AH House pricing and financing

sorry clubman my first post


okay so couple of months back i received the newsletter to pick houses of choice from DCC. price ranges where roughly a min of 250 to 270.

i work in a bank, in mortgages, and i am still confused. so i earn about 29k a year, which if i went to get a mortgage Banks would only lend me max 150k
to qualify for the likes of 250-270k id need to be earning roughly 50k-60k a year. the cut off on the affordable housing is 40k so how are you suppose to finance one of these properties????????
am i missing something, or is there another way to do it

You're not missing anything. Unfortunately it looks like affordable housing isn't affordable for you. People buying either need large deposits, higher salaries or to be buying as a joint applicant with someone else.

It looks like your options would be to go for a one bed or to apply to South Dublin County Council who seem to have some cheaper places available.

Shop around, go to EBS & IIB. My guess is you went to BOI if they are only offering you 150k on a salary of 29k?? BOI also dont take into account you may rent a room out for approx 400 pm but others do, greatly increasing your chances of a larger mortgage.

Also cut off for Affordable housing is 58k, not 40k.

haydielaydie,
i hear you, its very difficult to afford these properties. Some people are purchasing together & so can get a larger mortgage, some people are purchasing via shared ownership via dcc. Or alternatively purchasing 2 bed properties via rent a room mortgages which im sure you know allows you to borrow more. I know also people are receiving gifts of lumpsums from parents and family members to put down as savings to bridge gap between AH price & the mortgage a modest income will allow you.
Very best of luck to you in your househunt.

I earn 40k and boi offered me 190k.
the appartment costs between 250-295
Ulster bank did offer me 235k for a 37 year mortgage
which if i went full term would end up costing me
over 600k .
So i've decided to go with shared ownership and
have been approved for the top rate of 275k.

Shared ownership is not a great idea i know but
basically i'm not that bothered as actually , at the end
of the day, i just want somewhere to live!
And as everyone and his mother keeps telling me
rent is dead money - so at least with shared ownership
only half my money will be dead!

I applied for SO with very similar profile as yours (i,e. salary, house asking price, etc.) The DCC came back saying the max they lend is 185k. When you mention 275k, what do you mean? Is this an annuity loan? What percentage of the house you own and what percentage do you rent?

You can own as little as 40% or as much as 60%.
say you go 50/50 and get 250k off the council.
You would then pay a regular mortgage to the council on 125k.
On the other 125k you pay rent to the council which
sort of makes it an interest only loan.
But the council own 50% of the property.
You have to buy them out at some stage over the course of 25 years or something (or after 25).

The rent you pay them is 4.3% of the value of their half of the property.