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mortgages?

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  • 13-06-2011 12:16am
    #1
    tricia2011
    Closed Accounts Posts: 6 ✭


    Hi

    I am new here and am hoping to get some advice.

    I am 32 and hoping to buy a house in the next few years. I am wondering what I need to do to prepare for this.

    I will be buying it by myself, I work in the public sector and my take home pay is approx 2200 per month. permanant post

    I am wondering what would be the maximum mortage that I could get on that salary.


    I am thinking about 600-700E of a mortage repayment per month or is this unrealistic.

    I would be very grateful of any advice

    thank
    T


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    #2
    NIMAN
    Registered Users Posts: 33,607 ✭✭✭✭NIMAN


    Try to save as big a deposit as possible. Banks are very very picky about granting mortgages these days, and use any excuse to turn them down. You need to be able to show that you are good with money and will not entertain anything less than a 10% deposit of the purchase price. Some may even ask for more. If you have a lot of savings, be prepared to hand most, if not all, of it over.

    They will also probably only offer a single person 3x their salary max. So multiply your gross wage by 3 and thats probably the absolute max you'll get. Plus they will stress test your salary to see if you could cope with interest rates going up by an extra 2 or 3%, which they might just over the coming years.

    They might also take into account that PS workers in Ireland are going to be hit with more wage reductions or levies over the next few years, so your wage now might not be your wage in 5yrs time.

    Good luck with your application, there are some bargain houses out there, but whatever you are looking at, offer way less and work your way up. Houses are not selling and you should be able to get a house very reasonably these days.


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    #3
    molly09
    Registered Users Posts: 1,181 ✭✭✭molly09


    do you think house prices will continue to drop or has it bottomed out?
    M


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    #4
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Mulitples of wages is not used by all banks.

    Some say that only 40% of your income max can be used on set expenditure. So €880 would be the most you can have as set out goings.

    Savings would be very useful, so save as much as you can.


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    #5
    molly09
    Registered Users Posts: 1,181 ✭✭✭molly09


    n


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    #6
    tricia2011
    Closed Accounts Posts: 6 ✭tricia2011


    thanks for the above, any other advice is greatly appericated

    alos how much extra money is needed to pay for soliciators, insurance etc when you buy your first home

    I am just making sure I can make a informed decision

    thanks in advance for your advice


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    #7
    ultra55ound
    Registered Users Posts: 50 ✭✭ultra55ound


    Solicitors should come in somewhere between 1-2K depending, you do need a good solicitor so ask around.

    Life Assurance is prob around €300 per year, double that if you smoke.

    Home Insurance you can shop around and get it for €250-300 for the year depending on the cover.

    So add €50-60 per month to your mortgage to include home + life insurance.

    You may also get caught for deposits when signing up to electricity/gas/bins etc. So be prepared for that kind of thing.

    You're also going to need an engineer, approx €150-250 depending.

    Not including any furniture/fittings etc. I'd want to have around 3-4K to cover that kind of stuff comfortably.

    I'm in a similar situation to yourself and would be cautious at the moment. You're salary may remain the same over the next few years but take home pay will drop due to taxes. Also interest rates are rising. So an extra hundred on your mortgage and and extra hundred in taxes and you're 200 down a month. This isn't really speculation either, this will be the case over the next few years at least, so keep it in mind.


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    #8
    tricia2011
    Closed Accounts Posts: 6 ✭tricia2011


    thanks you so much for all that information, I had never even thought of an engineers report

    I earn about 2200 per month and would expect to pay no more than 600Eper month on a mortage. i dont know if this os possible to get a house at a mortage of this level. I have contacted a bank but they work with the max they will give you.

    It is very difficult to know what to do,

    thanks for all that info

    T


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    #9
    NIMAN
    Registered Users Posts: 33,607 ✭✭✭✭NIMAN


    Just more info for the OP, I purchased 6 months ago and my solicitor was looking for €1800, I talk ed them down to €1500 due to the amount of them looking for business.

    My engineers report cost me approx €450. It was a full structural report.

    Little things always come up, so whatever you budget for, make sure you have some extra in the bank!! For example, my solicitor wanted some extra kind of test done by a surveyor. Think it was a line of sight something or other, to determine if I owned a bit of road outside front of house/boundary. That was another €135. Something you'd never think of. Solicitors have the knack of finding things that cost you more money.

    Then when I moved in, outside of money for paint, carpets etc, I had to pay to get 2 chimneys cleaned out. Again another thing I never thought of.


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