Deposit flexibility?

Heathen

Hi all,

I am really new to all this so sorry if my questions are a bit obvious to you but its all new to me

Anyway, myself and my fiance are currently renting and want to buy something for somewhere in the region of €280k

Problem is, we are 38 and 32 years of age and have no deposit, we both work full time in very secure employment and have a son in creche, but between creche and rent we have no money left to save for a deposit because rent is so high. A mortgage would be nearly €300 a month cheaper than what we are paying now on rent, so we're kinda stuck..

My question is, how flexible are banks on the 20% deposit on houses over 220k? How do people go about getting deposits together when you only really break even with rent costs.. do any credit unions not appear on the credit bureau list anymore, for a deposit loan?

I need to get a house for my family but at my age i dont have 5-10 years to save up early 60k for a 20% deposit...

What are people out there doing to get deposits? is there something i am missing?

Thanks for any advise

H

CIARAN_BOYLE

Heathen wrote: »

Hi all,

I am really new to all this so sorry if my questions are a bit obvious to you but its all new to me

Anyway, myself and my fiance are currently renting and want to buy something for somewhere in the region of €280k

Problem is, we are 38 and 32 years of age and have no deposit, we both work full time in very secure employment and have a son in creche, but between creche and rent we have no money left to save for a deposit because rent is so high. A mortgage would be nearly €300 a month cheaper than what we are paying now on rent, so we're kinda stuck..

My question is, how flexible are banks on the 20% deposit on houses over 220k? How do people go about getting deposits together when you only really break even with rent costs.. do any credit unions not appear on the credit bureau list anymore, for a deposit loan?

I need to get a house for my family but at my age i dont have 5-10 years to save up early 60k for a 20% deposit...

What are people out there doing to get deposits? is there something i am missing?

Thanks for any advise

H

Banks can offer exemption to the deposit rules but I think they can only go as low as 10%.

mahoganygas

The deposit on a 280k mortgage would be 34k, assuming you are a first time buyer.
(calc: 220k @10% + 60k @20%)

Banks want to see a track record of savings. I honestly can't see a bank looking at your application without a deposit.

Any loans you receive from a credit union or bank are not counted towards a deposit.
Only savings, or possibly a gift from a family member will do.

Is there any way you can cobble together a deposit?

uberwolf

This post will probably be moved to the master thread. But briefly.

Presuming you're a first time buyer, the requirements are for you to have 22k in respect of the first 220k of the mortgage and 12k in respect of the remaining 60k that brings you to 280k. A total deposit requirement of 34k for a first time mortgage of 246k allowing you buy for 280k.

That's a more manageable number, although not insignificant as you'll need fund to cover the incidental and less incidental costs of buying and moving as well.

To your question. The banks will consider up to 92% in my experience. Depending on your circumstances. That still corresponds with a deposit requirement of 22.4k.

Other people might say whether anyone goes north of 92%.

Stheno

You'd also need to meet the min. income requirements which would be a joint income of about 70k gross after you take out the 34k deposit.

Heathen

I wasn't aware that the 20% was only applied to the remaining amount after 220k, that makes the deposit look a bit more manageable, we will be over the 70k joint income in the next year or so.. what do you mean by "after you take out the 34k deposit." does this mean we need a joint income of 104k?

we are both first time buyers

Thanks for the info so far

Stheno

Heathen wrote: »

I wasn't aware that the 20% was only applied to the remaining amount after 220k, that makes the deposit look a bit more manageable, we will be over the 70k joint income in the next year or so.. what do you mean by "after you take out the 34k deposit." does this mean we need a joint income of 104k?

we are both first time buyers

Thanks for the info so far

No you take the 34k out of the 280 price, which leaves you with 246 as the mortgage amount, which is 3.5 times 70kish

Heathen

I get ya... sorry, late in the day, brain is mush