Lending restrictions: what ya gonna do?

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TrishSimon wrote: »

I am going to be stuck renting a kip of a house and paying € 1100 per month, myself and my husband for 2 years knuckled down and were paying loads of anything we owed like loan and credit union and saving at the same time we have just about enough to cover 10% needed for a house of 230K plus all the usuals like legal fees etc but now with the 20% coming in we are never going to get there I am 39 and my husband is 40.
I already own an apt a one bed which I rent out as its too small for us to live in because I am involved in animal rescue and have animals plus my tenant really loves living there she is a great tenant no hassle I dont make any money from the apartment the rent I get paid just about covers mortgage, maintenance fees and property tax. I agreed not to raise the rent for her because she herself owns in Wexford so we thought we were doing good having the 10% not obviously not !

You dug your own grave on this one. Your apartment is an asset. Maximize the return by upping the rent. Even at that (and I'm not trying to be nasty) but I'd be surprised if the bank agree to a mortgage beyond 20 years if you don't apply until your husband is 43. The opportunity is there for you to buy a house if that's what you want but it is totally up to you to seize the opportunity.

TrishSimon

donkeyoaty0099 wrote: »

You dug your own grave on this one. Your apartment is an asset. Maximize the return by upping the rent. Even at that (and I'm not trying to be nasty) but I'd be surprised if the bank agree to a mortgage beyond 20 years if you don't apply until your husband is 43. The opportunity is there for you to buy a house if that's what you want but it is totally up to you to seize the opportunity.

The bank did agree to give us a mortgage over 27-29 years once you go over 40 that is the option available to you, we didn't find any house suitable and were outbid on alot of them. Mortgages are valid for 6 months so AIB told us to go off and save a few more thousand to have better options available to us, if I up the rent I pay more income tax, I am not a greedy LL and I realise my tenant too owns and has to pay a mortgage on her place and 740 is around what she can afford and to have a great tenant who never causes any problem and who keeps the place in great condition I will leave the rent at 740.00. My mortgage, maintenance fee and life assurance are covered so there is no loss on my side whilst also no profit.

My point is where we once thought we had enough to move and own our own home we now will have to save alot more money to have the deposit required for most banks.

drumswan

TrishSimon wrote: »

The bank did agree to give us a mortgage over 27-29 years once you go over 40 that is the option available to you, we didn't find any house suitable and were outbid on alot of them. Mortgages are valid for 6 months so AIB told us to go off and save a few more thousand to have better options available to us, if I up the rent I pay more income tax, I am not a greedy LL and I realise my tenant too owns and has to pay a mortgage on her place and 740 is around what she can afford and to have a great tenant who never causes any problem and who keeps the place in great condition I will leave the rent at 740.00. My mortgage, maintenance fee and life assurance are covered so there is no loss on my side whilst also no profit.

My point is where we once thought we had enough to move and own our own home we now will have to save alot more money to have the deposit required for most banks.

You own an apartment you wont sell and are not leveraging its proper market rent. I dont think people will have much time for the poor mouth routine.

The_Morrigan

Folks you've gone off topic, can you get back to the question in the OP please.

TrishSimon

Aka Ishur wrote: »

Are you not planning on paying income tax on the 740? All I am saying is be careful not to put your life on hold too long for the sake of a few euro. If you would be happier in a house starting a family its what I would seriously look at doing.

Yes I pay income tax so not worried about that.
I would prefer my own home then wasting money paying rent plus I feel more comfortable starting a family in a home I own, if we decided to have a child now we would never be able to afford to save anything.
We just have to knuckle down and get more money together and hope for the best.

TrishSimon

drumswan wrote: »

You own an apartment you wont sell and are not leveraging its proper market rent. I dont think people will have much time for the poor mouth routine.

I'm not trying to be a poor mouth drumswan, I was merely stating that at the moment we have the 10% deposit and legal fees, stamp duty for a house but if the new rules of 15-20% come in we will have to save for about 27 more months. I stated I had the apartment because its too small for us to move back to and also the lease has just been signed again for a year so that was not an option, you don't know me or anything about where the apt is or how much it is worth so dont assume I am loaded.
Think before you post in future and as the moderator said everyone is going off topic here focusing on my apt and not the orignal post.

The_Morrigan

TrishSimon wrote: »

I'm not trying to be a poor mouth drumswan, I was merely stating that at the moment we have the 10% deposit and legal fees, stamp duty for a house but if the new rules of 15-20% come in we will have to save for about 27 more months. I stated I had the apartment because its too small for us to move back to and also the lease has just been signed again for a year so that was not an option, you don't know me or anything about where the apt is or how much it is worth so dont assume I am loaded.
Think before you post in future and as the moderator said everyone is going off topic here focusing on my apt and not the orignal post.

....and yet you've ignored that instruction. Take your own advice there please Trish.

/Mod

LG1234

How many of the people with the 20percent saved are buying in Dublin?

Mr.McLovin

although its only a very small sample but looking at the results in thus far it would suggest next year might see a big drop off in FTBs

El_Dangeroso

I have the 20% but only because I am determined to get a modest mortgage. I was going to have the 20% regardless of the new rules as I am allergic to debt and if I hate the idea of a millstone of a mortgage hanging around my neck. I want freedom to take risks in my career and you can't do that with a big mortgage.

I know people that are trying to stretch themselves in every way possible to get a big detached house to impress god knows who. It's those people for whom these rules are the most important to save them from themselves.

Perciville

marathonic wrote: »

I suspect the 15% will be mostly reserved for high-value jobs with low starting salaries - such as trainee doctors, accountants and solicitors.

It wouldn't make sense to restrict a trainee in these professions to mortgages of 3.5 times their trainee salary.

According to our bank, in order to qualify the 15% you'd need the following:

Individual: would need to have a remaining disposable income of €2200pm after the stressed mortgage payment was deducted
Couple: would need €3950 remaining after stressed mortgage payment was deducted

Maybe this isn't the case across the banks, and maybe there is some room for negotiation, but on the face of it it's extremely restrictive.