Advice Please

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007007

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Age: 29
Spouse’s/Partner's age: boyfriend (does not live with me)
Annual gross income from employment or profession: 27k


Type of employment: finance (not qualified)


Rough estimate of value of home 220k
Mortgage on home 200k
Mortgage provider:First Active
Type of mortgage: fixed for 5 years
Interest rate 5.53%

Other borrowings – none

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? 1,100

Savings and investments: savings about 3k

Do you have a pension scheme? No

Do you own any investment or other property? No

Ages of children: None

Life insurance: Yes, as a result of mortgage. Cheapest 1 I could find!


What specific question do you have or what issues are of concern to you?

i just bought a house and my first mortgage payment was this month, EUR1,100, my take home pay is EUR1,900 per month.

bills include, petrol, mobile, heating, electricity, TV, health, life, home insurance etc...

socialising every few weeks, like to keep up with the latest fashion... foreign hols every year.

im afraid i wont be able to keep paying the mortgage payments every month........

Any suggestions would be much appreciated.
Thanks.
 
the other poster was right , interest only possibly

and have u got a spare room to rent out -

U are in danger of not meeting your repayments and what is going to happen is that u 'll be constantly in Over draft
 
How did you get a mortgage of 200k on a salary of 27k? If you are serious about keeping the house you need to get your priorities straight.

Pay off the credit card with the money in the savings account; then rip it up and never use it again. Sell your car and use public transport. Forget about socialising and foreign holidays - you can't aford them. Then look at what's left and see if you can save any more money. As the previous poster suggested rent a room to help pay the mortgage.

If you don't take drastic action you'll find yourself at the end of a repossesion order in the future!
 
Firstly I think you'll have to forget the holidays!

Your mortgage is way too much considering your earnings.

i think your options are either:
a) keep house, rent out room, get part time job and work towards getting professional qualifications that would eventually get you higher salary.

b) rent out whole house and either move home or rent a room somewhere until you can afford the mortgage yourself easier and ask boss for pay rise

c) sell house (but if you're only after buying it you'll be back to square one and no longer a first time buyer)
 
I have to agree that you should sell the property. It will only cause you undue stress in the long term. The lender was very irresponsible in my opinion.
 
hi there 007007,
The reality is for the first few years it will be tough - you will have to budget.
*Mobile Phone - change to ready to go
*Heating - if possible turn thermostat down a few degrees
*Where you can bring a lunch to work
*Fashion - OK be realistic you really cant afford at the moment the latest trends - so if you are shopping buy fairly classic stuff.. You know the kind stuff that will go with every thing. When we baught our place - I got hand me ups from my sister as I simply could not aford to replenish my wardrobe.
*You will have to budget for nights out - have nights in with friends.
*Rent a room.
*Switch visa cards and use the 0% intest free period to pay off card. Cancel the other card and put the new visa card in a bag of water in the freezer - so you cannot go out and buy stuff when you feel like it - but you can still book holidays if you need to..


Do note you have a bit of a buffer in the savings - so dont panick - but do start organizing yourself quickly...
All the best,
P:)
 
How on earth did you manage to get a €200K mortgage on €27K gross income!?!? :eek: :confused:
 
thanks for all your replys.

wont be selling the house, i only just bought it!! dont know why the bank gave me a mortgage on my salary...i even said to them many times are ye sure, my wages are crap!

wont be renting out a room, its only a 2 bed, house is tiny-no privaticy..

will look into the interest only mortgage, all that stuff is so over my head..

wont be getting rid of my car, i have no loan on it, why would i want to get rid of it, public transport is crap!!!

i am just going to have to tighten the purse strings big time.....
 
How on earth did you manage to get a €200K mortgage on €27K gross income!?!? :eek: :confused:

Indeed - that's what I said - surely there was additional income counted somewhere when the lender made the decision - possibly from the renting of a room?
 
thanks for all your replys.

wont be selling the house, i only just bought it!! dont know why the bank gave me a mortgage on my salary...i even said to them many times are ye sure, my wages are crap!

wont be renting out a room, its only a 2 bed, house is tiny-no privaticy..

will look into the interest only mortgage, all that stuff is so over my head..

wont be getting rid of my car, i have no loan on it, why would i want to get rid of it, public transport is crap!!!

i am just going to have to tighten the purse strings big time.....

On your second point - think you need to wake up, you may HAVE to rent the room whether you like it or not if you want to keep the house.

On your third point - you need to speak to your mortgage provider asap to find out what your options are.

On your fourth point - again you may need to wake up, cars are expensive to run and maintain, you may HAVE to resort to public transport

You really need a reality check!
 
wont be renting out a room, its only a 2 bed, house is tiny-no privaticy..

.


I was in a position similar to yours a few years ago. My place is two bedrooms too but I rented out a room for 3 years. I had to!!! I have been in the place on my own for the last 2-ish years now and having it to myelf is great ... but if my financial circumstances changed I would have to rent a room again.
 
Your earnings to mortgage ratio is 58% - as a rule of thumb over 35% would be on thin ice, so if you're not going to something realistic, you';re going to really struggle with this.

As other posters said, it amazes me firstly that the bank have been so irresponsible in lending you this money, and that secondly you had no idea of what you were getting yourself into....
 
wont be selling the house, i only just bought it!!

That doesn't matter a damn if you can't afford it!

dont know why the bank gave me a mortgage on my salary...i even said to them many times are ye sure, my wages are crap!

I find that hard to believe, but regardless, did you work out a budget before you bought the house? How did you think you were going to live with nearly 60% of your net pay going on a mortgage?

wont be renting out a room, its only a 2 bed, house is tiny-no privaticy..

Which do you value most - privacy or your house? If you want to keep your home you're going to need to find some way of paying for it

will look into the interest only mortgage, all that stuff is so over my head..

Have a read through more of this site and you should find your knowledge increasing

wont be getting rid of my car, i have no loan on it, why would i want to get rid of it, public transport is crap!!!

Do you get your petrol, car insurance, road tax and servicing for free then? Once again which do you want to have a car or a house?

i am just going to have to tighten the purse strings big time.....

To be honest that isn't going to be enough - the scary part is that you don't seem to realise how bad your situation is - you can't afford to keep your house unless you do something drastic - "tightening purse strings" when you won't consider renting a room or selling your car is not going to cut it.


Or are you just trolling?
 
nige-thanks for the smart comment-didnt log on here to get insulted.


i'll take all your replys on board.
 
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