Earn 42k Gross, What Mortgage???

A

alan0880

Guest
Hi everyone,
I earn 42k gross, i have 20k for deposit, how much am i realistically going to get for a mortgage?
Every calculator on banks websites seems to vary too much...
i want to purchase a property for 188,000 roughly
i can afford up to 800 a month without having to eat beans on toast:)
Any ideas or comments welcome, thanks
 
It's not so easy anymore to give an exact figure alan0880 hence the variety of answers you are getting from the websites.

It would depend on a lot of factors

- security/duration of employment
- employment sector
- history of savings
- repayment capacity
- outstanding loans

A very general rule of thumb is 4 to 4.5 times income so if you are looking for a mortgage of 169k then you should be fine (once you have no loans, you are in your job for around 2 years, your current account is in good shape i.e no referral fees, not overdrawn, balance left at the end of each month and you have saved the 20k i.e not a gift).

www.moneybackmortgages.ie
 
Thanks for the reply Norfbank
-Have a secure job, in it for 10 years
-had a joint mortgage before, have the 20k left from that
-never defaulted on any loans or mortgage payments

i've checked and some banks are saying i'd be paying back about €710 a month, sounds reasonable, others coming in at €860!!!
anyone clear this up? :(
 
Alan the variation could be down to individual banks' differing interest rates. Its amazing what a different .5% can make to the repayments !
 
Hi
I wouldn't be too excited at the banks current rates. They can increase them over time, not to mention interest rates may also increase in 2 years time. You should stress-test the rate at least 3% to see if you're still comfortable with the repayments!!

If you become unemployed your dole will just about cover your repayments & will not leave enough for beans on toast. If you are single or in a family with only one income and have a mortgage this size I recommend some sort of payment protection in case you lose your job, and PHI if your employer doesn't provide it. Having said that.. be careful about what the bank tries to sell you when you take out your mortgage.
 
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