FTB: have mortgage approval in principle for €232,000, in DCC shared ownership scheme

[Sinbad311]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

Hi Sinbad i am going through the Shared Ownership myself at the minute with Dublin City Council. I got approved for 265,000. I found a three bedroomed house that i love priced at 240,000 and managed to get the sellers down to 210,000 and sent in the details to DCC at the beginning of April. I recieved a letter in the post last week to say it was my final approval and that their surveyor etc had been out to see the house and was happy with it and passed it etc. Was on the phone to DCC yesterday and they said the sale will be closing in 4-6weeks, they said it looks more likely 4 weeks as everything is quiet at the moment. In their letter they also told me my repayments will be 897euro a month - 560ish mortgage, 330ish rental part. Im delighted with this as I am currently renting a one bed for 850euro per month so for the extra 47euro i will have a place of my own and it is a three bed. So far my dealings with the Shared ownership have been great and I cant wait to move in What council are you going through? If I can offer you any more information just ask

Ericsson

Congratulations Ericsson.. I got my approval with DCC, so far they have been helpful with any questions etc. I may have a few questions in the coming weeks , to be honest I'm nervous about the whole bidding process, so any tips there would be great..

@thomas22 - I'm in no rush to buy at the moment, the mortgage I have is open for 6 months so I may hang. But if I see something I really like and can afford it well then I'll go for it.. so what if it goes down in value in the coming months. I've no intention of selling or moving on for at least 5 -10 years (or maybe never), by then the market should be recovered. I appreciate your feedback and will take everything into account when the day comes!!!!

thanks for replies,

Simon

 

[Robin Banks]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

the way the landscape of mortgage applicants has changed so dramatically so quickly, this is something to consider.

People being offered 7 times their salary is a dramatic change is it?
I think lending 7x salary is obscene when interest rates are at all time lows.

What's going to happen to these people when interest rates normalise?

 

[NorthDrum]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

People being offered 7 times their salary is a dramatic change is it?
I think lending 7x salary is obscene when interest rates are at all time lows.

What's going to happen to these people when interest rates normalise?

Are you trolling or just looking for an arguement because you contribute little but snotty remarks (in the two posts your have replied to remarks I have made).

You obviously have a chip on your shoulder, keep it to yourself, we dont all want to share in your Ill informed pubtalk advice . . .

Try understanding issues before replying with populist drivel.

Firstly If people are getting houses through the affordable houses scheme (as some have discussed on this post) they should still be able to pay their mortgage when interest rates rise. They are already getting their house at a cheaper monthly premium (because the state are helping them out).

Secondly: Heres an example of affordability of a mortgage:

Person: Salary 30,000
Mortgage offered: 190,000 - 6.3 times salary (since you can only work off this assumption)
Net Takehome pay: €2155pm (2008 Tax year)
Mortgage cost at 4.41% (current offer of 10 year fixed mortgage) - 888.63pm - 718.47pm after mortgage relief. 35 Year Term

Left over each month for expenses is €1266 (not including mortgage relief). Not exactly living on the poverty lines or subprimey with a 10 year fixed interest mortgage!!

If anybody loses their job their mortgage will be a huge burden no matter how much or little it is. If you keep your job in this example you will be fine unless rates hit over 10% and even at that you are fine for the first 10 years of your mortgage!!

Now where is your problem or did you simply hear somebody on the train giving out about those "robin banks" and how they give out 6 times salary and decide to regurgitate it here without little understanding of what you were saying. . . .

 

[Robin Banks]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

Speaking of drivel - better get yourself a mortgage now while you still can - lending conditions have changed dramatically, you can only get 7 times your salary now, dear oh dear..

I bow to your calculations using out of date tax figures that are certainly going to deteriorate further, using tax relief that will not be available for 30 out of the 35 year term and a rock bottom fixed rate that will not be available for 25 of the 35 year term.

But sure just load up with debt to buy an overvalued asset now and the future will take care of itself.

 

[Mr DT]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

Mortgage cost at 4.41% (current offer of 10 year fixed mortgage) - 888.63pm - 718.47pm after mortgage relief. 35 Year Term

Left over each month for expenses is €1266 (not including mortgage relief). Not exactly living on the poverty lines or subprimey with a 10 year fixed interest mortgage!!

Sure its only affordable because its over 35years. Over 35years you are paying more than the price of the house in interest to the bank.......!

Try it over 20-25years and then see how you get on. Its this kind of financial stupidity that has got us all in the mess we are in. We will now all be pay more tax for this.

Wake up and smell the coffee. 6x income over 35 years is NOT a sensible financial position to put yourself in. There are people who don't want to know this or listen to this and i'm sure it will fall on deaf ears.

 

[maxol]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

oh for god sake what is wrong with people? the op asked for advice re bidding. he did not ask for YOUR opinion on how he should manage HIS finances.

As a family person, I understand the joy it must be to finally be told you have the chance to buy a home when it has never been an option to you before. If the lender (who lets face it pally stress tests etc~) deems it affordable to you and you know you can afford it then where is the problem.

People are so quick to rain on other peoples parades...and on these boards there is such a level of begrudgery from people who obviously got stung on property prices during the tiger and find it hard not to be jealous of those availing of lower (and imho will continue to) prices and rates etc.
the other 'smug' i never bought never will attitude is very forceful on here too.

why cant posters simply answer the question asked (if they want to participate) instead of making judgements and decisions on other peoples financial affairs.

Congrats Sinbad, bid like they are extremely lucky to be getting a cent of you let alone 40k below the asking price. you will be successful

 

[Robin Banks]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

on these boards there is such a level of begrudgery from people who obviously got stung on property prices during the tiger and find it hard not to be jealous of those availing of lower (and imho will continue to) prices and rates etc.
the other 'smug' i never bought never will attitude is very forceful on here too.

oh, so now those who did buy into the bubble are bregrudgers and those who didn't are smug. thats an interesting reversal of fortune isnt it ;-)

 

[NorthDrum]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

Sure its only affordable because its over 35years. Over 35years you are paying more than the price of the house in interest to the bank.......!

Try it over 20-25years and then see how you get on. Its this kind of financial stupidity that has got us all in the mess we are in. We will now all be pay more tax for this.

Wake up and smell the coffee. 6x income over 35 years is NOT a sensible financial position to put yourself in. There are people who don't want to know this or listen to this and i'm sure it will fall on deaf ears.

So its not the times salary thats the problem now . . its the term . .

For gods sake, people will always look for a problem with anything.

A loan is a loan. Nobody needs to take out any loads ever if you go by your reckoning. We should all do without until we can afford something . . Prudent but unrealistic for a majority of people in todays environment. I dont see why we should all HAVE to wait until we are in our mid thirties or 40s to enjoy material things available to us now.

Why do people have mobile phones? Its not a necessity, people lived without them before. This could be an extra 40e a month to their savings for a mortgage, yet you would probably not attack them for this little luxury . .

You obviously have access to the internet and a computer, why did you spend money on this when you probabley could of saved it for something more important. Or are you in the comfortable position of speaking from an ivory tower, debt free, throwing stones at the rest of us . .

A mortgage is not the perfect way of buying a home by any means, but it makes sense if you have not got the full lump sum available and you desperatly want or need a place of living. Why buy a tv, go on a holiday, go out on a session . . . All these things are wants, not needs but yet we all do them. Life is not about doing what we only need to do for a majority of people, its about what we want.

Some people have differant motivations like starting a family, moving out of their parents house and getting on the property ladder to look after themselves. If a person rents, again this is fine, but to anybody looking to buy a house soon, this just doesnt make sense (if you can avoid renting). It reduces your ability to save so you can take out this lower term mortgage you discuss.

Get out of collage at 23-24. Havent a bean (unless we assume mummy and daddy are going to give them the deposit, but we arent all that lucky). . At age 34 you might have a deposit on a house and just might be able to afford a mortgage over less then 30 years or so.

In an ideal world we could take out mortgages when it suits us most. Some people dont mind staying at home until their mid thirties and some people dont like the idea of saddling themselves with debt . .Fair enough , theres nothing wrong with that.

I personally waited to move out until I could get a mortgage. I believed that Renting was a waste of money, in essence it was living for the moment at the expense of the future. But thats just me, people are entitled to feel differantly on big issues.

 

[Mr DT]

Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc

We all try and justify are own decisions. As long as yr OK with yr decision it doesn't matter what any one else thinks.