Getting a mortgage as a single person

kaji

Hi there, I have always dreamed of owning my own house. I am in my early thirties and have always house-shared with others. It gets more and more difficult as I get older, and I sometimes find myself 'living' in my bedroom sometimes, if sometimes a housemate can have friends/bf/gf over. I am also single.

Some friends have told me that I should wait and see if I get married in the future but at this stage, I just want my own place. My permanent job is here and it's not too far from my family. I'm not going to be moving to a different location completely, I am happy to stay put and buy where I am now.

I have a deposit of 50,000 saved up and my parents said they would give me 10,000. However, I am unsure of what I should go for- a cheaper house around the 170k mark (because of fear that something would happen and I wouldn't be able to pay it back) or a more expensive house around the 230k mark. As I said, my job is permanent and my health is fine, but I guess there is a kind of fear when buying a house as a single person.

What I'm looking for is basically others that have bought as a single person and their experience of it?

Thanks

Lux23

Maybe you should write a list of the things you want in a property and try to order the list so you can work out what price range might suit you? I am a naturally cautious person so I would probably always opt for the cheaper property but that might not be such a sound investment in the long run.

Mickiemcfist

kaji wrote: »

Hi there, I have always dreamed of owning my own house. I am in my early thirties and have always house-shared with others. It gets more and more difficult as I get older, and I sometimes find myself 'living' in my bedroom sometimes, if sometimes a housemate can have friends/bf/gf over. I am also single.

Some friends have told me that I should wait and see if I get married in the future but at this stage, I just want my own place. My permanent job is here and it's not too far from my family. I'm not going to be moving to a different location completely, I am happy to stay put and buy where I am now.

I have a deposit of 50,000 saved up and my parents said they would give me 10,000. However, I am unsure of what I should go for- a cheaper house around the 170k mark (because of fear that something would happen and I wouldn't be able to pay it back) or a more expensive house around the 230k mark. As I said, my job is permanent and my health is fine, but I guess there is a kind of fear when buying a house as a single person.

What I'm looking for is basically others that have bought as a single person and their experience of it?

Thanks

Depends what your worry is, if it's that you end up unemployed for a portion of time, keep some of the deposit for a rainy day fund. Or consider the rental potential for other rooms in the property if you fell on hard times. Although what would happen if you were renting? You'd still presumably have to rent

BetsyEllen

kaji wrote: »

Hi there, I have always dreamed of owning my own house. I am in my early thirties and have always house-shared with others. It gets more and more difficult as I get older, and I sometimes find myself 'living' in my bedroom sometimes, if sometimes a housemate can have friends/bf/gf over. I am also single.

Some friends have told me that I should wait and see if I get married in the future but at this stage, I just want my own place. My permanent job is here and it's not too far from my family. I'm not going to be moving to a different location completely, I am happy to stay put and buy where I am now.

I have a deposit of 50,000 saved up and my parents said they would give me 10,000. However, I am unsure of what I should go for- a cheaper house around the 170k mark (because of fear that something would happen and I wouldn't be able to pay it back) or a more expensive house around the 230k mark. As I said, my job is permanent and my health is fine, but I guess there is a kind of fear when buying a house as a single person.

What I'm looking for is basically others that have bought as a single person and their experience of it?

Thanks

Have you discussed this with the banks?
Just wondered if you've been approved for a mortgage.

Interested as I'm also a single 30 year old and would love to get a mortgage in the next couple of years.

If it were me in your situation right now - I would personally buy somewhere that needs work doing and has scope to be extended in the future if needed.
I hate the idea of living the rest of my days on a housing estate but I wouldn't be able to afford anything else.

So I'd likely look into buying an older property that needs renovation - keep my mortgage low and make the home exactly what I want over time.
This doesn't appeal to everyone though.
I would have no problem living in less than glamorous surroundings for a period of time if need be and I wouldn't be doing it to add value and cash in later - it would likely be my forever home.

If that's your idea of hell then you need to weigh up the pros and cons.
If you buy somewhere cheaper now, will you be happy there in a few years?
If you don't think you'll mind moving in a few years then OK.

If you're looking for someone now that you want to keep forever then maybe go with the pricier option if it will get you something you'll be happy with for many years.

Addle

Did it. Best decision ever.
Expenses aren't divided, but neither are decor decisions!
Don't wait to meet someone. It might never happen. And if it does, a house is an asset.

LirW

It really depends on where you are and what you're looking for. Also what your outlook for the future is. Do you consider having children at some point? Then a 1bed wouldn't do it. Do you generally plan your life as a single? Then a nice two-bed house could be interesting for you.

Honestly, I'd just dip the toes into it, go and get AIP (you don't have to draw down a mortgage) so you know your budget and start looking around. You'll get a feel for what you like and if it is the right thing to do. Sometimes it turns out that it's not the right thing yet.
Good luck!

Mrs OBumble

Addle wrote: »

Did it. Best decision ever.
Expenses aren't divided, but neither are decor decisions!
Don't wait to meet someone. It might never happen. And if it does, a house is an asset.

This.

I got a 3 bed. Initially I had two flatmates - yes, it meant I was still sharing, but a year of two like that makes an excellent hole in the mortgage. Later on it became my room / spare room / office.

katy39

kaji wrote: »

Hi there, I have always dreamed of owning my own house. I am in my early thirties and have always house-shared with others. It gets more and more difficult as I get older, and I sometimes find myself 'living' in my bedroom sometimes, if sometimes a housemate can have friends/bf/gf over. I am also

I would go for the most expensive that you can afford

LionelNashe

I think the days of getting on a low rung of the property ladder with the idea of upgrading down the line are gone, unless you're in a profession that promises high salary in the future. In recent years, too many people have gotten saddled with negative equity on places that they don't even live in any more. I would advise to buy something that you would be happy to live in for the rest of your life, if you can afford it. Don't go nuts and saddle yourself with a €1600 a month mortgage though.

As you're healthy now, don't worry developing long term illness later. It probably won't happen, and if it does, you had better have gotten a mortgage before then, or else you'll never get one.

Edit: My own experience, is I bought a 1-bed in Dublin 1 thirteen years ago. I'm living here now and happy to stay here indefinitely. It wouldn't suit everyone's circumstances, obviously. My mortgage is very low because it's a tracker, (and because Dublin 1 is still very cheap), but the days of the tracker are gone for new applicants. There are plenty of places around the country obviously that aren't gone mad like South County Dublin, in terms of prices. Sounds like you're looking somewhere that's very affordable if you're seeing houses for 170k. I could have cleared 75% of my mortgage a couple of years ago if I had wanted to spend my savings, but the bank can sing for its money. At these interest rates, they'll get the last payment in another 25 years, or earlier if I'm dead.

Mickiemcfist

Did they give a reason for only offering 110k?

Mickiemcfist

Ah OK, I was just curious as I am hoping to buy myself in the next few months and wasn't aware they might reduce the amount based on being a single applicant. Was hoping just the 3.5 multiple was the barrier

Daisy78

Id say go for it. If you are a good prospect, which it sounds like you are then you shouldn't have a problem getting approval. I'm hoping to buy before the year is out. I'm late thirties and like you I'm flat sharing. The advice I've gotten is buy as much house/property you can afford, that if for whatever reason you can't move on you would be happy to stay there long term. A few of my friends bought apartments in terrible locations during the boom that took a lot of effort to offload. They are where I am now, looking to buy a long term property which will be their "forever home". At the end of the day you want to buy a place that you are happy to come home to, whatever it may look like.

Don't worry about future plans, you dont have a crystal ball so you have no idea how your future might change over the next few years. You have to decide what's best for you right now.

dennyk

It really depends on how much you make and your current expenses. Note that banks may offer you a larger mortgage than you can properly afford without cutting into your retirement savings or other expenses, so going out and buying the most expensive house you can qualify for isn't the best approach. You need to do your budget and run the numbers to see what sort of monthly payment you can comfortably afford and use a mortgage repayment calculator to figure out how large of a loan you'd be looking at that way. You do not want to make yourself "house-poor" by aiming too high with your housing costs.

Another thing to consider; if you only want your own space instead of a house share, and you're hesitant to make the commitment of buying a house, have you considered just renting a place by yourself? Renting doesn't require roommates.

Personally, I owned my own condo as a single guy for ten years, and I have no regrets (other than buying at what turned out to be the peak of the bubble, but them's the breaks, and I still managed to sell the place for the same price I paid for it at least). I worked out what I could afford (like here, I think the bank was willing to loan me at least half again as much as I ended up borrowing, which would have made for a rather difficult payment) and found a suitable place in my price range in the area I wanted to live in. Ended up being cheaper than renting, and while getting booted out by a landlord on a whim isn't really a thing in the predominantly commercially-owned apartment complexes in the US, it was nice not to have to worry about getting priced out via jacked-up rents.

I'm back to renting now, of course, since ain't no bank crazy enough to give a loan to an immigrant on a work permit (nor would I be willing to enter into a long-term commitment like that in those circumstances myself), but after I get my Stamp 4 I'll probably consider buying eventually.

kaji

OP here, thanks for all the help from everyone, you are a nice bunch. Yes I considered renting my own place (not house share), but to be honest, the rent would be more expensive than the mortgage payments for me so I feel like it would be a waste. I'm going into the EBS tomorrow to talk about mortgage approval, I called them on Friday. So I'll see what they say. I think I'm one of those people who would get a LOT of enjoyment from my own home (I'm a bit of a homebody)

LirW

Good luck and maybe keep us updated, I think it's interesting for a good few people here being stuck in the same limbo.

Irish_rat

Hi OP, I bought my house nearly a year ago at this stage. I'm single early 30's also and believe me it's the best decision you can do.

I bought new in a new estate, everything is A-rated and everything is brand new. No hassle anymore. Just beware that payments for things can be crazy but I have expensive taste, I know some will ikea it.

What you have in savings is important, mine was similar at one stage, your gross earnings is important too?

Maz2016

Interesting post OP and fascinating read. I'm in the same boat, early 30's My only concern would be savings. I've spent the last few years on pretty low income jobs (circumstances st home meant I couldn't work full time). That's now changed. And although I'm not on great money yet, I do have a full time permanent job and save between 1000-1200 per month.

I was looking at an apartment for 135k. How long of a history of monthly savings would I need to even talk to the bank about a mortgage? And what kind of savings would I need

Mellor

kaji wrote: »

I have a deposit of 50,000 saved up and my parents said they would give me 10,000. However, I am unsure of what I should go for- a cheaper house around the 170k mark (because of fear that something would happen and I wouldn't be able to pay it back) or a more expensive house around the 230k mark.

Nobody can really advise you on that without knowing roughly what you earn. Maybe you mentioned it and I missed it.
But 3.5x salary should be your starting point when ballparking numbers.

Maz2016 wrote: »

Interesting post OP and fascinating read. I'm in the same boat, early 30's My only concern would be savings. I've spent the last few years on pretty low income jobs (circumstances st home meant I couldn't work full time). That's now changed. And although I'm not on great money yet, I do have a full time permanent job and save between 1000-1200 per month.

I was looking at an apartment for 135k. How long of a history of monthly savings would I need to even talk to the bank about a mortgage? And what kind of savings would I need

135k Purchase price, you'd probably need 20k savings to cover 10% deposit, stamp duty, solicitors and surveys etc.
And be earning about 33k annually.

Maz2016

Mellor wrote: »

135k Purchase price, you'd probably need 20k savings to cover 10% deposit, stamp duty, solicitors and surveys etc.
And be earning about 33k annually.

That's what I was thinking, thanks

kaji

OP here, I earn €49,000 gross I think and from what I can work out, I get €32,000 a year into my bank account (net). And I have the €50,000 saved up and parents said they can hopefully give me €10,000.

Is it 3.5 your gross salary?

catrionanic

kaji wrote: »

OP here, I earn €49,000 gross I think and from what I can work out, I get €32,000 a year into my bank account (net). And I have the €50,000 saved up and parents said they can hopefully give me €10,000.

Is it 3.5 your gross salary?

Yes. Plus you deposit on top of course.

So (3.5 x 49,000) + 60,000 = 231,500 max purchase price

But you need to pay 1% stamp duty plus solicitors, surveys etc on top of that too

Mellor

3.5 times gross.

So you can borrow 171,500 and have 50,000 saved puts you around 221,500. To keep it simple, you can write off the extra 10k against stamp duty, professional fees etc.
Also, these are guidlines, the banks are free to ignore them in a limited number of cases (20%)

Jobs OXO

kaji wrote: »

OP here, thanks for all the help from everyone, you are a nice bunch. Yes I considered renting my own place (not house share), but to be honest, the rent would be more expensive than the mortgage payments for me so I feel like it would be a waste. I'm going into the EBS tomorrow to talk about mortgage approval, I called them on Friday. So I'll see what they say. I think I'm one of those people who would get a LOT of enjoyment from my own home (I'm a bit of a homebody)

Are you in permanent employment? What is your gross pay?

Irish_rat

kaji wrote: »

OP here, I earn €49,000 gross I think and from what I can work out, I get €32,000 a year into my bank account (net). And I have the €50,000 saved up and parents said they can hopefully give me €10,000.

Is it 3.5 your gross salary?

I was just over 50k gross, (50-60k savings around that) when applying and got a loan amount of 175,000 and bought the house for 200k.

My opinion is anything over 200k might be a lot to take on yourself.

What kind of house are you thinking?

Irish_rat

Mellor wrote: »

To keep it simple, you can write off the extra 10k against stamp duty, professional fees etc.

Solicitor fees 2k, stamp duty around 2k, house insurance 300, life insurance 200, valuation 150 I think, Structural Survey 300-400 quid.

Tell me how

katy39 wrote:

I would go for the most expensive that you can afford

BOOM!
We're back baby!

Daisy78

Tell me how wrote: »

BOOM!
We're back baby!

I think the emphasis there is on "you can afford."

Sausage dog

Maz2016 wrote:

I was looking at an apartment for 135k. How long of a history of monthly savings would I need to even talk to the bank about a mortgage? And what kind of savings would I need

When we were getting our mortgage (in the last year), they looked back over the previous 6 months (maybe less but no further) for savings record, credit card bills, bank account statements etc. Regular savings record is better than sporadic lump sums.

sharpish

Maz2016 wrote: »

Interesting post OP and fascinating read. I'm in the same boat, early 30's My only concern would be savings. I've spent the last few years on pretty low income jobs (circumstances st home meant I couldn't work full time). That's now changed. And although I'm not on great money yet, I do have a full time permanent job and save between 1000-1200 per month.

I was looking at an apartment for 135k. How long of a history of monthly savings would I need to even talk to the bank about a mortgage? And what kind of savings would I need

Go talk to your bank, I was set back 6 months as I wasn't saving enough so have to save an extra 135 euro a month for 6 months to pass the stress test. If you can save 1,200 I really think you should be able to buy that 135k apartment.

Best of luck

Maz2016

sharpish wrote: »

Go talk to your bank, I was set back 6 months as I wasn't saving enough so have to save an extra 135 euro a month for 6 months to pass the stress test. If you can save 1,200 I really think you should be able to buy that 135k apartment.

Best of luck

Thanks for that. Good luck with yours too

Snoopy1

I just brought my own house and I'm 38. I had to go slightly in the country in Kildare. I had 10,000 savings a loan, car finance, credit card and I still got approval.