Average monthly mortgage repayments

srsly78

If you earn 300k/year why bother with a mortgage.

catrionanic

We pay 12% of our combined monthly income for our very small 2-bed midterrace in south Dublin, although our income was around 30% less when we bought it in 2015.

We are looking at selling and moving on, and will be paying a higher percentage then.

Avatar MIA

srsly78 wrote: »

If you earn 300k/year why bother with a mortgage.

The same reason people on €100k use a mortgage. People tend to buy the house they can afford rather than what will suffice.

James 007

Dread Pirate Roberts wrote: »

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.

If i were you i would keep saving considering that you are on such a good salary. I bought during similar age and the girl two doors up from me paid less than 1/2 of what i paid. My house will only reach its original value that i paid for it sometime next year. Considering your single, good salary perhaps wait for the next down turn.

Tar.Aldarion

srsly78 wrote: »

If you earn 300k/year why bother with a mortgage.

You can make more money than the interest repayments by holding onto it. Even millionaires get mortgages.
Conversely a lot of people don't invest and like to pay it down fast to avoid interest for a risk free option.

Franz Von Peppercorn

Dread Pirate Roberts wrote: »

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.

I think this thread is attracting the richest or the luckiest. People paying 1k as 14% of take home is unusual.

Chin up. Keep saving. 100k at 30ish is not to be sniffed at.

coolperson05

I agree! I clearly missed the boat! Renting 1.5 bed apartment on 35% of income for past 4 years. Little left for savings and have already been *well* outbid on 4 things this year. Some day I'll have 'extra' money! :pac:

Franz Von Peppercorn wrote: »

I think this thread is attracting the richest or the luckiest. People paying 1k as 14% of take home is unusual.

Chin up. Keep saving. 100k at 30ish is not to be sniffed at.

April 73

myshirt wrote: »

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.

It’s not so bad out here in “the sticks” :-)
2000sq ft house in a nice area for 18% of our take home pay & €500 a month less than the average rent for a similar house in the same area. But we’re not first time buyers & had 40% equity when we bought in 2015 so not really comparable for first-timers.
We’ve recently had the house revalued to lower our interest rate with KBC. Staying on the same monthly repayment but on the lower rate will save us 14 months off the mortgage term. Absolute no brainier for the cost of the valuation!
If we overpay by €500 a month we’d lop a massive 12 years off our mortgage.

Cows Go µ

I'm in the process of getting my house (taking forever!). Once it finally goes through I will be paying around 21% of my take home pay. I'm hoping to really renovate the place in about 5 years so I will be saving a lot more to go towards that.

I was lucky in that the house came in a good bit under budget and while there are a lot of things that I want to do, it's perfectly livable for now. The only thing I have to do right away is put in a heating system and the bank are happy to incorporate that into the mortgage.

I'm single and on the lower end of the pay scale so I'm just so happy to have found a house that I can actually afford

lmimmfn

Bought in 2010 with 22% deposit, 20 year mortgage, monthly payments around 21% of combined take home pay.
Paid off around 70% of remainder from savings in the past 15 month.
Its currently 4% of combined salary.

Dread Pirate Roberts

Franz Von Peppercorn wrote: »

I think this thread is attracting the richest or the luckiest. People paying 1k as 14% of take home is unusual.

Chin up. Keep saving. 100k at 30ish is not to be sniffed at.

Rent and Car and training myself to get to this earning potential have eaten the "good" money. It's very hard to get off this treadmill.

Dread Pirate Roberts

coolperson05 wrote: »

I agree! I clearly missed the boat! Renting 1.5 bed apartment on 35% of income for past 4 years. Little left for savings and have already been *well* outbid on 4 things this year. Some day I'll have 'extra' money! :pac:

Same. I was on 60k since about age 26 and had no savings of note to speak of. Rent absolutely killed me.

GingerLily

We're 25% and just bought a three bed new build in SCD.

I imagine it's about the average % for couples in a similar situation as us.

Arcade_Tryer

Dread Pirate Roberts wrote: »

Same. I was on 60k since about age 26 and had no savings of note to speak of. Rent absolutely killed me.

Poor personal finance rather than rent.

Dread Pirate Roberts

Arcade_Tryer wrote: »

Poor personal finance rather than rent.

I wouldn't really agree to be honest. I pumped 1000's into training myself.

ELM327

Dread Pirate Roberts wrote: »

I wouldn't really agree to be honest. I pumped 1000's into training myself.

And if you have nothing to show for your 60k....>? Poor finances.

izzyflusky

In all fairness, of the families buying or who have bought recently around me I think only one is on a 6 figure salary.. So if a family paying creche fees and rent can afford to buy in Dublin (not that it is easy, but it can be done) then I just don't know what the situation is.

If I remember correctly from another post, the median salary in Ireland is around 40k (?).

Dread Pirate Roberts

ELM327 wrote: »

And if you have nothing to show for your 60k....>? Poor finances.

I have my qualifications to show for it. I spent all of my 20's upskilling.

So hopefully now I can catch up to a deposit for a house while the prices are running away. If the bank took into account the rents I have been paying id be laughing.

I do have savings. But not 10%

mugsymugsy

Back on topic....

About 20% of joint net take home but but both us ploughing a lot into pensions.

Just switched to a 10 year fix saving 100 euros a month compared to old rate.

Plan to overpay the 100 each month so knock off a few years.

Love seeing people's post about knocking years off mortgages and saving serious amounts. I recommend people look at a mortgage calculator and see the impact of overpayment / change in rates etc can do.

AndyBoBandy

mugsymugsy wrote: »

Love seeing people's post about knocking years off mortgages and saving serious amounts. I recommend people look at a mortgage calculator and see the impact of overpayment / change in rates etc can do.

Big time. Due to overpaying, and reducing our term from 20 to about 9 years, we'll go from planned total interest of €83k to about €25k, saving somewhere in the region of €58,000 on interest!! its bloody madness!!

GingerLily

Dread Pirate Roberts wrote: »

If the bank took into account the rents I have been paying id be laughing.

I do have savings. But not 10%

Its irresponsible for the banks not to insist on a decent level of equity in a property, because prices can go down.

And banks do take into account your rent payments, under the affordability assessment, but not the LTV criteria.

Mooooo

mugsymugsy wrote: »

Back on topic....

About 20% of joint net take home but but both us ploughing a lot into pensions.

Just switched to a 10 year fix saving 100 euros a month compared to old rate.

Plan to overpay the 100 each month so knock off a few years.

Love seeing people's post about knocking years off mortgages and saving serious amounts. I recommend people look at a mortgage calculator and see the impact of overpayment / change in rates etc can do.

Can you over pay when fixed? Or is a penalty only applicable if finished early within the fixed term?

mugsymugsy

Mooooo wrote: »

Can you over pay when fixed? Or is a penalty only applicable if finished early within the fixed term?

Yes to a max 10%. Check your bank for their terms. After the 10 years may go variable and look to pay off a chunk.

Dread Pirate Roberts

GingerLily wrote: »

Its irresponsible for the banks not to insist on a decent level of equity in a property, because prices can go down.

And banks do take into account your rent payments, under the affordability assessment, but not the LTV criteria.

I completely agree, but 10% of 200000 and 10% 0f 400000 are quite a difference!

I don't disagree with the fundamentals. I despair at the prices.

AndyBoBandy

Mooooo wrote: »

Can you over pay when fixed? Or is a penalty only applicable if finished early within the fixed term?

Another option banks will offer is part fixed,

i.e. You borrow 100k, you can get a fixed (low) rate on 60k, and the remaining 40k will be variable (at a slightly higher rate), but crucially you can overpay on that 40k without penalty.

The idea of a split fixed/variable would be if you know you'll overpay, but not over pay to the point where your total loan will go below the 60k,


Then when your fixed rate period finished, and if your loan was down to 60-70k, you could go again, fixing perhaps only 40k (to get better rates on that amount), with the remainder variable (higher rates, but again the ability to overpay)

Dread Pirate Roberts

Dread Pirate Roberts wrote: »

I wouldn't really agree to be honest. I pumped 1000's into training myself.

I would guess that it's the rent he is taking about, if rent was killing you I would guess you were living alone rather than house sharing. It's not ideal but house sharing can significantly save on rent and allow you to save. A lot of people who have good savings either lived at home or houseshared for cheap rent and this allowed them build savings.

I didn't like house sharing but I did it first because I couldn't afford to rent alone even if I wanted to but then when my salary improved quite a lot I kept doing it and was able i save more than twice as much per month as I was paying to rent a room.

Dread Pirate Roberts

Jamir Hissing Jay wrote: »

I would guess that it's the rent he is taking about, if rent was killing you I would guess you were living alone rather than house sharing. It's not ideal but house sharing can significantly save on rent and allow you to save. A lot of people who have good savings either lived at home or houseshared for cheap rent and this allowed them build savings.

I didn't like house sharing but I did it first because I couldn't afford to rent alone even if I wanted to but then when my salary improved quite a lot I kept doing it and was able i save more than twice as much per month as I was paying to rent a room.

Yes I lived alone . Rent was almost half my take home pay. Then I had all the bills to pay alone ,car, health insurance etc.

I didn't have any family nearby to live with. Im sharing now, and while I am saving more I am deeply unhappy. It really gets to me.

Avatar MIA

Dread Pirate Roberts wrote: »

Yes I lived alone . Rent was almost half my take home pay.

Half of take home pay on a €60k salary? Where were you living?!?

Captain Flaps

Dread Pirate Roberts wrote: »

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.

I'm sorry, but that's b*llocks. If the house we're bidding on comes good we'll be paying about 28% of our mortgage, living in a 3bed in a nice part of Rathfarnham and our salaries are decent but not quite hitting 6 figure territory. If you're pulling that and you think there's nothing worth buying then I think you're just being picky.

Beanybabog

Ours is around 18% of take home pay, it was originally more though. Bought in Dublin in 2016 and between paying a lump off, regular over payments, switching to a new bank and then fixing we knocked 550euro a month off! A house beside us went up for rent at €1000 per month more than our mortgage. With a toddler and a baby on the way and myself only part time I thank my lucky stars we bought then. At the time I thought it was a poor time to buy but I was pregnant and now I'm so glad, I can't imagine renting in this market- a dingy two bed flat over a shop near me is asking more per month than my mortgage on my house.