My husband and I are wondering at what age we will be too old to be considered for a home mortgage. We are 43 and 42 respectively, work full time (€45,000 pa & €85,000 pa) and have 2 year old twins. Between Dublin rents (€1,500pm) and crèche fees (€1,487 pm) we are not managing any savings right now and wonder if we will even be considered for a mortgage, if we manage to get our finances organised in the next 3-5 years. We suspect the clock is very much against us...
Is there a maximum age limit for a home mortgage?
- Thread starter Theodora
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Your problem is you need to have mortgage repaid by normal retirement age, so affordability is the issue.
At the moment you could apply for a 25 year mortgage. But as you get older, the term shortens. (Sone banks are increasing that max age at the moment to 68 or 70 with pension), and thus the monthly repayments increase.
You need to start regular savings, even if only a few hundred per month, to show affordability. Based in your rent alone, your max mortgage would be 300k. But save 200 per month and that increases to about 350k.
At the moment you could apply for a 25 year mortgage. But as you get older, the term shortens. (Sone banks are increasing that max age at the moment to 68 or 70 with pension), and thus the monthly repayments increase.
You need to start regular savings, even if only a few hundred per month, to show affordability. Based in your rent alone, your max mortgage would be 300k. But save 200 per month and that increases to about 350k.
Ive had to read that a couple of times, as I must be missing something blatantly obvious, but how can a couple on a combined income of €130000 have such concerns about getting a mortgage.
Im sure many reading this on half that combined wage will be feeling quite demoralized at their own situation.
How much of a combined income is now needed to alleviate everyday life concerns.
Im sure there are reasons of why in the last 15 plus working years, on a smaller salary`s no doubt, that you are raising a concern. Its just the notion of a great combines wage, and yet you are feeling under pressure now to get to the next stage in life.
Im sure many reading this on half that combined wage will be feeling quite demoralized at their own situation.
How much of a combined income is now needed to alleviate everyday life concerns.
Im sure there are reasons of why in the last 15 plus working years, on a smaller salary`s no doubt, that you are raising a concern. Its just the notion of a great combines wage, and yet you are feeling under pressure now to get to the next stage in life.
HollowKnight
Registered User
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I thought the same thing! I would have thought they would have ~ €3000+ to use after the commitments mentioned above.€130,000 combined salary and can't save for a deposit. I nearly fell off the chair reading this.
To be honest, I’m baffled too why we are struggling so much to get through on a monthly basis, never mind save up for a deposit.
We spent 6 years going through IVF with that financial burden (though we had some financial assistance from a generous aunt & uncle), and while we are delighted with finally having a positive end to that story, the expenses seem to have just moved in a different direction. I earn €3,900 net pm (an increase of €200 pm from this January, and due about €150 increase from April as I move to next point on salary scale) & husband €2,400 net pm.
I should say in re: crèche, while its €1,487 now, I was paying €1,650 a month to have them minded in our home for Aug 17 to September 18, from when I first went back to work. At least we can now avail of some government support while they get a chance to socialise outside the home.
I am paying €150 a month into AVC to go along with my public sector pension (contributing since 2009, and reduced from €350 pm to current €150pm).
Am receiving €420 pm in child benefit from the twins.
I’ve sat down so many times with our statements and even with our outgoings in re: AVCs, life insurance, death in service, health insurance, phones, broadband/TV, car insurance and tax, charity standing order, etc we should not be struggling as we are.
We don’t holiday much and then only a few days away in Ireland (holiday was 3 days self catering in Kenmare last year), car is paid off and we don’t go out much these days thanks to the little ones. We don’t have family here in Ireland so have to pay babysitter €11 an hour if we want to go out in evening, so that’s happened about twice since they were born. All clothes shopping seems to centre on the kids, and I’ve cut back to essentials in that area.
I have €2,500 in credit card debt that I pay the minimum off of (I know...). My husband also sends €120 a month to his parents in financial support.
I did move to a new position a year ago which was a promotion & better pay scale, but it is costing more on a daily basis in terms of commute & parking than previous job that I could get bus for. Long term it will be worth it so I’m trying to grin & bear that daily expense.
I expect my next, best port of call is in person consult with a financial advisor? Me sitting down looking at the figures hasn’t improved matters yet, and it stresses the hubby out when I raise it (don’t blame him either, it stresses me out too!). This is the year though we have to sort ourselves out.
Any further comments/ pointers gratefully received.
We spent 6 years going through IVF with that financial burden (though we had some financial assistance from a generous aunt & uncle), and while we are delighted with finally having a positive end to that story, the expenses seem to have just moved in a different direction. I earn €3,900 net pm (an increase of €200 pm from this January, and due about €150 increase from April as I move to next point on salary scale) & husband €2,400 net pm.
I should say in re: crèche, while its €1,487 now, I was paying €1,650 a month to have them minded in our home for Aug 17 to September 18, from when I first went back to work. At least we can now avail of some government support while they get a chance to socialise outside the home.
I am paying €150 a month into AVC to go along with my public sector pension (contributing since 2009, and reduced from €350 pm to current €150pm).
Am receiving €420 pm in child benefit from the twins.
I’ve sat down so many times with our statements and even with our outgoings in re: AVCs, life insurance, death in service, health insurance, phones, broadband/TV, car insurance and tax, charity standing order, etc we should not be struggling as we are.
We don’t holiday much and then only a few days away in Ireland (holiday was 3 days self catering in Kenmare last year), car is paid off and we don’t go out much these days thanks to the little ones. We don’t have family here in Ireland so have to pay babysitter €11 an hour if we want to go out in evening, so that’s happened about twice since they were born. All clothes shopping seems to centre on the kids, and I’ve cut back to essentials in that area.
I have €2,500 in credit card debt that I pay the minimum off of (I know...). My husband also sends €120 a month to his parents in financial support.
I did move to a new position a year ago which was a promotion & better pay scale, but it is costing more on a daily basis in terms of commute & parking than previous job that I could get bus for. Long term it will be worth it so I’m trying to grin & bear that daily expense.
I expect my next, best port of call is in person consult with a financial advisor? Me sitting down looking at the figures hasn’t improved matters yet, and it stresses the hubby out when I raise it (don’t blame him either, it stresses me out too!). This is the year though we have to sort ourselves out.
Any further comments/ pointers gratefully received.
HollowKnight
Registered User
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- 286
You should pay off that credit card debt quicker on your joint salaries!
If you want more focussed feedback, you should look at completing a money makeover post in that forum (sorry can't link from phone).
If you want more focussed feedback, you should look at completing a money makeover post in that forum (sorry can't link from phone).
PaddyBloggit
Registered User
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- 3,745
Best thing to do is to head over to the Money Makeover Forum:
https://www.askaboutmoney.com/forums/money-makeover.62/
Open a new thread and use this template and people will be able to give you more specific advice then:
https://www.askaboutmoney.com/threads/basic-information-required-for-the-money-makeover-forum.61289/
Incomes
Income 1 €3900
Income 2 € 2400
Child allowance 420
Total: 6720
Costs:
Creche: 1487 - what will that reduce to? and when?
Rent 1500
AVC 150
Life Insurance
Health Insurance
Phones
Car/tax/insurance
TV
Charity
Food
Parents €120
commute & Parking v bus
Costs: €3257
CC €2500 paying minimum
Comments:
Please fill in the blanks.
Honesty is best or your wasting both our time and yours
Credit card is ridiculous
Are you in Dublin
What type of property are you renting
Two good earners, where did the money go for nearly 20 years of working prior to the children?
What price house are you thinking of, and what size.
Have you no savings at all
Issue with husband not being able to deal with speaking about finances
Last edited:
That's a really good start, the only positive in your post ! You wouldn't be the first to come on here to say that, others have come on here and succeeded, be determined to be one of those and you will get there.
Simplest way to start, is tracking every cent you spend using Microsoft Excel spreadsheet or something similar
Make a column for each of your spending areas, grocery's, utilities, insurances, kids, socializing, etc, etc
Every time you spend ask for a receipt and enter it into the spreadsheet and don't forget to make a note as to what the amount was for on the spreadsheet
After you have done this for six months to a year you can start to see where your money is really going and make proper decisions on how to save/change your spending
It takes time to get into the habit and prefect the system of tracking your spending but when your up and running it will become second nature to you and will make a lot of financial decisions easier
Make a column for each of your spending areas, grocery's, utilities, insurances, kids, socializing, etc, etc
Every time you spend ask for a receipt and enter it into the spreadsheet and don't forget to make a note as to what the amount was for on the spreadsheet
After you have done this for six months to a year you can start to see where your money is really going and make proper decisions on how to save/change your spending
It takes time to get into the habit and prefect the system of tracking your spending but when your up and running it will become second nature to you and will make a lot of financial decisions easier
Park the AVC for now also the charity, you don't want to be lining some overpaid CEO's pocket (unless of course it's a totally legit charity). How much are you paying for your mobiles? where do you shop, SuperValu, versus Lidl/Aldi/Dunnes. Do you shop around for energy prices every year likewise home/car insurance and health insurance.