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first time buyer

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  • 19-04-2012 11:01am
    #1
    Johnaldinioh
    Closed Accounts Posts: 193 ✭✭


    Hey all me and my girlfriend are thinking of getting a mortgage sometime next year . hopefully we be looking to get 150k . What savings would we need to get this . My girlfriend has a full time managerial job earning about 40k a year and im doing security part time contract but been getting 30 to 40 hours a week for the past year and a half . so between us we would have about 55 to 60k a year. Im just wondering because of me being only part time would that effect the loan if we were both going for it or would it have to be just put down on her name. this is in the very early stages so not alot of research done. if you get a 30 or 40 year loan is there the option to pay it back early ?ie 20 year and not get charged extra


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Johnaldinioh wrote: »
    Hey all me and my girlfriend are thinking of getting a mortgage sometime next year . hopefully we be looking to get 150k . What savings would we need to get this . My girlfriend has a full time managerial job earning about 40k a year and im doing security part time contract but been getting 30 to 40 hours a week for the past year and a half . so between us we would have about 55 to 60k a year. Im just wondering because of me being only part time would that effect the loan if we were both going for it or would it have to be just put down on her name. this is in the very early stages so not alot of research done. if you get a 30 or 40 year loan is there the option to pay it back early ?ie 20 year and not get charged extra

    Ok firstly deposit wish you will need between 8% and 20% of the property value dependent on the bank. Some offer 92% mortgages (8% deposit needed), others offer max 80% mortgages (20% deposit needed). The higher the deposit you get it means the LTV ratio will be lower and you may get a better interest rate.

    Is your part time role permanent? Sounds like a contract role as you mentioned so they may not consider your income at all and only your partners as no guarantee your income will remain there. On her €40k would be able to get around €160k. Its roughly speaking about 4 times the salary.

    If you are on a variable rate mortgage you can pay off early. If it is fixed there are penalties for paying off early. There are really only variable rate mortgages here and you may choose to fix the rate for a certain period.

    I would advise that between now and applying for the mortgage you get yourselves sorted in terms of reducing other debts you may have, budgeting to reduce outgoings. Basically anything to make yourself a stronger candidate for a mortgage. They aint giving money out easy but they are giving it to the right people.


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    #3
    Ryaner
    Registered Users Posts: 1,714 ✭✭✭Ryaner


    BOI are doing up to 5 times the basic salary however all the banks now have affordability tests in place. They look at your outgoing such as credit cards, loans, bills etc and subtract that from the net wage.

    I was told that they need to 1350 per month left over after the bills are paid before they consider it. This was based on me applying as a single male with no debts.

    For the deposit, they want to see the deposit + money to cover the legal fees, valuation etc + left over money to cover misc expenses that come up when you move it. I was advised that at least 3-5k after deposit + expenses helps the application.


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