Applying for mortgage on my own

dereko1969 said:

If the boyfriend is going to be contributing to the mortgage you'll need to make sure that both he and you regard it as rent so that he doesn't have a claim on the house should you split up.

There have been a gazillion threads on this before, there have also been a gazillion threads about parents going guarantor for their kids and instead of having a happy and fulfilling retirement are having to sell their houses to bail out the child they went guarantor for, if you value your parents you will not allow them go guarantor on your mortgage.

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Such a messy situation, it's not easy nowadays ;-(

commonsense said:

Hi Nic, can you say what banks told you this and what their rates were? The reason I ask is that on both BOI and AIB sites a mortage of 138k over 35 years at todays rates would cost you approx 650 euro, not almost 900.

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Hi AIB and EBS told me. 200k at 923.90 pm over 30 years @ 4.24%, sorry not 35 years. For 138k they told me 677pm at the same rate.

Nic82 said:

I am a civil servant and there is no chance of my income increasing substantially. My mother has a house that the mortgage is cleared on. There is no properties in my area for 150k it would mean I would have to relocate which is no an option for me unfortunately. If she was to go guarantor can her name be removed from this in a couple of years?

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The issue here is ability to repay. At present, by the banks' criteria you cannot afford a mortgage of greater than around €138,000. If your income is unlikely to increase in the future and interest rates are more likely to increase than decrease in the future, then you'll be even less likely to afford a bigger mortgage in the future.

The fact that your mother owns a house with no mortgage (which I'm assuming is her own home) doesn't itself make her a suitable candidate as a guarantor. If you default on your repayments in the future, the bank needs to know that the guarantor can step in and pay the repayments or else clear off the loan entirely.

I honestly think your realistic options are to move to an area where you can buy within your price range or rent in the area you want to live in.

Nic82 said:

I am a civil servant and there is no chance of my income increasing substantially. My mother has a house that the mortgage is cleared on. There is no properties in my area for 150k it would mean I would have to relocate which is no an option for me unfortunately. If she was to go guarantor can her name be removed from this in a couple of years?

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As LD said, the issue is really ability to repay. At the moment, on your income it would be tight. Yes you have your BF to help, but the banks really need to be sure that you could repay this on your own.

While your mum has a home that has no mortgage on it, does she have sufficient income to cover your mortgage if things do go wrong? If you get ill for example?

Your best bet is to continue saving, you appear to have ample scope to almost double what you are saving now.


Good Luck.

I'd follow the advice of the last two responses. Don't risk overstretching yourself, you only have to look at the other threads on here of people in mortgage trouble who wish they rented and never got their mortgage.

Also regarding the gaurantor have a read of this:

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Now, she is concerned that if something happened to her while abroad, her father, who is guarantor on her mortgage, would be left saddled with the debt. “I tried to get the bank to put the mortgage just in my name but without an Irish P60 they wouldn’t do it,” she says.

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why would people put their mother/father through this??? Please think things through! Don't repeat the same mistakes people did in this country 6 years ago.

Nic82 said:

Hi AIB and EBS told me. 200k at 923.90 pm over 30 years @ 4.24%, sorry not 35 years. For 138k they told me 677pm at the same rate.

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200k @ 4.24% over 30 years is 978pm.

Remember there is also mandatory mortgage payment protection which adds another bit per month. And house insurance. And your bills will be higher in a house than living at home. I'd be very surprised if they were as low as 50 a week.

ryaner said:

200k @ 4.24% over 30 years is 978pm.

Remember there is also mandatory mortgage payment protection which adds another bit per month. And house insurance. And your bills will be higher in a house than living at home. I'd be very surprised if they were as low as 50 a week.

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That's what the woman wrote down in the bank for me.

Thank you all for your help. I appreciate. Going to apply anyway and see what I get approved for and take it from there.