mortgage 4.8 times salaey?

Stheno

does anyone know how much of an exemption the banks give on central bank rules.

scenario is permanent public sector worker basic of 29k overtime and shift alliwance bringing it to 35k

would the banks considet a mortgage of 165k on a house valued at 250k?

person is trying to buy a second person out

Mark1916

Stheno wrote: »

does anyone know how much of an exemption the banks give on central bank rules.

scenario is permanent public sector worker basic of 29k overtime and shift alliwance bringing it to 35k

would the banks considet a mortgage of 165k on a house valued at 250k?

person is trying to buy a second person out

Normally it’s high net worth individuals the exemptions will apply to, the rule for the rest is 3.5 times!

The exemptions are all gone for 2018 for all Banks (according for my mortgage advisor) so the best thing you can do is contact a broker and line out your case and they’ll probably be best placed to fight your case with multiple banks!

Just FYI on overtime etc Banks can be picky about how much is included, some may only take only 50% of the overtime allowance into their calculations but it really is on a case by case basis!

The_Conductor

OT and shift allowances- are 100% definitely not normally counted- the basic salary- as per a defined pay scale- is what counts for a public sector employee- along with a letter from Personnel advising that the employee is a fulltime employee, detailing the salary scale, and they are not employed under a contract governed by the Fixed term working act.

Exemption would not normally apply for the public sector- as while their job is secure- their potential upside for salary rises etc- are not.

Unfortunately- in the scenario you've outlined- I imagine you'd be offered a total mortgage of 3.5 times the gross payscale salary of 30k- approx 105k- subject to not having any children or any other debt or repayments that you have to make.

jon1981

Teachers for example can be granted more than the 3.5 as the banks consider the security and incremental increases over the career lifetime. I know this to be true based on experience from in-laws.
Whether you'll get the same treatment i dont know but it's not strictly limited to high net worth as i wouldn't class a teacher to be of high net worth.

Liam McPoyle

Mark1916 wrote: »

The exemptions are all gone for 2018 for all Banks (according for my mortgage advisor)

We met with PTSB a couple of weeks ago. We are looking for an exemption on the 20% and he said there shouldn't be an issue as they stagger their exemptions over the year rather than blowing their load in the first couple of months.

ELM327

4.8 times would be very very rare.
Banks generally have an internal rule of 4.5 absolute max.

tomfoolery60

The_Conductor wrote: »

OT and shift allowances- are 100% definitely not normally counted- the basic salary- as per a defined pay scale- is what counts for a public sector employee- along with a letter from Personnel advising that the employee is a fulltime employee, detailing the salary scale, and they are not employed under a contract governed by the Fixed term working act.

Exemption would not normally apply for the public sector- as while their job is secure- their potential upside for salary rises etc- are not.

Unfortunately- in the scenario you've outlined- I imagine you'd be offered a total mortgage of 3.5 times the gross payscale salary of 30k- approx 105k- subject to not having any children or any other debt or repayments that you have to make.

Is it the current point on the scale of a future point that is counted in the calculations do you know?

GingerLily

ELM327 wrote: »

4.8 times would be very very rare.
Banks generally have an internal rule of 4.5 absolute max.

I've not heard of greater then 4.5 times, it would definitely be very rare these days.

I also thought exemptions were generally held for higher earners, 50k single, 75k joint. And regardless, a single applicant on 30k is very unlikely to meet the Nets requirements for an exemption that high

Banterbus28

Stheno wrote: »

does anyone know how much of an exemption the banks give on central bank rules.

scenario is permanent public sector worker basic of 29k overtime and shift alliwance bringing it to 35k

would the banks considet a mortgage of 165k on a house valued at 250k?

person is trying to buy a second person out

Don't include overtime.

flashforward

Why would anyone want anything over a 4x salary exemption? Your just putting yourself under financial strain

Banterbus28

flashforward wrote: »

Why would anyone want anything over a 4x salary exemption? Your just putting yourself under financial strain

I second this; the idea of buying a house is to build capital and reduce the overall cost of living for yourself...

wersal gummage

flashforward wrote: »

Why would anyone want anything over a 4x salary exemption? Your just putting yourself under financial strain

Probably quite a sensible proposition in general. But say a couple earning 200k. 3.5x = 700k. 4x = 800k.

The net pay is probably a shade over 10k a month. Borrowing 3.5x salary over 25 years would lead to current repayments of about 3100 per month. Borrowing 4x salary over 25 years would be around 3500 per month.

I don't see the the exemption in this case puts the couple under financial strain.

wersal gummage

GingerLily wrote: »

I've not heard of greater then 4.5 times, it would definitely be very rare these days.

I also thought exemptions were generally held for higher earners, 50k single, 75k joint. And regardless, a single applicant on 30k is very unlikely to meet the Nets requirements for an exemption that high

Where are you getting the figures? 75k joint income for a couple would surely be below average, not high earning?

catrionanic

wersal gummage wrote: »

Where are you getting the figures? 75k joint income for a couple would surely be below average, not high earning?

Yes, I’ve heard from banks it’s at least 100k.

We are applying for an exemption at the moment. We meet the criteria, have a deposit of approx 30%, and have demonstrated ability to pay the repayments plus stress testing plus more. According to our broker, the most banks are generally giving at present is 4x income, excluding overtime and bonus.

ELM327

Banterbus28 wrote: »

Don't include overtime.

To include overtime it needs to be consistent and supply 3 years P60.
BOI included it for me - My salary with overtime/bonus is about 175% of my base.

wersal gummage wrote: »

Where are you getting the figures? 75k joint income for a couple would surely be below average, not high earning?

75k joint would be probably about average. I was told by many banks that 50k as a single applicant and 75k as a joint application were their ideal minimum. It's certainly not a higher applicaant

granddesigner

The Banks have exemptions throughout the year. I have recently been given a Mortgage of 210k.

Earning 50k Year/ x 3.5 times was 175K and an additional, 35k was lent for renovations. None structural If my maths serve me right, I got loan of 4.2 times my salary without Bonus included

GingerLily

wersal gummage wrote: »

Where are you getting the figures? 75k joint income for a couple would surely be below average, not high earning?

I said higher rather then high to be fair.

Regardless, 30k is not going to be enough to qualify for a substantial exemption.

GingerLily

granddesigner wrote: »

The Banks have exemptions throughout the year. I have recently been given a Mortgage of 210k.

With what bank?

granddesigner

GingerLily wrote: »

With what bank?

Bank of Ireland

Rew

Ive approached 3 banks for deposit exemption in the last 3/4 months and it hasn't been a problem.

Mortgagey

Does anyone know if LTI exemptions are likely to be refreshed by banks on a quarterly basis? e.g. am I better off waiting until early July to raise this rather than late June?

As I understand it, the exemptions apply as a % of their overall lending, rather than a fixed amount per year - so they could have some way of releasing further exemptions throughout the year. However, perhaps I have this wrong.

pillphil

granddesigner wrote: »

The Banks have exemptions throughout the year. I have recently been given a Mortgage of 210k.

Earning 50k Year/ x 3.5 times was 175K and an additional, 35k was lent for renovations. None structural If my maths serve me right, I got loan of 4.2 times my salary without Bonus included

Based solely on your username, my predictions for your renovations are:

• Set arbitrary deadline, Christmas, birthday etc.
• Claim house will "blend into the surrounding area"
• Go over Budget
• Go past deadline
• Quit job to become project manager
• Kevin McCloud claims finished house "blends into the surrounding area" no matter what the house ends up looking like...
• decide to get into project management/building full-time

AlmightyCushion

pillphil wrote: »

Based solely on your username, my predictions for your renovations are:

• Set arbitrary deadline, Christmas, birthday etc.
• Claim house will "blend into the surrounding area"
• Go over Budget
• Go past deadline
• Quit job to become project manager
• Kevin McCloud claims finished house "blends into the surrounding area" no matter what the house ends up looking like...
• decide to get into project management/building full-time

Don't forget, have 2 children during the whole project and spend €10k on a bathtub you'll never use.

pillphil

AlmightyCushion wrote: »

Don't forget, have 2 children during the whole project and spend €10k on a bathtub you'll never use.

I also forgot, some of the renovations definitely turn out to be structural...