Second time buyers mortgage

gerry26

We would like to move to a detached house in 6 months time. We already have a semi detached house but the there is no place for my 4 year old to play. The bank is looking for 20 percent of deposit and solicitors fees and auctioneers fee etc. So we viewed a house they are asking for 250 know which is not bad for that size and the area. But I would require 60 k for the initial payment. I'm worried now. Is there anyone in the same boat as me. We both working but we can save only about 700 euro a month. Do you think central bank would change their rules anytime soon. Thanks

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Since they only changed the rules 6 months ago I don't see them changing them back in the near future. Is there any equity in your current house which you could use for the deposit.

gerry26

We bought a house in 2012 for 162 k it's a 4 bed semi. I think it might go for the same price now. We still have 140 know mortgage left on it. How are other second time buyers doing. Are they waiting until the rules is revised. I was talking to the auctioneer he mentioned that there is not many second time buyers on the market now. Hope they consider this in favour of the second time buyers.

yop

*Mon Note - Not I&D - Moving *

Trish56

gerry26 wrote: »

We would like to move to a detached house in 6 months time. We already have a semi detached house but the there is no place for my 4 year old to play. The bank is looking for 20 percent of deposit and solicitors fees and auctioneers fee etc. So we viewed a house they are asking for 250 know which is not bad for that size and the area. But I would require 60 k for the initial payment. I'm worried now. Is there anyone in the same boat as me. We both working but we can save only about 700 euro a month. Do you think central bank would change their rules anytime soon. Thanks

The lenders are allowed make exceptions to the 20% deposit so if your case is fairly strong as in Loan to Income, affordability and good credit rating you can apply for a 90% mortgage on 220k and 80% of 30k = 222k. Do you have a deposit/equity of 28k plus legal fees and stamp duty.

Hope the above helps.
Trish

gerry26

Yes. We have only 27 know but that's for 190 k house. Really surprised to see that they are allowing exceptions.the mortgage advisor never told us that we can avail of this. We both working full time permanent with the earning of 102 K between us. Not sure that's the good salary to be considered. Thanks for the reply

Trish56

gerry26 wrote: »

Yes. We have only 27 know but that's for 190 k house. Really surprised to see that they are allowing exceptions.the mortgage advisor never told us that we can avail of this. We both working full time permanent with the earning of 102 K between us. Not sure that's the good salary to be considered. Thanks for the reply

That's excellent earnings as you are allowed borrow up to 3.5 times income so you will be only borrowing under 2.2 which is a good plus. If you have 27k in savings and if you sell for 162k and owe only 140k well then you will also have 22k equity.

I am presuming that you have no short term borrowings and that you save a regular amount each month. If this is the case I see no reason for them not to make an exception.

gerry26

Thanks so much Trish 56. I will check with the banks and let you know. Thanks.