Mortgage options - Squeeze every penny

streetlev04

Hi

So I wanted to field my situation and see if anyone has any advice for how I can get as much finance as possible to secure a home in this crazy market.

Here are the points:

• First Time Buyer
• 42 Year old single Male
• 50k in savings
• earning 75k a year
• Background in construction so a derelict buy is good for me, and preferred
• Father has offered to put his house (worth approx 320K) in my name if it can help

The kickers :

• Looking in the southern Dublin city suburbs, as close to Luas as possible (Milltown, Dartry, Windy Arbour, etc)
• Looking for a yard/shed

And before I get called a dreamer etc. I just last week saw a falling down, but liveable 2 bed in Dartry near the Dodder, with massive yard for 400K on Daft. It went quick, but it was there.

What options are open to me?

Thanks!

Jay

o1s1n

You're what, looking at about 350k with four times your salary and your 50k?

Any chance you're on a public sector payscale? (some banks let you take your salary at a couple of points up the scale)

streetlev04

Not public sector.

Yea with a usual 4x mortgage plus savings I'm looking at that.

But i'm interested in what my Dad's offer could do for me?

as it stands 400K is borderline, 450k is what I am looking for, 500K is perfect.

I'm asking here for some out of the box ideas as well.

There has to be some ways to skirt the system.

the banks/society's 4x your salary, in this climate, is madness!

Former Former Former

I’m not sure what good your dad’s house is.

If you couldn’t pay the mortgage, the bank would have to seize his house and make an old man homeless. They’re not going to touch that.

You need to get in touch with a mortgage broker but your starting assumption needs to be that you can borrow 300k and no more. 500k is, unfortunately, not remotely realistic.

phormium

Your Dad's house will do nothing for you, number one criteria for mortgage is repayment capacity, security is number two and that's all an extra house is! Not much good to the bank if they have the hassle of selling it if you can't pay. Now if he was offering a second salary and a joint mortgage you might be going somewhere but even that these days is unlikely to fly with banks as it was back in Tiger days.

There is no point going down that route in my opinion.

SteM

I would have thought that any institution that had loosened the reins would be tightening them with talks of global recession coming in from the States.

iniscealtra

Would you move in with your dad and add a 40 sq mt extension and live in that. I assume if he’s willing to put the house in your name it will be going to you in the future. Depends where he lives and the situation. Rent a yard for work if available.

Jim2007

https://www.boards.ie/discussion/comment/123325184#Comment_123325184

Borrow no more than you can reasonably expect to pay back and under no circumstances bring your father's house into the mix. This is the kind of nonsense that say a lot of people badly burned in the 2007 period. In time it would appear that you will inherit the house in any case.

o1s1n

https://www.boards.ie/discussion/comment/123325184#Comment_123325184

All I can honestly think you can do if you want to hit those numbers is to move in with your dad and start saving to make up the shortfall.

Four years at 2k a month gets you an additional 96,000. That brings you up to the 446k mark.

You'd be 46, so would be talking about a 20 year mortgage of 300k.

Plugged that into a calculator and it's 1,800 a month over 20 years at 4% interest.

the_amazing_raisin

I don't suppose there's any possibility the bank of mam and dad has some free cash they'd be willing to give to help bump up the deposit?

You might need to widen the net, houses close to the Luas are always going to be expensive

Other than that just keep an eye on Daft and have enough cash in an instant access account ready to use for a booking deposit

One guy I know got lucky because the photos of the house on Daft looked terrible but it was a much nicer house when he saw it. Maybe that's a strategy to go for?

phonypony

Have a look at the condition of some of the 60+ year old 2 bed council houses around Mulvey Park and Columbanus Road and look up how much they have sold for recently on the Property Price Register for a bit of a reality check.

Unfortunately, you'll need to widen your search or hold off and save a while longer.

Padre_Pio

The house has to be liveable to get a mortgage, as in have working kitchen and bathrooms.

That might reduce the pool of properties to bid on. Also you'll have to factor in renovation costs.

Quick calculations show a 300k mortgage at 4% for 24 years plus house insurance etc would cost about 1700 a month.

Assuming you're putting 15% of your pay into a pension, you'll be left with 2k a month to live on and find the renovation.