Mortgage Eligibility

Get Real

Hi, this is partial curiosity and partial taking a plunge.

I am a 20 year old earning 21k a year, I have 10k in savings and my rent currently is 350 per month. After rent, food bills etc I manage to save 100per week (5k per year).

According to mortgage calculators I am eligible for a loan of 70-80k. There is a 3 bed house for sale for 75,000. I would plan on borrowing 65k to buy it. My repayment per month would be around 350euro. (This is what I'm paying now in rent anyway). I would plan on letting the other two rooms for 80 per week each (which would yield 640 a month, enough to cover the repayment), and if i couldnt rent both, or even any, i'd still be able to afford the repayment on my own anyway.

What are my chances of getting a mortgage, is my age a hindrance, or will my savings/budgeting help me? I have a permanent, full time contract.

Thanks

roro2

Others might give you firmer pointers, but a couple of things to note:

- Security of employment will be key.
- History and consistency of savings and household budgeting will be important - age shouldn't be a negative but may count against you on this aspect.
- Potential income from renting rooms will probably be ignored.
- While current repayments seem affordable, stressed repayments at higher interest rates would also need to be affordable.
- Other things like having any other debt, now or previously, will be considered.