What are my chances?

deathstarkiller

Hi,
I'm thinking of trying to get a mortgage. Last year I tried and the most I was offered was around 150,000 which wouldn't get anything. At the time I owed the credit union a lot and had a fairly big credit card bill.
I'm 34 and I still live with the parents. I'm single and my salary is around 34 thousand.
I was in an accident a few years ago and I received a decent settlement a few months ago. I've been saving as much as possible since and I currently have no debts and around 50,000 savings. I was looking at some 3 bedroom houses in Newbridge (where I live) that are around 320,000. I probably rent out the other two rooms. What do you reckon my chances of getting a mortgage are? I can't live at home forever.
I could probably save another 10,000 by the end of the year.

Paulw

Go find a good broker.

With good savings, the banks will smile. You should be able to use what you have saved to get a smaller mortgage.

I'd say you should be able to get a decent amount.

seamus

I don't recommend buying a house on the basis of what you can rent out. What happens if you find yourself with no tenants for three months? Would you be able to afford the mortgage repayments?

Are you looking at a 3-bed house purely so you can rent it out, or is that just what you want? Would you prefer a 2 bed (house) if you could afford it on your own with no tenants?

With 60k savings and a guarantor, you could probably get a mortgage to cover €240k. A decent broker will help you paint the best case for the banks. If you've repaid a big CC bill and cleared a loan in recent years, it will look very good to any prospective lender. You would still need to decide if you can actually afford to repay this though - if your car broke down one day and suddenly you had a €500 bill, would you be living on beans and toast for the rest of the month?

Garda_boss

I can't live at home forever.

You can't afford to buy a house and if you could you would be getting in multiple tenants all the while subsidising their housing costs and we won't even mention possible depreciation.

If you want to move out just go off and rent a place and wait for when the time is right to buy.

fasty

Garda_boss wrote: »

You can't afford to buy a house <snip>

Based purely on anecdotal evidence, I don't think many single people can afford to buy a house without some sort of supplementary income via rent.

It's not ideal but the original poster could probably scrape it. I'm was considering doing the same but decided it wasn't worth having no life just to own a place of my own but for some, having a house is MORE important.

It's really up to him to decide if he can afford it or not. (Well, and the banks! )

Paulw

I bought a 3 bed apt on my own. I don't have any problems paying the mortgage.

It is really down to budget. Get your figures right from the start, and factor in a 2% rise in interest rates (I know, that's a major rise). Then you will know how "comfortable" you can live.

Remember to factor in, not only the mortgage, but insurance, bills, and all those other fees that come with owning your own place.

Having a large sum on deposit is always a wonderful way to start off, and banks love seeing a credit history where you clear debts.

But, ultimately, it's down to the bank and the OP.

gurramok

OP is single on 34k, getting guarantor is risky.
For this, is your job water tight? If not, can your parents take up your mortgage(which i suspect is huge) if bad times happen to you like losing job?

Then the tenants aspect, you want your own place which it will be in theory but not in practice, how long do you have to have 2 tenants with you to help pay mortgage?

Alot of factors. Thing is house prices are falling even in Newbridge, your 34, waiting another year won't hurt, you'll even save more money by waiting.

sarahhurray

I think in this market it makes good sense to buy a three bed house, it will last you possibly the rest of your life and you get the seven years first time buyers tax relief on a long term home and pay no stamp duty. If you buy somewhere smaller you may want to move in five years and be faced with possible negative equity or very little anyway. I think if you want to buy your own home eventually and don't expect to be earning massively more in the future it might be best to get started now, as my granny used say, it won't stunt your growth.;)

Firetrap

Well, what if house prices continue to fall, something which would appear to be happening still. Much better to be paying back a smaller mortgage IMHO. The money's far better off in the homeowner's pocket than in the pocket of the bank or the vendor.

johnnyskeleton

Garda_boss wrote: »

If you want to move out just go off and rent a place and wait for when the time is right to buy.

You might want to try this - if even just for a few months. Renting will give you an very good idea of how much you spend on food, bills, entertainment etc and will give you a good experience of living with random other people.

It might also give you a feel for the neighbourhood that you want to buy in, and allow you to adjust to living on your own.

El Stuntman

Garda_boss wrote: »

You can't afford to buy a house and if you could you would be getting in multiple tenants all the while subsidising their housing costs and we won't even mention possible depreciation.

If you want to move out just go off and rent a place and wait for when the time is right to buy.

this is excellent advice, now is not the time to buy

(are you sure you're a guard? )

amtc

fasty wrote: »

Based purely on anecdotal evidence, I don't think many single people can afford to buy a house without some sort of supplementary income via rent.

QUOTE]

bit of a sweeping statement. Am single, I pay 1700 euro mortgage a month, live on my own, and don't cramp my style. new car also (and my credit cards are at zero). been doing this for the last seven years (am 34). yes, i earn good money - but it can be done.

meesa

amtc wrote: »

fasty wrote: »

Based purely on anecdotal evidence, I don't think many single people can afford to buy a house without some sort of supplementary income via rent.

QUOTE]

bit of a sweeping statement. Am single, I pay 1700 euro mortgage a month, live on my own, and don't cramp my style. new car also (and my credit cards are at zero). been doing this for the last seven years (am 34). yes, i earn good money - but it can be done.

You obviously overlooked the word "many "in Fasty`s post!:rolleyes:

gurramok

Thats very well amtc, sounds like your on over 50k a year to manage that.

Your in a minority. 80% of the workforce earn under 35k(fact) including the OP whose after tax income is around 2400 and cannot be in your position hence the generalisation of fasty's post does hold ground for most.

Firetrap

Bully for you to be earning enough to be able to pay that sort of money. However, not everyone's paid as much as you obviously are. I'm paid more than the average industrial wage but if I had mortgage repayments of €1,700 p/m I'd be living on beans and toast and praying fervently that my car wouldn't break down or that I'd get sick.

deathstarkiller

Thanks for all the advice. I think I'll just work on saving more. I don't hate living at home enough to make myself completely broke. I get no hassle at home whatsoever.

Garda_boss

Grow up will you, you're 34 living at home. You might think its fine but I'm sure your parents would like some time to themselves.

sarahhurray

deathstarkiller wrote: »

Thanks for all the advice. I think I'll just work on saving more. I don't hate living at home enough to make myself completely broke. I get no hassle at home whatsoever.

Good idea, see how the market pans out but don't let any prospective woman hear you say 'I get no hassle at home' you sound about 16!

deathstarkiller

Thanks Sarah, I guess that does sound a little pathetic. I just said that because some people don't get along with their family. I am not smooth with the ladies at all so I probably say worse things than that.
Garda, no need to be harsh. You don't know my history. I rented for a few years with a group of friends and enjoyed it. I was engaged once but that's a long story. I moved back home a few years ago when my dad got sick. He's ok now. Another thing and this is something I don't like to think about but my parents remind me about everytime I talk about buying a place, but my grandfather's house is being left to me. I don't like thinking about it because he means a lot to me.
Maybe this is something for the personal issues section but are you considered to be a bit of a failure/loser to still live at home at my age. It seems to be becoming more and more the norm for people my age to still be at home. Right now of all my friends there are six of us in our 30's still living at home. None of us make any more than 35k per year and are not likely to ever make much more.

gurramok

deathstarkiller wrote: »

Maybe this is something for the personal issues section but are you considered to be a bit of a failure/loser to still live at home at my age. It seems to be becoming more and more the norm for people my age to still be at home. Right now of all my friends there are six of us in our 30's still living at home. None of us make any more than 35k per year and are not likely to ever make much more.

No your not a failure or a loser. There are literally tens of thousands if not more like you out there. Ye are the victims of the biggest housing bubble price wise Europe has even seen.

If anyone nags you, just ask them...put yourself in my position, would you buy an average place now on my salary as a FTB?
They'll know the answer straight away as they know are talking BS as they more than likely bought when prices were half they were today pre 2004 and/or with a partner on 100% backbreaking mortgage in commuterville.

Keep up your savings, have a fat bank balance for the time when the bottom occurs in this bubble and strike when the iron is hot.

patrickolee

deathstarkiller wrote: »

I moved back home a few years ago when my dad got sick. He's ok now. .....

It seems to be becoming more and more the norm for people my age to still be at home. Right now of all my friends there are six of us in our 30's still living at home. None of us make any more than 35k per year and are not likely to ever make much more.

You put someone else's needs ahead of your own... thats very admirable in many peoples minds.... and if you have your grandads house coming to you also, then really you have nothing to worry about. Be happy.

amtc

Whatever you're comfortable with is what you should do.

As I said earlier, I live on my own (and am lucky that I can afford to do so). However I have seen the price of my place slide. Unlike others though it is my dream location, and my dream house...although a teeny tiny place. Although a price drop is a concern I still intend to live here so of no real problem. Every time I put my key in the door I am so thankful that it is mine. Well me and BOI mortgages.

What I didn't mention was the fact that I didn't leave home (not even for college) until I was 29. In fact apart from holidays I never liked staying away from my parents' home. I could well have afforded to leave before that. However that wasn't what was important to me at that stage, I liked the going out every night and flash clothes. Not to say I don't like them now but my front door means everything to me. I love my home. If you're only buying because that's what you think you should do, I wouldn't. Personally I also wouldn't buy if I had to share with people. If you're buying because you love your independence, the place, and the fact that you did it all by yourself, then go ahead. That's what I did.