Complete Beginner...

S

stekell32

Guest
Hi all, Any and all help will be greatly appreciated. I want to buy a house by myself (priced around 250k). I have 20k saved and my salary is 33k before tax. I was told by a broker i could get a mortgage of 230k but did not follow it up for various reasons. I don't know how any of this works the main things i need to know are....

  • How much cash do i need? (to be comfortable)
  • Who should i go to bank or broker?
  • Which bank or broker?
  • What are the main things to look out for?
  • Will i need a solicitor? (If so cost?)
  • Any others cost to look out for?
  • Any other general points to add?
Thanks in advance,

stekell:)
 
I'd have to say forget it! The bank will probably look for you to have 20% these days so 50k. I dunno, are they still offering it on 92%? Im sure someone here is better informed.
If theres no cost involved, I'd go with the broker purely as I would prefer someone else put the best application together. Especially if you are saying you are a complete beginner.
You aren't going to get any amazing rates out there.
You will need a solicitor - last time i saw about 1000 + vat + outlay
You need to factor in the costs of life assurance, house insurance. Is the house new or old? You may want to consider having an engineer / surveyor look it over for any problems. Furniture, etc. I guess the costs depends on what you need to put in it and what you have.

Personally I have my own house. Mortgage is about 260k. Have my fiancee living with me and she's paying half the mortgage as her rent. But if it was just me on my tobler doing it again, I wouldnt! I would prefer the freedom of renting! I guess it just depends on if you are getting it where you want!
 
Stekell, probably the minimum deposit that you'd need would be 10% (so you are 5k short of that). It is an expensive business so the more you have saved the better you are. Generally there is the cost of the property, the cost of the purchase (solicitor's fees, surveyor's fees etc) and the cost of the outfitting. Were you to get a mortgage at your current level of saving you would have no money to spare to buy beds etc. While this can be worked around it is better to have some money towards this rather than depending on relatives, an additional loan or freecycle websites for furnishings.

I'd disagree to some extent with peteb. It is no harm to go onto each of the banks websites and check what their mortgage calculators say. It will give you an idea of what sort of money they are likely to be willing to lend you and what the monthly cost to you would be. A broker may or may not charge you a commission but that will be detailed up front. If you wish to use one, ring around a few in your locale and see what their terms are. Personally I think it no harm to first look at it yourself - the research will stand you in good stead.
 
stekell32,

On a salary of €33k you would be looking at a maximum mortgage of around €155k to €165k.

Minimum deposit required will be 8% of purchase price but better to have as much as possible in savings, banks will look more favourably depending on the size of your deposit.

General points? Keep saving, clear all loans (if applicable), keep current accounts in good shape.

www.moneybackmortgages.ie
 
lionstour said:
How romantic! And remember as soon as you tie the knot the house will be hers too.
Click to expand...

isn't there something legal that states if the better half moves in and lives with you/I then after 18 months they are regarded as common law wife and are entitled to half anyway...

Now to book that romantic cruise along the Seine, Feb 14th aint too far away :D
 
NorfBank said:
stekell32,

On a salary of €33k you would be looking at a maximum mortgage of around €155k to €165k.

Minimum deposit required will be 8% of purchase price but better to have as much as possible in savings, banks will look more favourably depending on the size of your deposit.

General points? Keep saving, clear all loans (if applicable), keep current accounts in good shape.

[broken link removed]
Click to expand...

norbank how would the bank look at following:

you are overdrawn by a max of between 0 and €1k for a lot of the year as you transfer move to saving account online which puts you overdrawn- main reason is when overdrawn less likely to spend money and it motivates saving at same time as if money resting in current account more likely to spend

thanks
 
"How romantic! And remember as soon as you tie the knot the house will be hers too. "

No, it won't. It becomes a "family home" pursuant to the Family Home Protection Act 1976 and the consent of the non owning spouse is required before the owning spouse can sell or mortgage. That consent can be dispensed with. It does not become jointly owned unless the property is transferred into joint names.

"isn't there something legal that states if the better half moves in and lives with you/I then after 18 months they are regarded as common law wife and are entitled to half anyway..."

No, that's nonsense.

mf
 
feltox said:
norbank how would the bank look at following:

you are overdrawn by a max of between 0 and €1k for a lot of the year as you transfer move to saving account online which puts you overdrawn- main reason is when overdrawn less likely to spend money and it motivates saving at same time as if money resting in current account more likely to spend

thanks
Click to expand...

These days they look at everything negatively, you know what you're doing and I can see what you're trying to do but the banks attitude will be that if you need to do this to control your spending then you are not on top of your finances.

Put it another way, if there are two applicants, you and another who are exactly the same in every way except for the fact that the other applicant is not overdrawn, the bank will give the mortgage to the other applicant.

You have to make your application as presentable as possible, the less questions it provokes from the lenders and the less explanations you have to provide, the better the chance of approval.

www.moneybackmortgages.ie
 
mf1 said:
"How romantic! And remember as soon as you tie the knot the house will be hers too. "

No, it won't. It becomes a "family home" pursuant to the Family Home Protection Act 1976 and the consent of the non owning spouse is required before the owning spouse can sell or mortgage. That consent can be dispensed with. It does not become jointly owned unless the property is transferred into joint names.

"isn't there something legal that states if the better half moves in and lives with you/I then after 18 months they are regarded as common law wife and are entitled to half anyway..."

No, that's nonsense.

mf
Click to expand...

Splitting hairs for me there. Also if they have a baby and they split he will be out on his ear.
 
peteb said:
If theres no cost involved, I'd go with the broker purely as I would prefer someone else put the best application together. Especially if you are saying you are a complete beginner.
Click to expand...

I'd disagree. My broker couldn't get me as much as I needed, whereas in person going around to the various banks, I ended up with 2 offers of more than I needed. So I borrowed exactly what I needed. (I did have a good deposit though)
 
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