Mortgage for renters

Gallywag

Wondering if there's any help out there for renters to get onto the property ladder?? We are in long term rental property paying €1500 per month, and really wish to get a small mortgage (by comparison to rent) of approx €1000 per month for a property . There are properties on the area within the price range were looking at, 225,000 to 250000, but paying such high rent, it is nearly impossible for us to get the €20000 deposit together! It's 21 step forward, 2 steps backwards! And before anyone says.....no neither of us have parents /family to assist, no we can't find cheaper rental accommodation down the road, as my husband is retained firefighter, and is not allowed to live outside the council set limits! And if we move to cheaper area, he can't work, and we have kids, so no we can't just move back home to save, regardless of the fact there's no room for us. Anyway, any advice on any assistance for renters to obtain mortgages would be greatly appreciated.
Also......does paying your rent count as "brownie" points as such with banks??? Proof you can make mortgsge payments???
Thanks

coylemj

Bad news, the RTE business guy David Murphy has tweeted that the Central Bank will announce tomorrow a mandatory 20% deposit floor for mortgages i.e. banks will be limited to lending no more than 80% of the value of the property.

David Murphy ‏@davidmurphyRTE 26 minutes ago

Central Bank to announce new mandatory deposits for homebuyers tomorrow. It says research shows 20% deposits stops busts. More at 9 @rtenews

Kaizersoze81

That's good news. If people want mortgages they should be willing to save 20% deposit

SBarrett

Hi Gallywag

The amount of rent you pay counts when satisfying the banks ability to repay criteria but you still need to get that 8% - 10% deposit. The banks simply will not lend 100% mortgages anymore.

And going by the reports on the 9 o'clock news last night, that deposit is only going to get higher.

Lord Trollington

For me the numbers just don't add up with the new figures released from the central bank.

I have been employed since I left college at 21. Just when the sh!t hit the fan in 2007. At first I was on good money but then had to take a massive pay decrease to keep my job that along with tax increases and the Universal Social Charge money is tight.

Paying rent and bills myself and my wife had little or no disposable income to save massive amounts every week.

We have approx €25,000 in savings but all of a sudden the goal posts are moved and we need 20% deposit. On a house of €250,000 (Which there is none in Dublin but that is for another day) you need €50,000 deposit.

Unemployment was nearly 15% at one stage. Those who were employed for the most part were at the pin of their collar in money terms. And it's still no different. The tide is rising but the taxes and charges are still there. Employers won't be raising wages any time soon.

How are normal everyday people with families suppose to buy their own home.

gcoleman53

Lord Trollington - 100% in the same boat

SBarrett

Under the Central Bank proposals, 15% of the values of loans given in a 6 month period can be above the 80% LTV requirement.

If you have a loan offer from the bank before the Central Bank restrictions come in, the offer will not be subject to the restrictions.

There is still plenty of scope for first time buyers to get on the property ladder.

Steven

doubter

I would agree. And I'm not unhappy with the new minimum deposit, looking at the way the prices are rising again in the big smoke, a 20% deposit will ensure that a) the demand will drop
b) you have a lower mortgage and lower repayments.
Last thing we need is another property bubble.