ftb 100% mortgage

Hi All

I am just looking for some advise in relation to a mortgage - myself and a friend are considering buying at the moment and would be hoping to get a mortgage of about 250k - she earns 25k and has a loan commitment of 150per month and i earn basic 27k plus 13k commission (not guaranteed but has been the same the last 3 years so fairly definite) and i have a loan commitment of 500pm - we are both ftb and both in same employment for more than 3 years - are we wasting our time?

thanks

Loan commitments are killing you - without these loans your salaries would make you eligible for ~€310,000, assuming no negative points appear on your application.

With your loan commitments, you're down to about €165,000.

Any way you can clear off these loans prior to applying for the mortgage? Even if your (€500 per month) loan was redeemed and the other one still remained, you could probably get the €250,000 you want.

Liam D Ferguson
www.yourfirstcastle.com

She & He earn €25k + €27k + €13k = €65k. Ballpark, that's €4k after tax per month
Loan repayment = €650.
€250k at 3.2% for 30 years = €1081 repayment per month
That would make €1731 total repayment per month...43% of net income.

If you do not take into account your commission (not sure what the lender's position is on this) , it gets obviously worse as your commission is 50% of your salary, i.e. total income drops to €52k.

What the outstanding balance of the loans (he & she) ?
Do you both have savings?

Good news, i do not think it is out of reach. The 2.5 times salary rule does not apply anymore these days. Have you talk to a lender yet?

Also note that even though a lender may give you the money, it is your responsability to repay...so you have to be confortable with the repayments. The lender does not care if you have to eat rotten bread and drink tap water for the next 30 years. So, assess all other expenses (food, esb, gais, home insurance, life insurances, car stuffs, holidays, pocket money, clothes, .....) beside load & mortage and see if you can meet the 2 ends

Unfortunately not a hope of clearing the loans....

How much are the loans for and what kind of time scale are you looking at to clear them?

Baccus

Unfortunately your figures are wrong, in this case even allowing for all commission , the total repayments represents closer to 50% NDI as lenders stress test the repayment.

realistic figure here is around 185000 and thas assuming the lender will allow for all commission, which they may do if you can produce 3 P60's

Molly said:

Bacchus
Unfortunately your figures are wrong, in this case even allowing for all commission , the total repayments represents closer to 50% NDI as lenders stress test the repayment.

Click to expand...

Hi Molly,
Mea culpa if i got the figures wrong, but i do not see where i got them wrong.




This is what i wrote:€4k monthly ballpark * 12 = €48000 per year

(I got €1081 from Karl's Morgage calculator)
€1731 monthly * 12 = €20722 (loan + mortgage repayment only)

€20722 / €48000 --> 43.27%...This is how i got my figures..



Then, needs to consider the other expenses as i wroteI am no arguying on the fact that I AM RIGHT , but i simply do not see where i got it wrong for the 43% of net income for loan+mortgage only. Can you please explain , so that i do not make the same mistake (on the assumption i got it wrong at the first place ) the next time around.

using FA 100% FTB product the calculation is as follows :


non married joint net monthly income on gross salary's of €65,000 is taken as €4259 net, 40% of which is €1703. minus existing commitments of €650
leaves a net income of €1053 to support a mortgage however FA will at this point stress test the mortgage interest rate, so the rate here is 5.53% which is an amount per thousand of €5.69 which equals a mortgage of €185,000

PTSB do not stess test the rate, however they only allow up to 35% NDI on all repayments which equals a mortgage of €162,000

HTH

Niamh

FYI :


using EBS calculator they will go to €250,000 however the max LTV is 92%
they dont do 100%

Molly said:

net monthly income on gross salary's of €65,000 is taken as €4259 net, 40% of which is €1703. minus existing commitments of €650
leaves a net income of €1053 to support a mortgage

Click to expand...

Just curious: Do banks generally work this calculation as:

40% of (net income - outgoings)

or

(40% of net income) - outgoings

unfortunately its (40% of net income) - outgoings