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First Time Buyer - Mortgage Limit?

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    #32
    Cuddlesworth
    Registered Users Posts: 13,995 ✭✭✭✭Cuddlesworth


    awec wrote: »
    What bank stress tests at 8%?

    I'm not really sure how you would borrow 3.85x and still pass an 8% stress test easily. Unless I am missing something those figures don't add up.

    People who earn a large amount of money in addition to their base pay?


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    #33
    awec
    Administrators Posts: 53,837 Admin ✭✭✭✭✭awec


    Cuddlesworth wrote: »
    People who earn a large amount of money in addition to their base pay?

    If the bank was willing to include that sort of income in a stress test then why wouldn't they include it in the income used for the 3.5x calculation?

    I could be totally wrong, but in times where interest rates hit 8% surely this extra money is more likely to disappear than the base salary?


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    #34
    janeysorcha
    Closed Accounts Posts: 18 ✭janeysorcha


    Thanks all! All advice is much appreciated. We've met with one lender who believed we would be in a position to seek an exception, but would have to wait until later in the year. The same lender also advised to complete 6 months in a new job before applying. We have yet to apply but I was intrigued to gain any insight into exceptions.


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    #35
    starmc14
    Closed Accounts Posts: 39 ✭starmc14


    janeysorcha wrote:
    Thanks all! All advice is much appreciated. We've met with one lender who believed we would be in a position to seek an exception, but would have to wait until later in the year. The same lender also advised to complete 6 months in a new job before applying. We have yet to apply but I was intrigued to gain any insight into exceptions.

    I got full approval in principle from KBC 3 months into a new job and have just gone sale agreed with 2 weeks left to run on my probation. Met KBC last week again, mortgage application gone for loan approval pending letter from work. No issues.
    TSB on the other hand wouldn't even process an application for AIP until probation is passed. So I guess it depends on the lender.


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    #36
    MSVforever
    Registered Users Posts: 591 ✭✭✭MSVforever


    OscarBluth wrote: »
    Is there a particular area you want to stay in, or just south Dublin? With your budget, assuming you want a three bed house, there are some nice houses in Crumlin, Drimnagh or Tallaght which are all south side and could all fit a family. If you'd be happy with a two-bed, there's more choice. Some of these areas have bad reputations, and bad areas, but I've not heard anything bad from friends who are living there. Crumlin in particular is very accessible to the city centre, and lots of the houses you could buy for that money have 60ft long back gardens.

    The thing is, most people I know who are buying houses now earn more money than their parents would have - two salaries rather than one, more 'prestigious' careers - solicitors instead of teachers, etc - yet very few of us have been able to afford to buy in the areas we grew up in. If you were lucky enough to grow up in what is now a very fancy neighbourhood, as seems to have happened with many south Dublin suburbs, and you don't earn the salary required to live there now, you might be happier if you readjust your expectations rather than put pressure on yourself to get in an unrealistic amount of debt.

    We are renting in Crumlin since 2007 and house prices are crazy. For the Op's budget you would get a 2up 2down in the roughest parts (with no proper insulation - houses were built in the 30's/40s).
    Realistically you need a budget of around €300k for the Crumlin / Drimnagh area atm(have a browse on daft). Kimmage /Walkinstown would be in the €350 - €500k bracket...

    Parts of Clondalkin (Cherrywood, Grangeview, Deansrath, Bawnogue, Neilstown) or rougher areas in Tallaght (Killinarden, Jobstown, Brookview, Springfield etc) have housing stock in the sub €225k price range though.


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    #37
    janeysorcha
    Closed Accounts Posts: 18 ✭janeysorcha


    MSVforever wrote: »
    We are renting in Crumlin since 2007 and house prices are crazy. For the Op's budget you would get a 2up 2down in the roughest parts (with no proper insulation - houses were built in the 30's/40s).
    Realistically you need a budget of around €300k for the Crumlin / Drimnagh area atm(have a browse on daft). Kimmage /Walkinstown would be in the €350 - €500k bracket...

    Parts of Clondalkin (Cherrywood, Grangeview, Deansrath, Bawnogue, Neilstown) or rougher areas in Tallaght (Killinarden, Jobstown, Brookview, Springfield etc) have housing stock in the sub €225k price range though.

    And that's just the asking price. We are at the point where it is time to move out of home but rent prices are crazy and prices are too extortionate to buy.


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