Average monthly mortgage repayments

d-gal

A little bit far flung but wondering what’s the average monthly mortgage repayments for people who’ve bought in the last few months?

I’m in the middle of buying my first house and I can’t imagine many of my friends being ever able to afford a mortgage. Despite our consistent savings for years I can still see us having a highish (but manageable) monthly payment for 25+ years despite the low interest rates. We are in Galway and everything is skyrocketing, much the same as cork and of course Dublin. The pace of rent is going up quicker and I can only imagine people getting caught with an unimaginable mortgage payment if they buy in 3-4 years time.

Captain Flaps

Currently coming towards the end of the bidding process on a 3bed terraced in south dublin. On a reasonably good rate with an exception on a 35yr schedule our mortgage would be just under the 1500 mark if all proceeds as planned. For reference I'm currently renting a 2 bed duplex in finglas for 1250 a month, expecting that to rise in the next couple of months though so hoping this sale goes through!

Odyssey 2005

You first op..

My better half and I are looking to buy at the moment, have AIP, payment range is somewhere between 1/4 and 1/3 of our take home pay, probably closer to the 1/4 than the 1/3.

JimmyMW

Magdalena Plain Schoolteacher wrote: »

My better half and I are looking to buy at the moment, have AIP, payment range is somewhere between 1/4 and 1/3 of our take home pay, probably closer to the 1/4 than the 1/3.

This is a good way to judge whats affordable without exposing peoples exact finances. Is around the 25% mark deemed affordable?

d-gal

Odyssey 2005 wrote: »

You first op..

Yet to confirm but around 1200. Still waiting on final approvals

TheAnalyst_

1250 at a low interest rate. I should have stretched for something bigger as its only a bit more than 10% of take home but the market was different when I bought.

rameire

use in excel
=-pmt(rate/12,term in months,balance)

find a few places you like
look at one fo the banks and look at their fixed rates or variable rates you could pick 3.6% for example
and then pick a term, maybe 30 years so 360 months

so =-pmt(3.6%/12,360,275000)

answer is 1250.27 for above.

and it will give you an idea.

Squall Leonhart

You take home 12K a month!!?

Our mortgage payment is 15% of combined take home, purchased in Limerick City summer 2017.

Samuel T. Cogley

Just got her under 700 a month. 4 bed semi in North Dublin bought in 2015 with a large deposit and we've paid down some recently.

Inspector Coptoor

Squall Leonhart wrote: »

You take home 12K a month!!?

Our mortgage payment is 15% of combined take home, purchased in Limerick City summer 2017.

Mortgage is €1585.
Overpaying by 10%.
On a 3% fixed rate on a house in South County Dublin.
Was originally a 30 year term - down to 26 with overpayment. 24 years to go.

JamBur

786 a month. Happy enough at that level. It represents about 15% of take home. Not particularly enamored of the thought of another 23 years though. Time to start lashing in a regular over payment similar to the last poster.

dev_ire

rameire wrote: »

use in excel
=-pmt(rate/12,term in months,balance)

find a few places you like
look at one fo the banks and look at their fixed rates or variable rates you could pick 3.6% for example
and then pick a term, maybe 30 years so 360 months

so =-pmt(3.6%/12,360,275000)

answer is 1250.27 for above.

and it will give you an idea.

Ignore me, this is spot on (I entered house price not mortgage amount)

spyderski

TheAnalyst_ wrote: »

1250 at a low interest rate. I should have stretched for something bigger as its only a bit more than 10% of take home but the market was different when I bought.

You take home €12,000 per month after tax, and you’ve got a mortgage for around €300k?

Lumen

spyderski wrote: »

You take home €12,000 per month after tax, and you’ve got a mortgage for around €300k?

I don't think it's that unusual for people with high incomes to have relatively modest mortgages. High incomes tend to be lumpier and more difficult to sustain over a long period. Also, income tends to peak late in life when people are focusing on building retirement funds, not taking on massive debt.

theboringfox

We bought in 2016 in Cork City. Mortgage is about 14% of take home pay. House needs work/extension. So may rise to 20-25% yet and assuming no wage increase. I took a 35 year mortgage too though. In general whilst a bit outdated I like the old 30% rule for housing costs and want to stay within it with a buffer for future rate increases. But each to their own. Those rules obviously are based on an average so if you've large or very small outgoings outside of house adjust accordingly. So many variables.

AndyBoBandy

Bought in 2014 for 250k, borrowed 165k over 20 years, payments were €1,025 per month, but overpayments since the beginning coupled with 2 interest rate reductions (1st was due to reduced LTV (though I still had to call and ask for it) 2nd was due to threatening to switch to a competitor with a lower rate) means our monthly repayments now are €714 (calculated for the remaining 16 years), however continued overpayments should have us fully repaid in about 5 years.

We are paying about 35% of our take home salary.

Total expected interest repaid should reduce from about 85k to about ~40k

Probably would have been even further along had we not been surprised with the news of a little bundle of joy on the way within a month of moving in!!

CeilingFly

rameire wrote: »

use in excel
=-pmt(rate/12,term in months,balance)

find a few places you like
look at one fo the banks and look at their fixed rates or variable rates you could pick 3.6% for example
and then pick a term, maybe 30 years so 360 months

so =-pmt(3.6%/12,360,275000)

answer is 1250.27 for above.

and it will give you an idea.

dev_ire wrote: »

Ignore me, this is spot on (I entered house price not mortgage amount)

even easier here and you can see precise payments for any inetreest rate over any term in a couple of seconds

http://www.amortization-calc.com/

chases0102

When people give the % of net pay on mortgage, are the identitying their joint (with partner) % on mortgage, or on their own income?

theboringfox

chases0102 wrote: »

When people give the % of net pay on mortgage, are the identitying their joint (with partner) % on mortgage, or on their own income?

I was looking at it as joint in my post above.

AndyBoBandy

chases0102 wrote: »

When people give the % of net pay on mortgage, are the identitying their joint (with partner) % on mortgage, or on their own income?

joint salary in my case as well

CeilingFly

CeilingFly wrote: »

even easier here and you can see precise payments for any inetreest rate over any term in a couple of seconds

http://www.amortization-calc.com/

https://www.drcalculator.com/mortgage/ie/

This one here has a lot of extra options for things like overpayments, interest rate changes, calculates your loan after deposit, etc.

heroics

20% of joint net income in my case. bought last year

chases0102

Cheers.... I'm about to close on a new build with my partner, bang on 30% of joint net income.... Hopefully we're not making a mistake!

Cakes and Ale

Just over 25%, single income. Bought 4 years ago. LTV must be much less than <80 now so think it's worth going to pay for new evaluation to avail of the lower interest rate. Or any thoughts on that?

scriba

We're about to sign contracts and close. Currently paying 21% of our joint take home in rent. Mortgage will be for thirty years at 17% of current take home pay. Buying 290k with 20% deposit.

chicken foot

Cakes and Ale wrote: »

Just over 25%, single income. Bought 4 years ago. LTV must be much less than <80 now so think it's worth going to pay for new evaluation to avail of the lower interest rate. Or any thoughts on that?

Beware of increased home insurance costs! Revaluation may up the value of the house but also brings rebuild value up. Ours increased by 50,000 meaning we'd to insure for higher!!
Didn't think of that hurdle in advance. House prices stayed the same, rebuild went up - go figure! Previous evaluation done three years ago, the new one was last year.

Hitman3000

Fair play to you guys, I couldn't face a 30 year mortgage. I took out a 30 year mortgage just to meet the repayment criteria but remortgaged as soon as I could. Knocked 10 years off it.

Peatys

Went from paying 2000 rent for a small midterrace with communal parking, and a slope for a back garden, to €1050 over 30yrs (overpaying by 450pm) for an a rated 3 bed semi with nice West facing garden, and driveway for 3 cars.

Both in Ridgewood Swords.

Graham

chicken foot wrote: »

Beware of increased home insurance costs! Revaluation may up the value of the house but also brings rebuild value up. Ours increased by 50,000 meaning we'd to insure for higher!!

Isn't that a good thing?

The alternative could have been you discovered you were underinsured in the unfortunate scenario where you needed to make a claim.

manonboard

I pay 550euro a month, 1 bed room apartment.
Bought in 2009.

It suits me pretty well and its kinda been like a safety net against all the wierd stuff that has been happening in the market.

I was lucky and got it on some 'help me buy' scheme which reduced the price about 30%.

The value of the place now is exactly what i paid for it. It never really went in negative equity. I purchased at 127k. 'market' value was 197k. It dropped to 120k and is now back at 130k.

The numbers i see others passing around scare me alot. I have great sympathy for those who need to pay 1/3 or 1/2 of their income. Very sad.

chicken foot

Graham wrote: »

Isn't that a good thing?

The alternative could have been you discovered you were underinsured in the unfortunate scenario where you needed to make a claim.

We built 6 yrs ago for 200k, our house is now insured for 380k as the rebuild price used by banks is the national average.
If I had 380k to rebuild my house we'd be like Trump Towers with Golden toilets and gilted walls. There isn't a hope in hell a rebuild would cost that much.

Hitman3000

chicken foot wrote:

We built 6 yrs ago for 200k, our house is now insured for 380k as the rebuild price used by banks is the national average. If I had 380k to rebuild my house we'd be like Trump Towers with Golden toilets and gilted walls. There isn't a hope in hell a rebuild would cost that much.

You're paying a premium based on a rebuild of 380k? Why the land your home is sitting on is perhaps the most expensive element. Is the insurance through the bank?

myshirt

Ideally you would be spending 25% or less on your mortgage, though 30% is ok, and 40% in a severely distressed scenario (go even half a percentage above that and you are tinkering on putting your balls in a blender).

If you could meet these metrics on 1 income, great, 1.5 incomes, ok, but where you have the trouble is people paying 35% of a two salary take-home. That is a lot of risk.

If you look at mortgage payments of 1,300-1,600 which is likely the entry range in non rural locations, you are talking the bones of 5 grand take home each month. While not off the wall, it's a lot to expect of every young couple , so the reality is only those who are well heeled (or those that fight like a beaver) are getting in on the game.

There is somewhat an 'ethnic cleansing' of the middle class. Pushed further and further out, to Ratoath, Ashbourne, and even Dundalk, if at all they get a place.

chicken foot

Hitman3000 wrote: »

You're paying a premium based on a rebuild of 380k? Why the land your home is sitting on is perhaps the most expensive element. Is the insurance through the bank?

We switched mortgage provider last year. They required a new evaluation. The value has remained static, as in the sale price, but, the rebuild price is what went through the roof. Rebuild is based on price per square foot of the national average - regardless of the fact that we built it initially for 180k LESS than what this national average suggests.
It's bonkers, you can't apply D4 prices to the whole nation yet that's what they're essentially doing.
It's just a warning to heed

.......

This post has been deleted.

shane.

Inspector Coptoor wrote: »

Mortgage is €1585.
Overpaying by 10%.
On a 3% fixed rate on a house in South County Dublin.
Was originally a 30 year term - down to 26 with overpayment. 24 years to go.

Just wondering how you set up the overpayment?, were on a tracker, does that make a difference

What Username Guidelines

Cakes and Ale wrote: »

Just over 25%, single income. Bought 4 years ago. LTV must be much less than <80 now so think it's worth going to pay for new evaluation to avail of the lower interest rate. Or any thoughts on that?

Do it, and if the bank doesnt want to play ball, move to another bank. I did it recently and saved €225 per month. Yes, per month. Went from 1350 to 1125, so its big chunk and not even a massive mortgage.

Costs to me were valuation (€150), increased home insurance (€28 per year) and increase in mortgage protection protection to extend the term a little to match the new term. The premium went up €6 per month which was frustrating given I was extending it, but still a very small amount when considering the mortgage savings.

EDIT: forgot to include solicitors fees to the deal, which were approx €900. Bank also had a €2,000 cashback deal tho

Avatar MIA

What Username Guidelines wrote: »

...and increase in mortgage protection protection to extend the term a little to match the new term.

That's why your monthly payment went down so much, you extended the repayment period of the mortgage, and the overall interest you pay.

Hitman3000

chicken foot wrote:

We switched mortgage provider last year. They required a new evaluation. The value has remained static, as in the sale price, but, the rebuild price is what went through the roof. Rebuild is based on price per square foot of the national average - regardless of the fact that we built it initially for 180k LESS than what this national average suggests. It's bonkers, you can't apply D4 prices to the whole nation yet that's what they're essentially doing. It's just a warning to heed

My home insurance is based on the rebuild cost which I know myself as I was involved the industry. I don't have the house insured with the bank. They are only named as an interested party.

ELM327

Just signed contracts for a 3 bed in County Meath, Mortgage is 390 pcm
Compared to current rent of 1k pcm

theteal

We're paying just shy of 28% of take-home, that's not too bad considering MrsTeal has gone part-time (coz of the baba) and I still have quite a bit of advancing to do after a somewhat recent career change - expecting a decent bump next month actually. Thankfully we're on a fixed 1.44% until 2020.

What Username Guidelines

Avatar MIA wrote: »

That's why your monthly payment went down so much, you extended the repayment period of the mortgage, and the overall interest you pay.

The term was only extended by 6 weeks as the bank could only give full calendar years, so has very little impact on the repayment. The insurer could also only offer calendar year increases, so had to extend cover by an extra year.

heldel00

shane. wrote: »

Inspector Coptoor wrote: »

Mortgage is €1585.
Overpaying by 10%.
On a 3% fixed rate on a house in South County Dublin.
Was originally a 30 year term - down to 26 with overpayment. 24 years to go.

Just wondering how you set up the overpayment?, were on a tracker, does that make a difference

I'm variable with AIB. I just set up a direct debit into mortgage account with the instruction "pay off principle".
I receive a letter from them every month then telling me about my out of course payment reveived blah blah blah....
I have written and asked them not to send me this letter as i think it is such a waste of paper and postage. An email would suffice. This hasn't happened.

If you are in the early days of your mortgage term then paying fortnightly might be beneficial. 26 fortnights in the year so you are making an extra mortgage payment every year without consciously doing it.

chicken foot

Hitman3000 wrote: »

My home insurance is based on the rebuild cost which I know myself as I was involved the industry. I don't have the house insured with the bank. They are only named as an interested party.

We are not insured with the bank either. The bank requested a valuation, the valuation returned the extortionate rebuild total, the bank then demands that the house is insured for that value as a condition of the mortgage.

What Username Guidelines

What Username Guidelines wrote: »

The term was only extended by 6 weeks as the bank could only give full calendar years, so has very little impact on the repayment. The insurer could also only offer calendar year increases, so had to extend cover by an extra year.

Did you consider keeping your repayment the same when you moved bank to reduce the term (if you were comfortable with paying what you were all along)? Could have knocked a few years off your mortgage and the amount of interest you pay.

Hitman3000

chicken foot wrote:

We are not insured with the bank either. The bank requested a valuation, the valuation returned the extortionate rebuild total, the bank then demands that the house is insured for that value as a condition of the mortgage.

Have tbh never encountered that with our bank. Ulster bank btw. I tell the insurance the rebuild cost that's it no question from the bank. Mortgage protection is different .

chicken foot

Hitman3000 wrote: »

Have tbh never encountered that with our bank. Ulster bank btw. I tell the insurance the rebuild cost that's it no question from the bank. Mortgage protection is different .

Yep, we got stung with that one. We're with KBC but similar happened with AIB. We had to insure for the rebuild value stated in the evaluation.
I could technically get a contractor in to argue the valuers report but that's just more money. At this rate I wouldn't mind the house falling down - oh what I could do with 380k!!!

LoMismo

Bought a 2 bed terrace in Dublin 5, 12 mins walk from Raheny Dart station, in January 2016 for 167k. It's now probably worth around 240k going on similar sales nearby.
My repayments are 643 a month and I get 500 for my spare room. I got so lucky, when I see what people are paying for rent and buying houses nowadays. Any friend I have who is renting a room pays more than my mortgage, for a bloody room!

thierry14

ELM327 wrote: »

Just signed contracts for a 3 bed in County Meath, Mortgage is 390 pcm
Compared to current rent of 1k pcm

Very nice

Thought you were getting an apartment?

I bought in 2016

120k 4 bed, county Limerick

Worth about 140-150k now I'd say

No mortgage, paid cash

Probably should have got a mortgage and kept cash though, rates are getting low

Saved wife salary for few years

ELM327

thierry14 wrote: »

Very nice

Thought you were getting an apartment?

I bought in 2016

120k 4 bed, county Limerick

Worth about 140-150k now I'd say

No mortgage, paid cash

Probably should have got a mortgage and kept cash though, rates are getting low

Saved wife salary for few years

Yes, 3 bed apartment.
I wanted to buy a couple of years ago as it would have been closer to 75-80k then - 2011/2012 - but I couldn't get a mortgage in those days.