Can anyone help?

T

taboo66

Guest
Im just looking for a little advice here please. Im a single person thinking about getting onto the property ladder. I earn €35,000k a year and have no loans outstanding. What are the chances of me being approved for a mortage and if i am successful what do you think the max amount i could get would be. Thanking everyone in advance!
 
You should just go to a mortgage broker who will be able to give you this information. You could also try one of the mortgage calculators on one of the banks or building societies websites but these might be a little out of date.
 
general rule of thumb for first time buyers is that you can borrow upto 5 times your income
 
If you were to go over a mortgage term of 40 years i.e you are aged less than 30 years old & had no existing loans you would qualify for approx. €240k-€250k.
 
When you say 'getting on to the property ladder', are you planning on buying some place that will meet your needs for the next few years, and then selling on at a profit to buy a different property (different size, area etc.)?
 
Thanks for all your replies. I have been on the mortage calculators and each one of them are giving me different answers. My next step would be to make an appointment too see a mortage broker. Im quite glad the figures Yellow belly replied back to me as I did think that the banks would only give me around 5 times my annual salary. Is this not the case with some banks? If so what banks should i apply too if i was to apply directly to one of them. Sorry for all the questions just this is really all new to me. Thanks
 
In reply to Ccovich's question, by getting on the property ladder I mean moving out of my parents home and getting my own house/aparment as a means of gaining independence. It wouldnt be something that i would be wanting to make a profit out off but a home for myself for the long term.
 
taboo66 said:
In reply to Ccovich's question, by getting on the property ladder I mean moving out of my parents home and getting my own house/aparment as a means of gaining independence. It wouldnt be something that i would be wanting to make a profit out off but a home for myself for the long term.
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Fair enough. Are you happy that you can afford a place that you will be happy with for the long term on your current salary etc.?
 
Yes, with quarterly bonus' on top of my current salary and yearly salary increases I feel I would be able to manage my mortage.
 
taboo66 said:
Yes, with quarterly bonus' on top of my current salary and yearly salary increases I feel I would be able to manage my mortage.
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This puzzles me. If you don't know what size of mortgage you are eligable for, how do you know you'd be able to manage the monthly expenditure? Have you effectively done a due diligence on your own ability to get by with ~E1500 less a month in your pocket by sticking this amount in a savings account over the course of maybe 6 months to see how you'd really get on?
 
Yellow Belly said:
If you were to go over a mortgage term of 40 years i.e you are aged less than 30 years old & had no existing loans you would qualify for approx. €240k-€250k.
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I'm sorry but I don't agree with this. I am just after being approved for a mortgage as a single person earning around the same as you. The most I got approved for is 155000 which is fine as it's what I wanted but I have to take it out over 40 years (I'm 27). I have 20000 in savings and no debt either. I'll aslo be entitled to section 23 tax relief which increases my wages each month a bit (because I'll be paying less tax).

I can't see you getting 240-250K and even if you did it would be extremely tight to keep up repayments on your wages and have a life.
 
Go with what you can afford and just remember there could well be more interest rate increases so that needs to be factored in.
You may be better off renting a room for a year or two & see how the market develops. Better to pay €500 rent & still have a social life rather than be tied down with a €1,600 mortgage IMO.
 
I am an FTB on basically the same salary and have been offered anything from 155k - 230k. They vary considerably.

I am going on what I can afford to pay back, not what they are willing to offer me.
 
I will definatley be going with what I can afford i was just asking for other peoples experiences/opinions of what I could possibly get. Bubblebunny do you mind me asking what banks have approved you for this amount. Thanks
 
I am ex Bank and agree with Bubblebunny in that all lenders vary considerably in what they will offer. To be honest the calculators on the websites are very crude approximations, and should not be relied upon at all as being accurate.

Most lenders now utilise net income ratios in assessing how much they will lend. Factors such as no other loans, maximum loan term, factorment of mortgage interest relief, and various other factors can increase the amount which you will qualify for. In addtion to this many lenders will offer larger amounts to many civil service employees or applicants who are willing to accept a 3 or 5 year fixed rate.

I whole heartedly agree with the attitude of only borrow what u can afford as opposed to what you can get approved for. This is most prudent.
 
taboo66 said:
I will definatley be going with what I can afford i was just asking for other peoples experiences/opinions of what I could possibly get. Bubblebunny do you mind me asking what banks have approved you for this amount. Thanks
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Hi, I think unster Bank offered 210k. That is from memory only. I contacted a couple of brokers and let them do the legwork :)
 
CCOVICH said:
Are you an owner occupier? If so, how are you entitled to Section 23 Relief?
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Yes I will be an owner occupier and there is owner occupier Section 23 tax relief in my area (Leitrim) as long as it's not a second hand property.
 
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