First time buyer? Too old for a mortgage?

The Undecided One

Hi All,

Looking for advice on our situation, we are foreign national living in Ireland since 2006. We are married and have 2 kids, both born here, they have no interest in going back to our original country (Poland).

I have an apartment in Poland, my parents are still living there. The deal is that they will live there until they pass.

My plan has always been to sell the apartment when the time comes and use the proceeds to buy a house here, in Ireland.

I have a few questions though and I'm not sure who can give me a good answer:

1. If I sell and want to buy here am I correct that I'm no longer a First Time Buyer? Does this make any difference in our situation? (we should have significantly more than the required 20% deposit)

2. My wife and myself are both 41, how late in life can one expect to get a mortgage?

Thanks for your answers.

Cuddlesworth

The Undecided One wrote: »

I have a few questions though and I'm not sure who can give me a good answer:

1. If I sell and want to buy here am I correct that I'm no longer a First Time Buyer? Does this make any difference in our situation? (we should have significantly more than the required 20% deposit)

What is a first time Buyer?
A First Time Buyer is defined as a person who has never before, either on his or her own or with others, purchased a house, a site to build a house, or an apartment, in Ireland or abroad.

The Undecided One wrote: »

In the case of a joint application, both parties must be First Time Buyers for the mortgage to be a First Time Buyer mortgage.

2. My wife and myself are both 41, how late in life can one expect to get a mortgage?

Thanks for your answers.

67 - Current age of oldest person applying. So 26 years at the moment.

Doop

Im not an expert but maybe can help -

1 - You already own a property therefore are not a first time buyer (doesn't really matter if the deposit is not important to you)

2 - Your mortgage term will only go to 65 ... ie you could get a 24 year mortgage if you applied today - (41 + 24 = 65)

con747

Your age will mean you will just get a lower term to pay off your mortgage if you are approved. So instead of a normal 30-35 year term you might only get a 25 year term. The first time buyer only applies to property bought before in Ireland not property in your home country as far as I know but stand to be corrected if need be.

SozBbz

Yep, you can get a mortgage for term = retirement age - current age, but you'd want to have more and more saved if you're going to leave it late.

If you want to borrow €200k for example, over 35 years you're probably looking about €750/800 per month

If you only want to borrow the same €200k over 20 years, you're talking €1100ish per month.

If you've only 15 years, €200k will cost closer to €1400 per month.

And so on and so forth.

So you might satisfy the 3.5x LTV criteria and the 20% deposit, but if the bank judge your monthly repayments to be unaffordable, then they won't loan you the money. The above numbers are based on current average enough fixed rates, but you have to be able to afford the above + stress test, which could be interest points higher.

dennyk

con747 wrote: »

The first time buyer only applies to property bought before in Ireland not property in your home country as far as I know but stand to be corrected if need be.

Unfortunately it also counts properties purchased or owned in other countries, both for the mortgage deposit requirements and for the government programs for first time buyers.

td2008

There are two FTB classifications when you look -

1) Never bought/owned a property (revenue, boi)
2) Never had a mortgage (central bank, kbc, aib)

BrokenArrows

<SNIP>

lomb

Boi must be residential property as they lent me under first time buyer despite owning a commercial property at 43 for 25 years
Yes its a residential mortgage in Ireland I was lead to believe.
If your using the proceeds of a Polish property to pay for an Irish property does it matter if your paying 10 or 20% down?

The Undecided One

lomb wrote: »

Boi must be residential property as they lent me under first time buyer despite owning a commercial property at 43 for 25 years
Yes its a residential mortgage in Ireland I was lead to believe.
If your using the proceeds of a Polish property to pay for an Irish property does it matter if your paying 10 or 20% down?

It doesn't matter if it's 10 or 20% but the FTB status does matter as you can avail of certain write-offs or special schemes.

un5byh7sqpd2x0

Doop wrote: »

2 - Your mortgage term will only go to 65 ... ie you could get a 24 year mortgage if you applied today - (41 + 24 = 65)

Unless you’re self employed in which case it’s 70

The Undecided One wrote: »

It doesn't matter if it's 10 or 20% but the FTB status does matter as you can avail of certain write-offs or special schemes.

Only on new builds.

lomb

Skylar Panicky Saltshaker wrote: »

Only on new builds.

Yep, forgot about that, but disadvantages of new builds are they are dearer (especially now with Corona), social housing element, location may be a problem, higher density-no garden. Otherwise sure I think you can get 20k back from the government.

The Soup Dragon

<SNIP>

Lefty Bicek

My advice - go to see a broker.

You may well be pleasantly surprised at some of the pragmatic advice you will receive from him or her.

Good luck.

hoodie6029

A couple of the main Banks have online calculators that will tell you how much you can borrow and what deposit you need and the repayments will be.