One bedroom Apt query

LostHiigaran

Hi all,

Are banks still shy about selling to individuals with a 10% deposit?

I am in complete limbo at the moment, have been saving very hard for 2 years and have 10% deposit for 125k apartments.

I pay 1350 in rent, and save around 600 a month (due to renting a room) but the tenant will be leaving soon (they are close family), leaving me with 100 a month. I can very easily afford a mortgage. If I cant get a mortgage for a one-bedroom apt, my life will be in limbo.

If its uncommon but happens, then I have hope. If not then I need to make a big decision leaving the country for somewhere affordable.

catrionanic

LostHiigaran wrote: »

Hi all,

Are banks still shy about selling to individuals with a 10% deposit?

I am in complete limbo at the moment, have been saving very hard for 2 years and have 10% deposit for 125k apartments.

I pay 1350 in rent, and save around 600 a month (due to renting a room) but the tenant will be leaving soon (they are close family), leaving me with 100 a month. I can very easily afford a mortgage. If I cant get a mortgage for a one-bedroom apt, my life will be in limbo.

If its uncommon but happens, then I have hope. If not then I need to make a big decision leaving the country for somewhere affordable.

Most banks insist on a 25% deposit for a one-bed. I believe this is on the grounds that they are harder to sell on in the event of another property market slump.

If it's a two-bed and you are a first-time buyer, you would only need a 10% deposit though. That's also provided that you meet the minimum income requirements, as they will only lend you 3.5x your annual salary.

It may be possible to get an exemption on the 10% deposit though, if you're a good candidate. Generally that means that you have a good salary but haven't saved the full 10% deposit, but different banks seem to have different criteria.

From what you're saying here, I don't think the odds would be in your favour to get a property right now. But you should speak to a mortgage broker, as they'll be able to look at all the options.

myshirt

Do you understand where all your money is going?

Bite down hard and live on as tight a budget as you can.

CeilingFly

If the apartment is in Dublin, you won't have an issue.

But to get the right answer, simply call a mortgage broker.

4ensic15

LostHiigaran wrote: »

Hi all,

Are banks still shy about selling to individuals with a 10% deposit?

I am in complete limbo at the moment, have been saving very hard for 2 years and have 10% deposit for 125k apartments.

I pay 1350 in rent, and save around 600 a month (due to renting a room) but the tenant will be leaving soon (they are close family), leaving me with 100 a month. I can very easily afford a mortgage. If I cant get a mortgage for a one-bedroom apt, my life will be in limbo.

If its uncommon but happens, then I have hope. If not then I need to make a big decision leaving the country for somewhere affordable.

If you are subletting, you should be able to replace the tenant. or else go into sharing yourself. Having an outlay on €1350 and only being able to save €100 is madness.

LostHiigaran

Thanks for the replies all. I've an appointment for one bank on Tuesday but will get in touch with a mortgage broker. I can afford the 125k with 10% and 3.5x of my salary so its a matter of finding out the willingness of a bank to provide the mortgage. I made this thread really because if I cant, what do I do? I am 30 now and want to secure my future.

Do you understand where all your money is going?

Bite down hard and live on as tight a budget as you can.

I budget down to the euro. I've been living very tightly for 3 years now and its starting to ware thin. I do not go on holidays, travel, go out on weekends etc. My food budget for awhile was my only outgoings that I could control but was making myself ill eating cheap processed foods (spent €150 on food a month at one point).

If the apartment is in Dublin, you won't have an issue.

But to get the right answer, simply call a mortgage broker.

Because of the budget and no transport, I need to buy near work which I know is stable and I'll be here for awhile if I can work this out. It would be D15/D11 areas.

From what you're saying here, I don't think the odds would be in your favour to get a property right now. But you should speak to a mortgage broker, as they'll be able to look at all the options.

I will! I wanted to know what to expect which is why I posted here, so hopefully I will know either way by the end of the week.

Thanks for all the replies

CeilingFly

I assume you are looking at santry cross.

Almost 600 sq ft - the size of many two beds. Close to airport, close to new metro (2050 probably), but not bad for 125k.

For apts, always check who the immediate neighbours are

LostHiigaran

CeilingFly wrote: »

I assume you are looking at santry cross.

Almost 600 sq ft - the size of many two beds. Close to airport, close to new metro (2050 probably), but not bad for 125k.

For apts, always check who the immediate neighbours are

It is either the west side of Ballymun (where its "nice") or Ongar. I work in the industrial park in Blanchardstown but the nearest bus-stop is only services by 3 buses. I can cycle from Ongar though.

Ideally it would be Ongar, although when I lived there before the current apt's for sale were where weekend parties would blast out music until 3am.

I cant really think about the options anyway until I have confirmation of the mortgage availability.

LionelNashe

LostHiigaran wrote: »

Hi all,

Are banks still shy about selling to individuals with a 10% deposit?

I am in complete limbo at the moment, have been saving very hard for 2 years and have 10% deposit for 125k apartments.

I pay 1350 in rent, and save around 600 a month (due to renting a room) but the tenant will be leaving soon (they are close family), leaving me with 100 a month. I can very easily afford a mortgage. If I cant get a mortgage for a one-bedroom apt, my life will be in limbo.

If its uncommon but happens, then I have hope. If not then I need to make a big decision leaving the country for somewhere affordable.

If the bank doesn't lend, couldn't you just get another tenant and keep saving? I bought a 1-bed at 29/30. It just occurred to me today that if I had a crystal ball and had sold it at its peak, and then bought it again when it was at its lowest, I'd have no mortgage now and an extra €30k in the bank. But nobody has a crystal ball. If you end up buying in 3 years rather than this year, you could be better off or worse off, you never know.

LostHiigaran

LionelNashe wrote: »

If the bank doesn't lend, couldn't you just get another tenant and keep saving? I bought a 1-bed at 29/30. It just occurred to me today that if I had a crystal ball and had sold it at its peak, and then bought it again when it was at its lowest, I'd have no mortgage now and an extra €30k in the bank. But nobody has a crystal ball. If you end up buying in 3 years rather than this year, you could be better off or worse off, you never know.

I understand the risk. It would not be an asset investment, and would want to try and pay it off within 10 years. Even cutting the savings in half I would have enough money to start living again.