Are Banks lending?

brigadear

Just wondering, has anybody here recently gone for a morgage. I recently got approved but not what was looking for, I asked for 270k at the max, but the bank is only willging to lend 200k, have to say I am surprised that they only willinging to lend 200k, was expecting at least 220k. My job is fairly safe as in public service, and my other halfs job is going well in a resturant, so we have money come in regular basis and are good savers, with our rent of 900 per month, and we save an extra 1000 to 1200 a month as well.

spockety

What's your salary, and what's your partners salary?

I would imagine a lot of people would envy the fact that you got approved at all, and 220k at 90% getting you a 242K dwelling should give you pretty decent bang for your buck in 2010 or 2011.

brigadear

I am on 25k and she on 21k plus whatever o/t come her way. Not sure how far 200k will go at the moment, as am looking in Dublin 15.

herya

OT but may I just ask what bank it is?

galah

just got the letter of offer yesterday, 92 % mortgage, 225 k.

no problem getting it, either (not on massive salaries, both around the average industrial wage).

mrgaa1

are you in Dublin or outside of Dublin? And which bank was it?

Sarn

I'd have to say that that's a large amount based on your incomes. You're almost getting 5 times your combined income and with what you're saving and the public service job I'd say that was a big contributing factor. It's possible that they're also factoring in imminent pay cuts in the PS. I'm sure it won't come to it but with the number of restaurants closing at the moment I would be careful making any large decisions relying on that income.

spockety

Sarn wrote: »

I'd have to say that that's a large amount based on your incomes. You're almost getting 5 times your combined income and with what you're saving and the public service job I'd say that was a big contributing factor. It's possible that they're also factoring in imminent pay cuts in the PS. I'm sure it won't come to it but with the number of restaurants closing at the moment I would be careful making any large decisions relying on that income.

Pretty much agree with this. I'm not sure why you think your job is safe just because it's in the Public Service (I'm not having a go at you here), the borrowing that Ireland is doing in order to sustain the existing Public Service can't go on, and something has to give. Short of a divine intervention to boost the tax take, there will be cuts in the Public Service, no matter how many strikes happen as a result.

Your partner is also working in a notoriously volatile industry, the restaurant/hospitality area is cut throat and places are going bust left right and centre.

I have to say that I'm actually pretty amazed that you were even offered a mortgage at all, never mind 200k. I reckon the best thing you can do for yourself and your partner is to hold tight for the next year or too, keep saving that 1000 euro a month, and look at making multi hundred thousand euro decisions when things have settled a bit. It would be a shame beyond measure for you if you committed to such a large mortgage relative to your salary, only to be bitten by pay cuts, job losses, and/or rising interest rates over the coming years.

Cash is king, keep saving.

(imo)

Senna

I think banks no longer take past saving trends etc into consideration, they do want to see that you can save, but if you earn 50k per year and put 4k into the bank every month, it wont make any difference.
All they are interested in is ability to make future repayments, so your current wage is all that's taken into account. OP, i'd say your very lucky to be offered a mortgage of 200k. At normal interest rates (6%) that €1100 to €1300 per month, i would earn a small bit more but couldn't afford those repayments with all the other daily costs and a family.

gurramok

4.5 times combined income or thereabouts sounds right, you were not hard done by OP.

brigadear

Interesting advice by everyone, thanks for that. The bank in question was AIB. Just to reply to a previous comment regarding public service cuts and all that, it sounded like because I was said I worked in the public service that I am safe in my job, I do expect their to be job losses and pay cuts but because I am only there 18 months they are not likely to get rid of me, as I am a low paid earner, but who knows!!. And regards my wifes position, yes it is a cut throat industry, but they company has 4 restaurants, only 2 opened in last 6 months, if one closes she would be moved to the next, it is fairly secure compared to other restaurants, its more of a carvey, all the restaurants are based in business parks around Dublin. We cant wait another year to buy, I am 32 now, so really need to be on the property market, I guess either go with the 200k or wait a couple months.

ntlbell

brigadear wrote: »

I am on 25k and she on 21k plus whatever o/t come her way. Not sure how far 200k will go at the moment, as am looking in Dublin 15.

That's a crazy amount of money to borrow on those wages.

I wouls say 105-115k would be stretching it, never mind 250k

brigadear

I dont see how its crazy, as we have proved we can save, pay our rent, have no debts, and have a decent level of savings.

ntlbell

brigadear wrote: »

I dont see how its crazy, as we have proved we can save, pay our rent, have no debts, and have a decent level of savings.

I'm not referring to the bank being crazy as much as I am you asking for it.

if you're in a position now where you can save a lot of money a month and prices are still dropping then you're the perfect candidate not to take out a mortgage.

Your partners earning capabilities in the future is an unknown variable but you know _now_ how much you can save so you can be in a position when some sort of floor is reached to have a huge down payment on a property which will reduce the amount of interest you pay over the life time significtently and the lenght of the mortgage avoid potential instant negative equity.

interest rates are very low at the moment which means they can only go one way which is up so you mighht be able to afford the payments now but a few points in an increase it might become a burden.

no one can tell you what to do, i'd just advise you to take another look at it.

learn from the mistakes of others.

jeepers101

ntlbell wrote: »

That's a crazy amount of money to borrow on those wages.

I wouls say 105-115k would be stretching it, never mind 250k

Yeah and I'm sure they'll get a great place out in Dublin 15 for that kind of money. Try to be even a small bit realsitic ntlbell.

ntlbell

jeepers101 wrote: »

Yeah and I'm sure they'll get a great place out in Dublin 15 for that kind of money. Try to be even a small bit realsitic ntlbell.

I never said they would get anything for it.

I'm suggesting that maybe now is not the right time to buy, please read posts carefully.

also, wtf is wrong with d 15?

jeepers101

ntlbell wrote: »

I never said they would get anything for it.

I'm suggesting that maybe now is not the right time to buy, please read posts carefully.

also, wtf is wrong with d 15?

Maybe you should be reading the posts carefully, when did I ever say there was anything wrong with Dublin 15. I implied you wouldn't get a place in Dub 15 for little over 100k. Where's the insult?

And if everybody took your advice and waited around for the 'right time to buy' the country would never get back on its feet. OP wasn't asking whether or not its the right time to buy, he was asking if the banks are lending.

bangersandmash

jeepers101 wrote: »

And if everybody took your advice and waited around for the 'right time to buy' the country would never get back on its feet. .

Seriously? Buying a house for the sake of the country? Have you been reading from the Tom Parlon hymn book? :rolleyes:

I think Ntlbell was simply advocating caution when taking out a large loan. What the OP will actually be able to afford with a smaller loan is another matter.

OP some banks are still lending. As far as I'm aware two key factors are a) future repayment capacity, b) significant deposit. For (a) salary will obviously be the key point, though your rent + savings habits do at least show that you're currently in a position to pay the amount your require. But as Ntlbell says I would make sure not to overstretch yourself. Also I'd speculate that PS jobs will be treated differently by the banks after the budget.

neil_purdy

GF got a 250k approved and signed off on there last week.. Had a parent as guarantee.. Didnt think she would get one at all.. but happy days!!

ntlbell

jeepers101 wrote: »

Maybe you should be reading the posts carefully, when did I ever say there was anything wrong with Dublin 15. I implied you wouldn't get a place in Dub 15 for little over 100k. Where's the insult?

And if everybody took your advice and waited around for the 'right time to buy' the country would never get back on its feet. OP wasn't asking whether or not its the right time to buy, he was asking if the banks are lending.

Well I read back over your post and if not trying to be insulting, I don't really understand why you brought up D15 or am I missing something?

by the right time to buy, I mean the right time for "you" not when it's a 3 page spread in the indo.

buying a house to get the country back on it's feet? what the hell are you talking about? we should all get into a lifetime of debt to help the country? really? answer the call to patriotism by an over priced home and enter a lifetime of debt YOUR COUNTRY NEEDS YOU.

Crazy talk.

bruzz

neil_purdy wrote: »

GF got a 250k approved and signed off on there last week.. Had a parent as guarantee.. Didnt think she would get one at all.. but happy days!!

Hi Neil,
Congrats on your gf getting a mortgage. Who did she go with and why did she think she would not get one?

mrgaa1

neil_purdy wrote: »

GF got a 250k approved and signed off on there last week.. Had a parent as guarantee.. Didnt think she would get one at all.. but happy days!!

Congrats. Could you say are you in Dublin or out of Dublin, public or private employee and a rough idea of salary? It may help others who are in a similar boat and wondering if they could get a mortgage or not.

neil_purdy

She went through a Broker, Think EBS were the first one to approve..

She is Private Sector.. Dublin.. If im not mistaken 30kish a year??? Didnt think she would get it as she was going for it alone.. But hey.. Now i can bum in on the house!! woo!!!

martian1980

neil_purdy wrote: »

She went through a Broker, Think EBS were the first one to approve..

She is Private Sector.. Dublin.. If im not mistaken 30kish a year??? Didnt think she would get it as she was going for it alone.. But hey.. Now i can bum in on the house!! woo!!!

8 times annual salary? Wow. Had she a deposit?

Zamboni

ntlbell wrote: »

Well I read back over your post and if not trying to be insulting, I don't really understand why you brought up D15 or am I missing something?

D15 was where the OP was looking...

jobless

martian1980 wrote: »

8 times annual salary? Wow. Had she a deposit?

good to see the banks are back to lending crazy multiples again.... guess they never learn...

the fact that she needs a guarantor should tell her its a bad idea

ntlbell

Zamboni wrote: »

D15 was where the OP was looking...

I read back to the OP and couldn't see it.

my bad.

oflahero

The lesson I'm taking from this thread (and all similar stories you're hearing at the moment) is that the only house price valuation that matters is the bank's. When the banks had their spigots of pretty-much-free credit gushing away, that meant correspondingly huge house prices, because they were willing to lend it to anyone, and through a bank mortgage is the most common way of buying a house.

If, as in now, the banks are saying '150 is the max we can give you' then it makes a mockery of the 'average', say, house being priced at 250. No takers means no market at that price. No amount of NAMAs can beat the market. Without real-world people with real-world money, the 'value' of a house is the max that one person will give for it. The idea of house prices 'recovering' is absurd. And we know that the banks are failed entities. One way or another, those prices will dwindle down to the money on offer, even it takes years longer than it should thanks to a zombie NAMA's efforts to prop up a failed model.

It still amazes and maddens me to hear people actually *lamenting* that they can't owe 100 grand more to the bank than they are allowed to. What is with this addiction to debt? Shouldn't we be *happy* that prices are finally coming down to a level that makes sense in a productive economy?

gurramok

Pity the parent who is a guarantor. If anything happens in the purchasers lifetime, its the elderly parent who should be looking a stress free retirement but instead has to pick up the tab legally.
I wouldn't take the risk myself, I want my parents to have a good retirement as I want to be responsible for my own debts.

jobless

oflahero wrote: »

It still amazes and maddens me to hear people actually *lamenting* that they can't owe 100 grand more to the bank than they are allowed to. What is with this addiction to debt? Shouldn't we be *happy* that prices are finally coming down to a level that makes sense in a productive economy?

you would think that... i remember people talking about the exorbitant price of their house as if it was a badge of honour...

you still get people, even on here that think to get the economy going again we need to sell more houses... people have been brain washed that much by the media

jobless

gurramok wrote: »

Pity the parent who is a guarantor. If anything happens in the purchasers lifetime, its the elderly parent who should be looking a stress free retirement but instead has to pick up the tab legally.
I wouldn't take the risk myself, I want my parents to have a good retirement as I want to be responsible for my own debts.

my sentiments exactly... whatever about giving them the deposit but to expect your parents to bear the whole risk is awful....

does this guarantor option exist in other countries?... to me it just seems wrong...
then again i thought that about 100% mortgages and 40 year terms

spockety

neil_purdy wrote: »

She went through a Broker, Think EBS were the first one to approve..

She is Private Sector.. Dublin.. If im not mistaken 30kish a year??? Didnt think she would get it as she was going for it alone.. But hey.. Now i can bum in on the house!! woo!!!

30K a year will bring you home 2,102 euro a month (http://www.deloitte.ie/tc/Results.aspx)

I'm gonna presume she will do something crazy like take a 35 year term.

At 2.5% interest rates (I'm presuming she got some nice introductory rate like that) she will be paying back 893 euro a month.

At 6.5% interest rates (ECB medium term stated aim of 3.5-4.5% + bank margin of 2-3%) she will be paying back 1,510, or more than 70% of her take home pay.

Nice work!

:eek:

whizzbang

The problem with joint mortgages is that you double your chances of not being able to meet the mortgage payment if one of you falls ill or looses their job. Could you still meet the mortgage payment if that happened?

If you had mortgage that was based on a single income then you would be in a much better place to manage the rough times. If the main mortgage payer lost their job, the secondary worker could make up the short fall until you get back on your feet.

The fact that you cannot afford a livable home on one salary does not mean you are not earning enough, it just means that property is still too expensive!

moremysterious

brigadear wrote: »

Interesting advice by everyone, thanks for that. The bank in question was AIB. Just to reply to a previous comment regarding public service cuts and all that, it sounded like because I was said I worked in the public service that I am safe in my job, I do expect their to be job losses and pay cuts but because I am only there 18 months they are not likely to get rid of me, as I am a low paid earner, but who knows!!. And regards my wifes position, yes it is a cut throat industry, but they company has 4 restaurants, only 2 opened in last 6 months, if one closes she would be moved to the next, it is fairly secure compared to other restaurants, its more of a carvey, all the restaurants are based in business parks around Dublin. We cant wait another year to buy, I am 32 now, so really need to be on the property market, I guess either go with the 200k or wait a couple months.

Could you explain the bits i bold in more depth? Are there urgent personal reasons you don't want to go into, the sentence about getting on the property market sounds too much like the property ladder stuff form years ago.

jeepers101

ntlbell wrote: »

Well I read back over your post and if not trying to be insulting, I don't really understand why you brought up D15 or am I missing something?

by the right time to buy, I mean the right time for "you" not when it's a 3 page spread in the indo.

buying a house to get the country back on it's feet? what the hell are you talking about? we should all get into a lifetime of debt to help the country? really? answer the call to patriotism by an over priced home and enter a lifetime of debt YOUR COUNTRY NEEDS YOU.

Crazy talk.

I'm not for a minute suggesting that anybody should buy a house to get the economy moving, I'm simply saying that if nobody bought a house, nothing would happen. It seems to me that every time somebody posts on this forum looking for some advice (not related to should I or shouldn't I) they are inevitably told by somebody that they cannot afford what they are looking for or that they should wait a year or two. Its naive of you to think the the OP hasn't thought this through carefully already and that your crazy sums are going to change their mind.

spockety

jeepers101 wrote: »

I'm not for a minute suggesting that anybody should buy a house to get the economy moving, I'm simply saying that if nobody bought a house, nothing would happen. It seems to me that every time somebody posts on this forum looking for some advice (not related to should I or shouldn't I) they are inevitably told by somebody that they cannot afford what they are looking for or that they should wait a year or two. Its naive of you to think the the OP hasn't thought this through carefully already and that your crazy sums are going to change their mind.

At least you acknowledge that the sums are indeed crazy.

I'm still not sure people get it. Lending practices and other behaviour in the property market over the last 10 years have got Ireland into the mess it is in today.

I think although people might say, "ah yeah, it got a bit mental alright", they don't actually appreciate the full ramifications of it. The loss of money to the economy for a generation, the ghettoisation of swathes of our cities and counties. Bah, it's for another post/thread, but there is more to this than just one guy who's girlfriend managed to get approved for a 250k mortgage on 30k salary.

gurramok

jeepers101 wrote: »

I'm not for a minute suggesting that anybody should buy a house to get the economy moving, I'm simply saying that if nobody bought a house, nothing would happen. It seems to me that every time somebody posts on this forum looking for some advice (not related to should I or shouldn't I) they are inevitably told by somebody that they cannot afford what they are looking for or that they should wait a year or two. Its naive of you to think the the OP hasn't thought this through carefully already and that your crazy sums are going to change their mind.

Believe me, from experience alone on this forum nevermind from real life of the amount of people who do not understand the amount of debt they are taking on is unreal.
Alot of people never research the biggest financial decision of their lives.

misty floyd

Rent & Save.

ntlbell

jeepers101 wrote: »

I'm not for a minute suggesting that anybody should buy a house to get the economy moving, I'm simply saying that if nobody bought a house, nothing would happen. It seems to me that every time somebody posts on this forum looking for some advice (not related to should I or shouldn't I) they are inevitably told by somebody that they cannot afford what they are looking for or that they should wait a year or two. Its naive of you to think the the OP hasn't thought this through carefully already and that your crazy sums are going to change their mind.

so if a lot of people are being advised that they possibly can't afford it.

what does it tell you?

consider i'm a home owner and don't benifit directly from falling house prices (have a think about it)

is it naive to think people didn't think it through?

really? looking at the amount of people now with mortgages they can't afford, living miles from work family and friends. up to our eyes in personal debt.

do you think without amount of people in trouble it's naive to think people didn't think it through?

the ones who think it though are very much the minority.

look at what he said in his post, he was upset the bank wouldn't pile more debt on

these are not the thoughts of someone who is thinking about this rationally.

to assume they Have THOUGHT it through is terrible naive.

jeepers101

ntlbell wrote: »

so if a lot of people are being advised that they possibly can't afford it.

what does it tell you?

consider i'm a home owner and don't benifit directly from falling house prices (have a think about it)

is it naive to think people didn't think it through?

really? looking at the amount of people now with mortgages they can't afford, living miles from work family and friends. up to our eyes in personal debt.

do you think without amount of people in trouble it's naive to think people didn't think it through?

the ones who think it though are very much the minority.

look at what he said in his post, he was upset the bank wouldn't pile more debt on

these are not the thoughts of someone who is thinking about this rationally.

to assume they Have THOUGHT it through is terrible naive.

I would have to disagree. Just because some people are left with mortgages they can't afford, living miles from family, and possibly now without jobs doesn't mean they didn't think it through. It means they're not economists, they didn't have a crystal ball and they were basically lied to by the public figures they're supposed to be able to trust.

ntlbell

jeepers101 wrote: »

I would have to disagree. Just because some people are left with mortgages they can't afford, living miles from family, and possibly now without jobs doesn't mean they didn't think it through. It means they're not economists, they didn't have a crystal ball and they were basically lied to by the public figures they're supposed to be able to trust.

You don't need to be an economist to work out if you can afford something.

you don't need a crystal ball to factor in risk to the loan amount you require.

you don't need to be an economist to do your own research and not rely on "public figures"

you sit down and do the math

you look at the risk

you do your best to reduce it.

you research.

These are all elements of thinking it through.

if your idea of thinking it through is

calculate our monthly wage

and subtract a mortgage re-payment cost.

then it's no wonder people are in the mess they're in.

jeepers101

ntlbell wrote: »

You don't need to be an economist to work out if you can afford something.

you don't need a crystal ball to factor in risk to the loan amount you require.

you don't need to be an economist to do your own research and not rely on "public figures"

you sit down and do the math

you look at the risk

you do your best to reduce it.

you research.

These are all elements of thinking it through.

if your idea of thinking it through is

calculate our monthly wage

and subtract a mortgage re-payment cost.

then it's no wonder people are in the mess they're in.

I think you're really being overly harsh on the ignorance of others. Not everybody was blessed with the street smarts that you were clearly born with. People were given no reason before the property crash not to trust financial institutions that had been an integral part of society for hundreds of years. How were they to know about the profit pushing chiefs at the top. People thought they were doing their research when they went to mortgage brokers. People got bad advice. You can't blame them for that.

halkar

As their circumstances change people need houses and will buy regardless of market conditions. Not everyone buys for investment. It is a family home for most and market changes will not change this fact. No one can predict what will happen in 25-30 years. It is a risk one must take and waiting game will not get you anywhere. I do not advice anyone to buy or not to buy but I know for a fact older you get harder to get mortgage and your terms reduced with payments increase. I think the banks have age cap of max working age of 65 and few years less for the mortage terms. If you wait till 40 max amount of years you can get is 20-25.

We Irish as a nation prefer to buy rather than rent. I am one of those beleive that rent is a dead money. It is a conforting fact for me knowing that I will have my own house after I retire and something solid to leave to my loved ones after passing away. Life goes on after 65, with income reducing significantly, it will be extra few pints or holiday money saved without having to pay rent

Theboinkmaster

neil_purdy wrote: »

GF got a 250k approved and signed off on there last week.. Had a parent as guarantee.. Didnt think she would get one at all.. but happy days!!

Don't think that's something to be boasting about there mate - you're girlfriend's making the biggest financial mistake of her life

Distressing to see some people haven't learned :rolleyes:

Theboinkmaster

jeepers101 wrote: »

I think you're really being overly harsh on the ignorance of others. Not everybody was blessed with the street smarts that you were clearly born with. People were given no reason before the property crash not to trust financial institutions that had been an integral part of society for hundreds of years. How were they to know about the profit pushing chiefs at the top. People thought they were doing their research when they went to mortgage brokers. People got bad advice. You can't blame them for that.

You're wrong - you can blame them for that as they were silly to trust someone, whose earnings are entirely predicated on you making a decision in their own interest.

That's like trusing a car dealer salesman's advice on why you should by the car he's selling.

Why would you trust a newspaper article talking up the market, suggesting it's a good time to buy blah blah - when 70% of their advertising income comes from developers and estate agents - those selling to the market?! Stupidity and ignorance is why

When someone's giving you advice you always have to check whether they're biased or have anything to gain from said advice. You need objective advice - like the OECD, IMF etc were giving us since 1997.

I do blame people like that - they made their own beds, we shoudln't be forgiving ignorance, short-sightedness or greed.

Theboinkmaster

halkar wrote: »

As their circumstances change people need houses and will buy regardless of market conditions. Not everyone buys for investment. It is a family home for most and market changes will not change this fact. No one can predict what will happen in 25-30 years. It is a risk one must take and waiting game will not get you anywhere. I do not advice anyone to buy or not to buy but I know for a fact older you get harder to get mortgage and your terms reduced with payments increase. I think the banks have age cap of max working age of 65 and few years less for the mortage terms. If you wait till 40 max amount of years you can get is 20-25.

We Irish as a nation prefer to buy rather than rent. I am one of those beleive that rent is a dead money. It is a conforting fact for me knowing that I will have my own house after I retire and something solid to leave to my loved ones after passing away. Life goes on after 65, with income reducing significantly, it will be extra few pints or holiday money saved without having to pay rent

I agree with some of what you wrote but then you ruined it all - rent is not dead money in a declining market.

Buying NOW in this period of say 4/5 years of rapid decling values after the largest property boom in Irish history is probably a bad idea.

Save, wait a few years and you may end up saving €100-200k off your house. Yes you may be able to afford it now, but what is waiting just 2 years saves you €100k?!

It's been said so often but anyone who currently says rent is dead money is incorrect and he's the simple maths to show you why:

Dec 2009 - buy house for €400k and pay €1,500 per month in mortgage repayments over 30 years. Value in 2 years time is €300k. Total cost pm:

Mortgage €1,500
Depreciation €4,166

Total cost €5,666

Dec 2009 - rent for next 5 years, total cost pm:

Rent €1,500

Total saved pm €4,166

And then you buy your house in Dec 2011 for €300k which a significantly reduced mortgage - gettit

ntlbell

jeepers101 wrote: »

I think you're really being overly harsh on the ignorance of others. Not everybody was blessed with the street smarts that you were clearly born with. People were given no reason before the property crash not to trust financial institutions that had been an integral part of society for hundreds of years. How were they to know about the profit pushing chiefs at the top. People thought they were doing their research when they went to mortgage brokers. People got bad advice. You can't blame them for that.

Overly harsh by suggesting you don't have to be an economist, yes how overly critical of me.

If I wasn't being harsh I have to assume these people had some amount however small of common sense.

If someone makes money based on an amount of money you borrow does this not spark some form of caution?

You don't go to a cars salesman to ask him to figure out how much of a loan you should borrow for a car, why?

if you did, what do you think his objective would be?

YOU work out what you can comfortable afford, YOU do the math, YOU tell the mortgage broker how much YOU need, HE tries to get the best deal for that amount.

Most people go and push him to get as much as he can, some hand over false payslips to get more, some borrow from credit unions, friends and family to "pretend" they have a deposit.

Overly harsh?

I thought I was too kind.

ntlbell

halkar wrote: »

As their circumstances change people need houses and will buy regardless of market conditions. Not everyone buys for investment. It is a family home for most and market changes will not change this fact. No one can predict what will happen in 25-30 years. It is a risk one must take and waiting game will not get you anywhere. I do not advice anyone to buy or not to buy but I know for a fact older you get harder to get mortgage and your terms reduced with payments increase. I think the banks have age cap of max working age of 65 and few years less for the mortage terms. If you wait till 40 max amount of years you can get is 20-25.

We Irish as a nation prefer to buy rather than rent. I am one of those beleive that rent is a dead money. It is a conforting fact for me knowing that I will have my own house after I retire and something solid to leave to my loved ones after passing away. Life goes on after 65, with income reducing significantly, it will be extra few pints or holiday money saved without having to pay rent

or you could buy at 40 assuming one started working at 23, could have 17 years savings as a down payment? and not needing near the amount of years and pay a lot less in interest payments.

if rent is dead money, what is interest payment's over 25/30 years?

just about every single service we use is dead money, but people only get upset because they feel like they're paying someone else's mortgage, when in fact they do the same with EVERY service you use, your paying someone's mortgage somewhere a long the line.

I'm not suggesting people shouldn't buy, or that you're right or wrong, there's just many different ways and a lot of your reasons FOR just don't make a lot of sense

jackthekipper

halkar wrote: »

I am one of those beleive that rent is a dead money. It is a conforting fact for me knowing that I will have my own house after I retire and something solid to leave to my loved ones after passing away. Life goes on after 65, with income reducing significantly, it will be extra few pints or holiday money saved without having to pay rent

Have people learned anything? Read some of the old threads on the subject Renting for very long periods of time can be dead money but to flat out say rent is dead money is ridiculous, as someone said so is interest. It's good to buy but not to rush in on the back of some financially ignorant dogma.

halkar

jackthekipper wrote: »

Have people learned anything? Read some of the old threads on the subject Renting for very long periods of time can be dead money but to flat out say rent is dead money is ridiculous, as someone said so is interest. It's good to buy but not to rush in on the back of some financially ignorant dogma.

Regardless of what other posts says that is my own opinion. I have been through this around late 90s and early 2000 while house prices were on the rise. I was waiting while people had the very same discussions about house prices. I waited a while and bought at year 2000 which I thought it was expensive at the time. But we needed to buy with kids growing and needed room. My own mortgage will finish when I reach 50 and possibly earlier with increased payments during low interest times. How much rent would I be paying for rest of my life to age of 70s, 80s, 90s and maybe 100s?

I am not disputing the ridiculous property prices at the moment. And they will fall. How can one with family save for house while paying rent around and over 1000€ for a 3 bed semi is beyond me.

If it was easy to save, people would not be borrowing for cars and what not. You buy a car for 20k, pay 30k by the time you finish the loan on it. Sell or trade in the car for 5k loosing 25k. Repeat that 5 times similiar to 25 year mortgage. Now that is a total waste imao.

But that's life. Some like to live today worry tomorrow and some like to wait today and possibly never see the day

Back to topic, yes banks are lending. Criterias changed and approvals are not easy but I still see people getting mortgages.

denhamd2

Agree with the last post saying how difficult it is to save while still renting. Looking to get together a deposit myself at the moment. Just a quick question... myself and my wife have a combined 5 loan (half way through now) with about 15k left. Do banks do consolidated mortgages any more? Our joint income is around 68k and I think we'd comfortably be able to repay but my only fear is that this would count against our mortgage application. I understand our borrowing power would be decreased by it but say we wanted to borrow 250k for example do you think we'd have a chance of being approved?

Thanks in advance