Are the banks actually giving out money - IN MY CASE

[qwerty08]

Hi all

Going about getting a mortgage for a house for a little gem of a place I've found, thing is not long out of college and on a 3 year apprenticeship so job security is fine but only on 26 k at the mo...

Need 200k mortgage (think i only qualify for 145 approx)

My parents are willing to support me as much as they can but given that they are pushing on (58 & 60) id prefer for them to avoid putting up some of their property (2 houses and a retail premises) as security.

My mother works part time and would be willing to be a joint applicant, but because shes 58, they only treat her as fit to service a mortgage for 8 years (until 65). She earned 21k last year

Anyone have any idea if i'll have a good chance of getting the 200k

In my mind, once im fully qualified i would have no prob servicing the mortgage so dont see my mother's age as an issue, just temporary

Any comments welcome

 

[ninsaga]

You're going in over your head a bit - can you guarantee employment for the next 3 yrs? If so then you are one of the few.

Personally I would not drag the worry of maintaining a mortgage onto my parents....anything can happen.

 

[John Rambo]

Sorry to be the bearer of bad news but it's highly unlikely any bank will even look at your case in the present climate.

 

[mallow]

A 3 year apprenticeship does not equate to job security. Unless you intend to have your mortgage paid off in 3 years time. Most of the professions I can think of that have apprenticeships of that length are not secure. You may well have no problem paying the mortgage when you qualify. The more important question is whether or not anyone will in fact be paying you any salary when you qualify. Maybe you have some cast-iron legally-enforceable guarantee of work and pay stretching beyond 3 years into the future but, assuming that scenario is more than unlikely, if the banks have any sense they will tell you to come back in 3 years time.

 

[Senna]

your only out of college and you want to buy a house?? enjoy your youth and dont tie yourself down with a mortgage. The property market is going no where, you'll have plenty of opp's in the future.

 

[z106]

your only out of college and you want to buy a house?? enjoy your youth and dont tie yourself down with a mortgage. The property market is going no where, you'll have plenty of opp's in the future.

The only bit of the above statement i would disagree with is that the property market is going nowhere.
It is in fact going down.

You'd be mad to buy a place now given your age.

Also - i don't see how any bank would give you 145k.
That's nearly 6 times your salary.

They were barely giving that out back in the boom years - certainly not now.

As an earlier poster said - you would be mad to buy now given your age and the state of the property market.

Just rent for a few years and wait until the market settles down.

Buying now is not a wise move.

 

[qwerty08]

Well thanks for all the ahem "positive" feedback, got my approval today anyway so ill see where i go from here...

 

[mallow]

"Positive" thinking is of no help in making decisions about the biggest debt of your life. Remember that the people who've replied to you have no vested interest and are not trying to sell you anything. Whether you take the advice or not, anyone who would sugar-coat it for you would be doing you a grave disservice.

 

[John Rambo]

Well thanks for all the ahem "positive" feedback, got my approval today anyway so ill see where i go from here...

You seem to have singlehandedly defied the global credit crunch so...

For clarity, am I right in saying that on a salary of €26K per annum, and in a joint application with a 58 year old working part time and earning €21K you have managed to secure approval for a €200K mortgage?

Nobody was being deliberately negative...we were merely bracing you for reality. And I'm sorry to say that based on the circumstances you outlined above, you have absolutely no chance of getting this mortgage.

 

[avontuur]

I wish you all the best. it almost broke my heart getting approved with 2 full time incomes unbroken for 7 years,
only one loan of 50 euro per week,
and a 20% deposit.
In fact AIB turned us down!

 

[Bronte]

I think OP's parents assets of 2 houses and a retail premises would convince any bank particularly if they are of value and without mortgages. If there is no risk to the bank they will give a mortgage.

 

[qwerty08]

Thanks for your latest replies

I actually secured a 100% based professional mortgage up to 220 k

I suppose my parent's set up helped a lot alright and the fact that i'm not currently paying rent so dont really have overheads even if i am only on 26K

 

[papervalue]

Thanks for your latest replies

I actually secured a 100% based professional mortgage up to 220 k

I suppose my parent's set up helped a lot alright and the fact that i'm not currently paying rent so dont really have overheads even if i am only on 26K

Just wondering what bank provided 100% Mortgage and what is the liability of your parents if you default?

do they have to guarantee so much?

 

[Mr DT]

You should have gone for 10 times your salary....you could be the next celtic tiger cub reborn!!

I don't understand your logic on getting yourself in to so much debt at such a young age.

 

[qwerty08]

I’m not some D4 gob****e and I’m not some unskilled worker whose likely to be on the dole next week. In fact I’ve only just signed a 3 year contract! And considering I work in company restructuring and liquidations, I’m doing 70 hour weeks and will probably be doing so for some time!

I don’t know why anyone bothers posting comments on this at all! From what I see, unless you fall into line with this whole cynical ethos of we’re all doomed, you basically get attacked!! The house is a gem, prime location, asking price dropped 35 k last month and I’ve managed to secure a further 18 k reduction to allow for the fact that things haven bottomed out yet. Mortgage working out around 800 a month, spoken to someone on the same road inundated with people looking to rent there, he makes 1,000 euro a month off his.

So excuse me if I don’t share your narrow and sarcastic view of my situation. Grand you can never be fully sure what’s down the road and I am lucky in that I have a family who wouldn’t see my wrong if I got into trouble (DOESNT MEAN THEY'RE PAYING ANYTHING NOW), but don’t take it out on me because you resent every little “cub” who wants to make a start in life for themselves and has the advantage of exploiting his circumstances during the first time in years where the prospect of getting a nice place for a decent price tag is a realistic possibility and the cost of doing so is historically low!

 

[sadie]

I think the views of people here are not that you may be an unskilled worker likely to be on the dole next week. There are plenty of very skilled people finding themselves on the dole (architects, solicitors etc) in the current climate. The views of most long-timers on this site are based on actual requests from help from people finding themselves in serious debt very quickly. You only have to read the Money Makeover section to see how quickly things can mount up for people, and these are sensible, intelligent people. I think people are urging caution really about buying with a 100% mortgage in a rapidly falling market that's all. I would argue that the cost of buying a home is historically low based on the fact that house price inflation has been 400% in ten years in some areas. You will always get the smart alec comments on any forum, but there is genuine concern behind most of the posters' comments.

 

[baloon]

So much for "Any comments welcome"!?!

If you're happy with the place and can comfortably make the repayments - even if interest rates go up to 5 or 6%, then go for it and best of luck with it.

I think the comments here were just trying to make sure you were going into the whole thing with your eyes open. It's a strange place we're ALL in economically at the minute.

 

[Mr DT]

I’m not some D4 gob****e and I’m not some unskilled worker whose likely to be on the dole next week. In fact I’ve only just signed a 3 year contract! And considering I work in company restructuring and liquidations, I’m doing 70 hour weeks and will probably be doing so for some time!

I don’t know why anyone bothers posting comments on this at all! From what I see, unless you fall into line with this whole cynical ethos of we’re all doomed, you basically get attacked!! The house is a gem, prime location, asking price dropped 35 k last month and I’ve managed to secure a further 18 k reduction to allow for the fact that things haven bottomed out yet. Mortgage working out around 800 a month, spoken to someone on the same road inundated with people looking to rent there, he makes 1,000 euro a month off his.

So excuse me if I don’t share your narrow and sarcastic view of my situation. Grand you can never be fully sure what’s down the road and I am lucky in that I have a family who wouldn’t see my wrong if I got into trouble (DOESNT MEAN THEY'RE PAYING ANYTHING NOW), but don’t take it out on me because you resent every little “cub” who wants to make a start in life for themselves and has the advantage of exploiting his circumstances during the first time in years where the prospect of getting a nice place for a decent price tag is a realistic possibility and the cost of doing so is historically low!

I like your passion. I was only suggesting that taking on a loan for 8 times you salary would be seen as a high debt. You feel you can afford it and you have a fall back plan if you need it so that all good. You are in a luck position, nothing wrong with that.

I'm sure it will work out for you. Others would be foolish to take out such debt, that all.

 

[mallow]

I don’t know why anyone bothers posting comments on this at all! From what I see, unless you fall into line with this whole cynical ethos of we’re all doomed, you basically get attacked!!
So excuse me if I don’t share your narrow and sarcastic view of my situation.

Only one person out of numerous replies was sarcastic to you. Everyone who posts on the internet has discovered that you will get responses you like and ones you dislike. It's the nature of the beast. Nor did anyone say anything to the effect that 'we're all doomed'. And nobody attacked you. You mistake strong opinions for an attack. Vague opinions may be unthreatening to you but they would also be unhelpful to you.

The fact that people have a different view to you does not make their views narrow and yours broad. If you ask for advice and receive genuine and polite advice it is rude to attack those who gave it simply because they disagreed with you, however strongly. It is possible to disagree with people without accusing them of attacking you, or of being cynical, narrow-minded and sarcastic. When posting a question, if you only want advice which agrees with your decisions then you should say so. But surrounding yourself with virtual 'yes-men' is no way to make wise decisions.

 

[plant43]

I’m not some D4 gob****e and I’m not some unskilled worker whose likely to be on the dole next week. In fact I’ve only just signed a 3 year contract! And considering I work in company restructuring and liquidations, I’m doing 70 hour weeks and will probably be doing so for some time!

A three year contract is pretty meaningless. Are you confident that your contract will be renewed? You never said what you were training as either.

Taking aside all that, 26k a year means you clear just under 2000 a month. Of that 800 goes on mortgage, leaving 1200 to pay for everything else, which really isn't very much once you take into account food, gas, esb, home insurance, life assurance etc.