First Time Buyer

[firsthouse]

Hi Guys,

I am new to this forum and from what i read it seems to be a goldmine of valuable financial information and thanks in advance for everyones help.

Myself and my girlfriend are looking to buy our first home and have a property in mind and it is on the market for €170000.00

We have €5300 savings and our salaries are 27000 and 25500 and both work for financial institutions in permanent contracts.
We have no outstanding loans, credit cards are cleared and clean credit checks.

I know today bankslook for 8-10% of the value of the property for deposit which leads me to my question:

Will any of the banks give mortgages to first time buyers if they were gifted the difference to make up the 8% deposit.
What would the chances be of my mortgage being approved if I was to apply.
I am keen to try get an offer in for this property before it gets sold.

Any advice would be much appreciated

Thanks
Firsthouse

 

[ryaner]

In relation to the deposit, the banks do have a section where you can declare that the deposit comes partly from a gift. They want you to prove it is a non-recourse gift, basically that it isn't a family loan that you have to pay back.

Other than that, don't put all your eggs in one basket regarding this house. Its a buyers market and there is always another house.

 

[LDFerguson]

If you have saved all your own deposit that does strengthen an application. That said, if you can prove affordability otherwise, you might still be approved.

If you're applying for a mortgage of €156,000 the monthly repayments will be up to €850 per month over 30 years depending on what "stress-test" interest rate your lender uses.

Can you document a history (6 months or more) of being able to afford €850 per month? If your rent + regular savings = €850 or month or thereabouts then the mortgage application might be a runner.

Don't forget you'll also have to come up with Stamp Duty (1%) and legal costs.

Liam D. Ferguson

 

[firsthouse]

Thanks for the advice..

Yes i can document paying rent/saving that amount each month and our combined income woyuld exceed the repayments.

I think i will apply and see how we get on.

Thanks
firsthouse

 

[anuj21k]

I am in process of looking around for a bargain buy only as well:
1) Re: Interest Rates:

I think its best to go with AIB/BOI as they have the best rates. I had approval before from EBS in '09 but delayed buying coz of crash had just applied with AIB yesterday again and told that var. is 3.24%, 3yr fixed is 4.8% & 5 yr fixed is 5.35%. I think though getting a mtg. is more difficult these days but I will see what happens.

2) Re: Offering on a house; I dont think its good to limit yourself to 1 chose atleast 10 believe me there are plenty around, and place a low-ball offer 25-30% below asking and bring it up to 15-20% below asking if required. I will only buy if will get a good price for a property as economic factors indicate they have still much too fall but again dont want to wait as well.
So typically a war between what I want and need......

 

[colc1]

Other than that, don't put all your eggs in one basket regarding this house. Its a buyers market and there is always another house.

Thats the most important thing to remember these days sentiment is not exactly good from what I hear from anybody I would be in no rush to fork out.... Keep thinking buyers market and dont be too eager to part with your cash...