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Mortage query

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  • 31-03-2019 10:17am
    #1
    shygal
    Registered Users Posts: 140 ✭✭


    Hi boards

    Can you help clear something up for me? I currently have 50,000eur in savings and was looking to purchase my first home by myself. Salary is 50k.

    I understand Buyers are supposed to have 10% of the propertys value as a deposit. Am I right in saying a bank are going to loan me for example 300,000eur for a 350,000 house? Mortgage calculators suggest I will struggle to get 100-150k as a mortgage loan which wont get me much when I want to start a family.

    Any help,greatly appreciated


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    #2
    wirelessdude01
    Registered Users Posts: 8,423 ✭✭✭wirelessdude01


    Your salary multiplied by 3.5 is what you can get.


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    #3
    Bruisedego
    Registered Users Posts: 48 ✭Bruisedego


    Bank will loan you €50k x 3.5 = €175k. You can then add your savings to it.

    Don't forget you will need to put aside €5k or more for solicitor and their part including stamp duty etc.

    Also will you need money to decorate or renovate when you buy? It is also advisable to have some money aside to cover a few months mortgage repayments.

    Hope this helps. Try talk to a mortgage advisor.


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    #4
    SpaceRocket
    Registered Users Posts: 233 ✭✭SpaceRocket


    You could also apply for an exemption on LTI to 4.5X your salary of 50k, which would give you 225k. Plus your 50k in savings would bring you to 275k. A broker might be your best bet if you are looking to apply for an exemption.


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    #5
    voluntary
    Registered Users Posts: 871 ✭✭✭voluntary


    Average salary in Dublin is 36,692. Multiply by 2 partners gives 73k average family income. 73k x 3.5 = 255k. That's what an 'average' Dublin family can borrow. Add 10% deposit of 25k and the result is 280k.

    Now, the average salary is not what an average family gets. We should really look for a median. Averages are exaggerated as they include very high earner individuals.


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    #6
    ted1
    Registered Users Posts: 23,523 ✭✭✭✭ted1


    wirelessdude01 wrote: »
    Your salary multiplied by 3.5 is what you can get.

    Theoretically, in many cases they will give less


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    #7
    Shamboo1801
    Registered Users Posts: 105 ✭✭Shamboo1801


    Get yourself on to the Rebuilding Ireland website.


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    #8
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    ted1 wrote: »
    Theoretically, in many cases they will give less

    Very good point. A lot of people assume that the 3.5 is a given. It's not. If you have a clean credit record and 12 months untouched savings or rent (at the stressed mortgage payment) then yeah you'll get it, but other than that it's not a given.


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