Average monthly mortgage repayments

chicken foot

Graham wrote: »

Isn't that a good thing?

The alternative could have been you discovered you were underinsured in the unfortunate scenario where you needed to make a claim.

We built 6 yrs ago for 200k, our house is now insured for 380k as the rebuild price used by banks is the national average.
If I had 380k to rebuild my house we'd be like Trump Towers with Golden toilets and gilted walls. There isn't a hope in hell a rebuild would cost that much.

Hitman3000

chicken foot wrote:

We built 6 yrs ago for 200k, our house is now insured for 380k as the rebuild price used by banks is the national average. If I had 380k to rebuild my house we'd be like Trump Towers with Golden toilets and gilted walls. There isn't a hope in hell a rebuild would cost that much.

You're paying a premium based on a rebuild of 380k? Why the land your home is sitting on is perhaps the most expensive element. Is the insurance through the bank?

myshirt

Ideally you would be spending 25% or less on your mortgage, though 30% is ok, and 40% in a severely distressed scenario (go even half a percentage above that and you are tinkering on putting your balls in a blender).

If you could meet these metrics on 1 income, great, 1.5 incomes, ok, but where you have the trouble is people paying 35% of a two salary take-home. That is a lot of risk.

If you look at mortgage payments of 1,300-1,600 which is likely the entry range in non rural locations, you are talking the bones of 5 grand take home each month. While not off the wall, it's a lot to expect of every young couple , so the reality is only those who are well heeled (or those that fight like a beaver) are getting in on the game.

There is somewhat an 'ethnic cleansing' of the middle class. Pushed further and further out, to Ratoath, Ashbourne, and even Dundalk, if at all they get a place.

chicken foot

Hitman3000 wrote: »

You're paying a premium based on a rebuild of 380k? Why the land your home is sitting on is perhaps the most expensive element. Is the insurance through the bank?

We switched mortgage provider last year. They required a new evaluation. The value has remained static, as in the sale price, but, the rebuild price is what went through the roof. Rebuild is based on price per square foot of the national average - regardless of the fact that we built it initially for 180k LESS than what this national average suggests.
It's bonkers, you can't apply D4 prices to the whole nation yet that's what they're essentially doing.
It's just a warning to heed

.......

This post has been deleted.

shane.

Inspector Coptoor wrote: »

Mortgage is €1585.
Overpaying by 10%.
On a 3% fixed rate on a house in South County Dublin.
Was originally a 30 year term - down to 26 with overpayment. 24 years to go.

Just wondering how you set up the overpayment?, were on a tracker, does that make a difference

What Username Guidelines

Cakes and Ale wrote: »

Just over 25%, single income. Bought 4 years ago. LTV must be much less than <80 now so think it's worth going to pay for new evaluation to avail of the lower interest rate. Or any thoughts on that?

Do it, and if the bank doesnt want to play ball, move to another bank. I did it recently and saved €225 per month. Yes, per month. Went from 1350 to 1125, so its big chunk and not even a massive mortgage.

Costs to me were valuation (€150), increased home insurance (€28 per year) and increase in mortgage protection protection to extend the term a little to match the new term. The premium went up €6 per month which was frustrating given I was extending it, but still a very small amount when considering the mortgage savings.

EDIT: forgot to include solicitors fees to the deal, which were approx €900. Bank also had a €2,000 cashback deal tho

Avatar MIA

What Username Guidelines wrote: »

...and increase in mortgage protection protection to extend the term a little to match the new term.

That's why your monthly payment went down so much, you extended the repayment period of the mortgage, and the overall interest you pay.

Hitman3000

chicken foot wrote:

We switched mortgage provider last year. They required a new evaluation. The value has remained static, as in the sale price, but, the rebuild price is what went through the roof. Rebuild is based on price per square foot of the national average - regardless of the fact that we built it initially for 180k LESS than what this national average suggests. It's bonkers, you can't apply D4 prices to the whole nation yet that's what they're essentially doing. It's just a warning to heed

My home insurance is based on the rebuild cost which I know myself as I was involved the industry. I don't have the house insured with the bank. They are only named as an interested party.

ELM327

Just signed contracts for a 3 bed in County Meath, Mortgage is 390 pcm
Compared to current rent of 1k pcm

theteal

We're paying just shy of 28% of take-home, that's not too bad considering MrsTeal has gone part-time (coz of the baba) and I still have quite a bit of advancing to do after a somewhat recent career change - expecting a decent bump next month actually. Thankfully we're on a fixed 1.44% until 2020.

What Username Guidelines

Avatar MIA wrote: »

That's why your monthly payment went down so much, you extended the repayment period of the mortgage, and the overall interest you pay.

The term was only extended by 6 weeks as the bank could only give full calendar years, so has very little impact on the repayment. The insurer could also only offer calendar year increases, so had to extend cover by an extra year.

heldel00

shane. wrote: »

Inspector Coptoor wrote: »

Mortgage is €1585.
Overpaying by 10%.
On a 3% fixed rate on a house in South County Dublin.
Was originally a 30 year term - down to 26 with overpayment. 24 years to go.

Just wondering how you set up the overpayment?, were on a tracker, does that make a difference

I'm variable with AIB. I just set up a direct debit into mortgage account with the instruction "pay off principle".
I receive a letter from them every month then telling me about my out of course payment reveived blah blah blah....
I have written and asked them not to send me this letter as i think it is such a waste of paper and postage. An email would suffice. This hasn't happened.

If you are in the early days of your mortgage term then paying fortnightly might be beneficial. 26 fortnights in the year so you are making an extra mortgage payment every year without consciously doing it.

chicken foot

Hitman3000 wrote: »

My home insurance is based on the rebuild cost which I know myself as I was involved the industry. I don't have the house insured with the bank. They are only named as an interested party.

We are not insured with the bank either. The bank requested a valuation, the valuation returned the extortionate rebuild total, the bank then demands that the house is insured for that value as a condition of the mortgage.

What Username Guidelines

What Username Guidelines wrote: »

The term was only extended by 6 weeks as the bank could only give full calendar years, so has very little impact on the repayment. The insurer could also only offer calendar year increases, so had to extend cover by an extra year.

Did you consider keeping your repayment the same when you moved bank to reduce the term (if you were comfortable with paying what you were all along)? Could have knocked a few years off your mortgage and the amount of interest you pay.

Hitman3000

chicken foot wrote:

We are not insured with the bank either. The bank requested a valuation, the valuation returned the extortionate rebuild total, the bank then demands that the house is insured for that value as a condition of the mortgage.

Have tbh never encountered that with our bank. Ulster bank btw. I tell the insurance the rebuild cost that's it no question from the bank. Mortgage protection is different .

chicken foot

Hitman3000 wrote: »

Have tbh never encountered that with our bank. Ulster bank btw. I tell the insurance the rebuild cost that's it no question from the bank. Mortgage protection is different .

Yep, we got stung with that one. We're with KBC but similar happened with AIB. We had to insure for the rebuild value stated in the evaluation.
I could technically get a contractor in to argue the valuers report but that's just more money. At this rate I wouldn't mind the house falling down - oh what I could do with 380k!!!

LoMismo

Bought a 2 bed terrace in Dublin 5, 12 mins walk from Raheny Dart station, in January 2016 for 167k. It's now probably worth around 240k going on similar sales nearby.
My repayments are 643 a month and I get 500 for my spare room. I got so lucky, when I see what people are paying for rent and buying houses nowadays. Any friend I have who is renting a room pays more than my mortgage, for a bloody room!

thierry14

ELM327 wrote: »

Just signed contracts for a 3 bed in County Meath, Mortgage is 390 pcm
Compared to current rent of 1k pcm

Very nice

Thought you were getting an apartment?

I bought in 2016

120k 4 bed, county Limerick

Worth about 140-150k now I'd say

No mortgage, paid cash

Probably should have got a mortgage and kept cash though, rates are getting low

Saved wife salary for few years

ELM327

thierry14 wrote: »

Very nice

Thought you were getting an apartment?

I bought in 2016

120k 4 bed, county Limerick

Worth about 140-150k now I'd say

No mortgage, paid cash

Probably should have got a mortgage and kept cash though, rates are getting low

Saved wife salary for few years

Yes, 3 bed apartment.
I wanted to buy a couple of years ago as it would have been closer to 75-80k then - 2011/2012 - but I couldn't get a mortgage in those days.

thierry14

ELM327 wrote: »

Yes, 3 bed apartment.
I wanted to buy a couple of years ago as it would have been closer to 75-80k then - 2011/2012 - but I couldn't get a mortgage in those days.

Fair play

Thats some deal, I know people with iPhones costing that per month

Dont remind me

I could have bought 2 bed decent apartment in my town for 35k in 2011, had the cash too

Now worth about 90k and renting out for 700e a month

thierry14

LoMismo wrote: »

Bought a 2 bed terrace in Dublin 5, 12 mins walk from Raheny Dart station, in January 2016 for 167k. It's now probably worth around 240k going on similar sales nearby.
My repayments are 643 a month and I get 500 for my spare room. I got so lucky, when I see what people are paying for rent and buying houses nowadays. Any friend I have who is renting a room pays more than my mortgage, for a bloody room!

That is impressive

Very shrewd

Tax free 500e too

d-gal

d-gal wrote: »

....................

I’m in the middle of buying my first house and I can’t imagine many of my friends being ever able to afford a mortgage. Despite our consistent savings for years .................

What's to stop them hooking up with someone?

theboringfox

Interesting comments on over paying the mortgage. I am all for paying my mortgage down asap. However I kept 35 year as if I overpay and get into any future difficulties they can recalculate monthly repayment to reflect over repayments and so I repay within 35 years. That is my understanding anyway and reason I pushed for 35 year mortgage. Hoping to repay faster but nice to know I can spread it out longer.

Squall Leonhart

theboringfox wrote: »

Interesting comments on over paying the mortgage. I am all for paying my mortgage down asap. However I kept 35 year as if I overpay and get into any future difficulties they can recalculate monthly repayment to reflect over repayments and so I repay within 35 years. That is my understanding anyway and reason I pushed for 35 year mortgage. Hoping to repay faster but nice to know I can spread it out longer.

Exactly my idea... have a 35 year mortgage, but barring something going very wrong, it won't take that at all as I'm overpaying, but should I need to stop overpayments, I can always go back to the contracted amount.

What Username Guidelines

Jamir Hissing Jay wrote: »

Did you consider keeping your repayment the same when you moved bank to reduce the term (if you were comfortable with paying what you were all along)? Could have knocked a few years off your mortgage and the amount of interest you pay.

Yep, there was an option to knock 8 years off the mortgage at same monthly payment :eek:

Very soon after we bought the house, a change in circumstances meant we went down to one income but luckily it was still manageable. This left me very risk averse so I'm overpaying each month back to the previous payment amount but it leaves me that cushion should we need it.

f@steddie

thierry14 wrote: »

Saved wife salary for few years

Did this also. Bought in the last few months and mortgage is ~8% of income.

namenotavailablE

We have a commitment of approx 27% of joint income (EBS, fixed rate until end of October at 3.15%).
The current term expires in May 2035 but we try to overpay something every month to reduce the term. Last year, we overpaid sufficient to reduce the term by approx 5 months. We are aiming for much the same this year.

At the moment, we have a credit balance on the account of approx €2500 because we can't apply the over-payments since going on the fixed rate against the balance (terms of availing of a fixed rate). We will do so in October. We decided on this method (overpaying rather than depositing the surplus cash in our own deposit account) as we'd be potentially tempted to spend it otherwise

We suspect (don't know for sure but based on the local economy/ jobs situation etc) that we may be in negative equity or at best around breakeven so can't access better rates at present. Each quarter point change saves us approx €45 per month so a better rate would be 'oh-so-desirable'.

AndyBoBandy

theboringfox wrote: »

they can recalculate monthly repayment to reflect over repayments and so I repay within 35 years. That is my understanding anyway and reason I pushed for 35 year mortgage. Hoping to repay faster but nice to know I can spread it out longer.

Thats what happened me both times when I got a lower interest rate,

The new interest rate, coupled with the overpayments up to that date, reduced our monthly repayment first from €1,025 down to €858, and then again down to €714. With each reduction, we've simply increased our rate of overpayment to ensure we are still paying the same amount each month, so if I wanted again in 12 months, I could probably get re-calculated down to ~€600 as they will continue to bass the calculation on the remaining term (currently 16 years), so if we do need to slow it down for whatever reason for a few years, we can stop overpaying and re-calculate again to lower our monthly repayment rate even further.

izzyflusky

So how does this work? Do you get to choose whether you want to reduce payments or term? We are currently buying and are hoping to overpay as well but don't know the ins and outs yet.