Mortgage Discussion

TheUnicorn

Good morning,
I have one question to all mortgage brokers on this forum. What is the math / formula used for assessment of customers willing to get mortgage?
I assume we need following data:
1. Average Interest Rate (where to get it form to make sure it's always up-to-date?)
2. Mortgage value (ie. €250000)
3. Applicants salary (summary of salaries if more, ie. €6000)
4. Applicants expenses (montly expenditure ie. €2500)
5. Mortgage period
Having that information most websites I found provide some calculation saying:
"Your monthly repayments would be €YYYY and you have a chance of getting mortgage like that."
or
"Your monthly repayments are higher than required level of income, you suck, good bye."
I need to know the formula and limits you use for approving / refusing people who want the mortgage or personal loans. Thank you in advance for any help from your side,
TheUnicorn

MortgageBroker

Hi Unicorn,

Each lender has a Calculator and a Credit Scoring process, the calculator looks at numbers and hte credit scoring process assesses your credit worthiness, sometimes this just means having a clean ICB (irish credit bureau) sheet other times it has to do with having positive balances etc. but basically some combination of the two is what is used.

average interest rates at the moment are about 5.1%, there are much better and much worse rates available but if I was to look at an average across prime lending around that mark would be a 'median' amount.

there are plenty of sites that have up to date rates on it, but one that is not broker owned would be FinFacts.com and they have all the up to date irish lending rates

I think the answers you are looking for may be best and most comprehensively answered by a human rather than by the web, do you have a broker? if not why don't you look one up and as mentioned before get a feel for what they have to say and if you are happy with it. Not all brokers charge fees and in any case nobody in the industry charges for an exploratory call.

my personal view is that if i have a toothache i might look it up on the net but i still go to a dentist, i would advise you to find a financial advisor you are comfortable with and ask them these questions.

antog86

Is there any sign of the interest rates for mortgage repayments going down after the ECB cut its interest rates by 0.5%. I have not seen any savings yet......

MortgageBroker

the change in rates only kicks in during the following month so you wouldn't not have seen any change yet - are you on a tracker rate? if not then you might not see the full change anyway

banks are only starting to take october payments now - bank of scotland is the earlies with payment generally being made on the 20th of each month.

Heisenberg.

This post has been deleted.

franco25

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Benny122

Hi I am earning €27k a year and my partner is on a Social Welfare Scheme is there any institution that will take his earning into account for a mortgage?