beyond what your salary can support you'd be a good candidate. Apart from one thing: your lack of a permanent job. I think that is the one weakness in your application.

If what you say about being able to convert rolling contract into a permanent position, then I'd def look into doing that. IT would def help your application.

My post will now be followed by the obligatory "Are you mad to be buying right now, market is going to fall 30% yada yada yada" post :P

Balmed Out

As far as I know being permanent for 6 months is expected.
best of luck

JuliusCaesar

Here's a 2 bed house in Inchicore for 150,000. You'd only need to borrow 80,000.

A car loan??

Wait a bit longer, I'd say. Save more.

the groutch

I got a mortgage last year with similar criteria and earning less
The only potential issue is the rolling contract, get that made permanent and the banks will be falling over themselves to loan you money

lainey316

JuliusCaesar wrote: »

Here's a 2 bed house in Inchicore for 150,000. You'd only need to borrow 80,000.

A car loan??

Wait a bit longer, I'd say. Save more.

And another car loan to redo the roof, wiring, floors, put in a proper bathroom and kitchen etc etc - OP would need all her savings and maybe more to make this liveable.

OP - if you ask for a call back from Bank of Ireland (fill in the apply online form and they'll call you back) they'll tell you fairly smartly if they'd lend to you and give you a ballpark figure, without wasting too much of anyone's time, takes about 10 minutes. Then depending on that you can shop around.

But if you're happy enough where you are for now, I'd be targeting Q1 next year earliest for purchase. No harm in tirekicking a few houses now tho, the more you see the more you know what you want and more importantly don't want!

Figure something like this would be well within your means in 9 to 12 or so months - www.daft.ie/1583835 - especially if you bump up your savings a bit now, you could add 5k+ plus to your deposit potentially.

If the bank says lending should be possible, if you want you can use a formula in excel (PMT) to figure out what repayments are so you can decide what % of your takehome you want to spend on the mortgage, and easily stress test for rate increases.... what is affordable at 4% becomes slightly scary at 6.5%

Best of luck with the banks.

who_ru

i'm afraid you will also have to factor in a de facto increase in taxes in the next budget, and probably the budget after that.

i don't want to be seen as setting roadblocks in your way, but you should bear this in mind.

alternatively, if you did buy, you could also rent out a room to bump up your income.

as said, contact the bank now, see what they offer, go through the excel exercise, factor in higher interest rates, and see how you get on.

i also agree that renting a shoebox for 700-800 p.m. is a waste of money, rents are still way too high here.

you could rent a bigger place and try to get someone in, share the costs, difficult and maybe not so appealing.

good luck

Dr. Dodger

lainey316 wrote: »

Figure something like this would be well within your means in 9 to 12 or so months - www.daft.ie/1583835 - especially if you bump up your savings a bit now, you could add 5k+ plus to your deposit potentially.

Or you could buy this,

It's slightly bigger and better value for money then that house?

lainey316

Dr. Dodger wrote: »

Or you could buy this,

It's slightly bigger and better value for money then that house?

Think you might have problems getting contents insurance tho

Mr. Loverman

Dr. Dodger wrote: »

Or you could buy this,

It's slightly bigger and better value for money then that house?

In fairness it's a lovely house... for a single person... willing to pay about 1/3 the price.

alb

Dr. Dodger wrote: »

Or you could buy this,

It's slightly bigger and better value for money then that house?

The Children's Playhouse market is still over-inflated. I tried to lowball them with an offer of £60 but they refused.... they'll come crawling back any day now when reality hits home.

missmatty

Thanks for all that guys, pretty much the advice I expected Have been keeping an eye on the prices round Inchicore and Dublin 8 and have seen those houses, love the second one. I'm totally aware that the lack of a permanent contract is the main problem, have been keeping the head down and not making a fuss about it as the more years I am there the better my case will be in the end. Will see what the bank says, am hoping to keep saving and doing the Lotto (!) and maybe next year will prove to be ideal

dazberry

missmatty wrote: »

Have been keeping an eye on the prices round Inchicore and Dublin 8 and have seen those houses, love the second one.

There are 7 houses for sale on the road you've listed so if you could arrange the finance you might find some flexibility on price. IMHO they're all very overpriced, even the "cheap" one.

If you were interested in a south facing garden then I would suggest you only look at the even numbered houses and the other thing to bear in mind is that these houses are over 100 years old, so either buy a complete kip cheap and be prepared to gut it, or buy something that needs zero work, the middle ground will cost you more in the long run.

D.

lainey316

Seriously. Go view houses. I had my first viewing in July 09 I think. You could go into those houses and realise how tiny they are. There is layout aggravatiosn - you really need a loo on same floor as bedroom, bathroom off kitchen is a bit mank, second bedroom is box so you can't put up your mates etc etc view view view. It'll change your perspective. YOu'll be as frustrated as hell on the day but whatever, it passes, there is ALWAYS another house to see.

(But personally I do not like Inchicore so am biased)

Stheno

missmatty wrote: »

Thanks for all that guys, pretty much the advice I expected Have been keeping an eye on the prices round Inchicore and Dublin 8 and have seen those houses, love the second one. I'm totally aware that the lack of a permanent contract is the main problem, have been keeping the head down and not making a fuss about it as the more years I am there the better my case will be in the end. Will see what the bank says, am hoping to keep saving and doing the Lotto (!) and maybe next year will prove to be ideal

after four years continuous service the company are obliged by law to provide you with a contract of indefinite duration (permanent)

From Citizens Information

Employees may not be employed on a series of fixed-term contracts indefinitely. There are 2 possible situations where this arises as follows:

* If an employee whose employment started before 14 July 2003 has completed 3 years’ continuous service as a fixed-term employee, the employer may renew their fixed-term contract only once for a period of no more than 1 year.
* If an employee whose employment started after 14 July 2003 has been employed on 2 or more continuous fixed-term contracts, the total duration of those contracts may not exceed 4 years.

After this, if the employer wishes to renew the employee’s contract, it must be an open-ended contract unless there are objective grounds justifying the renewal of the contract for a fixed term only.

JuliusCaesar

Honestly!
Overpriced isn't in it.

I agree with Lainey...there's nothing like going to view houses to give you an idea of what a realistic market price is. Go see at least 20, BEFORE going to look at somewhere to actually consider buying.

BillieB

Balmed Out wrote: »

As far as I know being permanent for 6 months is expected.
best of luck

Only have to be permanent for 3 months