Advice for 1st Time Buyer

G

guckip1

Guest
Hi all

I'm currently looking at putting a booking deposit on a 3 bed duplex. Now, I have no deposit saved but I have no debt either. I was considering asking my mum for deposit however nervous of reaction from other family members.

Whats the situation with a 100% loan and a guarantor? Is that possible? I currently earn approx. 45-47k. Mother has substantial assests both liquid & fixed.
 
No 100% loan with guararantor but you will not lose your first time buyer status if your mum goes as co applicant.
 
Do you really think:

guckip1 said:
Now, I have no deposit saved
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is a good starting point for buying a home? Is your mum going to furnish and maintain this duplex aswell? With absolutely no savings, do you think you are ready for buying your own home?
 
Hi there,

You may not need a guarantor at all, as you may qualify on your own salary.
 
One of the first things that was looked for in my case was a savings record. Because I'd been saving consistently for many years, the bank agreed to give me a larger than usual mortgage on my own. I would seriously think about saving for at least a year before you apply for a mortgage, to show them that it is feasible for you to spend X amount of money per month.
 
just a thought - on that salary without saving a red cent you are likely to be in for a shock when your payback to mam and mortgage kicks in each month. think about it.
I you get that cash from Mother you should pay it back - if she wanted to give you a cash gift she would have done so before now i think and at that rate of wages you can more than afford to.
 
PTSB and EBS (and very occasionally BOS) will consider a guarantor on a 100% mortgage. EBS have removed their 100% mortgages for non professionals just recently.

A guarantor usually has to be earning above 45k and can increase your borrowing potential by 100k depending on circumstances.
 
Just to follow up on some of the replies posted & maybe give more detail about my situation.

Am looking at buying off plans. I'm considering a 3 bed duplex for approx. €330k. It won't be completed until Sept/Oct next year.

Initial idea was to borrow money deposit from parent and payback in a couple of years. Parent is amenable, she is worried about reaction from other siblings......attempting to avoid this pressure for parent by using her as a guarantor only. May just bite the bullet approach siblings and ask them for their approval for my request.

Fair point on the situation with savings. I forgot to mention, I do have my SSIA which will mature next May to the tune of approx. 5k. Also some shares, approx. value €3k. But the completion date being around 12mths off will give me some time to prepare for house contents purchase & mortgage headache. Also intend in taking in one tenant.

Interested to hear how the co-applicant process would work....does this mean the property shared 50:50.
 
There are other threads on this site about joint applicants on mortgage where only one person is registered as owner. If you do intend borrowing from your Mum and are afraid of siblings reactions why not just draw up a simple agreement stating the amount of the loan and the repayment terms? If you buy off the plans stage payments will become due almost immediately and you will have drawn almost all of your loan cheque before the apartment is completed. You will have to take these hefty repayments into account if you plan to save for furnishing etc...
 
guckip1 said:
Just to follow up on some of the replies posted & maybe give more detail about my situation.

Fair point on the situation with savings. I forgot to mention, I do have my SSIA which will mature next May to the tune of approx. 5k. Also some shares, approx. value €3k. But the completion date being around 12mths off will give me some time to prepare for house contents purchase & mortgage headache. Also intend in taking in one tenant.
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5k is a very small amount to be getting from SSIA when you consider your earnings. I earn 26k a year and I'm still saving 254 a month to SSIA, 200 to separate savings account and paying 400 euro towards a mortgage and then living expenses on top. I think you may need to look at your lifestyle and decide whether you can manage without holidays, excessive socialising, new cars, etc. as these are the only otehr places I can imagine your earning are going towards apart from rent
 
Assuming salary of 47k , no loans , no kids and under 30

FA will lend you about 225k over 40 years at 92% (with room rental)

If you get a guarantor , 2 on mortgage 1 on title - you'd prob get up to 303k ie 92% of 330k. You need to come up with the balance yourself.

UB will be similar if you have good savings and good accounts , they might lend you slightly more maybe around the 245k mark. Same deal with guarantor.



BOS and EBS will also be similar. Again if you have good accounts and savings and the area where your buying the property has good rental potential.

The other lenders don’t allow room rental and it would be a multiple of your salary eg 4.5 times: 211k

PTSB at 100% would lend you around the 210k mark. You'd have to have a very strong guarantor to get you up to 330k. They’d probably force the guarantor to take out a minimum life cover and potential go on the deeds (which would affect the max term)

I don’t think it’s a runner at 100% with a guarantor.

But it’s doable for 92% with a guarantor which means funding the deposit yourself: ~ 26k.
 
never mind the siblings - what you and your mam deal in is not their concern. its her problem if they are jealous.
I mean my bro got left the family farm (and parents), should i like never speak to him- he was in the right place and time in his life to accept it. Your siblings will have to accept it also. If it really will cause agro then set up a payment plan to pay her back.
 
Must admit....great advice here! Many many thanks.

At this rate I'm probably better off looking at a lower priced property. I'm going to approach my mother for a deposit but only on the back of setting up some form of repayment plan. Not exactly sure how to approach this.

Will have to have a serious think over the weekend about how I'm going to progress this over the next 12 months. I'm anxious to get on the property ladder but I really need to sit down and make a realistic plan!
 
I wouldn't be to anxious at the moment if I were you. The market is cooling off and prices are all over the place in some areas, with asking prices varying from 15-25thousand on houses on in the same estates(similar level of finish and under 400,000), also they are simply not selling (I have been watching some houses for 5 months now just to see how long they take to sell, some are dropping in asking price) Why not save an equal amount to any potential mortage repayments for the next six months or so and see what happens with the market!

best of luck
 
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