How much of a mortgage would I get?

boardie100

I'm on just over 45k a year and am looking into buying..... how much do people think i would get as a mortgage?

Also if you were on a similar salary what would be the max you'd take on?

ntlbell

you should be looking for around 90-120kish

you tell the bank how much you can afford.

You might be quicker ringing and talking to a mortgage adviser.

boardie100

ntlbell wrote: »

you should be looking for around 90-120kish

you tell the bank how much you can afford.

You might be quicker ringing and talking to a mortgage adviser.

does that not seem a little on the low side?.... i was thinking around 150k

jethrothe2nd

I was initially approved for around 220K on 48K last year (I think, I can't remember exactly, because we bought at a lot less than that)

ntlbell

boardie100 wrote: »

does that not seem a little on the low side?.... i was thinking around 150k

If you know the answer all ready, why ask?

boardie100

ntlbell wrote: »

If you know the answer all ready, why ask?

i guess i'm just looking for your reasons why you say i should look for 90-120... i'm thinking i would be comfortable with a mortgage of 150.... is it that you think that would be too high for someone on that salary to manage?

boardie100

jethrothe2nd wrote: »

I was initially approved for around 220K on 48K last year (I think, I can't remember exactly, because we bought at a lot less than that)

was that only one salary you got approved on then?... what did you buy for in the end?

Riskymove

boardie100 wrote: »

i guess i'm just looking for your reasons why you say i should look for 90-120... i'm thinking i would be comfortable with a mortgage of 150.... is it that you think that would be too high for someone on that salary to manage?

before the boom, the usual rule of thumb for approval was 2.5 times your salary plus 1 time any second salary

so that would be around 112.5k

like may things it was ignored in the boom and hence one of the factors of today's problems

many people look at the mortgage repayment amount but the issue there is interest rates and the likelihood of increases at some point

killers1

boardie100 wrote: »

I'm on just over 45k a year and am looking into buying..... how much do people think i would get as a mortgage?

Also if you were on a similar salary what would be the max you'd take on?

Presuming you are younger than 35 yrs old, have no dependents, no loans and a proven repayment capacity for the stressed repayment on the amount requested you'd get up to €220,000..

CIARAN_BOYLE

boardie100 wrote: »

does that not seem a little on the low side?.... i was thinking around 150k

It depends imo, if 150K was 50% of the value of the house, you had a salary of 45K and you job was deemed secure you could get it easily. If 150K is 90% of the value of the house you wouldn't get it.

ntlbell

boardie100 wrote: »

i guess i'm just looking for your reasons why you say i should look for 90-120... i'm thinking i would be comfortable with a mortgage of 150.... is it that you think that would be too high for someone on that salary to manage?

What you need to do is sit down and figure out what sort of a lifestyle you want to be able to live when you have a mortgage how much disposable income you have.

Do you smoke, do you drink, how often, do you want to go on multiple holidays? can you take large interest hikes and still do all those things?

This is the biggest most important financial descion you will ever make and it's you who will have to live with it. not your bank, mortgage advisor/broker.

So you figure it out then go to the bank and TELL them, what you require.

I can't tell you what you can afford and no one else can.

killers1

CIARAN_BOYLE wrote: »

boardie100 wrote: »

does that not seem a little on the low side?.... i was thinking around 150k

It depends imo, if 150K was 50% of the value of the house, you had a salary of 45K and you job was deemed secure you could get it easily. If 150K is 90% of the value of the house you wouldn't get it.

That's not true. The bank will give you the amount so long as it fits their income calculator, you have a proven repayment capacity for the amount required and it is within their loan to value criteria. It makes no difference if it's 50% or 92% loan to value..

jethrothe2nd

boardie100 wrote: »

was that only one salary you got approved on then?... what did you buy for in the end?

Yes, that was on one salary, we didn't take my wifes salary into account at all. No dependants (at the time, got one now). We bought for E175K

boardie100

jethrothe2nd wrote: »

Yes, that was on one salary, we didn't take my wifes salary into account at all. No dependants (at the time, got one now). We bought for E175K

if only everyone had been as sensible then there wouldn't be half as many people in trouble

Francie Barrett

ntlbell wrote: »

you should be looking for around 90-120kish

you tell the bank how much you can afford.

You might be quicker ringing and talking to a mortgage adviser.

You will get much more than that.

ntlbell

Francie Barrett wrote: »

You will get much more than that.

I never stated what they would give, I'm suggesting a rough figure he should be looking for based on the salary. p

Man007

ntlbell wrote: »

I never stated what they would give, I'm suggesting a rough figure he should be looking for based on the salary. p

Way too low should be aiming for €200k

ntlbell

Man007 wrote: »

Way too low should be aiming for €200k

you should be aiming to find a nice house in a nice area with the things you need be it good schools/shops etc at a comofrtable price you can comfortably afford.

you nor i nor anyone else can say to the OP what that is.

Unless you have seen his bank statements.

Man007

ntlbell wrote: »

Man007 wrote: »

Way too low should be aiming for €200k

you nor i nor anyone else can say to the OP what that is.

So why did you tell him he should go for 90-120k.

Not sure where Op is from but you state should look for nice house nice area good schools you ain't gonna get that in Dublin for €90k !!!

Depends on your job op but is 45k the starting salary in your chosen career if you are confident you will be on more in a year or two you should factor this in.

Thoie

Let's say you see a house you like, in an area that has all the amenities you want (including amenities you might want in the future, such as space for a second car, and a nearby school/creche), for €130,000.

Of this you can apply to borrow maybe €117,000, so let's say you save up €20k to cover the down payment, plus solicitors fees, some furniture, etc.

€117k, over 20 years, at an interest rate of 5% (random figure) works out as about €770 a month. So look at your current outgoings, and do a budget to see if you can manage that much. What will change in your new house - will your utility bills be higher? Maybe you currently share your electricity bills/TV license, insurance with other people, but need to pay them alone when you get your new place. Will your petrol/transport costs rise due to living further away from something than you currently do? Will your grocery costs rise? What about saving some money each month for things like plumbers that you don't currently need to pay for?

Once you've budgeted for all that, and are still happy that you can afford the €770 a month, try changing the interest rate to 16%, and see if you can still afford it (I used http://www.nca.ie/nca/getting-mortgage-calculator). Your monthly mortgage is now €1540 a month. Can you still afford the extra things you budgeted for (while still managing to eat and clothe yourself)?

If you think things would be tight with the €770 a month payments, I'd either hold off, or look for somewhere cheaper. While interest rates may not jump that much, you could end up with other monthly obligations (such as property tax, water charges, increased fuel/utility costs) that will eat the cushion.

ntlbell

Man007 wrote: »

So why did you tell him he should go for 90-120k.

Not sure where Op is from but you state should look for nice house nice area good schools you ain't gonna get that in Dublin for €90k !!!

Depends on your job op but is 45k the starting salary in your chosen career if you are confident you will be on more in a year or two you should factor this in.

I didn't tell him what he would get i gave a very rough estimate of something low that most could afford on that wage

It's roughly what one on that could afford, very roughly.

I then went on to suggest what he should do.

You can't be confident of anything. but you also can't take in every eventuality so you have to come somewhere in between.

If you can't afford the nice house with the schools then you simply rent for now. there's no law that states you have to purchase x by the time your x.

dirtyden

On the information you have posted you will be approved for 200K plus, as long as you can show records of savings etc.

I am in a similar situation and was approved for 220, I will probably only need to actually take out 135 to 140.

All the best with it.

boardie100

thanks for the input guys