What % of net income left for diposal?

K

kieranw

Guest
Hi, I Am new here. My Name is Kieran, and im having a mortgage(no due date yet, feels like im sitting at the gates of hell, looking awkward because im the only one in a tux)

What is a reasonable percentage to have of your monthly wage AFTER all your commitments, but not bills, are tended to? I Include all loans etc, car insurance, mortgage, repayment of "gift" from my mum on a monthly basis(cant wait to see what i get for my next birthday) plus interest!

I am a single man aged 24, with a good job, paying €3000 minimum per month(take home) up to €3,500 if i take on some extra work, that i have avoided previously, to tend to my blossoming social life(R.I.P.) Would 35% of this be enough, if i tried to make a go of it? anyone else still have a social life?

Whilst i am here, ill bring up a subject i have been reading, which first brought me to AAM a few weeks back, The ICB!!(Not the international Cricket board, i hasten to add). I have missed a few loan payments over the years as i would have generally been paid irreguralarly and dates can be missed yada yada, i have been informed by OPEN.IE that no prime lender will lend me enough to buy that pigeon loft that looked "homely" over in number 62. How accurate woud he be on this/ is it even worth me bothering my bank over? I wouldnt say that i am financially responsible at the moment, but that is because i dont have to be. If i needed to be, im sure i could be as tight as donald ducks proverbial!

I have read a little on this bad credit disease, very costly indeed, i was told i am on the first rung of the ladder, which isnt too bad. Have banks no sense of youth or frivility anymore?? Anyway bottom line, coud i run a proper household on €1,250 catering for me and one dog.

Please dont laugh at me, i dont even know the price of butter.
 
Hi Kieran,

Regardless of what you feel you could run your life on, most lenders will put a ceiling on what you can lend based on you having about 60 - 65% of your take-home pay to live on, after all loans and mortgage repayment.

Have a look at Permanent TSB's "How much can I borrow" section here [broken link removed]

As regards your ICB history, it all depends on how frequent the delayed payments were and how long ago they were. Frequent and recent will hamper your application to a "High Street" lender; occasional credit mishaps long ago may not.

Liam D. Ferguson
www.ferga.com
 
Lenders generally allow 35%-45% of your net disposable income to service all financial commitments when determining how much you can borrow, but you really need to budget to see how much you feel you can afford.

Your missed loan repayments in the past may be a problem but as LDFerguson said it really depends on how recent and how 'bad' they were. You should contact the ICB and ask for a copy of your report. Despite what people seem to think, prime lenders will consider applications from applicants with a 'less than perfect' credit history. You may find though that you may be limited to, say, 90% or 92% finance but you should try to avoid sub-prime lenders if at all possible. Even if an application to one prime lender is declined, try a couple more.
 
I met my first mortgage advisor today who was very nice, i suspect she thought i was a little misguided financially. i am.

No Seriously, it all went pretty well, she gave me a good overview but im scared of house prices going down that ill have negative equity, just in case i need to move and will be down a shed load of spondulox!!
 
Hi Kieran

Why don't you get a jump on the lenders, and prepare yourself for whatever is on your ICB record. You can do this on-line, for a cost of €6.00.

Click to apply.
 
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