Getting a mortgage and being single

I'm a single man, just heading into my 30s, I've spent the last 3 years studying to be a software developer, heading into my 4th and final year and hopefully future career.

When it comes time to buy I should have 50k saved and hope to bring home about 30k a year starting out as a software dev.

The new rules mean I could only borrow 3 times my salary, which is 90k plus my deposit of 50k, so 140k to spend before all my other fees.

This will not come close to buying a home in Dublin. Does that put me on the bench till I save substantially more money, or are the banks lenient on the rules?

ec18

Otto Zealous Sterilization wrote: »

I'm a single man, just heading into my 30s, I've spent the last 3 years studying to be a software developer, heading into my 4th and final year and hopefully future career.

When it comes time to buy I should have 50k saved and hope to bring home about 30k a year starting out as a software dev.

The new rules mean I could only borrow 3 times my salary, which is 90k plus my deposit of 50k, so 140k to spend before all my other fees.

This will not come close to buying a home in Dublin. Does that put me on the bench till I save substantially more money, or are the banks lenient on the rules?

Essentially yes. Or if you meet a partner you can make a joint application

Ri_Nollaig

I'd imagine the biggest hurdle will be length of time in full time employment?
You are still a student now and don't graduate until May 2016 I assume?
If you got a job there and then and started straight away, I would assume you couldn't consider a Mortgage until atleast May 2017.

But saying that, you have a very decent deposit. Perhaps make an appointment and speak to a Broker?
Being single is no barrier anyway.

Michael D Not Higgins

Yeah the fact that you'd be a new starter in the industry would work against you. Your 50k will likely bring your LTV down a lot which could give a bit of flexibility with the limits, e.g. 4x LTI of 30k would be 120k plus 50k would be 170k for an LTV of 70%. How likely they are to do this will depend on a number of things, but I'd echo the sentiments above and get a broker.

Realistically however, you're not going to afford a 3 bed semi in Dublin any time soon. You're going to have to settle for a one bed flat or look further afield.

Dearg81

Otto Zealous Sterilization wrote: »

I'm a single man, just heading into my 30s, I've spent the last 3 years studying to be a software developer, heading into my 4th and final year and hopefully future career.

When it comes time to buy I should have 50k saved and hope to bring home about 30k a year starting out as a software dev.

The new rules mean I could only borrow 3 times my salary, which is 90k plus my deposit of 50k, so 140k to spend before all my other fees.

This will not come close to buying a home in Dublin. Does that put me on the bench till I save substantially more money, or are the banks lenient on the rules?

I'd imagine you'll be on more than €30k after you have a couple of years experience as a software developer (assuming thats in Dublin too) so that will help. Also it's 3.5 times your salary not 3.

ec18

ec18 wrote: »

Essentially yes. Or if you meet a partner you can make a joint application

I don't want to do this for obvious reasons

Ri_Nollaig wrote: »

I'd imagine the biggest hurdle will be length of time in full time employment?
You are still a student now and don't graduate until May 2016 I assume?
If you got a job there and then and started straight away, I would assume you couldn't consider a Mortgage until at least May 2017.

But saying that, you have a very decent deposit. Perhaps make an appointment and speak to a Broker?
Being single is no barrier anyway.

Yeah I was under the impression I'd have to be 6 months in full time employment before they would even consider me for a mortgage, May 2017 isn't too long to wait.

Being single halves my loan amount no? depending on her job obviously.

Michael D Not Higgins wrote: »

Yeah the fact that you'd be a new starter in the industry would work against you. Your 50k will likely bring your LTV down a lot which could give a bit of flexibility with the limits, e.g. 4x LTI of 30k would be 120k plus 50k would be 170k for an LTV of 70%. How likely they are to do this will depend on a number of things, but I'd echo the sentiments above and get a broker.

Realistically however, you're not going to afford a 3 bed semi in Dublin any time soon. You're going to have to settle for a one bed flat or look further afield.

I have a great credit history, multiple credit union loans over the years, all paid off years in advance of schedule, I've had a credit card since I was 19, I use it for everything in my day to day life and have never had to pay any interest on it.

I assume all of the above will stand to me on my application?

A flat or apartment is not an option, I've always assumed I would have to buy in a commuter town starting out, like Naas, but the price's in commuter towns seem to be nearly on par with Some of Dublin now :rolleyes:

Eric Cartman

Most banks will want to see a track record of saving. When your finished college and get your first job , the first thing to do before you get paid is set up a standing order to a savings account , even 300-400 a month would probably do. Do the job for a year or 2 while keeping saving , 2018 can approach very quickly , but with a little luck then you'll have 2 years consistent record of savings, another 7200 (300 a month) onto your deposit and 2 years solid full time work record and the experience to go with it . this will make you a very secure buyer and you'll be in a position to approach a 200-220k mortgage easy enough. With the new rules you'll probably start seeing some dublin suburbs having houses pop up for this kind of money.

Eric Cartman

Eric Cartman wrote: »

Most banks will want to see a track record of saving. When your finished college and get your first job , the first thing to do before you get paid is set up a standing order to a savings account , even 300-400 a month would probably do. Do the job for a year or 2 while keeping saving , 2018 can approach very quickly , but with a little luck then you'll have 2 years consistent record of savings, another 7200 (300 a month) onto your deposit and 2 years solid full time work record and the experience to go with it . this will make you a very secure buyer and you'll be in a position to approach a 200-220k mortgage easy enough. With the new rules you'll probably start seeing some dublin suburbs having houses pop up for this kind of money.

Would my credit union loans not show that I am capable of saving?
I plan to do what you've suggested anyway, but I though the loans would somewhat go to showing my capability to manage my money.

I've been renting since my early twenties and have multiple utility bills in my name, do they look into things like this?

How confident are you the new rules will bring Dublin houses down that much by 2018? will we not see the cost stay high due to wealthy and foreign investment snapping up properties?

Eric Cartman

Otto Zealous Sterilization wrote: »

Would my credit union loans not show that I am capable of saving?
I plan to do what you've suggested anyway, but I though the loans would somewhat go to showing my capability to manage my money.

I've been renting since my early twenties and have multiple utility bills in my name, do they look into things like this?

How confident are you the new rules will bring Dublin houses down that much by 2018? will we not see the cost stay high due to wealthy and foreign investment snapping up properties?

Loans unfortunately don't count as savings, they help, but you need a savings record rather than just a paying debts record, also when you apply make sure all your credit union loans are completely cleared, you don't want to be having any loans, car finance etc.. when applying.

I don't think it will bring down existing prices , but you have areas like swords, ashbourne, lucan, celbridge etc.. that are near the city but keep sprawling. I wouldn't be surprised if some developers started developments of 2/3 bed semis or duplex's that are designed to fit the 220k FTB cap , with a deposit much greater than the 10% , a 2 year employment and savings record you should be able to pick one of these up.

Best to wait and see where you get work. You might get an offer thats not in Dublin or alternatively a location in easy access of a train station which might make somewhere like Drogheda or even Dundalk a goer..

Eric Cartman

Deleted User wrote: »

Best to wait and see where you get work. You might get an offer thats not in Dublin or alternatively a location in easy access of a train station which might make somewhere like Drogheda or even Dundalk a goer..

Id agree to a point, but being a developer , buying anything with a public transport link that leaves you at the quays in less than an hour is convenient for that profession, chances are you'll get work in swords, blanch, sandyford or the city centre so its not unsafe to research where you want to live now, rent there during your first year of employment and if you like it then start looking, if you don't like it you'd have another year to live elsewhere that may suit better.

johnnyskeleton

Are yor savings, rental and loan repayments coming from a current job, former job, gift/inheritance, redundancy payment etc?

Most banks will look at not just what you have but how you acquired it. If you are currently working while also in college, maybe speak to a bank now and tell them frankly what your plans are.

lainey316

I have a reasonable deposit saved, some by DD and some by adhoc, but the bank would not consider my application until I could show by paper trail (i.e. bank transactions) 6 months of direct debit savings + rent that would more than cover the stress tested repayment of the mortgage which was about 25% over the actual repayment). This was with my own bank so they had my full history. Other people I know have had to prove that the bulk of tehir deposit was from regular savings

There seems to be very, very limited leeway on the 3.5 when you are on your own, but there's a little (e.g. 3.6) .

ixus

Priorities, getting best results possible, getting a job sorted for as soon as you finish. Focus on career for at least two years to help you advance as much as possible. Salary scale rises quuckly in specialist areas.

Don't buy a house as you want to remain flexible to job opportunities at the beginning of career.

34/35 with 100k savings, 5yrs experience and a secure, well paid job could leave you looking at a much nicer home.

Bigger picture.

Jen44

I was in a similar situation when I was buying my first house. I decided to buy in Drogheda and have only just moved back after living there for 10 years! I found it great everything you need and your door step. I commuted to work in Dublin daily by car and my now husband used to commute daily to Dublin city on the Matthews bus! It is doable and a great place to start out in.

c_man

Otto Zealous Sterilization wrote: »

...hope to bring home about 30k a year starting out as a software dev.

The new rules mean I could only borrow 3 times my salary...

You won't/shouldn't be on that amount after a short while as a dev. So depending on when you're planning on applying (say a year and a half, two years into your career) you should be able to borrow more.

gaius c

Otto Zealous Sterilization wrote: »

I'm a single man, just heading into my 30s, I've spent the last 3 years studying to be a software developer, heading into my 4th and final year and hopefully future career.

When it comes time to buy I should have 50k saved and hope to bring home about 30k a year starting out as a software dev.

The new rules mean I could only borrow 3 times my salary, which is 90k plus my deposit of 50k, so 140k to spend before all my other fees.

This will not come close to buying a home in Dublin. Does that put me on the bench till I save substantially more money, or are the banks lenient on the rules?

Be realistic. You're not going to be able to get a 3 bed semi by yourself but you should be able to get a reasonable apartment.
Talk to a bank and/or mortgage broker to see what you can get approval for.

They can't do anything about you being single though. :P

percy212

Don't buy for a couple of years. You don't know where you may decide to go e.g. double your income in London for a while. You have a lot of flexibility in software so don't make a rash decision because we have lost our collective mind over property again. In any case your income should be almost double your starting amount in a couple of years so don't worry....

percy212

percy212 wrote: »

Don't buy for a couple of years. You don't know where you may decide to go e.g. double your income in London for a while. You have a lot of flexibility in software so don't make a rash decision because we have lost our collective mind over property again. In any case your income should be almost double your starting amount in a couple of years so don't worry....

Some people have an idea of where they want to live though (near family etc) and have no interest in going abroad etc.

Jonotti

Claire Short Peon wrote: »

Some people have an idea of where they want to live though and have no interest in going abroad etc.

He needs to follow the jobs and follow the money. Owning a house is bad for your career at the early stages. I know people that won't join me in a move abroad despite the fact that they can triple their wage all because of their celtic tiger house.

Jonotti

Jonotti wrote: »

He needs to follow the jobs and follow the money. Owning a house is bad for your career at the early stages. I know people that won't join me in a move abroad despite the fact that they can triple their wage all because of their celtic tiger house.

I wouldn't move abroad for more wages or better choice of jobs because I have no interest in leaving Ireland, many people are like this.

I'm tailoring the route I go down career wise to the jobs where I want to live rather than moving to find job fitting my exact background.

athtrasna

Mod note

Can we get back on topic please. OP has not mentioned anything about moving abroad.

Thanks for all the replies, I would consider myself a home bird and feel I will always return to Ireland, but in saying that I am relatively young and have not seen much of the world and I know that my job could allow me to travel.

I didn't mention it in the title but I would follow the money if the country and offer was appealing enough, but I don't see how owning a house would prevent me from doing this, surely I could just rent the house while I was away?
I have friends who did just that and moved to OZ for a few years, and as far as I know the rent more than covered the cost of the mortgage, leaving a small bit in pocket.

I would never buy an apartment and wouldn't particularly like to live in one either.
I've always wanted my own home, a 3 - 4 bed semi in and around Dublin was the goal, but from what I've taken form this thread, my fears were correct and I will have to wait another good few years before a bank will consider me for a mortgage.