First time buyer looking for advice on obtaining mortgage.

J

johnmck

Registered User
Messages
96
I'm a first time buyer. I've 4500 saved in various accounts and some cash.
I want to look for a mortgage of about 70k.
Should I pile all my savings into one account first?
What are my chances?
 
Your chances are probably slim.

There's not really much chance of getting an LTV higher than 90% and you would need cash to pay for legal fees, moving expenses, survey etc
 
Yes, you will probably need to accumulate close to 20K in order to progress a successful mortgage application.
 
I recently got a mortgage from aib for a house "worth" 85k. They gave me a 92 percent loan. I had savings of over 25k and spent around 4500 on legal fees, stamp duty etc..

Hate to break it to ya but your gonna need the 20k mentioned above

my view is the banks are giving mortgages to people with very good saving record and if they think the house might not drop too much in value.

Maybe if you go speak with the bank they might tell you what you need to do.
 
What is your income?
How secure is your job?
Is the cash you have a small or substantial amount?
Can you accelerate your savings over the next few months.
 
johnmck said:
I'm a first time buyer. I've 4500 saved in various accounts and some cash.
I want to look for a mortgage of about 70k.
Should I pile all my savings into one account first?
What are my chances?
Click to expand...

somewhere between none and no chance at all

You'll need at least 11% of the purchase price in savings to stand any chance, and you'll probably want to be able to show it being built up steadily over at least 6 months to demonstrate a capacity to pay
 
drs said:
You'll need at least 11% of the purchase price in savings to stand any chance, and you'll probably want to be able to show it being built up steadily over at least 6 months to demonstrate a capacity to pay
Click to expand...

This is important. I was in the bank yesterday and was questioned on my savings for my app. They really want to see nice round figures going out every month to make up the savings total. In my case they were questioning why one saving amount wasn't round, something like 127.31. Had to explain that it was all based on a percentage on my wages.
 
thanks for the advice. I've only 200 per month going out in savings. but I could up it to 400 per month. I'm not going to buy anything over 60k in the current climate!
 
What is your current rent? When you add that to the 200 Euro savings are you able to repay a mortgage? How do you plan to pay a solicitor, engineer, stamp duty, house insurance and life insurance etc with only 4500 of savings?
 
rent is €500 per month, so if I increase savings to €400, that will be €900 per month going out. I've my own business, that has taken a serious hit, but I also work part-time elsewhere, at very very good money.

I've a solicitor and an engineer friends, who will give me good deals - or free of charge in exchange for work. 1% stamp duty of a house of €70k is only €700, so I can russle that up.

I'm not purchasing anything over €70k and would hope to take out a 20year max mortgage - "death contract" !
 
I WOULD APPRECIATE HELP IN CALCULATING THE FOLLOWING Mortgage
Repayments for first time buyer:

€131,000 @ 2.75% over 30 years. Would there be any tax allowance?
Many thanks Browtal
 
You cannot assume people in professions will give you a good deal. That's a sure fire way to ruin a friendship. Solicitors etc are desparate for work and cannot see how they would be able to work for free or barter, nor should they be expected to.

Can you do out the actual costs in one post. How come you are only saving 200 if you can afford 400? Would you be better off giving up your business and doing the part time job full time? Has your business reached the bottom?

You need a steady history of regular savings, this you don't appear to have as you mentioned money all over the place. Also it's very difficult for the self employed to get a mortgage.
 
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