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Getting a mortgage

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  • 01-02-2013 6:35pm
    #1
    Wil Tierney
    Registered Users Posts: 59 ✭✭


    Hi,

    Just some quick question. Somebody may be able to help me as everytime I try to get this info I get different answers or get so confused I just leave it.

    I am currently renting with my girlfriend. Rent is €730 a month. Recently we're veering towards getting our own place. This will allow us to do what we want with the house, etc and, at the end of the day, the place will be ours.

    We have no savings to speak of but have been renting for the last 2 years. But my question is do I a chance of getting a mortgage anywhere??

    Thanks,
    Will


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    #2
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Without some savings in place and/or a deposit in place, my initial answer is probably not. It would also depend on your income, and what you can afford.


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    #3
    NIMAN
    Registered Users Posts: 33,594 ✭✭✭✭NIMAN


    Think the banks are looking for 10% deposit as a bare minimum these days, and often looking for more, so I would say that without this in place first the answer will be a definite 'no'.

    The criteria for getting a mortgage these days is tougher than ever, and having zero savings is not a great sign if I'm brutally honest, as the banks will think that you aren't great with money and maybe a potential risk.

    I would start saving like crazy if you can and maybe leave it a while until you get at least 10% of the likely house price saved up. In the meantime you could maybe ask your local bank about what criteria you would need to fulfill to successfully qualify for a mortgage, and that way you will know what you have to do.


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    #4
    Wil Tierney
    Registered Users Posts: 59 ✭✭Wil Tierney


    Thanks for the advice niman.


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    #5
    Paddy001
    Registered Users Posts: 724 ✭✭✭Paddy001


    At the moment, you need a minimum of 8% of the property value saved for AIB and 10% with BOI and others. They will also want to see you have money to cover 1% stamp duty, few grand for the solicitor and a few grand to re-decorate and the likes. They will generally lend up to a maximum of 4 times your salary. Obviously, to stand a better chance of getting approved you should try and keep under 4 times and have over 10% of the deposit. You will both also need to be in a permanent position before they will look at you. You could look at getting a gift from parents or someone else who is willing to help, this could then cover the deposit needed.


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