FTB - Mortgage - how much could we borrow?

leelee77

Hi all,

All going well we will be applying for a mortgage in July. We will be getting a broker but I was just wondering how much people think we would be able to borrow.

We are both 37 and have 2 children. Our joint earnings are 71,000 euro. OH is permanent and I have been on a contract for 2 years but am being made permanent in April.

We are selling a flat in the UK and the area we are selling has increasing prices at the moment so we should make about 40-50K towards a deposit. We will also have saved 6k from Feb to July. We have a credit card but that will be paid off by July.

At the moment we are saving 1k per month and pay rent of 980euro.

Anything we should be doing to help strengthen our case, and how much do people think we could borrow? We are thinking a mortgage around the range of 280,000 euro would be fine to pay off and would get us a nice house.

Thanks in advance.

Bateman

The rent + savings on a monthly basis demonstrates your ability to repay, I'd say you'll get 280.

Moonbeam

I reckon you will get enough to buy a house for 280k but maybe not a mortgage for that much.
All you can do is talk to the bank or a broker and see what they say:)

superman28

Around 280k,, but only if you get a permenant job.. otherwise 130k or so.. if you can lower your LTV ratio and only borrow 80% or less this will increase your chances of getting approval.. However, your age will go against you a little bit. Also, your affordability of repayments,, it will be about 1200 a month for 35 years, (72 years old when finished repayments).

Hopefully you are not buying in Dublin, in which case you should find a nice home for that amount..

Curious, why are you going via a broker?,, might look into this option myself..

limnam

with a combined income of 70k and a 60k deposit, I would be looking at houses somewhere around 200k requiring a mortgage of 140k.

Considering you're a contractor you would want to be aiming at a house price you can comfortably afford to pay with one earner.

It's the wrong mindset to be questioning how much they might give you. You should be able to work out the affordability and go in with the figure you want. If you have figured out a comfortable affordable re-payable mortgage. There's no reason the bank won't.

280k would be a lot of pressure if contract's go scarce.

Trish56

leelee77 can you give a breakdown of the earnings per person and confirm if gross basic and do not include bonus/commission or overtime. Please also confirm if you have a mortgage on the flat in the UK and if so how much is the mortgage and if you receive rental income.

leelee77 wrote: »

Hi all,

All going well we will be applying for a mortgage in July. We will be getting a broker but I was just wondering how much people think we would be able to borrow.

We are both 37 and have 2 children. Our joint earnings are 71,000 euro. OH is permanent and I have been on a contract for 2 years but am being made permanent in April.

We are selling a flat in the UK and the area we are selling has increasing prices at the moment so we should make about 40-50K towards a deposit. We will also have saved 6k from Feb to July. We have a credit card but that will be paid off by July.

At the moment we are saving 1k per month and pay rent of 980euro.

Anything we should be doing to help strengthen our case, and how much do people think we could borrow? We are thinking a mortgage around the range of 280,000 euro would be fine to pay off and would get us a nice house.

Thanks in advance.

leelee77

superman28 wrote: »

Around 280k,, but only if you get a permenant job.. otherwise 130k or so.. if you can lower your LTV ratio and only borrow 80% or less this will increase your chances of getting approval.. However, your age will go against you a little bit. Also, your affordability of repayments,, it will be about 1200 a month for 35 years, (72 years old when finished repayments).

Hopefully you are not buying in Dublin, in which case you should find a nice home for that amount..

Curious, why are you going via a broker?,, might look into this option myself..

Unfortunately we are buying in Dublin 😓

We are going via a broker as we did this in the UK and were recommended a great one on here who has been very helpful to date

leelee77

limnam wrote: »

with a combined income of 70k and a 60k deposit, I would be looking at houses somewhere around 200k requiring a mortgage of 140k.

Considering you're a contractor you would want to be aiming at a house price you can comfortably afford to pay with one earner.

It's the wrong mindset to be questioning how much they might give you. You should be able to work out the affordability and go in with the figure you want. If you have figured out a comfortable affordable re-payable mortgage. There's no reason the bank won't.

280k would be a lot of pressure if contract's go scarce.

I am on a contract with the same company for the past 2 years and it is this company who are making me permanent in April.

leelee77

Trish56 wrote: »

leelee77 can you give a breakdown of the earnings per person and confirm if gross basic and do not include bonus/commission or overtime. Please also confirm if you have a mortgage on the flat in the UK and if so how much is the mortgage and if you receive rental income.

Hi Trish,

My husband earns €51000 basic and I earn €20000 basic. We have a mortgage on the flat in the UK but will be selling the flat and should walk away with between €40-50,000 after the mortgage has been paid off.

Trish56

Do you pay childcare and if so how much per month?

leelee77 wrote: »

Hi Trish,

My husband earns €51000 basic and I earn €20000 basic. We have a mortgage on the flat in the UK but will be selling the flat and should walk away with between €40-50,000 after the mortgage has been paid off.

leelee77

Trish56 wrote: »

Do you pay childcare and if so how much per month?

Yes we pay €520 per month but in cash

yopy

I think that the lender will take about 40k off per child from the max they will lend you. Or so I've heard.

who_ru

Oddly enough when I enquired about a mortgage, I was told that as a shift worker, the bank would not take into account my shift allowance which is 33% because it's not guaranteed even though I've been working shift for 8 years and have always had the allowance. So it seems shift workers in the private sector at least are at a disadvantage.

Good luck with your application OP.

ForEffsSake

Hi Op, we've just been through the approval process with two banks. KBC and PTSB. Bit of bavkground: we moved back to Ireland last august. I was a contractor in the same company for three years and my husband transferred to Ireland with his company. I started working here in September and just made permanent last month.

Joint wages of 90k and two children with childcare costs of 700eur pm. Both 40. We have a deposit of 200k and we're looking for a mortgage of 200k. No house yet but wanted an AIP so we'd be in a strong position to offer when we did find one.
KBC were very difficult. They didn't like the fact that I hadn't a full year of permanent employment and just constantly came back with questions on transactions on our accounts. We had to prove where the money came from (house sale in UK) and had to prove we could afford repayments of up to1800k as a stress test. In the end, even though all the proof was given- one years worth of all accounts and credit cards, work gave proof of wages etc, KBC told me to wait until September to apply when I would be working for a full year as PAYE.
However PTSB approved us with all the same proofs for our 200k.

In your favour are your evidence of regular savings but you will have to sell the apt before you can use it as proof of deposit. They will not count it until the money's in the bank. The fact that you're a contractor will go against you but you say you'll be made perm by the same company so that may sway them.

The banks are being extremely picky and will not even send your application through unless they are almost certain it will be approved. Pity they weren't as choosy 8 years ago!
But I'd recommend PTSB as a first attempt. The conspiracy theorist in me thinks KBC refused so they wouldn't have to give us the low rate for 50% LTV!

leelee77

ForEffsSake wrote: »

Hi Op, we've just been through the approval process with two banks. KBC and PTSB. Bit of bavkground: we moved back to Ireland last august. I was a contractor in the same company for three years and my husband transferred to Ireland with his company. I started working here in September and just made permanent last month.

Joint wages of 90k and two children with childcare costs of 700eur pm. Both 40. We have a deposit of 200k and we're looking for a mortgage of 200k. No house yet but wanted an AIP so we'd be in a strong position to offer when we did find one.
KBC were very difficult. They didn't like the fact that I hadn't a full year of permanent employment and just constantly came back with questions on transactions on our accounts. We had to prove where the money came from (house sale in UK) and had to prove we could afford repayments of up to1800k as a stress test. In the end, even though all the proof was given- one years worth of all accounts and credit cards, work gave proof of wages etc, KBC told me to wait until September to apply when I would be working for a full year as PAYE.
However PTSB approved us with all the same proofs for our 200k.

In your favour are your evidence of regular savings but you will have to sell the apt before you can use it as proof of deposit. They will not count it until the money's in the bank. The fact that you're a contractor will go against you but you say you'll be made perm by the same company so that may sway them.

The banks are being extremely picky and will not even send your application through unless they are almost certain it will be approved. Pity they weren't as choosy 8 years ago!
But I'd recommend PTSB as a first attempt. The conspiracy theorist in me thinks KBC refused so they wouldn't have to give us the low rate for 50% LTV!

Thanks very much for your post and the best of luck to you with getting the right house.

I am hoping it won't take long for the flat in the UK to sell. Where we bought is doing well property price wise so I have been assured it won't take long. Work have assured me that they will begin the PAYE process in April/May and I have been with them for 2 years so it is all a waiting game at the moment. While I am waiting though, we are saving and am hopeful to be in a strong position by Aug/Sept.