Small mortgage

Dannyboy1987

Hi i am looking at getting a small mortgage of around €69,000 just wondering how hard it would be to get a mortgage of this size parents are willing to help with deposit etc. I'm on a ok salary of €26,000.

Any advice would be great , would i be better going to a bank or broker?

silja

How big a percentage of the overall price would the €69,000 be?
How long have you been in your job, and how much have you yourself saved towards a deposit? Bank will want to see that YOU can afford it, not just with your parents help.

Dannyboy1987

I've been in my job over 15months, i am full time permanent it's a semi state job. the price is €75k and i would be putting about €4k and parents want to put the rest in . I don't rent and still live at home only thing i have is a small car loan and thats it. if needs be my partner will come in on it as well but i am hoping i should be fine by myself.

silja

You are looking for a 92% mortgage.... that will be difficult to get.

Dannyboy1987

90% shouldn't be a problem either

JoeyJJ

You will need to save for expenses too like legal and moving expenses. Plus you will need to say the ability to save far more per month than the expected mortgage payment.

dog the bounty hunter

Dannyboy1987 wrote: »

Hi i am looking at getting a small mortgage of around €69,000 just wondering how hard it would be to get a mortgage of this size parents are willing to help with deposit etc. I'm on a ok salary of €26,000.

Any advice would be great , would i be better going to a bank or broker?

Danny boy, you are better going to a broker

Dannyboy1987

How come ??

snowey07

i got 3 times my wages last year but i had a 10% deposit and 4 years of savings. They asked for savings records going back years.

It was Ulster Bank :rolleyes:

Dannyboy1987

that would suit me fine

Liam D Ferguson

In this instance the lender will be looking for evidence that you can keep up with the repayments, even if/when interest rates eventually rise. Can you show evidence that you've been saving around €450 per month in recent times?

donalg1

Speak to the bank first and then you will get an idea of whether or not you have a chance there is no harm asking and they can inform you of what you need to work on in order to qualify for a mortgage with them if they refuse your application.

I have never used a broker so dont know anything about them but I would imagine you would be paying them a fee for helping which I dont think you can afford once you take into account the legal fees, BER, survey etc..

Also, I think the bank may tell you that you should be employed for at least 2 years but with your permanent position this could be overlooked, but thats just me guessing really. First place to start is asking the bank.

I do know that they will ask you to clear your car loan also as this will affect your ability to repay a mortgage. Basically they will look at your income and the monthly repayments on the mortgage, and see what percentage of your income the repayments will be, 20% or so and you would be fine, now imagine if you have to deduct a car loan from your monthly income and that 20% could jump to near 30%.

Liam D Ferguson

donalg1 wrote: »

I have never used a broker so dont know anything about them but I would imagine you would be paying them a fee for helping which I dont think you can afford once you take into account the legal fees, BER, survey etc..

Many brokers don't charge fees as they get paid commission by lenders for arranging mortgages. Also by going to a broker, you can find out what a range of lenders are likely to do for you. By going to a bank, you'll only find out what they will do for you.

Biased opinion, admittedly as I've been a broker for the last 16 years, but true nonetheless.

donalg1

Liam D Ferguson wrote: »

Many brokers don't charge fees as they get paid commission by lenders for arranging mortgages. Also by going to a broker, you can find out what a range of lenders are likely to do for you. By going to a bank, you'll only find out what they will do for you.

Biased opinion, admittedly as I've been a broker for the last 16 years, but true nonetheless.

Cool thats handy to know sure a broker could suit him better then.

Ray Palmer

A broker is by no means to your advantage. They will bring you to the bank that pays them the most. That has no connection to the bank that will give you what you want or the best rate. Some lenders won't deal with brokers either do it a limited pool too.
Go search on the bank site for online quotes instead.
Most banks won't give you a mortgage without 2 years full time employment. Normally with the same company.

Liam D Ferguson

Ray Palmer wrote: »

A broker is by no means to your advantage. They will bring you to the bank that pays them the most. That has no connection to the bank that will give you what you want or the best rate.

Inaccurate generalisation. All brokers are regulated and must, by law, offer you their most suitable product for your needs AND document for you why the recommended product is most suitable for you.

If you come across a broker who puts their own interests above yours, you can complain to the regulator.

Have you dealt with a broker who advised you to go with a product because it pays them the most commission? Did you complain?

Dannyboy1987

Thanks for the info guys.

My plan is to sell my car i already have it up for sale and i will pay off my loan and have money over to go in to savings.

I save on average of €500-600 a month by myself the thing is i have a partner who will help with the mortgage so it won't be just me.

The only reason i am considering a mortgage for this amount is that worse cause i could still afford it by scraping by.

I have a friend of the family i think who is a broker and i will speak with him shortly to see where i stand.

Liam D Ferguson

Dannyboy1987 wrote: »

I save on average of €500-600 a month by myself the thing is i have a partner who will help with the mortgage so it won't be just me.

If you can document a history (by bank statements) of saving this amount for a good while, you stand a good chance of getting approved, as your savings well exceed the repayment on the proposed mortgage.

Dannyboy1987

Liam

I was on to ulster bank today and they will only give 75% of a mortgage to a 1 bed aprtment is that the same with all lenders

Thanks
Dan

donalg1

Dannyboy1987 wrote: »

Liam

I was on to ulster bank today and they will only give 75% of a mortgage to a 1 bed aprtment is that the same with all lenders

Thanks
Dan

Actually now that you mention I did hear most banks will only do that for apartments.

Dannyboy1987

donalg1 wrote: »

Dannyboy1987 wrote: »

Liam

I was on to ulster bank today and they will only give 75% of a mortgage to a 1 bed aprtment is that the same with all lenders

Thanks
Dan

Actually now that you mention I did hear most banks will only do that for apartments.

I have to say that its crazy it works out then I would need a deposit of €18k

Liam D Ferguson

Dannyboy1987 wrote: »

Liam

I was on to ulster bank today and they will only give 75% of a mortgage to a 1 bed aprtment is that the same with all lenders

Thanks
Dan

Ah - a one-bed apartment. Yes, I'm afraid you're stuck at 75%. You can get 90 or 92% on a 2-bed, so if you can get a 2-bed for a small amount more than the 1-bed, it's do-able.

Dannyboy1987

Liam D Ferguson wrote: »

Dannyboy1987 wrote: »

Liam

I was on to ulster bank today and they will only give 75% of a mortgage to a 1 bed aprtment is that the same with all lenders

Thanks
Dan

Ah - a one-bed apartment. Yes, I'm afraid you're stuck at 75%. You can get 90 or 92% on a 2-bed, so if you can get a 2-bed for a small amount more than the 1-bed, it's do-able.

I just find it mad they won't give 90% , the 2bed are going for 95k. It's just trying to build up a deposit. Do people still take out loans from the credit union like the old days ?