Mortgage - what deposit is required?

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narkyhead

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hi people. I just joined today.I want to be a help to my son who asked me about mortages. I have two questions 1. what sort of deposit would he need to get a mortage of around 250,000 he is going it alone and he only started work less than two years ago so no real money yet.And what is the best advice i could give him.
 
Re: mortage

NIB is looking for min 25% deposit from what I was told - so that'd be 62.5k on that house price... They may be more flexible for first time buyers but all banks will look for at least 10% (25k) and will also look to see where the stamp duty is coming from.

He should talk to a broker - they will be able to give him an idea of what he can get before he actually goes for an application.
 
Re: mortage

8% would be the minimum deposit so if he wants a mortgage of €250,000 (92%), he would need a deposit of around €27,000.
He would need to be earning at least €40k and have no loans.
Best advice - save for the deposit and clear any short term debt.
 
norfbank watersprite much appreciate your answers. I more or less told him to have no loans which he is very close to having. Thank you for advice I will get him to speak to a broker.
 
narkyhead said:
norfbank watersprite much appreciate your answers. I more or less told him to have no loans which he is very close to having. Thank you for advice I will get him to speak to a broker.
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How old is your son? Is it likely that he'll want to up sticks in a few years time and move about? Travel or change jobs etc? If so, he would be better off renting.

BTW, I agree with the other poster. He should clear off his debts and save up for his deposit. I wouldn't give him a penny towards the deposit.
 
narkyhead said:
I want to be a help to my son
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Just from the tone of your post, i would say reading some threads on www.thepropertypin.com will give you the best advice to offer your son.


Also i would say your son should be earning at least 65k per year to be thinking of a house of 250k. He should have guaranteed job security and he should also be happy to live in the house for the next 10-15 years.
Also when working out what his repayments will be, i would calculate them with a 6% APR, not the very low current rates.
On a mortgage of 225k over 25yrs that would be €1440 per month.
 
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