Mortgage estimation?

dublingal80

I want to buy my own place and just wondering around how much of a mortgage you think i would get. first time buyer, salary 30k, 20k saved

Thanks

seamus

Ignoring your salary (and any other fees like the solicitor), €20k is 8% of a €250k property.

Which means a mortgage of €230k.

€230k @ 5.5% over 30 years comes to €1305.91 per month.

Since your net pay comes to €2,077 per month, you cannot afford this mortgage.

The maximum you should be paying on a mortgage is 30% of net, and this is €620/month. That's an absolute maximum though, you'll be quite tight for cash at that amount. €620/month means that you can borrow about €110k, which means that you can afford a property somewhere in the region of €130k.

It's a case of whatever works best for you and your circumstances. If you have a child, €620/month might kill you.

If I was you, I'd sit on what you have for another two-three years and continue saving.

Slydice

seamus wrote: »

If I was you, I'd sit on what you have for another two-three years and continue saving.

I think this is good advice in this situation.

Remember, a mortgage won't buy you your own place.

The bank buys the place.

You get a huge loan to pay off. If you pay it off and give the bank a some extra cash (the interest on the mortgage), then they'll let you have the place.

Keep an eye on the property market. Prices are still falling all over the place.

ntlbell

forget about what you think you can get.

concentrate on figuring out what you can very comfortably afford, taken into consideration of future interest hikes, decrease in wages etc etc.

then go ask for that.

dublingal80

thanks for the replies

Im quite good with money. My rent is 500 a month plus I save between 500-600 a month too and I can still afford to pay bills and have a social life. I dont have any debts at all either

OMD

dublingal80 wrote: »

thanks for the replies

Im quite good with money. My rent is 500 a month plus I save between 500-600 a month too and I can still afford to pay bills and have a social life. I dont have any debts at all either

Realistically 30K is not a very good salary. It should give you 2077 a month as was said (less if a public servant). Lenders now often want you to have €1500 a month left over after mortgage repayments. That means your monthly repayments should be no more than 577. That means you are looking at a €100,000 mortgage. Add to that the 20,000 you have saved and you are looking at properties around €120,000

dublingal80

thanks a mill for the replies. I guess the next step for me is to keep saving, get my savings to about 25/30k and hopefully get some sort of payrise and take it from there

gurramok

OMD wrote: »

Realistically 30K is not a very good salary. It should give you 2077 a month as was said (less if a public servant). Lenders now often want you to have €1500 a month left over after mortgage repayments. That means your monthly repayments should be no more than 577. That means you are looking at a €100,000 mortgage. Add to that the 20,000 you have saved and you are looking at properties around €120,000

30k is an OK salary, its the dual income necessity which trips the OP up.

Shouldn't the OP go partner with someone in order to afford something decent?

dublingal80

thanks for the reply. I was saving to buy a place with the boyfriend but we recently have split up, and thank god we did before we bought somewhere together since most of the deposit would have been from me... so i was just wondering what i would get approved for-ish... just to see
I dont want to buy with anyone else, would love my own place, because I know i could do it myself, so just gotta keep saving and I'll get there

quozl

The idea of partnering with someone to buy a bigger place is a terrible one, glad to hear you're not listening to it.

Unless you're certain you're going to spend 20 years with this person, and as partners, not as brother/sisters stuck in a house purchase together.

gurramok

Unfortunately dublingal80, alot of the market in Dublin is still geared towards dual incomes due to high asking prices. In the past, the affordable housing scheme was an option for single buyers.

Whatever you do, research alot before you plump including the legal stuff with a partner and try not to let emotions take over.

cowhands

ntlbell wrote: »

forget about what you think you can get.

concentrate on figuring out what you can very comfortably afford, taken into consideration of future interest hikes, decrease in wages etc etc.

then go ask for that.

This is really good advice. We bought a house 18 month ago and have a big interest rate to pay 6.2% for 3 years. We got the house down from 300k to 255k. The banks were throwing money at us during the time offering us 450k to 500k. We worked out what we can and cant afford and what we would have left so we didnt put ourselves under huge pressure but we seriously could be way better off.
With a baby and car repayments, bills and other expenses like house insurance, life cover, Other half is looking at a pay cut in a few months and trying to save for a wedding etc every little penny that comes into the house is appreciated and spent wisely.

Think really carefully before making the commitment, dont feel pressurised from anyone to "own" a house.
We are just sitting tight till we can change our interest rate, then I think we will have alot more elbow room with our finances.

D3PO

cowhands wrote: »

This is really good advice. We bought a house 18 month ago and have a big interest rate to pay 6.2% for 3 years. .

OUCH !!!! :eek::eek: