Mortgage 2012

Afehogan

hoping to buy this year but am getting mixed messages about whether i would qualify for mortgage. Myself and my partner earn just under 80000 between us. I am in the public service permanent for 5 years and he is permanent in his job also. We have around 16000 in saving and will be receiving 10000 as a gift from parents. We would be looking for a house priced no more than 300000. What are the chances? i know some people say its not the time to buy but we have decided this is the year for us!

seamus

€300k is too much, it's more than 3.5 times your combined salaries. You will also have stamp duty and solicitor's fees to pay out of that 26k, so assume your available cash is €20k.

Most banks now are looking for 80% LTV max, so assuming you have €26k in cash, you'll be able to get a mortgage for €100k.

Even at 90% LTV (the absolute maximum you'll get), the most you can borrow is €180k.

Start looking at homes (not apartments) in the €150k - €200k bracket and remember that the asking prices are flexible by at least 10%.

ArthurG

At the risk of sounding like a total smart arse, I think the only person who can tell you definitively (as opposed to a mixed message) whether or not you can get a mortgage is the bank manager. Have you asked?.

Afehogan

havent yet, waiting on some documentation that is taking ages to arrive! im surprised at the opinion that would only be eligible for 100k! may go back to the savings again!

Conflicts

A few months ago I got 200k from the AIB for a 92% fixed rate mortgage.

My savings were similar to yours and a salary of 50k.

You should be ok.

the groutch

80 grand a year and only 16 grand savings doesnt exactly paint the picture of someone who is good at managing their money.
I'd save another 16k at least before looking for a mortgage, even if it means waiting another year

bobbyg

You don't mention anything about your partners job and whether he is permanent or not. You are saying you earn €80k between you but you could be earning 30k and he could be earning 50k and possibly not permanent I think that would have a big effect on whether you get a joint mortgage and how much you get if you do.

royaler83

Afehogan wrote: »

hoping to buy this year but am getting mixed messages about whether i would qualify for mortgage. Myself and my partner earn just under 80000 between us. I am in the public service permanent for 5 years and he is permanent in his job also. We have around 16000 in saving and will be receiving 10000 as a gift from parents. We would be looking for a house priced no more than 300000. What are the chances? i know some people say its not the time to buy but we have decided this is the year for us!

In my opinion you are crazy looking for a mortgage that size considering the savings you have and salary each of you are earning, what happens if either of ye get sick or lose yer jobs etc.

I'm not trying to be flippant but have you learned nothing from 5 years ago, you were lucky/smart enough to avoid getting yourself into huge debt, why do it unnecessarily now?! 2/3's of that amount would be a bit more sensible in my book considering your circumstances.

To answer your question I would be surprised if you would get 300k with 'only' 16k proven savings.

Good luck all the same

Afehogan

bobbyg wrote: »

You don't mention anything about your partners job and whether he is permanent or not. You are saying you earn €80k between you but you could be earning 30k and he could be earning 50k and possibly not permanent I think that would have a big effect on whether you get a joint mortgage and how much you get if you do.

i did mention that he is permanent also. both earning 40000

bobbyg

Sorry missed that. I'd say your best bet is to speak to the banks and see what they say at least they can tell you what you may need to do over the next 6 months to 1 year if you don't meet their criteria.

How do ye intend to furnish the house?

lainey316

I'd be surprised if you get more than 200/220k based on the brief chat I had with the bank yesterday (ETA I was in about something else, I already got mortgage approval from them last year, but no house appeared to buy before it expired). I'd be maxing my savings this year to buy the following year if I was in your position - you should be able to easily save a grand a month if not more. It'll give you a little more breathing space on your LTV if you want to pursue a house in the 300k bracket

wclarke20

Be prepared to be disappointed i say.
We have 90k income between us with one car loan expiring in April. We are building our house and looked for 240k and we were given the run around for months and months before we gave up on it. We are both in permanent jobs for 5 years plus. This was with EBS.
A broker told me yesterday that i should easily get 240k now at 90% with 25k savings. I'm a bit sceptical of this.

I think 300k is a lot to be asking now. There are loads of fantastic houses out there for around the 200k mark and many a lot less.

Keep the mortgage as low as possible and do any rennovations/furnishing through saving as you go along.

afkasurfjunkie

wclarke20 wrote: »

Be prepared to be disappointed i say.
We have 90k income between us with one car loan expiring in April. We are building our house and looked for 240k and we were given the run around for months and months before we gave up on it. We are both in permanent jobs for 5 years plus. This was with EBS.
A broker told me yesterday that i should easily get 240k now at 90% with 25k savings. I'm a bit sceptical of this.

I think 300k is a lot to be asking now. There are loads of fantastic houses out there for around the 200k mark and many a lot less.

Keep the mortgage as low as possible and do any rennovations/furnishing through saving as you go along.

my brother and his fiancee are also currently building their house. they prob earn about 80k between them and are in permanent jobs for the last four years. they had about 17k in savings and she got a loan from her parents of 10k. they got a mortgage of 240k with bank of ireland. usual amount of paperwork involved but not too much hassle.
so for every downer of a story there is a positive one too.

coolhandluke

Afehogan wrote: »

hoping to buy this year but am getting mixed messages about whether i would qualify for mortgage. Myself and my partner earn just under 80000 between us. I am in the public service permanent for 5 years and he is permanent in his job also. We have around 16000 in saving and will be receiving 10000 as a gift from parents. We would be looking for a house priced no more than 300000. What are the chances? i know some people say its not the time to buy but we have decided this is the year for us!

200k max is what you should be looking for, probably all you'll get anyway.

coolhandluke

wclarke20 wrote: »

Be prepared to be disappointed i say.
We have 90k income between us with one car loan expiring in April. We are building our house and looked for 240k and we were given the run around for months and months before we gave up on it. We are both in permanent jobs for 5 years plus. This was with EBS.
A broker told me yesterday that i should easily get 240k now at 90% with 25k savings. I'm a bit sceptical of this.

I think 300k is a lot to be asking now. There are loads of fantastic houses out there for around the 200k mark and many a lot less.

Keep the mortgage as low as possible and do any rennovations/furnishing through saving as you go along.

From what i've been told the ebs don't have any money to lend, there's only about 3 banks lending in the country and ptsb who want 50% down for a fixed rate.

Learpholl

coolhandluke wrote: »

200k max is what you should be looking for, probably all you'll get anyway.

Was offered 326k from AIB earning less than the OP. Although I did have more savings.

Obviously being offered that amount and actual drawing down that amount could be a different story but I really doubt they would be over 100k out on their initial sanction in prinicipal.

BOI offered 285k too btw.

coolhandluke

Learpholl wrote: »

Was offered 326k from AIB earning less than the OP. Although I did have more savings.

Obviously being offered that amount and actual drawing down that amount could be a different story but I really doubt they would be over 100k out on their initial sanction in prinicipal.

BOI offered 285k too btw.

Roughly €1,500 a month, fair play but i have no interest working to pay a mortgage and very little else.

http://www.mortgages.ie/index.cfm/spKey/first_time_buyers.mortgage_payments_calculator.html?mode=basic&go=go&buyer_type=First+Time+Buyer&house_price=360000&product=-1&amt=326000&lender=-1&status=Single&comparison=loc&term=30&x=37&y=16


My house earns the same as the op,i pay 950 in rent, throw in 2 kids, we live a relatively comfortable life, but we would certainly count the pennies too. To start off with a €1,500 mortgage is madness to me and i would have 5 times the savings of the op.

Nevermind, what the bank will give you, borrow what you can pay back and live a comfortable life.

shangri la

Dont be surprised if interest rates hit 10% next year.

Stress test yourselves right up to this point to make sure buying now is the option for you.

how sure are you the croke park agreement will still be in place in 3 years?

What if Ireland exits the euro in the next 3 years? Its a lot more likely than you may believe.

If those likely events happen do you want to have to service a 250k+ mortgage because you got an itchy trigger finger?

Thats not even taking into account property prices have a way to drop yet even without the above events affecting the market.

Unless you have young kids that you want a bit of stability for I would not recommend buying a property in 2012. Would waiting another 12 months to see how things play out make much difference to you?

the groutch

shangri la wrote: »

Dont be surprised if interest rates hit 10% next year.

you writing for the Daily Mail?

Learpholl

coolhandluke wrote: »

Roughly €1,500 a month, fair play but i have no interest working to pay a mortgage and very little else.

http://www.mortgages.ie/index.cfm/spKey/first_time_buyers.mortgage_payments_calculator.html?mode=basic&go=go&buyer_type=First+Time+Buyer&house_price=360000&product=-1&amt=326000&lender=-1&status=Single&comparison=loc&term=30&x=37&y=16


My house earns the same as the op,i pay 950 in rent, throw in 2 kids, we live a relatively comfortable life, but we would certainly count the pennies too. To start off with a €1,500 mortgage is madness to me and i would have 5 times the savings of the op.

Nevermind, what the bank will give you, borrow what you can pay back and live a comfortable life.

I agree 100%. Didn't actually borrow the 326k, just saying thats what I was offered based on slightly less earnings than the OP. Going for a 35 year mortgage myself but the repayments are less than €900 per month when you include TRS so not anywhere near the €1500 per month.

shangri la

the groutch wrote: »

you writing for the Daily Mail?

Its basic macroeconomics to combat the inevitable inflation.

Even someone writing for the DM can connect the dots.

BlueIsland

shangri la wrote: »

the groutch wrote: »

you writing for the Daily Mail?

Its basic macroeconomics to combat the inevitable inflation.

Even someone writing for the DM can connect the dots.

Right myself and partner getting house for 225,000 with a 10% deposit!So mortgage of 202,500! Both earn 90,000 between us! Savings of 43000! We literally have had zero issues with AIB despite the scaremongering that goes on!!! My question is can you please explain how in name of god interest rates will hit 10% in 2012! I dont want anything sugarcoated but that seems an immense variable Jump!!!!

Villa05

BlueIsland wrote: »

My question is can you please explain how in name of god interest rates will hit 10% in 2012! I dont want anything sugarcoated but that seems an immense variable Jump!!!!

Euro breakup

BlueIsland

Euro breakdown----rates be decided by ICB then. Im not saying they wont raise rates but you looking at a 7 % increase there in ONE year, even though the world and himself knows the way to increase productivity is to give the people more spending power (hence the ECB dropped rates).I would stress test any mortgage by say 2 points but stress testing for 7%- slight exaggeration perhaps?

Villa05

BlueIsland wrote: »

Euro breakdown----rates be decided by ICB then. Im not saying they wont raise rates but you looking at a 7 % increase there in ONE year, even though the world and himself knows the way to increase productivity is to give the people more spending power (hence the ECB dropped rates).I would stress test any mortgage by say 2 points but stress testing for 7%- slight exaggeration perhaps?

It will not take a year. In this scenario it will happen overnight. Google Argentina currency crisis to get a better understanding of what will happen

D3PO

sorry but the scaremongering of a rate increase of 7 points in a year are just that.

to even try and compare to Argentina shows a distnict lack of understanding.

the banking crisis here and the fact we are in a monetary union are two significant differences that make a comparison just farsical

what next somebody will tell me it will be to stop heper inflation like in Zimbabwe.

Give me a break ...

i think David McWilliams must be on here under an alias

Villa05

D3PO wrote: »

sorry but the scaremongering of a rate increase of 7 points in a year are just that.

to even try and compare to Argentina shows a distnict lack of understanding.

the banking crisis here and the fact we are in a monetary union are two significant differences that make a comparison just farsical

what next somebody will tell me it will be to stop heper inflation like in Zimbabwe.

Give me a break ...

i think David McWilliams must be on here under an alias

What do you think will happen if
A Germany pulls out of the euro
B Pigs are expelled from the currency or voluntarily leave
Irish Bonds are currently at around 8% Our interest rates will be linked to this. This is not scaremongering, people contemplating purchasing should be aware of the potential risks.