Exemption to 3.5 salary rule

WhiteWalls

Is there any rules with regard to this when applying for a mortgage? What would go in your favour in this regard?

Public sector employment/Large deposit?

I've looked online but it seems to be a case by case basis..

Thanks

DubLad69

They will look at 2 things. The first is your take home pay. They will want you to have a certain amount left each month after the mortgage and any loans are paid. If you are public sector it is also after your pension is deducted.

The amount that the use for the mortgage repayment isn't the amount that you will actually repay, it is 2% above their variable rate. So your repayment may only be €1,300 per month, but they might be treating it as €2000 per month for the calculations.

AIB wanted us to have €3050 per month after this in order to get an exemption.

So your net monthly pay minus any loans minus publis sector pension minus the inflated mortgage repayment must be €3050 or higher in order to qualify for an exemption.

The second thing that they will be looking at is your repayment capacity. Basically you will need to show that you have been saving/paying rent to the value of the normal monthly repayment.

WhiteWalls

Thanks for the info dublad

deise121

https://www.boards.ie/discussion/2058201825/exemption-to-3-5-salary-rule

they want you to be a millionaire so you can go from buying a massive house to an even more massive house