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First time buyer - Advice needed

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  • 29-04-2017 8:25pm
    #1
    Limitless_Dub
    Registered Users Posts: 3 ✭


    Hi, I am looking to buy a small property, newly built, it costs 155,000 EUR.
    I am looking for the best possible scenario in order to avail of the first time buyer grant and to choose the best mortgage type.

    I am looking to borrow 120,000 and spread it over 35 years, I assume that I will get 7,500 for the first time buyer scheme and I want to put that straight into my repayments as a lump sum.
    In addition to the above, I intend to repay about 12,000 EUR a year for the first 2 years to the bank in order to reduce my mortgage repayments or length.

    is the above scenario feasible and what mortgage type should I go for?
    Thanks!!


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    #2
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    It has to be your principal private residence


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    #3
    Limitless_Dub
    Registered Users Posts: 3 ✭Limitless_Dub


    is it possible to get the best advice assuming that I will live in it and use it as my main residential property? first post will be updated.


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    #4
    Monkeyjoe
    Registered Users Posts: 121 ✭✭Monkeyjoe


    Hi Limitless_Dub

    I personally would try and drop the 35 years down to save interest, but it depends on your financial situation.

    If you have paid over €7750 in taxes over the last 4 years, this is what you would get from HTB. The payment goes straight to the contractor/builder. If you haven't done so, I would suggest starting the process through revenue.ie.

    So, if you want a mortgage of 120000 you would need a deposit of 27250. Remember you will have extra costs like stamp duty, solicitors, flooring and furnishings etc when moving in.


    Limitless_Dub wrote: »
    is it possible to get the best advice assuming that I will live in it and use it as my main residential property? first post will be updated.


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    #5
    GhostyMcGhost
    Registered Users Posts: 1,348 ✭✭✭GhostyMcGhost


    Monkeyjoe wrote: »
    Hi Limitless_Dub

    I personally would try and drop the 35 years down to save interest, but it depends on your financial situation.

    If you have paid over €7750 in taxes over the last 4 years, this is what you would get from HTB. The payment goes straight to the contractor/builder. If you haven't done so, I would suggest starting the process through revenue.ie.

    So, if you want a mortgage of 120000 you would need a deposit of 27250. Remember you will have extra costs like stamp duty, solicitors, flooring and furnishings etc when moving in.

    The deposit is 10% of the house price (not the mortgage value) which is not €27250 or anything like it


    €15,500 is the deposit and that's spilt €7750 from OP and €7750 from HTB (paid straight to builder)

    Also needed on top of deposit is stamp duty and legal fees


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    #6
    trobbin
    Registered Users Posts: 181 ✭✭trobbin


    Remember anyone trying too avail of the HTB scheme must be drawing down a mortgage with a maximum of 20% deposit. If you've got more than that as a deposit you don't qualify, it's called the debt trap.

    So someone that saved really hard and wants to pay a 50% deposit on a new build is excluded.

    There's so many things wrong in this country regarding land and the boxes being placed on it, and the fickle laws and taxes, a huge adjustment is coming down the line. Too much wait on the shoulders of the slaves at the moment, breeding space will happen.

    Be careful with your purchase and borrowing


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    #7
    bmwguy
    Closed Accounts Posts: 2,006 ✭✭✭bmwguy


    If you have 50% deposit you probably don't need help to buy but that's a different discussion for a different day. OP be careful about advice you get on a public forum regarding something as important as a mortgage. Best advice comes from professionals some people here, however well intentioned, just have it plain wrong sometimes.

    If you are a first time buyer, of a new build, by a builder and development registered with the scheme you will get 5% of purchase price as a grant. This goes towards your 10% deposit requirement. In your case it's 7750 as already stated. Full deposit is 15500. As for the mortgage flexibility, get yourself a good broker/advisor, free to have a chat. Since your username suggests you are a Dub I presume you are buying well.outside Dublin with a cost of 155k?


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    #8
    Monkeyjoe
    Registered Users Posts: 121 ✭✭Monkeyjoe


    I believe this was reduced to 70% LTV.
    trobbin wrote: »
    Remember anyone trying too avail of the HTB scheme must be drawing down a mortgage with a maximum of 20% deposit. If you've got more than that as a deposit you don't qualify, it's called the debt trap.

    So someone that saved really hard and wants to pay a 50% deposit on a new build is excluded.

    There's so many things wrong in this country regarding land and the boxes being placed on it, and the fickle laws and taxes, a huge adjustment is coming down the line. Too much wait on the shoulders of the slaves at the moment, breeding space will happen.

    Be careful with your purchase and borrowing


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    #9
    Monkeyjoe
    Registered Users Posts: 121 ✭✭Monkeyjoe


    This sounds like Silverbanks in Baldoyle. 1 beds started at 155k.

    bmwguy wrote: »
    If you have 50% deposit you probably don't need help to buy but that's a different discussion for a different day. OP be careful about advice you get on a public forum regarding something as important as a mortgage. Best advice comes from professionals some people here, however well intentioned, just have it plain wrong sometimes.

    If you are a first time buyer, of a new build, by a builder and development registered with the scheme you will get 5% of purchase price as a grant. This goes towards your 10% deposit requirement. In your case it's 7750 as already stated. Full deposit is 15500. As for the mortgage flexibility, get yourself a good broker/advisor, free to have a chat. Since your username suggests you are a Dub I presume you are buying well.outside Dublin with a cost of 155k?


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    #10
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    Monkeyjoe wrote: »
    This sounds like Silverbanks in Baldoyle. 1 beds started at 155k.


    For one beds you would be doing well to get an 80% Mortgage.

    Will be more like a 60% Mortgage, or up to 75% for an absolutely excellent applicant. Has anyone here for an 80% mortgage for a one bed?


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    #11
    TBi
    Registered Users Posts: 1,784 ✭✭✭TBi


    bmwguy wrote: »
    If you have 50% deposit you probably don't need help to buy

    Well I need help now to pay off the extra 20k all the houses increased in price since this scheme came in. I feel sorry for people who saves for years because house prices just went up overnight and they don't even get the money that caused this...


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    #12
    bmwguy
    Closed Accounts Posts: 2,006 ✭✭✭bmwguy


    TBi wrote: »
    Well I need help now to pay off the extra 20k all the houses increased in price since this scheme came in. I feel sorry for people who saves for years because house prices just went up overnight and they don't even get the money that caused this...

    I never thought it was a good idea myself. Could see that at least in short-term it was going to increase demand more than supply, no matter what govt spokesperson said. Don't like govt artificially intervening like they did.


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