# Working towards buying house alone



## maison (29 Sep 2007)

Im seeking to buy a house in the next year or two, assuming I can get a permemant contract in my job. New houses in the area I want to buy in are around 210-220,000. 

Age: 29

Annual gross income from employment or profession: 35000 + 3000 part time job

Type of employment: teaching (full hours)

Expenditure pattern: In general are you spending more than you earn or are you saving? saving 1000 a month

Other borrowings – car loans/personal loans etc
Credit union- 0 
GE Money -0
AIB - car finance 480 a month

Do you pay off your full credit card balance each month?  no credit card
If not, what is the balance on your credit card? 

Savings and investments: 30,000 savings

Do you have a pension scheme? yes (direct from salary)

Do you own any investment or other property? no


*What specific question do you have or what issues are of concern to you? *
Assuming I can get a permenant contract (presumably id need one to get a mortgage) in my job in the next year or two, I want to know what the best way is for me to optimise my chances of being able to buy a house, as I would be buying alone and not be crippled thereafter trying to pay for it. Also I have input my details on some of those website mortgage calculators and none say that id even get a mortgage. Im not too sure what I should be doing with my savings to optimally manage them either(i did talk to my bank, but naturally they were only informing me of their options). Also I will have my new car paid off in 2 & a half years & could probably do that sooner if pushed. I am conscientious with money, dont have huge living/ shopping expenses either.


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## GeneralZod (29 Sep 2007)

You're on the right trajectory to achieve your goal. 

If it doesn't incur any expensive penalties try to get your car loan paid off before getting the mortgage. Obviously continue the good practice of not running up any other personal debt. Obtaining mortgage approval will probably be contiditional on clearing personal debts. 

Show that you're putting aside more than enough to make the mortgage repayments when they come. Consider rent a room after you get the mortgage if you can bear sharing with someone else.

Getting a mortgage won't necessarily be dependent on having a permanent contract if you're in a role with good prospects like teaching.

The best thing you can do with your savings is to put them in a high interest savings account like RaboDirect or First Active and drip feed it into a regular saver account like Halifax's, BoI, or AIB. Don't expose the deposit to anything riskier if you want to buy in the next 1 - 3 years.


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## maison (29 Sep 2007)

Thanks for that.


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## SarahMc (29 Sep 2007)

If you haven't already done so, apply for the affordable housing initaive and scheme in your area.

[broken link removed]


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## cySquirrel (5 Oct 2007)

Go to a broker and you should get a mortgage with your savings. I bought my house on my own, went to the banks and they said no, or only offered me 135k, went to a broker, got me approval for 200k, with Ulster bank and I had 20k savings, this was just afew months ago,  on a salary of 31k. 
I had no loans though, so clear your car loan as soon as you can, was on a temporary contract but applied as soon as I was made permanent. Some banks, including Ulster, won't let you draw down the mortgage until you've completed 6 months probation.


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## molls (7 Oct 2007)

hi there,

you can get a mortgage if you're a teacher and not permanent, I did recently and my situation is quite similar to yours. The mortgage calculators on the websites are usually on the lower end of the scale, if you go to a broker you'll find you will probably get the amount you are looking for.
In the meantime I would pay off the car loan as soon as possible.Bear in mind that the mortgage interest relief and the option of renting a room will make things much easier.
best of luck!


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## maison (7 Oct 2007)

Thanks a mil for the info. The job situation is looking good & I think I will try & clear the car loan as soon as I can without wiping out my savings. 
What would the mortgage interest relief mean in money terms in reality do you know? 
There's so much property debate and economy scaremongering going on it makes it hard to know whether to sit tight (on my folks couch) or jump on the ladder.


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## decembersal (9 Oct 2007)

based on 90% of 210,000 - I'd say your mortgage interest relief wud be roughly about 100e a month.


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## Gaz (9 Oct 2007)

Maison,  have you asked your parents to act as a guarantor on your mortgage application? If not, I would strongly urge you to do so - as it may increase the size of mortgage offered by banks.


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## Bob_tg (10 Oct 2007)

Maison - you have 30k in savings and a car loan .... I think you should pay off the car loan in full now and save more over the next couple of years by avoiding the interest.

Bob


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