Should we borrow €460k on an income of €84k ?

Hi mtk

Yes, it's an interesting thread.

Discussion forums will be a great resource for historians.

burger made an informed decision based on all the factors and knowing all the risks

  • Very high borrowings
  • both working in the contstruction industry
  • Uncertainty about house prices
He was originally planning to borrow €460k but ended up borrowing €391k. So based on combined salaries of €84k, he reduced his mortgage to salary level to 4.6 times from 5.5 times. There seemed to be a general consensus that having repayments in excess of 35% of the net salary was not a good idea.

One poster said he should not hold back, which is fully understandable giving the very high stamp duty making trading up a very expensive process.


This thread shows that burger considered all the information and advice given and reduced his borrowings accordingly. He got approval over the phone for a higher amount from a broker. I wonder did he finally get that from a bank?

The initial views in the thread argued against him buying now as both were employed in the construction industry.

The Key Point, is that the future is uncertain. We can't forecast the future, but we can identify risks.


Brendan
 
Absolutley correct Brendan people have to take resposibility for their actions, i guess i just had an "empathy" attack this monring
 
MTK/Brendan,

I think you might be right on historians looking on forums for resources. I am surprised this thread popped up.

To give you an update we are 5 years in the house. And the house that I discussed in this thread the sale fell through. The vendors pulled out at the last minute. But we did manage to buy in the same estate and the same size house for less money, €410K was the agreed price. This means that our mortgage was €377K. Our salaries have increased since the original thread started and of the net income from both mine and my wife salary, our mortgage repayment is 30% of our take home pay at the moment. Both of our salaries have increased since we took out our mortgage and we are able to live and save at the same time as keeping the roof over our heads. Jobs wise we are both secure.

If you want more updates then ask questions away and I will reply.

Regards,
Burger
 
Hi burger

Thank you very much for the update.

It's one of the points I have made on a few occasions. Commentators talk about people who bought at the top of the market with a 100% SVR mortgage who have since lost their jobs. In fact, this is a very small minority of the people.

We have around 13.5% unemployment and I would guess that is even lower among mortgage holders. 50% of home loans are on trackers, and their repayments are at an all-time low.

When I saw that you were both in construction, I feared for the worst.

Glad it's worked out fine.
 
Brendan Burgess said:
Hi burger

Thank you very much for the update.

It's one of the points I have made on a few occasions. Commentators talk about people who bought at the top of the market with a 100% SVR mortgage who have since lost their jobs. In fact, this is a very small minority of the people.

We have around 13.5% unemployment and I would guess that is even lower among mortgage holders. 50% of home loans are on trackers, and their repayments are at an all-time low.

When I saw that you were both in construction, I feared for the worst.

Glad it's worked out fine.
Click to expand...

Glad it worked out too.
The media have a lot to answer for re mis-information /sensationalisation
They talk like debt forgiveness is not a zero sum game!
 
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