Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage regulations question

Options
  • 14-07-2016 11:23am
    #1
    sleepily
    Registered Users Posts: 23 ✭


    Quick question on the central bank mortgage restrictions.

    I'm just starting the process of looking to buying a property and am confused about how much I can actually spend on a house.

    I know I can (in principle!)borrow €350K based on that being 3.5 times our joint income.

    My question is whether our 10% deposit goes on top of that amount or does it form part of the €350K.

    Can we buy a house for €350K, putting up €35K as a deposit, or can we actually buy a house for €390K - borrowing the full €350K and putting up a €39K deposit?
    Tagged:


Comments

  • Options
    #2
    OfflerCrocGod
    Registered Users Posts: 6,309 ✭✭✭OfflerCrocGod


    It goes on top of it. €350K is your mortgage, the deposit allows you to buy houses for more than that.


  • Options
    #3
    wench
    Registered Users Posts: 1,640 ✭✭✭wench


    The deposit isn't a flat 10%.
    That applies to the first €220K, and then it's 20% of the rest


  • Options
    #4
    Angel2016
    Closed Accounts Posts: 194 ✭✭Angel2016


    wench wrote: »
    The deposit isn't a flat 10%.
    That applies to the first €220K, and then it's 20% of the rest

    Unless they have an exception which some people have got from banks then they would need 10% but then again maybe the person isn't aware they need the 20%.


  • Options
    #5
    CT2
    Registered Users Posts: 40 ✭CT2


    Go to a bank/ broker and get AIP, this will let you know how much you can borrow.

    The mortgage rules are a bit more flexible if you are joint applicants earning over 80k or single applicant earning over 50k.

    You can get up to 4 times your basic guaranteed income or you can break the 20% to 10% deposit rule.
    you can not do both to the best of my knowledge and bank have limit to how many exceptions they can take in a year!

    Search for mortgages.ie and how much can i borrow.


  • Options
    #6
    sleepily
    Registered Users Posts: 23 ✭sleepily


    No sorry, I do know its a 20% deposit over €220K!

    I just wasnt sure where that deposit sits in the grand figure! Thanks for the responses though. This is how I thought (and hoped!) it worked but I read some conflicting stuff online.


  • Advertisement
  • Options
    #7
    Angel2016
    Closed Accounts Posts: 194 ✭✭Angel2016


    sleepily wrote: »
    No sorry, I do know its a 20% deposit over €220K!

    I just wasnt sure where that deposit sits in the grand figure! Thanks for the responses though. This is how I thought (and hoped!) it worked but I read some conflicting stuff online.

    When you go online it can be very confusing I was in that position myself but I had a great broker who explained everything to me so I have a clear head now, best of luck.
    There will be 5k / 6K for legal fees and stamp duty if that applies so factor that into your figures too.


  • Options
    #8
    conor222
    Registered Users Posts: 1,340 ✭✭✭conor222


    House cost is 300k for example
    you have a deposit of 50k
    you pay 50k deposit, your mortgage is for 250k. Your income restriction comes off that figure so
    250k/3.5 = 71.5k approx income required (as someone said above, unless you have an exemption)


Advertisement