Average monthly mortgage repayments

21-03-2018 3:11pm

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.

You are correct in going for the longest term possible, this is the best advice for anyone going for a mortgage. You hear people talking about 15 year mortgages etc but I'd always say go for the 30 or 35 years and and pay the repayment of the 15 year but if anything goes wrong you can fall back to your much lower payment.

In otherwords (if I'm understanding you correctly) what you are saying is not the case, if your 35 year mortgage is 1k per month and you pay 1.5k per month for the next 5 years and suddenly one of you loses your job you can immediately drop back 1k per month as this is your actual repayment and the extra 500 was a voluntary overpayment. I may be misunderstanding what you are saying though, apologies if that's the case.

AndyBoBandy · 21-03-2018 3:20pm

Also, anyone overpaying a mortgage, get on to your bank, and badger them for a better rate!!

I called my bank a few weeks ago, and asked them why should I stay with them when competitors are offering lower rates than their lowest rate (which I was on), while also offering €2,000 towards the cost of switching, so why shouldn't I switch? They said I could go fixed for a better rate, or part fixed blah blah blah. I said no, 100% variable is what I want.

They said they'd send my query 'upstairs' and get back to me.

2 days later they called me back and reduced my rate by 0.5%

In almost 4 years, I've called them twice seeking a better interest rate, and both times I got it (1st time was when my LTV went below 60%).

If you don't ask, you don't get.

Interested Observer · 21-03-2018 3:24pm

Jamir Hissing Jay wrote: »

You are correct in going for the longest term possible, this is the best advice for anyone going for a mortgage. You hear people talking about 15 year mortgages etc but I'd always say go for the 30 or 35 years and and pay the repayment of the 15 year but if anything goes wrong you can fall back to your much lower payment.

In otherwords (if I'm understanding you correctly) what you are saying is not the case, if your 35 year mortgage is 1k per month and you pay 1.5k per month for the next 5 years and suddenly one of you loses your job you can immediately drop back 1k per month as this is your actual repayment and the extra 500 was a voluntary overpayment. I may be misunderstanding what you are saying though, apologies if that's the case.

With some banks if you're on a fixed rate then you might be limited in what you can overpay. For example BOI will allow 10% extra on top of your monthly payment. So you can't pay €1.5k per month if your regular payment is €1k per month, you can pay €1100 and that's all.

relax carry on · 21-03-2018 3:25pm

Bought last year. Mortgage payment works out at 18.5% net monthly income. Actually surprised it's that low. In a long term fixed rate so can't overpay. Looks like I could now based on that percentage.

21-03-2018 3:46pm

AndyBoBandy wrote: »

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

I called my bank.............

Can you share with us what bank facilitated this?

heldel00 · 21-03-2018 4:03pm

Will some of you very clued in people please explain Loan to Value for me?

Mortgage of 190k taken out in 2010. Overpaying by 200 a month (wish i could afford more but with a young family this is best we can do) and house is definitely worth more than 190 now.
We have a friend of a friend that is an estate agent but i would like to be better informed before approaching her.

AndyBoBandy · 21-03-2018 4:05pm

Augeo wrote: »

Can you share with us what bank facilitated this?

I'd rather not, but if overpaying with any lender, I'd be calling them and asking for a better rate as regular overpayments had I assume, shown me up as very low risk, hence them willing to lower my rate.

f@steddie · 21-03-2018 4:11pm

heldel00 wrote: »

Will some of you very clued in people please explain Loan to Value for me?

Loan is 60k. House value is 100k. Loan to value is 60%.

Loan is 60% of the value of the property.

heldel00 · 21-03-2018 4:13pm

f@steddie wrote: »

heldel00 wrote: »

Will some of you very clued in people please explain Loan to Value for me?

Loan is 60k. House value is 100k. Loan to value is 60%.

Loan is 60% of the value of the property.

That's it?!!! Jesus i was really overthinking it!

AndyBoBandy · 21-03-2018 4:13pm

f@steddie wrote: »

Loan is 60k. House value is 100k. Loan to value is 60%.

Loan is 60% of the value of the property.

And over the course of time, the LTV% reduces as you pay more and more off the original loan amount, therefore you can fall into better LTV ranges that some banks will offer better interest rates on, so it's worth knowing what your current LTV is.

What Username Guidelines · 21-03-2018 4:21pm

izzyflusky wrote: »

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.

Depends on the bank - AIB by default recalculate your monthly payment and reduce it, sending you a letter with each payment made. You can opt to reduce the term instead if you prefer. I know with PTSB you've to fill out a form each time and choose, whereas with AIB you can just transfer into the account or set up a standing order.

Personally I transfer as each time my payment reduces, I end up transferring more the next month to keep payment at same level.

Yourmama · 21-03-2018 4:21pm

Bought in 2015, paying 13% of joint take home. We could easily afford more expensive house but we are happy where we are. I overpay significantly each month so should be mortgage free by 10 year mark instead of 35 years.

mugsymugsy · 21-03-2018 4:27pm

heldel00 wrote: »

Will some of you very clued in people please explain Loan to Value for me?

Mortgage of 190k taken out in 2010. Overpaying by 200 a month (wish i could afford more but with a young family this is best we can do) and house is definitely worth more than 190 now.
We have a friend of a friend that is an estate agent but i would like to be better informed before approaching her.

https://m.moneyfacts.co.uk/guides/mortgages/what-does-ltv-mean/#

So loan to value is the % your mortgage is compared to the value of your property.

So in your case it was 190,000/ value of property when you bought it.

Now if your property has gone up in value and you have paid off some of your mortgage your mortgage might now be worth say 180,000. You then need to calculate this against the value of your property now.

They key bit is that when you are taking a mortgage depending on your loan to value % depends in what rate the bank will give.

The lower the loan to value (LTV) the better the rate for you. Some banks will auto move you to new rates, others won't and others make you get an official valuation to move rates.

Hope that helps

cruizer101 · 21-03-2018 4:40pm

theteal wrote: »

Thankfully we're on a fixed 1.44% until 2020.

Where did you get a mortgage at that rate?

I'm surprised how many on here seem to around the 10-15% mark, I would have thought most would be nearer 25-30%, I wonder is it a lot of houses down the country as opposed to Dublin. Also how far into mortgage is a factor as earnings will generally go up reducing %.

Probably looking at around 28% myself on what I've been approved for, don't really want to go over 30% even if approved for it.

What Username Guidelines · 21-03-2018 4:45pm

cruizer101 wrote: »

Where did you get a mortgage at that rate?

I'm surprised how many on here seem to around the 10-15% mark, I would have thought most would be nearer 25-30%, I wonder is it a lot of houses down the country as opposed to Dublin. Also how far into mortgage is a factor as earnings will generally go up reducing %.

Probably looking at around 28% myself on what I've been approved for, don't really want to go over 30% even if approved for it.

Yeah I'm surprised too - when we originally went to bank in 2013, they offered us what would have been almost a 45% payment of our combined income, almost exactly my own take-home pay, with the idea is we'd live off my wife's salary. Thankfully we decided against as a year or so late my wife had to give up work, but maybe it's the new deposit/earning rules that are helping?

Claw Hammer · 21-03-2018 5:03pm

chicken foot wrote: »

Beware of increased home insurance costs! Revaluation may up the value of the house but also brings rebuild value up. Ours increased by 50,000 meaning we'd to insure for higher!!
Didn't think of that hurdle in advance. House prices stayed the same, rebuild went up - go figure! Previous evaluation done three years ago, the new one was last year.

The rebuild cost is based on square footage, however, the banks insist on insuring at market value. Even without revaluation rebuild costs can rise.

....... · 21-03-2018 5:09pm

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d-gal · 21-03-2018 5:21pm

On LTV guys if you buy a house for say 300k and get a mortgage of 200k then your LTV is 66%...but if your house rises in value to say 350k does your LTV automatically go down?!

21-03-2018 5:42pm

d-gal wrote: »

..............but if your house rises in value to say 350k does your LTV automatically go down?!

Nope

Interested Observer · 21-03-2018 5:55pm

d-gal wrote: »

On LTV guys if you buy a house for say 300k and get a mortgage of 200k then your LTV is 66%...but if your house rises in value to say 350k does your LTV automatically go down?!

Are you asking if the bank will just switch you to a new rate? Probably not no.

mirrorwall14 · 21-03-2018 6:01pm

Need to pay about 14% of income, overpaying by 300e a month which will take 10 years off the mortgage. Not sure if we'll be able to maintain that when the second kid arrives so have not adjusted the term from 35 years

(Edit: For those who are stressing, it was a lot more as a portion of our income but one of us had a substantial salary bump and is now working for an international company which has massively improved the % of income)

Peatys · 21-03-2018 6:01pm

ELM327 wrote: »

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

Deadly.

What's the difference between a calendar month and a month?

Experience_day · 21-03-2018 6:07pm

Less than 25% of monthly income after tax. Single income. Thought I'd get on Dublin ladder before late twenties. Still not sure it's worth it but at least I've scratched the itch. Got a few spare bedrooms which I might rent out.

Jet Black · 21-03-2018 6:11pm

I always think of this advert when this question comes up. Paying 75% of your wages on a mortgage!! With a 5 kids to boot... Poor guy.

https://www.youtube.com/watch?v=h-0SsIlwjlE

izzyflusky · 21-03-2018 6:52pm

Jet Black wrote: »

I always think of this advert when this question comes up. Paying 75% of your wages on a mortgage!! With a 5 kids to boot... Poor guy.

https://www.youtube.com/watch?v=h-0SsIlwjlE

How can he afford to breathe? 75% of his salary, 5 kids and two dogs??? It surely must be a mistake!

Avatar MIA · 21-03-2018 7:02pm

izzyflusky wrote: »

How can he afford to breathe? 75% of his salary, 5 kids and two dogs??? It surely must be a mistake!

The first Tuesday of the month must feel like a mini lottery win.

But, he seems happy - many rich people can't say that. But, presumably he got his figures wrong. No bank would lend to him on that basis unless he bought his house with finance from Macloanshark Finance company.

What Username Guidelines · 21-03-2018 7:16pm

d-gal wrote: »

On LTV guys if you buy a house for say 300k and get a mortgage of 200k then your LTV is 66%...but if your house rises in value to say 350k does your LTV automatically go down?!

Technically yes the LTV does go down but whether the bank acknowledges this varies with each bank. Some will switch you automatically (based on % paid off rather than value increasing) others will require a valuation, and others will not budge at all.

Creamy Goodness · 21-03-2018 7:24pm

izzyflusky wrote: »

How can he afford to breathe? 75% of his salary, 5 kids and two dogs??? It surely must be a mistake!

as much as a dog person I am, they'd be the first to go, not make much of a dent but they can't be cheap either.

Dread Pirate Roberts · 21-03-2018 7:33pm

I find the figures being quoted quite depressing and to be honest quite demotivating. I live in Dublin , am single , in my early 30's and earn probably the most out of my group of friends. 6 figures if i do a chunk of overtime.
I have used the mortgage calculators etc on the various banks websites and I couldn't really buy anything worth buying. Even at that my repayments would be a quite sizeable portion of take home pay.I despair really.

theteal · 21-03-2018 7:34pm

cruizer101 wrote: »

Where did you get a mortgage at that rate?

I’m UK based plus I scraped my life savings together to make sure we had a 20+% deposit which helped a great deal

Average monthly mortgage repayments

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