Can I get a mortgage

L

laoisguy

Guest
Hi,

First time post. Im just looking for some loose advice. I am living in laois (renting) and plan to go to college in september. The rent near the college is about €500 p/m. But there are houses on avaibile for around €120000. With the mortgage payments around €300 (i know this will vary)

Im 25, a student, work in dunnes (flexi time) and will be going to college part time. I earn about 300-400 per week.

I have no loans but have €12000 in savings.

My mother has a house worth around €240000, with a mortgage owing of about €23000. She has suggested putting the house in my name, so that I can get a remortgage, and buy a house myself with the money. She was thinking of releasing the equity herself but thinks they dont do that anymore and she is too old.

Im wondering if she put the house in my name would i be able to get a remortgage considering i earn so little.

If anyone could help me out. I know this is a naive post but just thinking out loud. My mother hasn't a clue about these things and either do i so wondering if anyone could help out with some suggestions.

Thanks for your time :)
 
Is your job in Dunnes permanent? you might have a chance if it is. Get yourself to a good mortgage broker, no harm asking anyway.

Be careful of buying a house near a college which depends on student rental only though. A lot of colleges have built on-campus accomodation which has kinda killed off the student rental market in average-ish properties close to them - that big estate close to Athlone IT is a good example of this. Remember rental income near a college is usually only for 8 months of the year
 
Do you plan to live in the house after you finish college. Will you tie yourself down to a mortgage in a place you dont want to live?

There is no way you would be given a mortgage on the type of contract you are on in my opinion

What about your mother. Maybe she will need that equity when she is older.

All in all a very bad idea.

Ok so you will be renting for a few years but you will be gettign the benifit of living close to the college. Dont see it as dead money see it as investing in yuor future. If you can buy a house for 120000 your propably going to a IT in the regions. 500 E will get you something very very nice.
 
hi

Yes my job is permanent. The area is close to an IT yes and I wouldnt actually mind living in the area after college. I have looked at the rent for houses nearby and to be honest there is nothing less than 400 per month.

But if i got a mortgage at least paying 400 a month i will be paying off my mortgage rather than someone elses.

I do want to base myself in this area.

With regards to my mother, she has got savings and if she did sign the house over to me i would help her out in the future, hopefully by then i'd have a good job.
 
laoisguy said:
Yes my job is permanent. The area is close to an IT yes and I wouldnt actually mind living in the area after college. I have looked at the rent for houses nearby and to be honest there is nothing less than 400 per month.

But if i got a mortgage at least paying 400 a month i will be paying off my mortgage rather than someone elses.

I do want to base myself in this area.

With regards to my mother, she has got savings and if she did sign the house over to me i would help her out in the future, hopefully by then i'd have a good job.
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If i were in my old age I would hope not to have to get the help of my son financially. DO you really want to be having to help your mother out financially in the future. what might a future partner etc think about this?

Your are paying someone elses mortgage but benefiting from staying in a house for the time so you are benefiting too.

If your job is in one place and your place of residence another i dont know who you plan to square that circle.

Honestly I am not trying to be negative. What your planning is a really bad idea.
 
laoisguy said:
But if i got a mortgage at least paying 400 a month i will be paying off my mortgage rather than someone else.
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If you don't want to squander money shouldn't you just go for a house share at €200/€250pm? You would also be splitting utility bills and not having to pay the many costs associated with actually owning a place (furnishings, appliances, maintenance, etc).

Also you have to consider that the majority of the loan repayments on the mortgage are only paying interest rather than paying down capital, you'd be quite disappointed how little of the mortgage you'll have paid down after 5 years.

Theres many reasons to own your own place, but believing that you are somehow saving money compared to renting is certainly not one of them.
 
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