How much of a mortgage could i get.

danny8

Hi Everyone,

Looking for information on getting a first time buyer mortgage on my own i earn 26k pa & in a full time position & permanent. i have savings of 8k already. I live at home so don't pay much rent & i have been saving 500-600 a month.

Also with the interest relief for first time buyers going in the new year should i hold out for a bit longer.

Any help would be great.

Cheers,
Danny8

Atlantic Dawn

You don't say how old you are but lets presume you will be looking at a 30 year mortgage, realistically your looking at a max of about €550-€600 a month at a max considering you have to light, maintain, food, bills etc in the new property which will be more than currently you spend at home. So looking at aib.ie, your looking around €120k over 30 years.

http://www.aib.ie/personal/mortgages/Owner-Occupier-Mortgage

NIMAN

Maybe max 3.5x your salary, so maybe €90k?

danny8

Atlantic Dawn wrote: »

You don't say how old you are but lets presume you will be looking at a 30 year mortgage, realistically your looking at a max of about €550-€600 a month at a max considering you have to light, maintain, food, bills etc in the new property which will be more than currently you spend at home. So looking at aib.ie, your looking around €120k over 30 years.

http://www.aib.ie/personal/mortgages/Owner-Occupier-Mortgage

I am just gone 25.

danny8

Whats the best tips on getting approved & thanks for the reply guys cheers

NIMAN

First thing I'd ask is are you really sure about lumbering yourself with a mortgage at 25? Its a big commitment at an age when many wouldnt be considering it for years.

danny8

NIMAN wrote: »

First thing I'd ask is are you really sure about lumbering yourself with a mortgage at 25? Its a big commitment at an age when many wouldnt be considering it for years.

Yes it's something I've thought about for a while i'm with my partner a long time & i don't have a crazy social life.

I really don't want a mortgage in my 30's as i would rather have it paid off sooner.

NIMAN

Have you been looking out for houses? If so, what sort of price range you interested in?

magicbastarder

don't forget the max any bank will lend you is 92% of the value of the house.
so you'd be looking at a max of 100k on that basis, given your 8k.
but since you cannot use the money borrowed for stamp duty, solicitor's fees, and other fees (surveyor and valuer), say €3k in total, you have 5k left. that would allow you to borrow maybe 60k.

magicbastarder

what i have heard is AIB have a simple calculation they advise customers about.
take your take home monthly pay, deduct €1000 per adult and €250 per child dependent on it, and whatever you have left over at the end is what you can afford to pay - and what you can afford to pay has to be stress tested for interest rate changes.

danny8

NIMAN wrote: »

Have you been looking out for houses? If so, what sort of price range you interested in?

I've been looking at houses between the €100k to €150k Lots of good homes out there now for that money.

magicbastarder

if you went sale agreed on a house for say €80k, a bank would lend you at most €73600, which means you would have to come up with €6400 of your own money, leaving you with €1600.

you would need to spend approx €300 on a survey, €150 on a valuation, €800 on stamp duty, and maybe €1500 on a solicitor.
that's over €1000 more than you currently have.

i think you need to continue saving; if you're saving at the rate you are, you'll double your money in about 14 months, which will put you in a much stronger position.

edit: that said, you'd probably have that grand saved within the time it took for conveyancing to complete. but it's in a price bracket you don't seem to want.

danny8

magicbastarder wrote: »

if you went sale agreed on a house for say €80k, a bank would lend you at most €73600, which means you would have to come up with €6400 of your own money, leaving you with €1600.

you would need to spend approx €300 on a survey, €150 on a valuation, €800 on stamp duty, and maybe €1500 on a solicitor.
that's over €1000 more than you currently have.

i think you need to continue saving; if you're saving at the rate you are, you'll double your money in about 14 months, which will put you in a much stronger position.

edit: that said, you'd probably have that grand saved within the time it took for conveyancing to complete. but it's in a price bracket you don't seem to want.

Thanks for the advice i'm in no rush as the market still doesn't know where its at. My plan is to just keep saving like a mad thing.

NIMAN

Probably best thing to do Danny. I'd say the price of property has some way to go yet before it hits bottom.

And don't forget, if you have been looking at a house for say €120k, you might well offer €100k and get it! Or even less. Try to keep an eye how long things have been on the market, may be a sign of how desperate the sellers are to get rid.

danny8

Thats what i have been doing by using the accounts on Daft.ie & myhome.ie. Fingers crossed the right place will come along when i'm ready.