Could I afford a mortgage with this plan?

Socket2me

Hi all

After meeting with a pensions advisor this week, he knocked home to me that I should really start saving now for a mortgage (with an aim to get one in 5 years) . I've been pouring over material but I'm not sure if I would even be able to get one.

I am currently living at home, working for the civil service on 28k and paying a small amount of rent, my shares of bills etc.

I am saving 800e a month, but knock away a bit at that for holidays and luxuries

With increments to my job, I should be on about 37k in 5 years.

I'm hoping to start putting aside 500 a month (keeping 300 a month for myself) moving up to 1000 a month about a year before I apply for the mortgage so that I can show I have regular savings close to the amount for mortgage repayments.


All going well I should have about 25k saved in 5 years. I am looking for a 2 bed apartment in south Dublin.

My aim would be to rent one of the bedrooms out for the first 5-7 years, after that I expect to be able to comfortably pay the mortgage alone.

Realistically, would I be on the right track? Any help would be amazing

dubrov

Socket2me wrote:

Realistically, would I be on the right track? Any help would be amazing

The plan looks good financially.

Your problem will be borrowng enough from the bank to buy the 2 bed.
Even on 37k with a 25k deposit, you would be looking at properties around 140k.

Lumen

Living at home on net income of 2k/mo you should be able to save 1k/mo without difficulty, giving 60k in 5 years.

I wouldn't count on being able to buy a 2 bed apartment in south Dublin though, unless you mean Tallaght.