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How long and how much did you save for a mortgage

Brandon75

Hi so how long did it take you to save for your first home and how much did you have to save ?

Is it realistic to have enough saved for a mortgage in a year ? Or would 2 years be more ideal

What if your getting a gift from parents? If you didnt have any savings but got gift from parents to cover the deposit would the bank be happy with that.

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handlemaster

All relative.

Jimson

Depends on your salary and how much your paying on rent.

I earn 37K with a 10pc bonus. 820 on rent for my own place, 800 into a savings account, 48 for broadband a month and 130 on bills, 45 car insurance.

Leaves me with 800 a month to live on. I've been doing this for a 18 months and should have enough for a 150K house in another 18 months. I'm not in Dublin. Drive a pretty old car as well.

I'll be 31 when I get the mortgage. I still have nights out etc(few cans at home first and meet up with friends around 11.30 instead of 9) and not affecting my life too much living off 800 a month.

I could earn a lot more in Dublin than 37k but I'd actually be much worse off. 150K will get me a decent three bed semi detached house where I live and grew up.

Brandon75

Jimson wrote: »

Depends on your salary and how much your paying on rent.

I'm back living at home while I save will be building my own home have land already .
I am on track to save 18k by the end of the year saving €1500 a month.

Jimson

Brandon75 wrote: »

Jimson wrote: »

Depends on your salary and how much your paying on rent.

I'm back living at home while I save will be building my own home have land already .
I am on track to save 18k by the end of the year saving €1500 a month.

Nice, wish I had the option of moving home but my family drive me absolute nuts so not an option and no house share options with friends available.

Its gonna take me three years in total instead of 18 months but happy with that for piece of mind.

Brandon75

Jimson wrote: »

Depends on your salary and how much your paying on rent.

I earn 37K with a 10pc bonus. 820 on rent for my own place, 800 into a savings account, 48 for broadband a month and 130 on bills, 45 car insurance.

Leaves me with 800 a month to live on. I've been doing this for a 18 months and should have enough for a 150K house in another 18 months.

Are you based In Donegal?
I wouldn't mind building a house for 150k but wouldn't be possible where I am but still cheaper then buying a house with the way the prices are, and can build to the way we want it.

brisan

Brandon75 wrote: »

Jimson wrote: »

Depends on your salary and how much your paying on rent.

I earn 37K with a 10pc bonus. 820 on rent for my own place, 800 into a savings account, 48 for broadband a month and 130 on bills, 45 car insurance.

Leaves me with 800 a month to live on. I've been doing this for a 18 months and should have enough for a 150K house in another 18 months.

Are you based In Donegal?
I wouldn't mind building a house for 150k but wouldn't be possible where I am but still cheaper then buying a house with the way the prices are, and can build to the way we want it.

Does not matter what you save or how long it takes banks will only give you 3.5 times your joint income
1500 a month would service a 400,000 mortgage
However to get that you would need a joint income of 115k
Best save as much as you can and get a gift letter for any gift you get towards the deposit
https://www.mortgages.ie/go/first_time_buyers/mortgage_payments_calculator/calc?&_stage=2&_section=first%5Ftime%5Fbuyers&_calculator=Calculator%20Mortgage%20No%20MP&_code=149A5084%2D83C1%2D4C02%2D99559A9DC41E1A56&_mobile=false&_next=1&_temp=N&fieldnames=%5Fstage%2C%5Fsection%2C%5Fcalculator%2C%5Fcode%2C%5Fmobile%2C%5Fnext%2C%5Ftemp&buyertype=First%20Time%20Buyer&houseValue=450000&amount=400000&term=30&singleordual=single&age_1=25&income_1=50000&age_2=&income_2=&contacttime=&comment_mobile=

Brandon75

brisan wrote: »

Does not matter what you save or how long it takes banks will only give you 3.5 times your joint income
1500 a month would service a 400,000 mortgage
However to get that you would need a joint income of 115k
Best save as much as you can.

Thanks for the help, I'm saving €1500 a month myself and parnter around 1k . We wouldn't get a 400k mortgage. We are looking for around 250k - 300k mortgage.

brisan

Brandon75 wrote: »

brisan wrote: »

Does not matter what you save or how long it takes banks will only give you 3.5 times your joint income
1500 a month would service a 400,000 mortgage
However to get that you would need a joint income of 115k
Best save as much as you can.

Thanks for the help, I'm saving €1500 a month myself and parnter around 1k . We wouldn't get a 400k mortgage. We are looking for around 250k - 300k mortgage.

Well paying that back would not be a problem with those savings
one year of those savings will give you 30k enough of a deposit for the 300k mortgage
Just allow for solicitors .stamp duty valuations and furniture on top
18 months and you are well sorted

L1011

Roughly a year due to a (relatively small) inheritance and house sitting arrangement meaning I could save vastly more than if I'd been renting for that year. But I bought in the depths of the financial crash so the deposit was not high by any means.

Had I been renting a similar house to that I was house sitting at the time it would have taken ~10k a year off my savings potential so it would have taken about three years or a much harsher impact on my other spending. Had I been looking to buy on the salary I had then with current day rents I'd be house sharing or moving back in with my parents and looking to buy in Outer Mongolia at current day rents and house prices!

If using a gift, inheritance or win as deposit the bank are still going to require proof that you are able to save or pay rent to the equivalent of the stress-tested repayment, and proof that you have been doing so for many months.

brisan

L1011 wrote: »

Roughly a year due to a (relatively small) inheritance and house sitting arrangement meaning I could save vastly more than if I'd been renting for that year. But I bought in the depths of the financial crash so the deposit was not high by any means.

If using a gift, inheritance or win as deposit the bank are still going to require proof that you are able to save or pay rent to the equivalent of the stress-tested repayment, and proof that you have been doing so for many months.

If the OP and his partner are saving 2.5k a month they will easily pass a stress test on a 300k mortgage assuming the wage cap allows them borrow that much

Brandon75

brisan wrote: »

Well paying that back would not be a problem with those savings
one year of those savings will give you 30k enough of a deposit for the 300k mortgage
Just allow for solicitors .stamp duty valuations and furniture on top
18 months and you are well sorted

Wont be buying any furniture until we are moved In as I have heard not to do that .
Will probably be sleeping on a mattress and sitting on garden furniture for first few weeks haha.

brisan

Brandon75 wrote: »

Wont be buying any furniture until we are moved In as I have heard not to do that .
Will probably be sleeping on a mattress and sitting on garden furniture for first few weeks haha.

That's the way ,more fun and excitement that way
One bit of advice ,do not scrimp on a bed or mattress ,you will spend more time in that than you will on a sofa or dining room suit

Fred Cryton

Jimson wrote: »

Depends on your salary and how much your paying on rent.

I earn 37K with a 10pc bonus. 820 on rent for my own place, 800 into a savings account, 48 for broadband a month and 130 on bills, 45 car insurance.

Leaves me with 800 a month to live on. I've been doing this for a 18 months and should have enough for a 150K house in another 18 months. I'm not in Dublin. Drive a pretty old car as well.

I'll be 31 when I get the mortgage. I still have nights out etc(few cans at home first and meet up with friends around 11.30 instead of 9) and not affecting my life too much living off 800 a month.

I could earn a lot more in Dublin than 37k but I'd actually be much worse off. 150K will get me a decent three bed semi detached house where I live and grew up.

Fair play. Like your attitude. We have too many moaners in this country who cry faux outrage because they can't afford a 4 bed detached home in D4 or D6.

The truth is there is no "housing crisis" outside of similar pressure points. Housing is reasonably affordable in the vast majority of the country. Just requires a good attitude towards money which it seems you have.

Brandon75

brisan wrote: »

Brandon75 wrote: »

That's the way ,more fun and excitement that way
One bit of advice ,do not scrimp on a bed or mattress ,you will spend more time in that than you will on a sofa or dining room suit

True I have made a list of good advice I have come across on here. Wont be getting a cheap mattress and bed that's for sure .

Any other good advice you got when buying your first home or bad ?

Dolbhad

Everyone is different. We aren’t big earners so we moved back home for 3 years with the parents to save roughly 2k a month. We actually would not have been able to save for a deposit if we weren’t able to live rent free with parents. It’s tough when your on your 30’s have to go back to mammy but it will be worth it on the long run!

We have not done holidays in about 10 years, my car is 20 years old and my partners is 10 years old. We don’t drink or smoke and rarely would go out before covid. It’s tough to live like that but it’s not forever and now we expect our LTV will be 70% so our mortgage repayments will be affordable so we can enjoy life going forward.

Toulouse

I knew I’d be going for a mortgage at some stage so when I got my first proper job at 24 I started saving €800 a month. I ended up saving that for 14 years before I did end up buying but that meant I had a decent deposit.

8-10

Brandon75 wrote: »

I'm back living at home while I save will be building my own home have land already .
I am on track to save 18k by the end of the year saving €1500 a month.

You'll get Help to Buy scheme for that too which is 30k

Brandon75

8-10 wrote: »

You'll get Help to Buy scheme for that too which is 30k

Its 30k!!! I haven't looked much into that yet so
Would I need keep saving as much as I am if we can get 30k

8-10

Brandon75 wrote: »

Its 30k!!! I haven't looked much into that yet so
Would I need keep saving as much as I am if we can get 30k

Yeah they upped it this year from 20k

Depends on value of the house and amount you've payed in tax the last 4 years but worth looking into, you only get it once!

You still need to show regular savings for the mortgage

j@utis

handlemaster wrote: »

All relative.

I agree! 7 years in total, last 4 years with my OH, we had 33% deposit. I never earned more than 45k a year and now making only half of that. 8 years later we're mortgage free and the cycle repeats. p.s. when is the property crash again? I feel nervous having money in the bank.

IamMe33

Brandon75 wrote: »

Its 30k!!! I haven't looked much into that yet so
Would I need keep saving as much as I am if we can get 30k

Bear in mind:

1) As a FTB you can claim 10% of the cost of the house up to a maximum of 30K. but have to have paid the equivalent value of the HTB grant in tax over the last four years.
e.g. if the value of the house is €270K you qualify for €27K. But if you had only paid €20K in tax over the last 4 years you could only claim 20K from the HTB scheme.

2) Your morgage must be a minimum of 70% of the house cost.

3) It must be a new build or self-build.

4) If you sell within 5 years you must repay some of the HTB. I think it's 20% per year.

I've almost €100K saved over the last 3 years. Since lockdown I've been saving €3K a month.
I wouldn't have qualified for the full €30K until 2021 since I only went back to work after college 3 years ago.
I am waiting until the start of 2021 to apply for a morgage since I will need an exemption to afford a new build on my own.

Geuze

Brandon75 wrote: »

Hi so how long did it take you to save for your first home and how much did you have to save ?

Is it realistic to have enough saved for a mortgage in a year ? Or would 2 years be more ideal

What if your getting a gift from parents? If you didnt have any savings but got gift from parents to cover the deposit would the bank be happy with that.

Paid 278k, borrowed 155k, so had 123k deposit.

That was accumulation of maybe decade of saving, plus some gifts.

Gifts from parents are okay, parents may have to get legal advice.

poker--addict

IamMe33 wrote: »

Bear in mind:

1) As a FTB you can claim 10% of the cost of the house up to a maximum of 30K....

3) It must be a new build or self-build...

sorry brief thread creep but what is or was general point of limiting the FTB support to new builds? Would buying an older house not still drive liquidity, movement, building all around...?

Antares35

OH and I save 2k a month between us into a joint account, and I save 1k separately myself. Wondering should I be transferring this to the joint account also? When they look at repayment capacity, will they take.both savings into account? Between us we've around 110k but would only be looking for around 250k max. Also we've a baby so apparently they deduct assumed childcare costs when it comes to your repayment abilities? My understanding is they will deduct around 1000 a month from income as tagged for childcare.

Yyhhuuu

Antares35 wrote: »

OH and I save 2k a month between us into a joint account, and I save 1k separately myself. Wondering should I be transferring this to the joint account also? When they look at repayment capacity, will they take.both savings into account? Between us we've around 110k but would only be looking for around 250k max. Also we've a baby so apparently they deduct assumed childcare costs when it comes to your repayment abilities? My understanding is they will deduct around 1000 a month from income as tagged for childcare.

I'm able to save €1,600 per month or probably more now since covid so approx € 20,000 saved per annum on a net after tax income of slightly over € 25,000.

This is possible as I dont pay rent, dont drive, dont smoke rarely drink or eat out ( preferring to eat in and invite friends for meals which I really enjoy ). My food costs are very low as obviously eating out costs quite alot and all my food is bought reduced to clear and best of homemade fruit veg and mostly fish or chicken meals and never processed.

Obviously with covid the opportunity to spend is limited but I was never a big spender but I always treated myself to budget holidays/ travel abroad.

I realise that I am lucky in not having many outgoings and realise how things may be more difficult for those with rent or other outgoings.

In order to get the highest interest rate ( currently .85% with Ulster Bank, KBC pay 0.75%) I drip feed my savings into a number of regular saver accounts in financial institutions.
I get a great thrill out of bargain hunting. My phone costs only 9.99 per month with go mo which also covers internet tethering for my laptop.

Irish_rat

Yyhhuuu wrote: »

I'm able to save €1,600 per month or probably more now since covid so approx € 20,000 saved per annum on a net after tax income of slightly over € 25,000

How can this even be remotely possible? 5k in a year is impossible to live on unless you live at home and pay no bills.

[Deleted User]

Antares35 wrote: »

OH and I save 2k a month between us into a joint account, and I save 1k separately myself. Wondering should I be transferring this to the joint account also? When they look at repayment capacity, will they take.both savings into account? Between us we've around 110k but would only be looking for around 250k max. Also we've a baby so apparently they deduct assumed childcare costs when it comes to your repayment abilities? My understanding is they will deduct around 1000 a month from income as tagged for childcare.

They look at all your savings, it doesn't have to be in a joint account.

I don't have kids so I didn't have to deal with the childcare costs piece, but my understanding is that they ask you about childcare costs and deduct that. At the same time, they also increase the minimum amount of disposable income you're expected to have left over after the proposed mortgage payment.

Brandon75

So basically if you have a child you will find it hard to get a mortgage? Will it Lower how much you can borrow compared to someone with no kids ?

Brandon75

8-10 wrote: »

Yeah they upped it this year from 20k

Depends on value of the house and amount you've payed in tax the last 4 years but worth looking into, you only get it once!

So if your on a lower tax rate the better ?
I will still save for sure and keep to my saving target.

pooch90

Brandon75 wrote: »

So basically if you have a child you will find it hard to get a mortgage? Will it Lower how much you can borrow compared to someone with no kids ?

Not necessarily, depends on your wages. I have two kids and a stay at home husband but my wages are 65k before tax. As husband stays home, I have no childcare costs. PTSB offered me the full 3.5 times my wages.