Salary too low for mortgage?

Just a quick question as I’m sure there are some knowledgeable people here who can advise.

My brother (age 30) is looking to buy an apartment in the price range of 100k – 120k. He’s worried that his salary is too low to be considered (it’s €29,500 gross). He has a deposit of 20k and has no outstanding debts or loans. He’s single with no children and is in permanent full time employment. He’s quite frugal and would comfortably make the mortgage repayments.

Is he likely to get a mortgage or does he need to be earning a higher salary?

Thanks in advance for any replies.

Michael D Not Higgins

The AIB mortgage calculator would approve him in that range.

Snakeweasel

I'm currently looking for a mortgage, on about €5000 more than your brother, with a smaller deposit & a car loan and have been pretty much told by banks that I will be approved for the price range I'm looking at which is around €85000 (ah the joys of being a culchie) wouldn't be surprised if he was approved for close to what he's looking for.

somesoldiers

Michael D Not Higgins wrote: »

The AIB mortgage calculator would approve him in that range.

I wouldn't bank on that too much better to ring them up. I filled out the calculator a couple of weeks back and got a nice figure which I would have thought about right, when I rang them up they quoted me 1/3 of what the calculator had said.

AIB offered me 65K in the end, I already have a mortage with EBS which I am planning on clearing, though the wife will not be earning next year when i do apply again so will be based on a single earnings. EBS have offered 175K based on the exact same circumstances! and these are owned by AIB.......who knows

Aslo best to get the ball rolling on this asap as there are new rules coming in Jan 1st, rumoured to be that you will need 20% or the house value as deposit though tbh I haven't kept abreast of this and it may not be still on the cards

Sala

Mortgages.ie suggests a single applicant needs a minimum of €35k salary, although I suppose it's up to the bank.
Based on the new rules that are due in January he needs 20% deposit and can get max 3.5 times income. With 20k in savings that means he could potentially buy somewhere worth 100k. If he ups his savings and gets the full 3.5 times income that would be €103,250 mortgage plus 20% €25,812.50 = €129,062.50 max. Remember he need legal fees stamp etc

hfallada

Maybe your brother should call a broker. They will be able to tell you what mortgages they have gotten recently and what banks will lend to your brother. I know some brokers during the boom had a "good relationship" with the bank. Which generally meant they would approve mortgages they really shouldn't

ghogie91

Im 23 and earn a little more than your brother and there was no problem with AIB saying that they would fund 100,000 of the purchase of 115,000 house