Worried bout applying for mortgage as an older single lady

Ursabear

Hi,
So after long term relationships ended i find myself considering getting a mortgage single. I had been waiting to do so as a couple. I am now 36 and property prices in dublin are crazy. People i have spoken to think prices wont drop for another 7 years. I don't feel i can afford to buy now as it seems like this is peak and when more properties are built hopefully prices will start to fall. I am a contract worker also but have been saving. At this point i feel i should wait till prices fall but realise that may bring me into my 40's possibly even 43 -45 and i'm not sure a bank would approve a mortgage then. I am very worried and confused about what to do and would appreciatte advice. Thanks

rsynnott

Banks will usually give you a mortgage that's due to end when you're 65. So if you applied at 40 you could get up to a 25 year mortgage (assuming the bank was otherwise happy with your income, deposit, property you wanted to buy, etc). I think a few will go a bit longer. Assuming you're okay with whatever length of mortgage that'd give you, though, I don't see why they'd have an issue with it.

Addle

As a single adult with no dependents, you might be in a better position than some double applicants, depending on income.

august12

Addle wrote:

As a single adult with no dependents, you might be in a better position than some double applicants, depending on income.

It might also prove more difficult given the OP is on contract, very much depends if op can provide evidence of a steady income.

Trish56

I'm not too sure that property prices will come down in next few years so would not really be depending on that. Currently you can get a mortgage up to age 75. Single applicants in Dublin are finding it very difficult to get a mortgage since the Central Bank introduced max. 3.5 times earnings which would limit a person on a gross basic of 60k to borrowing 210k.

Ursabear

Unfortunately i dont earn near 60k. So it looks like it will be impossible for me to buy. There my be the chance of full time contracts in a year or two but i the 3.5 times would still not be enough. I imagine theres a lot if frustration at the moment as a few couples i know earn 70k between them. Perhaps if i dont get a full time position in a few years i will think about relocating to a city on the continent with rent controls. Thanks for your input guys.

Addle

What are you looking for, and where?
There are properties available, but you'll probably just have to compromise.
https://m.myhome.ie/residential/dublin/house-for-sale?maxprice=200000&page=1&sortOrder=highest%20price

A little less drastic alternative to emigrating would be to commute.
Would you move outside of Dublin?

Ursabear

Hmm thanks for that. Those places are still off what i can borrow but with a bit extra savings i could look into buying an apartment. I guess im just wary as i know family members who made big losses when selling an apartment in the past. Considering the rates of rent though buying an apt seems like a good idea

Ursabear

Oh and yes i would commute

Merowig

Ursabear wrote: »

Perhaps if i dont get a full time position in a few years i will think about relocating to a city on the continent with rent controls. Thanks for your input guys.

Rent control does not help renters
https://www.youtube.com/watch?v=oJvTTGOHFkU

Mrs OBumble

Ursabear wrote: »

Unfortunately i dont earn near 60k. So it looks like it will be impossible for me to buy.

Even if you can manage to get a mortgage, you can end up with a house that you cannot afford to maintain, and this puts you in a very bad position when you're old. (real life example: Mr O'Bumble has done work for one man whose house had a badly leaking roof and a very marginal toilet, neither of which he could get fixed.)

If you earn less than your area's threshold for social housing availability, then you should not expect to buy: instead go on the housing list, and hopefully you'll get allocated something by the time you cannot afford private rental any longer.

Iamme1960

Nothing wrong with renting Ursabear. I am in my 50's now in a similar position to you. Started renting in 2002 and never regretted it. There are a few people around now with mortgages that they cant afford to pay and I bet they wish they had never bothered. Renting is king now - no property charges, no bin charges, no water charges, no maintenance and no rip off insurance.

Iamme1960

be a shame if you had to relocate. If you are prepared to commute rents are cheaper outside Dublin but i see your point about rent controls

dotsman

Instead of emigrating, have you thought about the other cities in Ireland?

With regards prices falling, of course there will be a fall at some stage, but trying to predict when and how much is impossible. It is unlikely you'll ever see quality homes less than they are now (ie they may continue to increase for a number of years, then another recession where they fall to 2020 levels and then start rising again). The simple fact is that we are in a 25-year property crisis with no end in sight (I've yet to hear any politician, organisation or media outlet even propose a solution, let alone implement one - and when they do it will likely take decades before the results are fully realised).

dotsman

Iamme1960 wrote: »

Nothing wrong with renting Ursabear. I am in my 50's now in a similar position to you. Started renting in 2002 and never regretted it. There are a few people around now with mortgages that they cant afford to pay and I bet they wish they had never bothered. Renting is king now - no property charges, no bin charges, no water charges, no maintenance and no rip off insurance.

Anyone who was lucky enough to buy a sensible property in 2002 is laughing.

Oh, and home owning is king. Renters are getting crucified (always have, always will). I bought in 2007,and could currently rent out my home for twice what I'm paying on my mortgage (+ related home owning expenses). Despite buying at the peak of the last boom, I am financially better off than if I had been renting the same property for the past 10 years. And, as I said, I now get to live in it for half what it costs to rent, have increasingly equity in it and don't have to worry about amateur-hour regulations like 3.5 times salary etc.

Iamme1960

you must be one of the lucky ones. I know several people who bought in the early 2000 who now have negative equity. And property is only worth what it will sell for. I pay €100 pw now for the 4 bed house I rent and have just negotiated a 5 yr no increase contract. no way could i buy this house for €400pm + related ownership expenses. Renting is becoming more popular all over the world and it was our obsession with house ownership and what our houses are worth that contributed to the boom and bust of the past. So as I said you must be one of the lucky ones and good luck to you but i still think in the current climate it makes more sense to rent. Some bargains to be had if you are prepared to locate outside the cities

Ursabear

Hi Iamme1960,

Yes thats v true. I have spoken to someone over the weekend about their experience and I feel so bad for them. That is exactly what happened in their case an I do feel lucky I did not get into negative equity. Its awful what some pople and families are going through at the moment. I think the thing I fear about rent - is it increasing and also the point where i retire and am still renting. At the moment i am lucky my rent is low but I realise the money I put into it is not securing my future living situation and my landlord could sell up at some stage and then I will be looking at v high rents.

Arthur Daley

Dublin asking prices now at mid 2005 levels. So anyone claiming to be in negative equity having bought in the early 2000s either took a big financial hit somewhere else unrelated, or they are claiming the beal bocht.

Ursabear

OSI also true. I am just looking to have somewhere to stay into my old age.

GhostyMcGhost

OSI wrote: »

You realise negative equity means **** all unless you're in a position that requires you to sell your house?

Eh not really

Could mean an extra €€€ per month on mortgage repayments

That’s certainly not “**** all”

con___manx1

if you buy in a commuter town the mortgage wont be near as big as one in Dublin.

dotsman

GhostyMcGhost wrote: »

Eh not really

Could mean an extra €€€ per month on mortgage repayments

That’s certainly not “**** all”

I don't think you understand what negative equity means. You are not, in any way paying "extra". A 300k mortgage costs the same regardless if whether the underlying property is worth 300k or 150k (although you may get an additional reduction once the LTV drops below certain thresholds like 50%).

dotsman

Iamme1960 wrote: »

you must be one of the lucky ones. I know several people who bought in the early 2000 who now have negative equity. And property is only worth what it will sell for. I pay €100 pw now for the 4 bed house I rent and have just negotiated a 5 yr no increase contract. no way could i buy this house for €400pm + related ownership expenses. Renting is becoming more popular all over the world and it was our obsession with house ownership and what our houses are worth that contributed to the boom and bust of the past. So as I said you must be one of the lucky ones and good luck to you but i still think in the current climate it makes more sense to rent. Some bargains to be had if you are prepared to locate outside the cities

I can't understand how anyone who bought in early 2000 were ever in negative equity, let alone now (at their lowest point, values briefly fell to circa 2003 levels, and 17 years of paying the mortgage means that, depending on the length, they are close to having reduced the capital by about a third to a half). There must have been some critical flaws with the property they purchased or they must have never bothered making any repayments and the interest has simply being accruing all this time.

Likewise, I cannot fathom how anyone is paying 400 per month for a 4 bed unless it is a remote part of the country. The majority of people (and the OP) live in cities/suburbs/towns where a 4-bed in good condition in a nice neighborhood is many, many multiples of that figure.

Please believe me, while I happily accept my circumstances are not necessarily the same as everybody else's, your circumstances are definitely in the minority.

Iamme1960

welcome to come and visit me anytime. Its rural and i work from home but i am within commuting distance (Less than 1 hour) from Limerick, a bit more to Cork, Galway, Waterford, and only 2 hours from Dublin if i really must go up there but I try and avoid it. And it is €100 a week (€400pcm)It has hot and cold water surprisingly, and central heating, 2 en-suite bedrooms. See when people rent they dont look for the bargains that can be found. The owner of this property was a madman commuting to dublin every day and decided to move up there. He didnt want to leave the house empty but couldnt get anyone to rent it cos it has no public transport links. Started out in 2000 at 80 Irish punts pw on a monthly basis cos he didnt think we would stay here. So the bargains can be found if you look and if I decide to move I dont have to find a buyer I just need to give 3 months notice. Renting is freedom!

dotsman

Iamme1960 wrote: »

i am within commuting distance (Less than 1 hour) from Limerick, a bit more to Cork, Galway, Waterford, and only 2 hours from Dublin

So, the complete arse end of nowhere.

Iamme1960 wrote: »

i work from home

Not an option for the overwhelming majority of people

Iamme1960 wrote: »

it has no public transport links.

Again, no an option for the vast majority of people

Given the above, do your realise that, for the vast majority of people, they simply could not live in such a situation?And that your circumstances are pretty unique?

Iamme1960 wrote: »

couldnt get anyone to rent it

So, you have proven my argument???

MouseTail

Iamme1960 wrote: »

Renting is freedom!

Not really, someone your age who went the traditional route of buying in their 20s or 30s would be mortgage free now, that to me represents more freedom.

Iamme1960

Yes I realise its rare but not unique. The arse end of nowhere is where we set out to live when we first came here in 2000 and knew we had an internet based business - Bit annoying in the early days of dial-up but manageable now. So we were able to choose not to live in lala land or any of the major urban areas. So because we chose to live rurally a unique situation is exactly what we were looking for and because we were looking there that's what we found. My point is that anyone who chooses to live in a city or larger urban area has to pay the price but to say the options aren't available is nonsense. For those prepared to think outside the box the bargains can be found.

august12

MouseTail wrote:

Not really, someone your age who went the traditional route of buying in their 20s or 30s would be mortgage free now, that to me represents more freedom.

Yes, that's me, mortgage free. Am delighted and that was with interest rates reaching 17% shortly after taking out the mortgage. It was tough for a while but so worth it. We were mortgage free in our mid 40s.