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Mortgage Stress Test

  • 09-03-2016 2:41pm
    #1
    lbyrne121
    Registered Users Posts: 206 ✭✭


    Sorry in advance for my stupidity but i was wondering I am considering buying a property for 220K but taking a mortgage of 180K. My question is in relation to stress testing of the mortgage will they stress test the property value or what is mortgage loan i get?



    Also what is required for a couple following stress testing of mortgage?


    I would appreciate any advice


Comments

  • #2
    Atlantic Dawn
    Registered Users, Registered Users 2 Posts: 83,051 ✭✭✭✭Atlantic Dawn
    M


    They will stress test for an increase in mortgage interest rates on your repayment ability to cope with same.


  • #3
    Hani Kosti
    Registered Users, Registered Users 2 Posts: 270 ✭✭Hani Kosti


    That means they will make sure you have means to pay 125% of the month payment agreed (lets sat your payment will be 1000/month, the bank needs to make sure you can afford to pay 1250)


  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    Do lenders ask potential borrowers intentions about having children?

    They are hugely expensive, and would have a way bigger affect on disposable income/ability to repay than an increase in interest rates.


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