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Mortgage query

  • 23-06-2011 1:55pm
    #1
    Liammc1982
    Registered Users, Registered Users 2 Posts: 6 ✭


    Hi Guys,

    Looking for a bit of advice.

    In late November/December, I got approval for two mortgage applications based on very small savings, good secure job and a deposit gifted by my Dad.

    EBS approved me for 100,000
    BOI approved me for 80,000

    The house I had wanted became unavailable so I haven't found anything else until now.

    Since then, I have saved more money and cleared my credit card. I have found a lovely house that has yet to go up for sale. I am sure it will be be more costly than the previous property and have been advised by a professional that it will be between 130,000 -140,000 or may be less than that with the current market. I have witnessed so many properties here in the north east drop in price continuing to sit there so I do believe that what people ask and what they get are two very different things.

    The only difference now is the absolute possibility of needing an additional sum of money to purchase. My Dad or his brother have suggested that either of them will be guarantor for me, both having great savings and property. Would this assist me in gaining a little more money or is it basically a good support mechanism?

    I know BOI did tell me that if I did have a guarantor, I would be able to get more money and that the amount they approved me for was pretty good based on my own situation. I'm not sure what EBS thoughts are on this.

    Any thoughts on this would be great.

    Thanks!!


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,612 Mod ✭✭✭✭Jim2007


    Liammc1982 wrote: »
    Any thoughts on this would be great.

    Yes, have you worked out how much you can afford to pay back on a monthly basis and what would the impact of say the rates going up 200 base points??? Forget about the boom days and remember that the average European spends about 20 - 25% of the monthly salary on Mortgage/Rent payments and Mortgages are usually capped at about 2.5 times the annual salary. If you are very far off that, I suggest holding off and continuing to save for another while.

    This is the most important part, especially when you are asking someone to give a guarantee on your behalf. Because they'll end up being responsible if it all goes wrong.

    Jim.


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