Mortgage Advice:FTB age 40, earn €35k govt job, 10k pa approx in my small business

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NeedingHelp

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I am age 40, earn €35,000 in my government job and earn approx €10,000 per year with my small business (although hoping to grow this in time). I know nothing about mortgages and have never worried about it until now. I know I won't be able to afford anything in my hometown of Dublin but am thinking about Mullingar or Portlaoise or anywhere I can afford. Before I go making an idiot of myself, knowing nothing about this, at my advanced age, would anyone know based on what I earn, how much I would be likely to be able to get a loan of?
Would be grateful for any advice and help. And would also be grateful for not being ridiculed!:D I know it may seem strange to some that I have made the mistake of not buying property before. I am out of my dream world now and needing help!
 
Re: before i make an idiot of myself

You can try out calculators on many sites which will give you a guide to how much you can borrow:
Bank of Scotland: [broken link removed]
EBS:

The best thing however is to apply as many lenders as you can and tell them that you want a maximum AIP. This will tell you the maximum they are willing to lend you based on your financial circumstances, age etc. Also tell them that you intend to avail of the Government's Rent a Room Scheme (assuming you don't have any dependents?)
 
Re: before i make an idiot of myself

Oi! 40 isn't old! :D

You can still get a 30 year mortgage and, assuming you can prove your taxable self employed income at €10,000 and also assuming you have no other loans, you would qualify for up to €210,000 of a mortgage on a 2 (+) bed property. Do you have any savings?

Sarah

www.rea.ie
 
Re: before i make an idiot of myself

Thanks for your help! I have no dependents. I am married but not sure for how long more...:( Things not going well. Have been together 12 years, married 6 and he will not discuss getting a mortgage. He has a great job but says that the market is going to crash. Has been saying this for 12 years and meanwhile the prices are going up and up and up. He promised me at beginning of year we would look and it is now July and he is reneging on that. He also does not support emotionally or in any way in my business venture, which despite the naysayers is growing all the time. I don't want to listen to his negativity anymore and I want to go and take action myself. I have waited a long time and I don't think it is unreasonable to expect just a little bit more when we have been together so long.

I have €35,000 salary, €10,000 provable small business income, €5,000 savings, possiblitly of getting some help to gather deposit, can get credit union loan, will fit in another job if neccessary, and may be entitled to some money if I seperate. I will check out the calculator etc etc.

Thanks so much.
 
Re: before i make an idiot of myself

Sorry to hear that. If you want to buy a home for yourself you will need a separation agreement. If you want to buy an investment property the maximum mortgage would be 85% of the property value/price and you would lose your FTB benefits (reduced Stamp Duty and higher tax relief).

Feel free to post again if we can be of any further help.

Sarah

www.rea.ie
 
Re: before i make an idiot of myself

Sarah W said:
Oi! 40 isn't old! :D

You can still get a 30 year mortgage and, assuming you can prove your taxable self employed income at €10,000 and also assuming you have no other loans, you would qualify for up to €210,000 of a mortgage on a 2 (+) bed property. Do you have any savings?

Sarah

www.rea.ie
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know this is kinda off the topic...but at what age can u get a 30 yr mortgage till...i would have thought the cut off would have been 35 as any older and u could be paying mortgage off after you've retired
 
Re: before i make an idiot of myself

Fair play to you . 40 my backside you sound like a young girl. i hope things work out for you. permanent tsb have a very good online system which shows how much disposable income you have (after putting in figures of course) to service a loan and also tells you what level you can get a mortgage at. you put in income and it will tell you if they will lend that high. i think in genereal 1/3 of your disposable income should be able to service your mortgage repayments.if not you will prob not get the loan. i believe from reading aam anyway that gov employees are grand though ...can get much more than private sector worker due to job stability. if you want to make the move go for it but dont be expecting money from seperation to keep you afloat or to use it for deposit as it will take years and years to get anything sorted...believe me. you sound like you have great get up and go. best of luck
 
Re: before i make an idiot of myself

grizzcol said:
know this is kinda off the topic...but at what age can u get a 30 yr mortgage till...i would have thought the cut off would have been 35 as any older and u could be paying mortgage off after you've retired
Click to expand...

You can get a mortgage up to the age of 70, although some lenders still only go to 65.
 
Re: before i make an idiot of myself

grizzcol said:
know this is kinda off the topic...but at what age can u get a 30 yr mortgage till...i would have thought the cut off would have been 35 as any older and u could be paying mortgage off after you've retired
Click to expand...

Most lenders will go to age 70 - I guess working on the basis that most of us will either use pension lump sums to clear the mortgage or will still be working in 30/35/40 years time!

Sarah

www.rea.ie
 
Re: before i make an idiot of myself

can i just say to Sarah W.. great advice on the seperation agreement .
to Needinghelp.. best of luck and good on you for taking the bull by the horns.
does you business need a premesis to trade out of.maybe you could think along those lines with a flat overhead
 
Re: before i make an idiot of myself

Thanks so much everyone! And Money Man, you would be amazed at how much get up and go you can get when you realise you have hurtled towards 40 without even realising! It's enough to make anyone take action!:rolleyes:

Seriously though, I really have only come into my own in my thirites and I am not waiting round anymore for anyone else to make it happen. I realise I have to do it myself or end up a lonely old woman, living with my cats in a rented accomodation!! I think buying is the only way to go to ensure that doesn't happen, assuming I live that long of course!

About getting a mortgage until 70, I asked someone this afternoon and they said most places will now. Apparently, they want us all working until that age anyway! Also, if by age 40, I have no illnesses, (hope not speaking too soon), never been hospitalised (ditto), don't smoke, don't drink much, it's all positive. I guess also being in a government job and having my own small business might help and no dependents :)mad: ). I hope to fix that my getting a dog and cat in the future! I am not allowed that at the moment!!!!:eek:

Onwards and Upwards. Thanks for all your help everyone! I feel encouraged....
 
Re: before i make an idiot of myself

The Rave, no I don't need a premises at the moment. I am selling stuff online and I am also working out of home. :) However, I will need a premises in the future to expand. :D

This is why, even if I can't afford Dublin, and I have to buy in the back of beyonds and travel every day or only stay there at weekends, I may have a bit more space too to do this.

I am looking to the future and hoping for the best. The other half may come round when he sees that I am serious this time. If so, then the situation is resolved for the present but I will NOT let go of the business and I will not be led up the garden path (if we had a garden;) ) anynmore! Time is of the essence! I hope life begins at 40 because I have certainly let a whole lot of it slip by unnoticed.:eek:
 
Re: before i make an idiot of myself

as tosh said,great attitude and est of luck with the business and the house hunting
 
Re: before i make an idiot of myself

You certainly have some personality and it seems a love for life and getting ahead. Keep at it, it will come right in the end.

Is affordable housing an option in this case anybody?
 
Re: before i make an idiot of myself

NeedingHelp said:
This is why, even if I can't afford Dublin, and I have to buy in the back of beyonds and travel every day or only stay there at weekends, I may have a bit more space too to do this.
Click to expand...

OT but important, if you run an online business from home and are planning to move, then make sure that whatever home you buy, it has broadband available, specially if you are going outside of Dublin.

It might sound like a small thing in the bigger context of buying a home, but you would be surprised at the number of people who buy a home, realise that it doesn't have broadband and it ruins their plans to work form home.
 
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