How much of a mortgage can I get?

fret_wimp

I know i can work this out if i call banks and lenders, but just want to get a general idea before i start dealing with those people.

Between myself and my partner, we can afford 1600-1800 pm.

We are both in full time secure jobs.

What kind of mortgage would that entitle us to? could we get anything in the region of 360k with those kind of repayments?

jetski

i dont think it goes by what you decide you can pay, rather its what the banks decide you can pay in repect to your earnings....


first active have a basic online calculator.... having a lunp sum will also help you get a larger amount.....

and also a stable job


JSki

sarahhurray

http://www.jeacle.ie/mortgage/ie/

Use the above to calculate what those repayments add up to. According to the calculator 360k over 30 years at 5% will cost about 1900 pm. You can subtract about 300 euro a month in mortgage interest relief assuming you are both first time buyers.
note you are unlikely to get a 100& mortgage as it puts the bank at a higher risk. You will normally be able to borrow 90% 92% or 95% of the purchase price. I think 92% is the most common.
The bank will decide what to offer you based on either a multiple of your combined salary (about 5 times but this varies from bank to bank, AIB being one of the more conservative banks) or a percentage of your net income minus any loans. Credit union loans are usually not checked.
They also have to stress test you, this means making sure you can afford payments if interest rates rise by 2%.

The_Conductor

sarahhurray wrote: »

You will normally be able to borrow 90% 92% or 95% of the purchase price. I think 92% is the most common.

Of late they are increasingly shying away from these mortgages- most lenders will suggest you "borrow" up to 20% of the property price from parents, or as a lien against other assets. The era of mortgages over 90-100% are well and truly gone..... Outside of this- the amount you can borrow is also being increasingly restricted- its probably reasonable to expect to get about 5 times combined gross basic salary (net of overtime and/or bonuses).

fret_wimp

most lenders will suggest you "borrow" up to 20% of the property price from parents

That is absolutely outragous. Our Parents have done enough for most of us and should be allowed to enjoy their money now that their kids are raised, and not have it tied up in their kids even after they have flown the coop.

its rediclious, the lenders advising you to "borrow" money just so you can "borrow" money off them!!!!!!

tHE vAGGABOND

its rediclious, the lenders advising you to "borrow" money just so you can "borrow" money off them!!!!!!

Then save a decent deposit yourself and dont burden them

fret_wimp

im working on the savings bit. but who are tehy to advise us to borrow money so as to be eligible to borrow from them. smccarrick said "they advise you to borrow" up to 20% of the property price from parents "

JDLK

jetski wrote: »

having a lunp sum will also help you get a larger amount.....

JSki

I went for a mortgage a couple of years ago and most places told me that while a lump sum was nice it didnt really affect your chances of getting the mortgage (only reducing the amount you needed). The big thing is proven earnings.

Id say you could get about 350,000-400,000 based on the ablity to repay 1800 a month

jdivision

fret_wimp wrote: »

im working on the savings bit. but who are tehy to advise us to borrow money so as to be eligible to borrow from them. smccarrick said "they advise you to borrow" up to 20% of the property price from parents "

They're not in the business of giving away money for free. They have to make sure you're not a potential bad debt. Have you followed the subprime lending crisis? Do you realise what caused it. They have a duty of care to their shareholders to ensure the best possible return at the least possible risk. They are not there to facilitate you. If they suggest you get a loan it's because it's the only way they think you can afford to pay the mortgage. Alternatively you can just look for a cheaper property and not necessarily have them request the borrowings from parents etc.

The_Conductor

jdivision wrote: »

Alternatively you can just look for a cheaper property and not necessarily have them request the borrowings from parents etc.

The other thing they are increasingly likely to do is insist on parents acting as guarantor on the mortgages- further limiting their potential exposure to bad debts. This is an extremely popular course of action at the moment.

Magic Pips

my P60 for last year came in at 60k, on my own i am being quoted around a 300k mortgage. I wouldnt expect you to get far beyond 400k.

best of luck

sarahhurray

are you sure the banks are generally only offering 80% or is that hearsay? Surely there'd be more talk about needing 20% deposits.:eek:

indiewindy

Make sure if you have any loans that you clear them before applying for a mortgage, as otherwise you wont get much of an offer from the banks

Smurts

Does mortgage interest relief only apply to first time buyers?

IE. If i sell my current house and buy a new one do i lose the relief???:eek:

The_Conductor

Smurts wrote: »

Does mortgage interest relief only apply to first time buyers?

IE. If i sell my current house and buy a new one do i lose the relief???:eek:

Mortgage interest relief is less for non- first-time-buyers.
For 2008 mortgage relief for a couple who are FTBs is EUR 4000 (or EUR 2000 for a single person). For someone who is not a FTB its EUR 1,200 for a couple (or EUR 600 for a single person). Note: this is calculated at the marginal rates- i.e. relief is granted on the first EUR 20,000 for a couple, EUR 10,000 for a single person- or if not FTBs EUR 6,000 for a couple or EUR 3,000 for a single person. (Note: all of these are maximum figures- obviously you will get less TRS if you don't pay sufficient interest to trigger your maximum claim)

So- if you sell your current house and buy another one- your mortgage interest relief is reduced by fully 70%- its something to keep in mind if you're thinking of selling and buying elsewhere.

Senna

sarahhurray wrote: »

are you sure the banks are generally only offering 80% or is that hearsay? Surely there'd be more talk about needing 20% deposits.:eek:

EBS were offering me a 95% mortgage a couple of weeks ago, I think they are the only one to offer as high as 95%, but others do offer 90-92%.

smccarrick wrote: »

Of late they are increasingly shying away from these mortgages- most lenders will suggest you "borrow" up to 20% of the property price from parents, or as a lien against other assets. The era of mortgages over 90-100% are well and truly gone..... Outside of this- the amount you can borrow is also being increasingly restricted- its probably reasonable to expect to get about 5 times combined gross basic salary (net of overtime and/or bonuses).

That is just disgraceful ethics from lenders, whats wrong with telling people 'you cant afford a mortgage at the moment, save for a year and come back to us'. If a lender said that to me, i'd call him/her a blood sucker and they embody everything thats wrong in the current market.

SimpleSam06

Senna wrote: »

That is just disgraceful ethics from lenders, whats wrong with telling people 'you cant afford a mortgage at the moment, save for a year and come back to us'. If a lender said that to me, i'd call him/her a blood sucker and they embody everything thats wrong in the current market.

The Banks Are Not Your Friend.

penexpers

smccarrick wrote: »

So- if you sell your current house and buy another one- your mortgage interest relief is reduced by fully 70%- its something to keep in mind if you're thinking of selling and buying elsewhere.

Incorrect. You have seven years of FTB status for TRS purposes. This means you are treated as a FTB for seven years after you buy your first property - you can sell and buy as many properties as you like in that seven year period without affect your FTB status for TRS. Stamp Duty is a different story - you are only an FTB once for SD purposes.

Supercell

When using such calculators how to take into account pay over basic?
For example I get 30% shift allowance over the base rate of pay (thats not variable) and twice a year the company gives a bonus (does vary depending on the companies performance but usually is about 5-10% of salary).

janmc

sarahhurray wrote: »

are you sure the banks are generally only offering 80% or is that hearsay? Surely there'd be more talk about needing 20% deposits.:eek:

I've just gone through the mortgage approval process and no one mentioned anything more than 10%. We've got approval-in-principle for 95% from a couple of lenders, even though we only asked for 90%.

sarahhurray

that's what I thought thanks.

Peteer

janmc wrote: »

I've just gone through the mortgage approval process and no one mentioned anything more than 10%. We've got approval-in-principle for 95% from a couple of lenders, even though we only asked for 90%.

Who were the lenders you went to and would you have a preference of one over the other?

Cheers,
Peter

janmc

Peteer wrote: »

Who were the lenders you went to and would you have a preference of one over the other?

Cheers,
Peter

We used a broker which I would definitely recommend and we will be going with the bank that offers us the best rate- I don't have any preference in any other way.

Peteer

Thanks for that.

Cheers,
Peter