>>How much can I borrow
Hi Clubman,
I don't think it would be feasible to post the criteria of each lender as each has a detailed guide however as a rule of thumb the following might help;
Single applicant earning less than €30,000 - 3.25 times salary
Single applicant earning €30,001 - €59,999 - 4 times salary
Single applicant earning €60,000 - 4.5 times salary
Joint applicants (both earning) combined income less than €50,000 - 3 times joint income
Joint applicants (both earning) combined income greater than €50,000 - 3.75 times joint income
Joint borrowers (one earning) income less than €50,000 - 3 times salary
Joint borrowers (one earning) income between €50,000 - €59,999 - 3.25 times salary
Joint borrowers (one earning) income greater than €60,000 - 3.5 times salary.
Salary is defined as basic pay (as shown on payslips/bank statements) plus a percentage of additional income such as overtime, bonus and commission. Some lenders only take a maximum of 10% regardless, some will allow all additional income for occupations such as guards, nurses, etc. Most lenders will add in income from "rent a room" but only from single applicants and the property must have more than one bedroom (!).
Finally if applicants have other loan commitments such as loans or maintenance the annualised repayments must be deducted from the gross salary before applying the salary multiple.
The above is a general guide - it's not the most aggresive criteria on the market in all groups - but should give potential borrowers an idea of their ballpark loan amount.
Kind regards,
Sarah
[broken link removed]
Note for the self employed
Most lenders will ask for an accountant's certificate rather than full accounts and most will work on the last year's figures as long as the figures are "reasonable". The lender will also look for 6 months personal/business bank statements which should give a good indication of your income.
Note for self employed posted recently by Sarah elsewhere and added here by ClubMan for ease of access.