How much can we borrow?

C

Corkboy

Guest
Hi,

I'm 28 and not married. Thinking of buying with my partner somewhere close to Dublin if possible. No other money owed by either of us and renting currently. Renting in southside Dublin for years now where we can't afford to buy but would like to stay. There seems to be pros and cons to just paying the dead money for rent for a few more years yet even though at the moment this works out at nearly €1200 a month combined and the sensible choice seems to be to put all this money into a mortage.

I've read the calculation of "Joint applicants (both earning) combined income greater than €50,000 - 3.75 times joint income" but I have some other questions about this.

We have about €30K in savings towards deposit and my gross pay is €35K with about another €8K in bonuses and overtime. My partner makes about €30K a year but has no full-time contract at all, just temporary contracts for a few months at a time but doing the same job now like this for over a year. Would this type of setup be counted as a second income for calculation of mortage? Also what is the most we could borrow?

Many Thanks,

Corkboy
 
Re: How much can be borrow?

Hi Corkboy
Why not contact a broker and see what they say. I have found Sarah (a contributer to this site) in REA to be very helpful and honest in her assesment in the past and she can crunch the figures for you. Their website is
http://www.rea.ie/
 
Hi,

Thanks for the info, checking the numbers in http://www.mortgages.ie I get a result of borrowing limit assuming you have no other debt obligations of €355K which is much higher than I thought it might be. I see that Sarah in REA has answered many similar queries, I willl try www.rea.ie also.

Regards, Corkboy
 
Hi Corkboy (and thanks elcato ;) ). If your partner's income was permanent or a long term contract you'd be fine and would qualify for up to €375,000 as a 92% advance (assuming a 30 year term and no loans). Given the nature of her income we would need to put a pack together and get it in front of the lenders to get a confirmed figure.

Sarah

www.rea.ie
 
Hi Sarah,

Thanks for update, we suspected that lack of long-term contract would be a big factor. I am sure she will fight for something more permanent as soon as possible but there will be no change in short term. I guess even if her side was counted as 50% share a mortage nearing €300,000 would be possible if we were will to put more than 8% desposit in there? In addition to savings we have one SSIA with nearly full contributions due to mature 2007 and about another €10K in shares. I suspect that all these details are falling outside of the scope of the forum and we will contact you soon directly.

Regards, Corkboy
 
OK Corkboy. The lack of a long term contract shouldn't be a huge issue as long as we can demonstrate a steady income stream in the past.

Sarah

www.rea.ie
 
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