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Will I ever get a mortgage?

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    #62
    theredletter
    Registered Users Posts: 301 ✭✭theredletter


    Thanks, all! I will take all the advice on board. I am about to go on holidays so going to forget about mortgages and enjoy what's left of my 20s for the next 2 years and then refocus.


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    #63
    messy tessy
    Registered Users Posts: 889 ✭✭✭messy tessy


    CruelCoin wrote: »
    Are you renting? I hope you are because every bank in the land would refuse you if you cannot prove savings equal/in excess to the likely mortgage outgoings. The bank is going to want to see a savings/rent combo that would be at least equal to the likely mortgage repayments, and you need to prove this for at least 6 consecutive months.
    Assuming you're not renting, then 500 a month would afford you something in leitrim and not much else.

    A general tip also, they hate gambling. Paddy power/full tilt/etc? Cancel it now.

    Yes I am renting. Between 1,000 and 1,300 a month between savings and rent. All set up as direct debits. And not a gambler! But thanks for the tip!


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    #64
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    the Problem is say you save up 4k, house prices go up by 10k, ,every year you are at least 6k behind ,the deposit you need also increases .in 2 years you are 12k behind, etc
    So you might never reach a point where you can buy a house in dublin.


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    #65
    linpoo
    Registered Users Posts: 234 ✭✭linpoo


    Not sure if you're aware of this OP but you can apply to any of the councils for a mortgage. Need to fit a few requirements alright but you only need a 3% deposit. I'm going down this route myself :-)


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    #66
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    CruelCoin wrote: »

    A general tip also, they hate gambling. Paddy power/full tilt/etc? Cancel it now.

    No need for such drastic measures, paddy power have a cash card where you can simply lodge and withdraw from your account in any of their betting shops. I have a few bets every week online and haven't had a betting transaction in my bank account for probably 2 years or more since I made the consious decision to start thinking about a mortgage.


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    #67
    amtc
    Registered Users Posts: 2,490 ✭✭✭amtc


    Just a point...the op clarified that he had a partner and referenced homophobia so I assume both men. I did note that he wants to buy on his own. My friend is in a similar position but when applying for his mortgage...which he got...there was a condition attached to it regarding his lifestyle. He declared that he was gay. I'm not sure if this had any bearing on the mortgage application. It just struck me as being odd he was asked and even odder that he volunteered it. I did ask him if it for life insurance but he said no for mortgage. Given that he works in housing department of a county council would hope he knows!


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    #68
    Glen_Quagmire
    Registered Users Posts: 1,137 ✭✭✭Glen_Quagmire


    linpoo wrote:
    Not sure if you're aware of this OP but you can apply to any of the councils for a mortgage. Need to fit a few requirements alright but you only need a 3% deposit. I'm going down this route myself :-)


    Just had a look at this and below is a the requirements for this. I don't understand this, if a bank refuses you a mortgage they must have a good reason based on your financial situation, so how can a council grant you an even bigger mortgage (97%) and only if the bank refuses you. What am I missing here?

    "You may be eligible for a local authority mortgage if you can show the local authority that you cannot get a loan from a bank or building society and you are:

    A first time buyer and
    Your income satisfies the income test"


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    #69
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    The council loan is for people earning under 50 k,
    who can,t get a loan from a bank,
    You need to be working full time .I think the loan is actually provided
    by a bank but its gauranteed by the local authority where you live.
    You choose a property ,
    say you earn 30k find a property thats for sale for say 100k.
    The property must be in good structural condition .
    i dont know if these loans are still avaidable .
    My friend got a council loan 80k 14 years ago.


    http://www.dublincity.ie/main-menu-services-housing/apply-mortgage

    you wont get a loan for 170k if you earn 18k


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    #70
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭Tasden


    riclad wrote: »
    The council loan is for people earning under 50 k,
    who can,t get a loan from a bank,
    You need to be working full time .I think the loan is actually provided
    by a bank but its gauranteed by the local authority where you live.
    You choose a property ,
    say you earn 30k find a property thats for sale for say 100k.
    The property must be in good structural condition .
    i dont know if these loans are still avaidable .
    My friend got a council loan 80k 14 years ago.


    http://www.dublincity.ie/main-menu-services-housing/apply-mortgage

    Think you have to be earning over 35k.


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    #71
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    I Think you,d need to earn at least 30k ,to find a house for
    100k ,to get a council loan.
    i presume they work out how much you can afford ,salary x 3 approx.
    ring em up or email the housing dept if you need more info.
    And you still need money for deposit and legal fee,s etc

    I think the difference is the council just looks at your salary vs value of the house.
    Banks look at can you pay the loan if interest rates go up to 5 per cent or more ,what expenses
    you have apart from the mortgage ,car loans etc.
    And the house is security , the council owns the house until the loan is paid off.

    i remember 5 years ago you had to earn UNDER 35k to get a council loan.


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    #72
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭Tasden


    riclad wrote: »
    I Think you,d need to earn at least 30k ,to find a house for
    100k ,to get a council loan.
    i presume they work out how much you can afford ,salary x 3 approx.
    ring em up or email the housing dept if you need more info.
    And you still need money for deposit and legal fee,s etc

    I think the difference is the council just looks at your salary vs value of the house.
    Banks look at can you pay the loan if interest rates go up to 5 per cent or more ,what expenses
    you have apart from the mortgage ,car loans etc.
    And the house is security , the council owns the house until the loan is paid off.

    i remember 5 years ago you had to earn UNDER 35k to get a council loan.

    I think the eligibility criteria to apply is that you need to earn over 35k. That's before calculating the actual loan, ability to pay etc.


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    #73
    sbsquarepants
    Registered Users Posts: 11,812 ✭✭✭✭sbsquarepants


    riclad wrote: »
    I Think you,d need to earn at least 30k ,to find a house for
    100k ,to get a council loan.
    i presume they work out how much you can afford ,salary x 3 approx.
    ring em up or email the housing dept if you need more info.
    And you still need money for deposit and legal fee,s etc

    I think the difference is the council just looks at your salary vs value of the house.
    Banks look at can you pay the loan if interest rates go up to 5 per cent or more ,what expenses
    you have apart from the mortgage ,car loans etc.
    And the house is security , the council owns the house until the loan is paid off.

    i remember 5 years ago you had to earn UNDER 35k to get a council loan.

    No you didn't - I got a council loan about 12 years ago earning more than that.


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    #74
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭Tasden


    sbsquarepants wrote: »
    No you didn't - I got a council loan about 12 years ago earning more than that.

    I think people are mixing up house purchase loans and home choice loans and a few other schemes in between offered by the council. For home choice loans- the regular type mortgages through the council, where you find a house in the open market and apply to council for the loan- you have to be earning over 35k as a single applicant.


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    #75
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    IF you want a council loan its up to you to find a house thats in good condition that you can afford .Theres info re income limits in the first link i posted re loan application form.
    eg max home value is 220k.


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    #76
    Glen_Quagmire
    Registered Users Posts: 1,137 ✭✭✭Glen_Quagmire


    So do you first have to be refused a mortgage by a bank before applying for a council mortgage?


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    #77
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    I'm surprised they're still giving out council mortgages. Last we heard, the council mortgages are performing much worse than the banks. Overall, 1 in 10 bank mortgages is in arrears of more than 3 months while that figure is 1 in 4 for council mortgages (with some councils as bad as 1 in 2).


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    #78
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    That link i put in a previous post , says you need to provide letters from 2 banks that you have applied for a mortgage and been refused .
    In order to get a council loan.


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    #79
    messy tessy
    Registered Users Posts: 889 ✭✭✭messy tessy


    riclad wrote: »
    IF you want a council loan its up to you to find a house thats in good condition that you can afford .Theres info re income limits in the first link i posted re loan application form.
    eg max home value is 220k.

    This is from Dublin city council website

    The maximum we can lend you is €220,000 (or 90% of the purchase price of the property. Your loan is then repaid to us over 30 years


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    #80
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭Tasden


    riclad wrote: »
    That link i put in a previous post , says you need to provide letters from 2 banks that you have applied for a mortgage and been refused .
    In order to get a council loan.

    You don't need to be refused mortgage, it's if you have been offered insufficient amount as well as refusal AFAIK.


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    #81
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    So you will need somewhere between 10-15 k saved for a deposit ,
    and at least 1k for legal fees ,in order to buy a house or apartment
    in dublin ,using a council loan .
    i think you,d need a full time job ,working there a few years at least too ,
    to get the application accepted.
    Taking it that its hard to find any house for sale in good condition under 100k in dublin.


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    #82
    EmmaMurray2016
    Registered Users Posts: 90 ✭✭EmmaMurray2016


    theredletter wrote: »
    I don't think I can ask my partner of 5 months to consider saving for a mortgage with me just yet... Let's go on holidays together first ;)

    At least u have a partner lol I've a cat. She won't go out and pull in money that's one thing I'm sure of 😂 Lmao I'm trying to buy on my own also. Best of luck :)


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    #83
    TheDoc
    Registered Users Posts: 23,137 ✭✭✭✭TheDoc


    CruelCoin wrote: »
    Are you renting? I hope you are because every bank in the land would refuse you if you cannot prove savings equal/in excess to the likely mortgage outgoings. The bank is going to want to see a savings/rent combo that would be at least equal to the likely mortgage repayments, and you need to prove this for at least 6 consecutive months.
    Assuming you're not renting, then 500 a month would afford you something in leitrim and not much else.

    A general tip also, they hate gambling. Paddy power/full tilt/etc? Cancel it now.

    What bank told you they take rental history into the equation?

    Any bank I've spoken to (and I drop in one a year to them to have a chat) consistently outline rental history does not factor into any equation. It's a point I've always made and it annoys me, that I have a clear 6+ year history of paying rent that is substantially more then any mortgage.

    Would appreciate if you could share what mortgage providers are taking rent history into the equation so I can speak to them.

    Granted I've had little issue in mortgage approval before the Central Bank regs came in, having more ticks in the win column can only help


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