Mortgage Affordability: Income 62k Savings30k no loans

  • Thread starter munsterman25
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munsterman25

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Im confused i've been told so many different things. With a combined income of approx 61-62K, savings in excess of 30K and no loans, will ,we get a mortgage in excess of 250K

edited slightly by ajapale
 
Re: Confused

On affordability, you look good on the basis of these sketchy details. Why not start shopping around? I've frequently been amazed at how far in excess of income multiple "rules" lenders are prepared to go.

Get your bits of paper:

1 year's statements from all financial institutions with which you have accounts.
P60s (or equivalent if self-employed).
Statements of earnings from employers.
Any evidence you have of previously paid-off in regulation time loans.
Credit card statements (if the story is good on them...).

and start going around town.

The earlier you do this the better.

Have a look at best buys to plan your itinerary.

In the event that you can't get what you want, then start approaching brokers.
 
Re: Confused

Based on your details you should easily qualify for €250,000. You could schelp around town to all the lenders wasting time and shoe leather or you could visit one or two good mortgage brokers. Your call.

Sarah

www.rea.ie
 
Re: Confused

Ya thanks Sarah. Id hope to get around 270K being truthful
 
Re: Confused

Hi MM,

If you could post details of your individual basic salaries plus any other income (bonuses, overtime) and your ages I will be able to give you a more precise maximum.

Sarah

www.rea.ie
 
Re: Confused

Cool Sarah can I get an email from you and ill mail you details
 
Re: Confused

Be aware that these brokers will charge you sky high fees, only a portion of which you'll get back in the form of a commission rebate.

These brokers profit from peoples confusion, and fear when it comes to dealing with financial institutions. Getting a mortgage couldn't be easier: the banks should fall over themselves to offer you the sums you want.

You're far better off to take a look at the Best Buys list, and approach the lender directly to ask them for free legal fees or free conveyancing.

You'll have enough stress in dealing with a purchase without having to deal with unnecessary parties, such as mortgage brokers.
 
Re: Confused

Noel,

At the risk of repeating myself REA refund ALL the mortgage commission to clients (I can't, of course, speak for other mortgage brokers). In MM's case - a mortgage in the bracket of €250,001-€300,000 - the fee would be €2995 + VAT to include the solicitor's professional conveyancing fee and a refund of (min) €2500 / (max) €3000. Therefore MM will pay a maximum of €1124 to include VAT and solicitor. Not exactly sky-high.

Kind regards,

Sarah

www.rea.ie
 
Re: Confused

I dealt with REA for my first house and they were exceptionally good to deal with and you DO get all the commision back. I'm afraid Noel that you have your facts ALL wrong in this instance.
 
Sky high, indeed !

If he got his bank to pay his solictor's fees, he'd pay €0 (incl. VAT). Why pay out a sky high sum to a broker for the nothing ??

If the bank were unprepared to do that, MM could go to someone like ezhome (€995 + VAT), or Dermot Deane (€850 + VAT).

Lots better offers than €1124 for solicitors fees out there.
 
Re: Sky high, indeed !

This is always a thorny topic but here goes.

My initial advice to try yourself before going to a broker was not anti-broker per se (I'm a big fan of Sarah and the excellent advice she dispenses in these pages) but was based on the fact that not all providers will deal with brokers (NIB and EBS spring to mind).

In consequence, if you have the time and the inclination, a bit of legwork yourself might be very useful.

The all-in servive provided by Rea may be very attractive to you ultimately but there's nothing to stop you availing of it after you've checked that they can get you the best available rate for your circumstances.

That's why I advised starting early above.
 
Re: Sky high, indeed !

Just a quickie Oysterman - we DO have an agency with the EBS but not NIB; we do not have an agency with Irish Nationwide.

Sarah

www.rea.ie
 
Re: Sky high, indeed !

Apologies. I seem to remember a broker attached to one of our esteemed estate agent chains (no, of course I didn't go with them....) saying to me a couple of years ago that EBS don't deal with brokers. Have they changed policy or was I just being spoofed?
 
Commision Rebate ?

I seem to recall viewing a previous (somewhat heated) thread, and see in this thread the words "commission rebate" mentioned. I haven't found the other thread so will ask here; If I were to go to a bank/building society and say
"If I go to you direct it costs you nothing, or if I approach you through a broker it cost's you x.x % so lets split the difference" will they hand over a cheque for an agreed amount?
 
Re: Sky high, indeed !

Gabriel

Please do not misquote me.

...you DO get all the commision back...
Click to expand...

I dodn't suggest otherwise.

What I said was that such a broker will "charge you sky high fees, only a portion of which you'll get back in the form of a commission rebate."

What is true though is that, by their own admission, the rebate never exceeds their fees. You will always end up paying out a net fee to them.

I'm afraid Noel that you have your facts ALL wrong in this instance.
Click to expand...

Can you explain exactly how ? It appears to me that you're the one with the facts wrong.

oysterman

I too think brokers have their place to deal with particularly complex or problematic cases, but the majority of customers can get a much better deal just by referring to the Best Buys list on this website and e-mailing the banks directly.

Brokers make out obtaining a bog standard residential mortgage to be some sort of huge headache. It's not.

Banks are, arguably, all too quick to lend out large sums to consumers.

If a borrower does decide to use a broker, I'd strongly counsel them to haggle hard on the fees.

Regards,

Noel
 
Re: Sky high, indeed !

Hi imperator,

They are unlikely to cut you a cheque. However, they will often offer you a much better rate than the published one, or will throw in a free valuation / legal deal.

By all means feel free to play off the banks and intermediaries against each other.

hope this helps

Noel
 
Re: Commision Rebate ?

Hi Oysterman,

We had an agency with Norwich Irish Building Society so when they were taken over by the EBS (1997?) the small number of broker agencies were honoured by the EBS.

Hi Imperator,

"If I go to you direct it costs you nothing......". To attract a direct client the lender has to advertise - cost. They have to have a premises for the client to go to - cost. They have to hire and train staff - cost. Etc, etc. By paying a broker commission they are skiping the initial marketing and processing costs.

Kind regards,

Sarah

www.rea.ie
 
Re: Commision Rebate ?

However, the costs you mention are all fixed costs. They will arise regardless of whether an individual borrower is "recruited" through a broker or directly. It's hard to see that there could be incremental costs to a lender in dealing with an individual borrower directly on anything like the scale of the commission they must pay to brokers for leads.

If I was of a suspicious mind I would expect that an approach by a borrower directly looking for a split of the saving to the bank in cutting a broker out of a deal would be refused because of some shady agreement between banks and brokers that banks will not enter into such arrangements.....
 
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