Mortgage chances on low income

irishgal23

Hey guys I have been in full time employment the last 4 years and my current salary is €29,000. I am hoping within the next two years to buy a house. I have no loans or debt and currently saving €1250 a month. I have read the max a lender would give is 3.5 times your salary. I have also read that lenders won't give mortgages of your salary is under a certain amount. I am just wondering if anyone on a low income like myself has successfully been approved a mortgage on their own?

Trish56

Under Central Bank Regulations you can only borrow 3.5 times your gross salary so max. mortgage would be €101,500. You also need to have a net disposable income after stressed mortgage repayments of €1400 per month as a single person.

You should apply for the Rebuilding Ireland Home Loan with the Local Authority they lend more than 3.5 times and interest rates are lower.

Credit Unions now also do mortgages.

Trish56

Trish56 wrote: »

Under Central Bank Regulations you can only borrow 3.5 times your gross salary so max. mortgage would be €101,500. You also need to have a net disposable income after stressed mortgage repayments of €1400 per month as a single person.

You should apply for the Rebuilding Ireland Home Loan with the Local Authority they lend more than 3.5 times and interest rates are lower.

Credit Unions now also do mortgages.

A 101500 euro mortgage won’t need anywhere near 1400 as a stress tested repayment.

Trish56

I said that a single person needs to have €1400 net disposable income per month (left over after the stress tested repayment on 101.5k plus any other short term loans or childcare has been deducted.

Example : Net take home pay per month = €2000
Less stressed repayments on 101.5k = 576.31
Net Disposable Income = €1423.69
Requirement = €1400.00.

Keanu Breezy Syrup wrote: »

A 101500 euro mortgage won’t need anywhere near 1400 as a stress tested repayment.

Sorry that makes sense, I read your post as saying the stressed repayment would be 1400.