What kind of mortgage would we get?

chakademus

We are both in our late 30s with two small children. I am a primary school teacher with a permanent job. My husband works part time in the catering industry as he minds the kids while I'm at work. He has had solid work for the last 20 years. We have about 17000 saved.

We have never looked in to buying a house due to various circumstances but I feel it is now time.

Is it too late? What kind of mortgage would we get? What do we do next?

Thanks in advance. I am completely clueless.

Heres Johnny

chakademus wrote: »

We are both in our late 30s with two small children. I am a primary school teacher with a permanent job. My husband works part time in the catering industry as he minds the kids while I'm at work. He has had solid work for the last 20 years. We have about 17000 saved.

We have never looked in to buying a house due to various circumstances but I feel it is now time.

Is it too late? What kind of mortgage would we get? What do we do next?

Thanks in advance. I am completely clueless.

What's your combined incomes? That's the biggest factor. You'll probably struggle for a Dublin or other city 3 bed house but it's possible outside the cities.

catrionanic

The main thing that’s likely to limit you is your deposit. You will require a 10% deposit as first-time buyers, allowing you to purchase a house up to 170k. However, you will also need to set aside at least 5k for legal expenses, stamp duty, etc.

Banks will lend you 3.5x your combined salaries. It is possible that you may get an exemption on the 10% deposit rule if you have a high level of income though.

chakademus

Thanks for response.

We would only have a combined wage of 75000. This will change when children are at school etc. We don't live in dublin but in a city where property is not cheap.

catrionanic

So you would be able to borrow a maximum of 3.5 times 75k which is 262.5k, and then you add your deposit on top of this - so 280k.

However the problem you have is that you need a 10% deposit, and that would limit you to a house worth 170k - 17k deposit and 153k on a mortgage.

If you could increase your deposit, you’d be able to buy a house worth 250-300k - depending on where you’re living, that might be a very big difference!

Might be worth saving for another couple of years so you’ve better options, depending on the local property market.

chakademus

Thank you so much for the info.

Trish56

Can you get a gift towards the deposit also if you are thinking of building you will qualify for the Help to buy Scheme which is 5% of the purchase price.

Couple with two children will need net disposable income of €2550 after taking into consideration stress tested repayments.

Pacos207

Check out the KBC website. They REALLY helped us when other major banks turned us down. Do not wait. It’s getting more expensive & difficult.