min income to qualify for mortgage

sillyaboutmo

Registered User
Messages
94
Hi All,
big question.
What is the minimum income for a family of 4 to qualify for a mortgage.
looking for a mortgage of 108kapprox. Have 12k deposit. rentingfor 10 years at approx 560 month. no credit cards orotherdebt.
 
HI,

My basic is €28,000p.a., am married and 2 children. All other income like unguaranteed bonus or social welfare payments, Back to Ed. are disregarded. AIB have said (provisionally) they will lend me €110,000 max. Hope this helps.
 
thanks but they wouldnt even give us an app with their mortgage advisor.
Hubbys income is gross 30k+. They said a couple with 2 kids 1 income need 2400 net disposable income per month b4 they would consider.
ulster bank will only offer 40k on this salary.
BOI will only look at salaries over 35K. They seem our best bet but ill need to get a pt job. any1 know how long ill need to be working for them to recognise.
 
BOI told me minimum 12 months in a job before it'll count assuming it is full time permanent.
 
Appears a little harsh, but these restrictions are there for a good reason. All of these parameters were there during the property bubble, but were ignored by Banks who relied on a rising property market to cover any potential bad debts.
Using the example above of a single person on a 28K pa salary the position would be as follows;
Net disposable after tax etc - 25.5K pa
Standard allowance for living expenses - 18.5K
Available to pay debt 7K pa
Loan repayments on a 110K mortgage over 25 years at 5% stress = 8.5K pa.
As you can see from these figures this would be an extremely tight lending proposal. While salary might increase over time, personal circumstances are also likely to change. A Bank would be doing a client no favours by advancing a loan where repayment position is so tight.
 
Hi Brendan,

My family are due a response on a €164k remortgage tomorrow from BOI, over 20 years. Our nett income after tax would be €45k per annum and we have three children. Do you think we can expect to get away from the dreaded PTSB ?

Thanks J.
 
Good luck with the application. However, I would point out that using our own standard paramaters for family living expenses for your family size the figure of 45K just about covers this leaving nothing to cover mortgage payments which would be 14K stressed over 20 years. I'm amazed that the Bank did not do these figures for you during the application process. Did you apply directly to the Bank or through a broker?
 
Appears a little harsh, but these restrictions are there for a good reason. All of these parameters were there during the property bubble, but were ignored by Banks who relied on a rising property market to cover any potential bad debts.
Using the example above of a single person on a 28K pa salary the position would be as follows;
Net disposable after tax etc - 25.5K pa
Standard allowance for living expenses - 18.5K
Available to pay debt 7K pa
Loan repayments on a 110K mortgage over 25 years at 5% stress = 8.5K pa.
As you can see from these figures this would be an extremely tight lending proposal. While salary might increase over time, personal circumstances are also likely to change. A Bank would be doing a client no favours by advancing a loan where repayment position is so tight.



Where do they get these figures from. not every1 spends that amount of money. we personally have no debt no credit cards, spend wisely and keep bills down. we have proof that we can repay by our rent alone.
yes true it is harsh, but at the end of the day its some guy in dublin making the decisions not our local mortgage advisors. so on paper if you dont fit the criteria you can forget it.
 
These are standard CSO stats, adjusted every year. Yes, I agree that many people live quite frugal lifestyles and will not spend up to these amounts. However, its impossible to assess to potential for frugality in making these decisions and it would appear equitable to use the norms for family size.
I'm not holding myself up as an excuser of Bank lending policies, but I would be happy that useage of these figures is good lending practise.
 
That doesn't sound optimistic Brendan. The mortgage "expert" at BOI did input our nett incomes into their calculator and advised that we qualified prima facie. If as others on this forum suggest that for BOI we would need to clear €2,000 + €600 for three children (3x€200) + mortgage of €1,000, then we would just about cover it. I'm expecting a knock back though as it's a little too close methinks.
 
yes it is true but when they ask for bank statements and can see how much is coming in and out and being saved why cant they look at every1 individually.
 
That doesn't sound optimistic Brendan. The mortgage "expert" at BOI did input our nett incomes into their calculator and advised that we qualified prima facie. If as others on this forum suggest that for BOI we would need to clear €2,000 + €600 for three children (3x€200) + mortgage of €1,000, then we would just about cover it. I'm expecting a knock back though as it's a little too close methinks.

If Bank of Ireland don't play ball, KBC are also in the market for re-mortgages.
 
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