Buying in Swords - first time buyers. Get mortgage approval before or after budget??

stickman22

Hi any advice on buying a house in Swords. We are first time buyers combined income of 55k (wife works part time), we have a good deposit of 55k. Have we any hope of buying in Swords. We are holding out for the budget & hopefully there will be a bit of hope for first time buyers... We have the deposit but the central bank lending is so low we are feeling rather desolate. With the above info would you advise us apply for the mortgage before or after the budget? Which lending facility would be the best in your opinion?

rsynnott

You can get approval in principle now. Getting this doesn't really commit you to anything. If anything changes in the budget (seems unlikely), just get approval again under the new rules; there shouldn't be any problem with that.

stickman22

Thanks for the quick reply, we're very concerned that prices may skyrocket again after the budget. Prices are crazy in Swords & we don't want to move from here as the kids are settled...

Stheno

stickman22 wrote: »

Thanks for the quick reply, we're very concerned that prices may skyrocket again after the budget. Prices are crazy in Swords & we don't want to move from here as the kids are settled...

3.5 times your income is 165K plus 50K from your deposit is 215K at a push the banks may give you 190K as an exception which brings you up to 240k

Are there any properties in swords at that price?

stickman22

Cheers, I doubt we'll get an exception with the kids.. there are a few in Swords Cherry Garth, Holywell, Applewood, Swords Manor, we're not from Swords originally so we don't know how desirable these areas are. We want a 3 bed semi, lots of talk re the budget & first time buyers may be recieving tax back for renting etc but we don't know how that will increase our lending potential... We are feeling quite disheartned this evening

athtrasna

Mod note

Please do not start multiple threads on the same/very similar topic.

Michael D Not Higgins

The government are trying to implement a system which gives the benefit to FTBs after the fact so it doesn't affect the price paid. This has been mooted as a tax credit which you would get the benefit in the following year(s). I wouldn't hold out any hope for help from the budget as any help you might get would also extend to other first time buyers and prices would rise accordingly.

As it stands, with underwriting criteria of ~€2100 for two parents and ~€250 per child (assuming two children), net income of 3500 would leave a max mortgage payment of ~€900 which would be enough to meet the stress testing of the banks for the Central Bank of Ireland limits but probably not enough to get an exception.

Uriel.

stickman22 wrote: »

Cheers, I doubt we'll get an exception with the kids.. there are a few in Swords Cherry Garth, Holywell, Applewood, Swords Manor, we're not from Swords originally so we don't know how desirable these areas are. We want a 3 bed semi, lots of talk re the budget & first time buyers may be recieving tax back for renting etc but we don't know how that will increase our lending potential... We are feeling quite disheartned this evening

Swords Manor is grand, some shops in close proximity (depending on the part of Swords Manor) - it's good for the bus route (41s and Swords Express) close to a primary school also.

Applewood, is huge and it depends entirely what part you are looking at. Depending on what you want, I would avoid, personally, I think parts of it (closest to Applewood Village) are on the road to being a ghetto in the long-term but is probably fine for the immediate future.

Holywell is one of the newer developments in Swords up near Airside - it's not great for the bus (swords express and 41x do service it) and it's a little bit of distance from the main Swords village. It's a sprawling mixed property development and properties are on top of each other. Will continue to sprawl into the future I'd say. Seems fine though.

TRS30

Uriel. wrote: »

Holywell is one of the newer developments in Swords up near Airside - it's not great for the bus (swords express and 41x do service it) and it's a little bit of distance from the main Swords village. It's a sprawling mixed property development and properties are on top of each other. Will continue to sprawl into the future I'd say. Seems fine though.

Can't really agree with the not great for bus comment. There is the Swords Express, 41X, 142 and 43 that all go to town, with the first three using the M1 and tunnel so 20 mins to the Quays. There is the 102 that goes to the airport and Malahide, Portmanknock and Sutton.

I lived there with my family for the last 8 years and found it a very nice place to live. Close to Airside & Pavillions shopping centers and near M1/M50 if driving.

We lived in the older side of the estate near the school and Spar and never had any trouble at all the whole time we were there.

I don't think you'll get a 3 bed semi on your budget thought as they are going for around €250K and up.

If there is anything else you would like to know just ask.

Uriel.

TRS30 wrote: »

Can't really agree with the not great for bus comment. There is the Swords Express, 41X, 142 and 43 that all go to town, with the first three using the M1 and tunnel so 20 mins to the Quays. There is the 102 that goes to the airport and Malahide, Portmanknock and Sutton.

I lived there with my family for the last 8 years and found it a very nice place to live. Close to Airside & Pavillions shopping centers and near M1/M50 if driving.

We lived in the older side of the estate near the school and Spar and never had any trouble at all the whole time we were there.

I don't think you'll get a 3 bed semi on your budget thought as they are going for around €250K and up.

If there is anything else you would like to know just ask.

it's ok as long as you can get on the bus... but in fairness both DB and SE have improved their capacity in recent years and SE now has resource/strategic thinking to run additional capacity on event days in the city too

GeorgeOrwell

stickman22 wrote: »

We have the deposit but the central bank lending is so low we are feeling rather desolate. With the above info would you advise us apply for the mortgage before or after the budget? Which lending facility would be the best in your opinion?

It would do no harm to have an initial conversation with the bank you have your accounts with, and see what they say. If your bank turns you down, then try an independent mortgage broker.

Any reforms which come in the Budget will be backdated, so there's no need to wait.

The Central Bank MAY change the lending rules in Oct/Nov but I wouldn't count on it.

stickman22

Cheers for the reply guys, spoke to permanent TSB today mortgage advisor was great but max they can give us is 177k which means that the max house we can look at is 225k, he said we are very strong in alot of areas but it's the central bank ruling of 3.5 times income that is holding us back. We're gutted. We want to stay in Swords but don't know what we can do. Advisor suggested moving to Balbriggan but that's not what we want. Lusk seems to have cheaper house prices but we havn't a clue about the area but it has houses that are 225k or less....

triple nipple

Stheno wrote:

3.5 times your income is 165K

55000
x3.5
=192.500 ?

stickman22

He took money off as we have 2 dependables & he said we don't meet a central bank rule where we have to reach a certain treshold to show we can live comfortably with 2 kids, we were just under 170 euro off that ammount which in turn lowered the amount they can lend us... It's bull****.... He said we are the type of first time buyers who are going to be forced into longterm rent it's upsetting

Stheno

triple nipple wrote: »

Stheno wrote:

3.5 times your income is 165K

55000
x3.5
=192.500 ?

Must use calculator in future

Alkers

stickman22 wrote:

He took money off as we have 2 dependables & he said we don't meet a central bank rule where we have to reach a certain treshold to show we can live comfortably with 2 kids, we were just under 170 euro off that ammount which in turn lowered the amount they can lend us... It's bull****.... He said we are the type of first time buyers who are going to be forced into longterm rent it's upsetting

Can you increase the amount you are saving each month (on top of paying rent)? Doing this demonstrates the repayment capacity that you have and apply again in 6months.

stickman22

I actually just did that, set up a new account to put 300 a month away, we have savings accounts for the kids but that's their uni fund so that is off limits, the kids have approx 5 k each which we saved with hard graft but they wont take that into account. At the moment we are saving 200 a month between us on top of the rent...

Thread: Buying in Swords - first time buyer

TheDoc

stickman22 wrote: »

He took money off as we have 2 dependables & he said we don't meet a central bank rule where we have to reach a certain treshold to show we can live comfortably with 2 kids, we were just under 170 euro off that ammount which in turn lowered the amount they can lend us... It's bull****.... He said we are the type of first time buyers who are going to be forced into longterm rent it's upsetting

Join the club. I'm the single earner in our household, so we made the decision to stop wasting our time and grinding out the savings and just breathe every month financially, do things, family things etc.

Might not be prudent should the rules change and I've to start from zero, but don't care. spent a year stressed of my nut grinding out the months between payday, and since we made this decision we've been much happier and not felt like I just work to pay bills.

Accepting I'm unlikely to own a house until my mid to late 40's has removed a lot of stress I had when all this housing **** kicked off.

stickman22

Depressing thinking isn't it, our problem is it's only a matter of time before our rent gets hiked up again so just want to get out of the whole trap.. We are now thinking of buying a 2 bed house, we would be able to afford one in Swords either in Holywell or Castleview. A nice 3 bed has also come up in Applewood, does anyone know why the houses are so cheap there in comparison to Castleview or Glenellan which are all in the same area?

Thread: Buying in Swords - first time buyers. Get mortgage approval before or after budget?? Reply to Thread

Uriel.

stickman22 wrote: »

A nice 3 bed has also come up in Applewood, does anyone know why the houses are so cheap there in comparison to Castleview or Glenellan which are all in the same area?

Largely location location location and the type of houses... Depends on the part of applewood

Stheno

Uriel. wrote: »

Largely location location location and the type of houses... Depends on the part of applewood

Agree on this, I live near that area and applewood in parts can be very "meh"

MugMugs

I used to own a house on Apple wood Main Street. Biggest pain in my ass that house and it wasn't aging well when I had it. Further to that, I'm convinced Ray Charles did the initial plumbing because it caused nothing but problems from the get go.

I never liked the house and quite frankly, disliked the area even more.

Holywell, lived there, houses didn't feel well built and as another poster said, you're living on top of each other.

Cherry Garth. They're the bungalows in Rivervalley? Fine homes, central location in Rivervalley albeit close to the road. Regenerating area aswell. There's not much I could say against that part of town.

Kings Inns or bust

I realise you're set on Swords but there are some nice houses to be had closer into the city from the direction. I personally wouldn't limit myself.

Alkers

stickman22 wrote: »

Depressing thinking isn't it, our problem is it's only a matter of time before our rent gets hiked up again so just want to get out of the whole trap.. We are now thinking of buying a 2 bed house, we would be able to afford one in Swords either in Holywell or Castleview. A nice 3 bed has also come up in Applewood, does anyone know why the houses are so cheap there in comparison to Castleview or Glenellan which are all in the same area?

Thread: Buying in Swords - first time buyers. Get mortgage approval before or after budget?? Reply to Thread

I would urge you to reconsider before buying a two-bedroom house with two kids. Have a read of the thread where people who lost out on the property market and are stuck with negative equity in a house that is much too small for their needs. You should be looking to buy somewhere where you can live comfortably for 10 years at least.

MayBea

You can easily convert an attic if the roof is high enough, like in this house: https://www.myhome.ie/residential/brochure/30-castleview-heights-swords-codublin/3742339?RegionId=1265&MinPrice=&MaxPrice=250000&MinBeds=2&MaxBeds=&MinSize=&MaxSize=&MinEnergyRating=&Query=&PreSixtyThree=false&Page=&view=

This would give you some extra space. This is an expensive option, but it is an option.

MayBea

Simona1986 wrote: »

I would urge you to reconsider before buying a two-bedroom house with two kids. Have a read of the thread where people who lost out on the property market and are stuck with negative equity in a house that is much too small for their needs. You should be looking to buy somewhere where you can live comfortably for 10 years at least.

The majority of these people are stuck in 1 & 2-bed apartments though. I feel the situation is somehow different for the houses. I have known a family with 2 kids who lived comfortably in a 2 bed house, which they extended, in quite a similar way to this house: http://www.daft.ie/dublin/houses-for-sale/shankill/123-castlefarm-shankill-dublin-1273373/

stickman22

That house is lovely, nice decor & looks very spacious considering its a 2 bed surprisingly AIB offered us quite a bit more than BOI or permanent tsb, that might all change of course once it comes to the next stage but at the moment it looks like we can look in the region of 230k inc our deposit not a huge difference but was more than the others were prepared to lend us. We have come around to the idea of a 2 bed especially when we see one like the one you posted maybea. Feeling more postive now that aib have given us a letter of provisional approval but unsure about whether to act before or after the budget, we're still hoping for a miracle of sorts

Alkers

stickman22 wrote:

That house is lovely, nice decor & looks very spacious considering its a 2 bed surprisingly AIB offered us quite a bit more than BOI or permanent tsb, that might all change of course once it comes to the next stage but at the moment it looks like we can look in the region of 230k inc our deposit not a huge difference but was more than the others were prepared to lend us. We have come around to the idea of a 2 bed especially when we see one like the one you posted maybea. Feeling more postive now that aib have given us a letter of provisional approval but unsure about whether to act before or after the budget, we're still hoping for a miracle of sorts

Don't forget the bidding war! From experience, everything sub 500k is going well in excess of the asking price currently.

Paddytheman

http://www.mortgages.ie/go/first_time_buyers/mortgage_payments_calculator

At the buying stage ourselves and found the above useful when calculating things, if you provide 20% cash deposit you can reduce the repayments, for us by fronting €2,000 more we fell into this bracket and should save €20,000 over the course of the mortgage

OfflerCrocGod

stickman22 wrote: »

That house is lovely, nice decor & looks very spacious considering its a 2 bed surprisingly AIB offered us quite a bit more than BOI or permanent tsb, that might all change of course once it comes to the next stage but at the moment it looks like we can look in the region of 230k inc our deposit not a huge difference but was more than the others were prepared to lend us. We have come around to the idea of a 2 bed especially when we see one like the one you posted maybea. Feeling more postive now that aib have given us a letter of provisional approval but unsure about whether to act before or after the budget, we're still hoping for a miracle of sorts

This place had new A3, 2 beds for €250K http://www.daft.ie/dublin/new-homes-for-sale/hansfield-wood-hansfield-wood-hansfield-clonsilla-dublin-67331/ I think they are all sold out but they have increased the number of houses they are selling twice in two weeks due to demand so it might be worth calling, I know it's not Swords but as others have already said I think you should look further afield. There will also be showings here next month http://www.daft.ie/dublin/new-homes-for-sale/barnwell-hansfield-station-road-hansfield-clonsilla-dublin-42979/

OfflerCrocGod

TheDoc wrote: »

Join the club. I'm the single earner in our household, so we made the decision to stop wasting our time and grinding out the savings and just breathe every month financially, do things, family things etc.

Might not be prudent should the rules change and I've to start from zero, but don't care. spent a year stressed of my nut grinding out the months between payday, and since we made this decision we've been much happier and not felt like I just work to pay bills.

Accepting I'm unlikely to own a house until my mid to late 40's has removed a lot of stress I had when all this housing **** kicked off.

I'm also the sole earner and we have one child, Ulster bank gave us an exception to the rules. They offered ~4 times my income, KBC offered us well below and AIB the income limit. I think the reason Ulster bank offered us more was due to a savings history, 8 years of saving something every month shows the bank you are a safe customer. Even if it was only €100 some months, at least the savings always increased, it also meant there is a buffer in case something goes wrong.