mortgage calculators on how much to borrow

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I've gone through various mortgage calculators on bank websites and independent sites and there seems to be a large discrepancy between them all.

For example boi calculator indicates that I could borrow 26k (?!) On two salaries of 50k & 37k..yet the mortgages.ie calculator says I could get over 400k. Some take bonus's, other loans kids etc into consideration. .but in general they all vary significantly. (I've rentered info a few times to make sure I didn't have typo's)

Are they just for fun? Do any of them reflect what a real bank will give? If so please recommend one . Thanks
 
These are not calculators in the sense that 6 x 7 = 42 which can give only one answer.

The calculator for Bank of Ireland shows what BoI is prepared to lend you based on the figures you input. That is likely to be a lot less than KBC which has looser lending criteria.

I don't know where the mortgages.ie calculator fits in. I used 50k and 37k , to get a borrowing limit of €443k which is 5 times gross earnings, which shows why we need the Central Bank guidelines. They do note on their website "
Under proposed new rules it is likely that new upper limit of 3.5 times gross income will apply to most ( not all) mortgages from January 2015."


Brendan
 
That's right Brendan, it seems ridiculous and I think the mortgages.ie one is a waste of time. Their red warning is the only piece of common sense there. In the past we have secured mortgages, and took a lot less than the tiger was offering.

I guess this is a naive question on my part...why do the banks all have different levels of 'lending criteria'? Why is kbc more flexible? Is BOI the most stringent? Is it this specifically that the CB is trying to normalise next year..or is it simply that most of us will need a 20% deposit.

If we buy next year I guess we are lucky in that we will have the 20% deposit, and will sell a house that's not in -ve equity. .. Will prob make maybe €30k. If we can achieve a mortgage that is the 3.5 times our salaries then that's fine :)
 
.why do the banks all have different levels of 'lending criteria'? Why is kbc more flexible? Is BOI the most stringent?
Different attitudes to risk.

BoI has the lowest level of defaults because they were the least reckless during the boom. They were prepared to lose market share rather than to lend recklessly.

I suspect that First Active was about the worst.

Brendan
 
Just checked a few online mortgage calculators. They all ask if you are public sector or private sector worker.

Take home pay being a lot less for a public sector worker due statutory pension deductions.

However KBC calculator is the only one that shows that a public sector worker will get a lesser mortgage than a private sector worker on comparable pay due to statutory pension deductions.

As someone who has applied and got mortage approval form EBS their online calculator will promise you a lot more then what we got offered in reality.
 
mrsk.
On the points raised.

1. A public sector worker is a better risk than private sector worker.
A lender would view being in public sector as a plus point.
Public sector employees are unlikely to lose their job, and their future income is fairly sure. .
2. At present Public sector pay has suffered due to pension deductions,that does mean that their net pay reduces. For private sector worker , he too would be hit on net pay, if he (voluntarily) made provision for pension.(which he should)
.
3. Any Banks calculator (in this case KBC) are set up to get you in and then KBC or whoever can see will they do a deal. These calculators are teasers.
 
Although these calculators give you the option of selecting first-time buyer or mover, they don't allow you to enter expected equity from first house sale(positive or negative). Having gone through this, the calculator 'offered' a loan value of about 130k than we will get in reality.
 
Gerry Canning

Whilst I agree that a public sector worker is less risk.

Your second point is wrong. Take home or net pay does reduce quite significantly.

If I didn't have to pay pension contributions/levy I would have at least an extra €250 more take home pay per month.

And the KBC calculator is the only one that seems to acknowledge this.
 
I was wondering if there any of these mortgage calculators have been updated yet in light of the new central bank rules on LTI or are banks not interested in updating these for the moment so as to encourage new customers giving them a false sense of what they may be able to afford?
 
mrsk.
I accept (statutory)pension levy reduces net income/take home pay, as you say by 250 .
What I had hoped to explain was that if a Private worker was (willingly) funding a comparable pension to cover him/her , his/her net assessable income would drop by circa 10% .
Means his/her ability to borrow from KBC would be reduced by that contribution.(as is yours by this Temporary! arrangement)

However if she/he was not contributing to a pension they do have your 250 to work with today to help get a higher mortgage.
Hope this explains my comments.
 
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