Mortgage Borrowing Potential?

C

Curious81

Registered User
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Hi everybody,

Myself and my boyfriend have been saving for a few years with a view to purchasing a home. I want to get a realistic idea of the level of borrowing a lender will give in the current climate. Here are some of our financial details:

Incomes:
€50,000 (permanent position)
€45,000 (fixed term contract until 2012)

Savings:
€80,000 (current total)
€3,200 (joint savings monthly)

Loans:
None
Have a credit card each, typically paid off in full monthly.

We are currently renting in Dublin, paying €900 monthly. We both will be first time buyers. At the moment we are planning to keep saving and maybe start looking at houses over the summer, but want to have an idea how much we could borrow.

Any advice would be greatly appreciated.
 
Mortgages.ie have a good calculator:

[broken link removed]

I think your right, waiting a little longer but I PERSONALLY wouldn't borrow more than 3 times joint NET.

I'd become active over on thepropertypin.com as they seem to have a good collective grasp of where things are at in the property market in Ireland.

You're in a really great position, good luck with the new home!
 
Thanks for that. The calculator implied that they would lend over 5 times our joint gross salaries. I do realise that is what they would lend and not what we should borrow. Is this sort of lending level up to date?
 
Curious81 said:
Thanks for that. The calculator implied that they would lend over 5 times our joint gross salaries. I do realise that is what they would lend and not what we should borrow. Is this sort of lending level up to date?
Click to expand...

If you have good savings (at least 8% - 10%), good credit history and secure jobs for over 1-2 years, you could potentially get 5 times salary.

Differant mortgage companies work off slightly differant criteria . .

Some of them work off wanting to see clients have €2000 in disposable income after mortgage payments . . .

Even Using and AIB mortgage calculator, assuming you are first time buyers, no children you could possibly get up to 603k. This was calculator from 2-2-09.

This is not advice on what you should do, I am only answering your query . ..
 
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