How Much Could I Potentially Borrow

Joint Application

Both weekly income - 535

Expenses -
Food: 50
Entertainment: 50
Bills: 70
Rent: 130 (but would go when buying a house etc)
Emergencies in Credit Union 35

Rest for Savings: 200/week goes to savings account

Total in joint savings account 31,200 + interest (used for deposit)

We dont drive, dont smoke, drink in moderation.

How much do you think we would be able to get a mortgage for, taking our savings into consideration.

Hi Melybabymely,

Assuming you are under age 35 your borrowing capacity is €185,000; possibly €190,000 given that your rent/savings currently equate to €1400 per month. Over a 30 year term at 3.15% your gross repayments would be €795 per month excluding tax relief and insurance.

Kind regards,

Sarah

www.rea.ie

Hi Sarah,

Thanks very much for the information. Yes we are both 23 years old. When I did the calculations online PTSB gave me 189,000 and BOI gave me 130,000

I bank with bank of Ireland and they want me to open a smartsave account with 1.5% interest.

I was looking at PTSB's Save2Buy account.

Not sure which one to go for when saving that 30,000 - this will be over a 3 year plan, obviously if we decided to leave this for 4 or 5 the savings will go up to either 40,000 or 50,000 + interest approx. What do you suggest.
If im ever going on holiday or buying a cheap car then Im saving for them and not taking a loan.

Also is that 185,000 you quoted on our income alone or also the savings we would have?

Hi again.

I'm not sure on the best savings account - Northern Rock or ACC perhaps? The €185,000 is based on your incomes.

Kind regards,

Sarah

www.rea.ie