How much can I borrow?

K

katie29

Guest
Hi All,
I'm just wondering what my options might be. I would like to buy a house and i need to spend around 260,000 to buy where I'd like to. I am earning 30,000 p/a plus commisson and bonus. My parents are willing to go guarantor for me. How much could i expect to borrow.
thanks in advance
 
In a similar situation I went through REA and Ulster Bank offered the highest mortgage of 312,500...over 40years
every situation is different but I would imagine you would be able to get 260
 
Brokers generally don't charge for organising a mortgage-they earn their money on commission from the lender. Sub-prime lending organised through the likes of Start Mortgages generally attracts a fee.
 
On an income of €30,000 - with no loans, a 35 year term and room rental - your maximum loan would be circa €190,000. A guarantor or joint applicant with sufficient income to cover their outgoings would be needed to get you close to €260,000.

For mortgages up to €250,000 REA charge a fee of €2495 + VAT (to include the solicitors professional fees but excluding legal outlays) with a full refund of the (typically) 1% commission paid to us by the lender.

For mortgages over €250,000 there is a fixed conveyancing fee of €499 + VAT and outlays with no commission refund.

Sarah

www.rea.ie
 
Income
Myself €35k+ €2k bonus
Partner €21K

Loan
13K car loan over 5 years- 285 pm

We have one dependant

What is the maximum we could borrow

All advice appreciated
 
Without the car loan and over a 35 year term you'd qualify for c€310,000 however with the loan remaining this falls to c€260,000.

Sarah

www.rea.ie
 
Husssy said:
Income
Myself €35k+ €2k bonus
Partner €21K

Loan
13K car loan over 5 years- 285 pm

We have one dependant

What is the maximum we could borrow

All advice appreciated
Click to expand...
Keeping your car loan, and not including room rental, over a term of 35 years - €330,000
If you repay your car loan (possibly from savings?) max loan goes to €380K (ish)
 
Thanks for reply folks, reason im querying is that we have seen a property for 330, have our own funds of 80K, so we need circa 250K. I rang a guy i know in a well known bank(gave him all our details re income, loans, dependants etc) and they will only offer us circa 230K over 30 yrs( i am not a ftb but partner is).
He was calculating figures and doing 'stress tests'. He advised us to include the car loan in the mortgage and that we would qualify then. I was surprised that we would not qualify for the amount we requested.
 
If you were to pay off the car loan with the savings (80 - 13) you'd still have 67k savings and be able to achieve a far higher mortgage amount.

The mortgage amount is based on available income to service it. Savings just reduce the amount needed, it won't allow you to achieve a higher amount. By removing the monthly outgoing on the loan you'd then get approved for more than the 263k needed (may need to try more than one bank but definatly achievable).
Also, by increasing the term (30 years to 35 years) you'd get a higher amount, but it'd also cost you more (both in interest and insurance) in the term of the mortgage so only do if you need too.
 
Thanks for advice guys, one final question and then you can all rest!! On borrowings of 250k over 30 yrs @4.5% karl jeacle calculated interest of aprrox 11.5K interest. As prev stated my partner is FTB and i have used up my seven years. Am i correct in saying that i will receive the max of 3 k and my partner 8k in mortgage interest relief. Which equates to approx €183 pm
 
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