Realistic Price Range?

ChrisWeiland

Looking for a bit of advice here.

Myself and my wife are first time buyers. We have a combined gross income of 82k per annum. We are both in permanent employment (she has been with her company for 3 years and I have been with mine for 7 years). We also have approx 30-35k in savings for a deposit.

From what I gather that puts us in a good position to apply for a mortgage. My question however is what should our realistic price range be?

Ideally we would like to buy a three bed house which is in a new development, however the starting price for these is €365k.

Do we simply not earn enough for that type of property or are we entitled to any exemptions?

Sorry for the long post but any advice would be greatly appreciated!

GingerLily

If you can avail of the full help to buy scheme allocation you will get an additional 18.25k.
You would need a mortgage of circa 310k/315k so you would need an LTI exemption of about 3.8, which is achievable.

How much do you spend each month on rent savings?
What other debts do you have?

ChrisWeiland

Thanks for the response!

We have no existing debts and have a good credit history. We have been renting together since 2009. Our current spend each month on rent is €1250

GingerLily

What do you save each month? As in the minimum amount for the last 6 months

GingerLily

You need your rent + savings > stressed mortgage payments.

A 315k mortgage over 30 years stressed at 6% (usually you need to add 2% to the variable rate that bank offers) implies payments of about 1900e a month - so you'd to have 650e saved on top of rent each month for the last 6/12 months.

Your actual payments should be much less - 1340e @3% 315k and 30 year term.

Definitely go talk to a bank, because you are definitely near the requirements.

ChrisWeiland

Appreciate the feedback GingerLily - thanks again