Mortgage to Income ratio

C

Caith Pingin

Guest
Sincere apologies if this question has been posted before, as this is my first post here.:eek:

Does anyone know what portion/percentage of your income, spent on a mortgage, is considered a manageable amount?

Thanks in advance.
 
The repayments on an interest rate which is 2% higher than the rate you are eligible for
(eg 7% would be slightly above average) -

should be no more than 35-40% of your net income for comfort levels

you can check repayments here http://www.jeacle.ie/mortgage/
 
If you're a professional they will allow more as you're deemed lower risk and a proportion of annual increases and bonuses are taken into account.

You should talk to a broker who will take your earnings, net disposable income and whether or not you have dependents into account and will tell you how much you're eligible to get.

From that you can work out if you can afford the repayments without your lifestyle changing too much.
 
its a swing from 35% to 50% depending on your income and occupation using a 2% stress test, also this is for total borrowings ie car/personal loans as well
(if applicable)

regards
DeirdreL


www.rea.ie
 
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