Will I get a mortgage

larrymiller

Hi.
Just thinking today would I be wasting my time applying for a mortgage on my own with my wages. I'm 25 I earn 23000 a year AFTER tax, I currently save 550 per month, I'm not paying rent. So far I've 10000 in savings. \
I've my own site and would be looking at the 100-150 mark! \
Just don't want to be laughed at is all thanks

D3PO

youe in dreamland if you think you will get that kind of mortgage for that based on the above.

You can only save 550 a month and your not even paying rent ? Probably not paying any other utilities either like ESB, Heat, TV and certainly not things like life assurance, local property tax or house maintenance things.

So not only would 100 to 150k based on wage multiples be far and a way too high for any bank to even remotely consider you add on top of it you dont appear to have a great savings record either (despite the fact you have 10 grand saved)

Sorry to break it to ya but you havent a prayer.

larrymiller

D3PO wrote: »

youe in dreamland if you think you will get that kind of mortgage for that based on the above.

You can only save 550 a month and your not even paying rent ? Probably not paying any other utilities either like ESB, Heat, TV and certainly not things like life assurance, local property tax or house maintenance things.

So not only would 100 to 150k based on wage multiples be far and a way too high for any bank to even remotely consider you add on top of it you dont appear to have a great savings record either (despite the fact you have 10 grand saved)

Sorry to break it to ya but you havent a prayer.

Well I should of said I'm living on my own but I don't pay rent as it's an old relatives cottage so i do pay the bills you mentioned,
550 is what I save without basically without any problems, I could easily enough bring this to 650 even 700 if I really wanted!
100000 over 25 years is not that much! Also I will be inheriting a large asset in the future (3 years) which could be sooner which I think could help me

roro2

Gross earnings is the relevant figure. If this is something like 28-30k and from a permanent position, you could be approved for somewhere around 100k.

But your savings are not sufficient - you'll need 8-10k as a deposit, another few k for costs, and it's sensible to keep some savings for contingencies. Repayments on 100k will be about €450 per month over 35 years, and add on another €50-100 for insurances, etc. You're savings will then need to be comfortably above this figure to allow for interest rate increases. €700-800 per month would be a ball-park figure and this would need to be consistent over a 6-12 month period.

All that is on the basis of a standard owner-occupier mortgage. If you're looking for a self-build mortgage, the criteria is different. The likely issues here are a lack of savings to fund overruns and any higher costs, and the bank being happy that a 100k build cost is reasonable.

The asset isn't relevant unless it's cash.

larrymiller

roro2 wrote: »

Gross earnings is the relevant figure. If this is something like 28-30k and from a permanent position, you could be approved for somewhere around 100k.

But your savings are not sufficient - you'll need 8-10k as a deposit, another few k for costs, and it's sensible to keep some savings for contingencies. Repayments on 100k will be about €450 per month over 35 years, and add on another €50-100 for insurances, etc. You're savings will then need to be comfortably above this figure to allow for interest rate increases. €700-800 per month would be a ball-park figure and this would need to be consistent over a 6-12 month period.

All that is on the basis of a standard owner-occupier mortgage. If you're looking for a self-build mortgage, the criteria is different. The likely issues here are a lack of savings to fund overruns and any higher costs, and the bank being happy that a 100k build cost is reasonable.

The asset isn't relevant unless it's cash.

Thanks that's a good reply! Gross pay is 27 k.
I also make about 2k per year on self employed job that I will be putting through the books from this year!
I will continue to save up as u won't be doing any thing for at least 12 months I will have a nice cash pile by then hopefully!
I can always dream anyway !

D3PO

what Roro is saying is spot on.

Factor in that rates of interest are at historically low levels and that the 100k mortgage that will cost 450 a month now could easily cost significantly more in a few years time 700 plus.

Realistically up your savings to 700 and keep it at that for the next 12 months. Then PM a guy on here called Killers1 (hes a broker and comes very highly reccomended) and he will set you on the road to getting a mortgage.

larrymiller

D3PO wrote: »

what Roro is saying is spot on.

Factor in that rates of interest are at historically low levels and that the 100k mortgage that will cost 450 a month now could easily cost significantly more in a few years time 700 plus.

Realistically up your savings to 700 and keep it at that for the next 12 months. Then PM a guy on here called Killers1 (hes a broker and comes very highly reccomended) and he will set you on the road to getting a mortgage.

Will do thanks, 700 is a fair jump I didn't think it would go that high! Thanks for the advice

D3PO

larrymiller wrote: »

Will do thanks, 700 is a fair jump I didn't think it would go that high! Thanks for the advice

Mate rates are crazy low atm and although ECB rates may drop again between 0.05 and 0.15 of a point in the coming months they will start to rise again at some point in the short to mid term and when they do start rising they will most likely rise shraply and regulalry.

To put it into context. My mortgage was €1,880 at its peak interest rate and its now €1,070 almost half of where it was.

larrymiller

D3PO wrote: »

Mate rates are crazy low atm and although ECB rates may drop again between 0.05 and 0.15 of a point in the coming months they will start to rise again at some point in the short to mid term and when they do start rising they will most likely rise shraply and regulalry.

To put it into context. My mortgage was €1,880 at its peak interest rate and its now €1,070 almost half of where it was.

That is some difference, you must be delighted (well for now)

198321

AIB has calculator online where you can enter your pay etc and it tells you if you can get mortgage. Sure that is no guarantee but helps ..