Stricter lending criteria?

N

nennec

Registered User
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Hi All,

This is my first post here so I'm trying really hard NOT to get flamed (do people still use that term?). I'm basically trying to find out how much I can borrow following a split from my ex. I know there is a sticky post with rough guidelines but there are two reasons that these may not be accurate:

1. We will be selling a house and expect to pocket c50k each
2. Stricter 'guidelines' for lending

I'm not naive enough to think I could buy her out. But will the fact that I'd be borrowing a lot less than 92% of a different property allow me to borrow more? And is it true that banks are currently tightening lending guidelines?

I currently have a gross income of 44k (it's actually 2 jobs, first pays 36k and second 8k). Rough calculations suggest the most I could borrow is approx. 200k.

I'd be grateful for any advice/thoughts.

Thanks.
 
Lenders will take 100% of your main income and 50% of the second - assuming it's taxable and permanent. On that, with room rental and no loans you'd qualify for €210,000 over a 35 year term (if you are aged over 35 a shorter term/lower amount will apply). Borrowing is based on income and outgoings so whilst a substantial deposit (a loan to value of 75% or less) might result in a slightly higher loan the calculation is the same across the board.

Sarah

www.rea.ie
 
Thanks Sarah.

One other quick question. Are there any rules of thumb that can be applied for calculating how much extra I could borrow with a guarantor (i know it depends on their salary and borrowings but a general rule or even a maximum)?

Thanks again.
 
It all depends on the income and commitments (and age) of the guarantor, not their assets. It really is on a case by case basis however there is a minimum guarantor income of €40,000 and they must be a relative.

Sarah

www.rea.ie
 
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