Do i have much chance of getting a mortgage in to-day's climate

[TUSKAR]

I am wondering what my chances are at getting a mortgage in to-day climate?

Basic Summmary
Age-32
Single Male
Qualifeid Practice Accountant.
Present salary €41k Gross unlikely to go up over next two years due to downturn.
Mortgage required €232,000
Savings €12,000 cover only a 5% deposit.

The main issues are

1. Working in Dublin.
2. Main Expense is €320 a month rent at present, and i will continue to work in Dublin for next 2 to 3 years.
3. House is based in country side in Cork near family home.
4. For next two years at least i will only be in house weekend while renting at same time in Dublin.
5. Will not be renting out house due to first time buyer relief.
6. Will not be renting out rooms due to house to remote.
7. Like everyone not 100% sure Job is safe over next year due to down turn ie less fees etc.
8. 100% unlikely parents will make any contribution.

I get paid weekly at present and average €2,800 after tax per month.

Future Estimate
Estimate- Dublin Rent- €320 a month
Mortgage repayments est- €1100 a month over 30 years est
€1,420 a month before eating etc.

1 am looking at 50% ratio of mortgage/rent to salary, goes back to 39% without rent

I am looking for broker and people with exp to give me their view of what to do, what bank or broker to approcah.

In conclusion i am thinking maybe to hold off 6 months and try and get up to 8% deposit.

My aim is to have maybe 8-9 months repayment's avaiable and try to get 95 to 100% mortgage.

The house is a new build and to me is good value.

 

[sam h]

You actually don't have a question....is there something specific?

Regarding the house, especially if it is remote, then the likihood is that you'll be able to buy this cheaper in the future.

 

[sadie]

My husband earns 40k, I don't work. I recently went for looking for mortgages and both BOI and Halifax said 180k would be around the max they'd offer. I am actually only looking to borrow around 100k as 180k is far too much for us to comfortably repay. We are second time buyers, so a single FTB might qualify for more possibly.

 

[dereko1969]

you're looking to buy a house that you will only use as a weekend crash pad (presumably not every weekend) for at least 3 years? this makes no sense at all, if you were to save the mortgage payments you are planning for this you will have built up a significant deposit in that time so definitely don't buy this house.

 

[Curious81]

In your situation I would continue to save for now to build up a better loan to value ratio. I think it would be very difficult to get a 95% mortgage right now. Also it would appear that you don't actually need the Cork country house right now so why rush when there is a possibility you may get better value later on this year or beyond.

 

[TUSKAR]

In your situation I would continue to save for now to build up a better loan to value ratio. I think it would be very difficult to get a 95% mortgage right now. Also it would appear that you don't actually need the Cork country house right now so why rush when there is a possibility you may get better value later on this year or beyond.

I dont need it now but at the moment it looks like a bargain and i feel with this house the price has already hit rock bottom.

In one sense i can only see the price of this property going up.

 

[amgd28]

But how would you feel if it didn't?

Forget it for another 2 years. There are thousands of available houses out there and you'll be in a far better position in two years with some cash behind you. I cannot see any likelihood of a sudden upturn which could lead you to 'lose out' on a market rise, whereas the other direction......

Let's just say that people thought Anglo shares had hit "rock bottom" at 12, 9, 7, 5, 3, 2, 1,0.5, 0.25 Euro respectively

Keep the head down, keep your job, save your cash and look at Cork again in 2 years time. You'll thank us all for that advice in a couple of years.

And remember, you did ask for advice, don't ignore it when you get it.