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Query on Mortgage application.

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  • 12-10-2014 7:31pm
    #1
    Miseryguts
    Registered Users Posts: 88 ✭✭


    Due to the recent announcement by the Central Bank I have decided to apply for a mortgage for a house priced at approx €120k. Does anyone know if this would be achievable on a salary of €33.5k per annum?


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    #2
    blindside88
    Registered Users Posts: 1,968 ✭✭✭blindside88


    Miseryguts wrote: »
    Due to the recent announcement by the Central Bank I have decided to apply for a mortgage for a house priced at approx €120k. Does anyone know if this would be achievable on a salary of €33.5k per annum?

    It will all depend on your circumstances, if you are permanent, if you have other loans. At present you can borrow upto 92% of the value. My advise would be to speak with a mortgage broker


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    #3
    SBarrett
    Registered Users Posts: 160 ✭✭SBarrett


    You'd get about €90k and that's assuming you meet all the criteria that you have to satisfy in order to get the €90k.


    Steven


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    #4
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    SBarrett wrote: »
    You'd get about €90k and that's assuming you meet all the criteria that you have to satisfy in order to get the €90k.


    Steven

    That's not even 3 times his salary

    He would get 120 easy


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    #5
    Miseryguts
    Registered Users Posts: 88 ✭✭Miseryguts


    I was talking to an adviser and on his evaluation of all my details he believes €120k is attainable. The biggest hurdle is of course the deposit?


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    #6
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    Miseryguts wrote: »
    I was talking to an adviser and on his evaluation of all my details he believes €120k is attainable. The biggest hurdle is of course the deposit?

    start saving!


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    #7
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    I understand that if you get approval in principle before 31/12 then it's good until it expires


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    #8
    Miseryguts
    Registered Users Posts: 88 ✭✭Miseryguts


    homer911 wrote: »
    I understand that if you get approval in principle before 31/12 then it's good until it expires

    Yes the mortgage approval remains active for six months.


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    #9
    Glenbhoy
    Registered Users Posts: 1,853 ✭✭✭Glenbhoy


    To be honest, approvals, be it six months or 3 months are guidelines. The central bank do issued recently started that it expected banks to take the proposed criteria into account when offering loans from the day and hour it was issued. Any offer made to you which doesn't take the guidelines into account will be unlikely to be followed through on st drawdown time. It may be (probable actually) that the CBI proposals will be watered down to a 15% deposit requirement, but u should plan for 20% regardless.
    There's nothing worse than getting geared up for a purchase of a particular property (and the expense of valuations, surveyors, lawyers etc), only to find that the finance isn't forthcoming, there's no point in trying to best the deadline, it's already in force.


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    #10
    Seany
    Registered Users Posts: 462 ✭✭Seany


    OP If you are single (with no dependents) with no other borrowings and are young enough to take a 30 or 35 year mortgage you will qualify based on your income for 110,000 (92%) of the 120,000 purchase price.

    If not I can recalculate based on your actual circumstances. You would need to show repayment capacity in your bank statements over the past 6 months to cover monthly (stressed) repayments of 650-700 (either rent or regular savings or both) and have evidence of a deposit (plus cost of stamp duty and solicitor fees...in this case around 14/15k total).


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