Advice on Mortgage for Couple (a second time buyer and a first time buyer)

Leansechane

Registered User
Messages
1
Age: 39
Spouse’s/Partner's age:44

Annual gross income from employment or profession:
E61000
Annual gross income spouse:
E40000

Type of employment:
Both public sector employees

Expenditure pattern:
Conservative since September 2018 when decision made to buy house. Take out cash for shopping rather than use laser cards. Since Sept. have saved E250pw each (savings accrued so far E16,475).

Rough estimate of value of home
Second Time Buyer: Value of apartment bought in 2007 is E160,000.
First Time Buyer: owns 2 properties abroad (no mortgage)

Mortgage on home
Second Time Buyer: E162,253 - left to pay from initial E210,000 mortgage in 2007.Currently renting this on RAS scheme - E1050 per month.
First Time Buyer: owns 2 properties abroad (no mortgage)

Mortgage provider:
AIB
Type of mortgage: Tracker, interest only, fixed rate
Tracker
Interest rate
1.1%

Other borrowings – car loans/personal loans etc
We both have no loans

Do you pay off your full credit card balance each month?
We don't use credit cards

Savings and investments:
Savings accrued so far E16,475 since September 2018

Do you have a pension scheme?
Yes, I pay E210pm into personal pension


Do you own any investment or other property?
Yes.
Second Time Buyer: E162,253 - left to pay from initial E210,000 mortgage in 2007.Currently renting this on RAS scheme - E1050 per month.
First Time Buyer: owns 2 properties abroad (no mortgage)

Ages of children:
None.

Life insurance:
Yes.

What specific question do you have or what issues are of concern to you?
We wish to buy a home c. July/August 2019 and are researching before we go to a bank.
Specific questions are:

a) How will a bank view us as a couple (one who has a mortgage already and paying off without issue and the other who owns property abroad (but no mortgage) for a deposit. I understand second time buyers require 20% and first time 10%. Are there exceptions to this - i.e., a case to be made for 15% deposit?
b) The value of a new home we are looking for we are limiting to E100 to E150k and we are not afraid of refurbishment. Would there be any issues with us asking for a mortgage in this range based on above? How is the mortgage on the apartment of second time buyer viewed in terms of approval in principle sum? Is it better not to have a mortgage at all (i.e., sell?).

Apologies for the basic questions. Any insights into couples with differing circumstances and how the central bank rules apply to this would be very welcome.

Thanks.
 
I understand second time buyers require 20% and first time 10%. Are there exceptions to this - i.e., a case to be made for 15% deposit?
If you are buying together, you will be treated as 2nd time buyers for CBI rules.
However, banks are allowed to grant a small percentage of exemptions each year.

How is the mortgage on the apartment of second time buyer viewed in terms of approval in principle sum? Is it better not to have a mortgage at all (i.e., sell?).
The full mortgage repayments are counted, and stress tested for affordability. However, only a percentage of rental income is counted.
Normally it would count against you, but you are looking for a relatively small mortgage, so I can't see it being an issue.
 
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