So I finally got mortgage preapproval, and now find myself in a weird situation where options on what I can buy are quite limited. With 90k/year I don't qualify for any of the government help except FTB (30k) which brings the total I can spend to about 390k for new builds. You can imagine what that buys in Dublin or its surroundings.
The used market at my maximum 360k can get me a nice house in Finglas or 1 bedroom apartment in any of the more favored areas. There is a nice summary on salary vs postcode on Dublinlive which shows clearly how crazy things currently are.
Just to describe my situation further, I have a partner (working on a contract) and 2 kids. We could try to apply for a joint mortgage but that would disqualify me from HTB as she has some property bought in the past in another country. Still looking into that option, but I would really not like to lose the 30k if possible.
The situation I feel is weird because if I earned just 20k less there would be a lot more options like affordable homes scheme etc. Being locked at 3.5x the yearly salary puts me right in the middle of nowhere. I earn too much for other government-sponsored options but too little to be able to afford anything reasonable on the commercial market.
I would love to hear any suggestions from people in a similar situation that bought recently.
You can ask for the exemption to x3.5 and bring you up to x4.0, @90k that gives you an extra 45k for your war chest. It's not a guarantee but it might be a runner for you.
Expect some bitter comments btw. 'boo hoo, I only earn 90k and can only spend 390k on a house'
I got 4.25 times, worth to try
if you have a partner and 2 kids (assume they are yours?) then the reality is this is a family home. You may lost out on the 30k but your buying power would be higher jointly.
Also if you have 2 dependants that will be factored into what you can borrow, what is the childcare costs, who is paying it etc.
Can i ask you who you got this from?
I'm in a simmilar situation but could only get 3.9x my salary.
We got x4 with Haven, but I would recommend ANY lender other than those morons.
I thought the HTB requires you must borrow at least 70% of the house?
how much down payment do you have?
maybe worth to do a calculation which one is better.
you buy only w 70% mortgage, w €30k HTB
you n partner buy together, put in more down payment, borrow less money, less pay back, without €30k HTB
Talk to a mortgage broker - happy to give you the contact for mine if you want to PM me - they get paid by the bank so its free for the buyer. I was in a similar situation 2 years ago - earning 79k looking to buy a 3 bed. With 3.5 times, I couldn't afford a new build, but including the 13% bonus structure and going for an exception approval the broker was able to get me 4.5x my salary.
Covid hit around the same time, so I decided to back out of the new build and buy a second hand home for under 300k in Clonee. Even with redoing the kitchen, bathrooms and garden, I now have a good 3 br in a great location, well connected to the center of the city via the 39/39A, all for approx 315k! I lost the 30k HTB, but my monthly mortgage payment is under 1k, and my bank account thanks me for it!
Some colleagues have just signed up for new builds in greystones for nearly 500k, plus flooring, furniture and appliances - the repayment for that is definitely going to be on the high side!