Income 31K!
- Thread starter Caili
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MortgageMate
Registered User
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€200,000 perhaps
That's 6.45 times the income , assuming €31K is net salary. Are you sure?
This is correct, possibly even more assuming the OP has no financial commitments or dependants and qualifies fo a 40 year term. Multiples of salaries are used by very few lenders any more, most now issue approval based on net disposable income.
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Olly64
Guest
im on €30k and was quoted €150,000, im 31 yrs old, does my age have anything to do with it
On a salary of less than €30,000, I got a mortgage of €230,000, albeit a few years ago, when interest rates were lower and stress tests were less severe.
It's all about your net disposible income, as Hel_n suggests. You could use potential income from the rent a room scheme to increase this. Some institutions such as Ulster Bank recognise this income and subsequently, are more likely to lend higher amounts.
It's all about your net disposible income, as Hel_n suggests. You could use potential income from the rent a room scheme to increase this. Some institutions such as Ulster Bank recognise this income and subsequently, are more likely to lend higher amounts.
Raskolnikov
Registered User
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Do you have any other monthly commitments (car loan, credit union, credit card, etc)?
You would still qualify for a mortgage term of up to 39 years so that shouldn't affect you. Do you have any financial commitments? Would you be in a position to rent a room? For single applications with people on lower incomes Ulster Bank/First Active generally tend to lend more than others.
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Olly64
Guest
yes, i have 12k car loan
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Olly64
Guest
ok heln, good advice, i have one more question, i have also 13k in savings, would i be better paying off the car loan and then saving again for a deposit, some of the 13k is in investments which if i touch i could loose money
Having no loans will allow you to borrow more money, even without savings. You should qualify for a higher 100% mortgage without your loan than you would for a 92% mortgage with your loan. This is a personal decision though - you may not be comfortable borrowing 100% of the purchase price, and if property prices fell you would be in a negative equity situation...
You also need to weigh up the pros and cons of cashing in your investments - especially if it means you could lose money.
You also need to weigh up the pros and cons of cashing in your investments - especially if it means you could lose money.
Bubblebunny
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Hi All,
Wondering if any of you would know if you would be given a mortgage on a salary of 31k per year and if so, how much would you get?
Thanks
Caili
Hi Caili,
You'd be offered around the 200K mark on that salary. Some will offer a bit more, some less, but you have to decide then how much you can afford to pay back monthly, not just how much they'll give you.
Not necessarily, although it should. There are people who have never saved and can take out a mortgage just as easy as someone with a savings record. It is all about your ability to repay, but as Bubblebunny stated you need to decide how much you can afford to repay , factoring in interest rate increases.
Thats quite true. I have 40k in savings & save €1500 a month but can only get around €200k - €240k of a mortgage. I already own a house which is rented out which has gone up in value by €150k. Any idea why?
Without knowing your personal circumstances - income, existing mortgage/loan repayments, if you are currently renting etc., it is diffiicult to say how you could qualify for a higher mortgage. A €240k mortgage over 30 years would cost approx. €1270 pm, rising to €1580 if interest rates increased by 2%, which is a little more than you are currently saving. Would you be comfortable committing to more than this by taking out a higher mortgage?
If so, would you qualify for a longer term that 30 years? Would you be in a position to rent a room? Do you have any existing loans that you could repay from your savings? These will all help to boost the amount you can borrow.