Nearly time to step up onto property ladder

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wanagetahome

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Well i havnt been here in a while, trying to sort out all of my various financial problems. but I seem to be gettiing back on track slowly but surely.
I see that in the next 12 months, all of my debts will be cleared and my boyfriend and I shall be in a position to get the ball rolling on buying our first house. however, the way things are at the moment, I'm not sure if any bank or lender will be willing to offer us a mortgage, due to our not to impressive salarys'. as it stand I currently pay out 1000 euro per month on my loan. I've increased my payments so that a/ it will be cleared off in 1/3rd of the time, and b/ that the banks will see that I am able to pay out this amount of money without to much trouble. I would really like some advice as to how i could estimate how much of a mortgage we could be offered. and what we would need to do to get more. i dont mean to be greedy, but I do want to stay in the Dublin 14-16 area, preferably with a garden. I am not interested in an apartment. i know I'm being fussy, but i'm hoping someone could advise me on what they would advise me to do know.

Thank you.
 
Kate10 said:
Do you have any savings?
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We have only 10K (which my boyfriend has saved) the only reason I dont is because I've been putting extra money off my loan. and I know I wont be able to save anything before that is paid off.
 
I'm afraid that you will probably have to save quite a bit more before you can buy the type of property you are talking about. I am not a broker, but I understand that it is very difficult to get a mortgage about 80% LTV at the moment, so you will have to fund 20% of the purchase price plus stamp duty yourself.

You are doing the right thing by paying your loan off early. Keep up the good work and keep saving.
 
Wow, I really thought It was 8-10%. Thanks for putting me straight. No point in getting my hopes up for a big let down in 12 months time.
I'll keep on clearing the loan, and will continue the payments after into a savings account. It will probably be 5 years at this point by the time I get moving.
 
There are several lenders offering 90% and 92% mortgages still . I don't know of any who are restricting lending to 80% of the property value. Rates are higher for loans above 80% - but you can still get them.
 
Wow. Absolutely unbelievable. On so many levels. This country is beyond belief at times.
 
so you will have to fund 20% of the purchase price plus stamp duty yourself.
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On the plus side, it may be 20% of a lesser amount

(In before lock)
 
The mortgages are advertised but they are difficult to get. I am a solicitor and it is becoming increasingly difficult to close sales, even after contracts have been signed.

I have contracts signed over a year ago for properties under construction and the purchasers, who would have had no difficulty getting finance a year ago, are being refused everywhere they go.

And its not just about repayment capacity. I had a client recently who wanted to buy commercial space for his company. His company would have used 70% of the space and he had pre-let the rest. He had 40% of the purchase price himself and the company had proven repayment capacity (profitable trading for 10 years). He couldn't get the finance. They wanted him to have 50% or 40% and the stamp duty.

Are there any brokers on who can say what is needed to get a 90% mortgage these days?
 
Kate10 said:
They wanted him to have 50% or 40% and the stamp duty.

Are there any brokers on who can say what is needed to get a 90% mortgage these days?
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Thank you all for this information. Its really been very helpful. I really thought we would be able to finally get a home by the end of 09 at the absolute latest. I'll try and get an extra job just to save aswell. But My goodness this is not sounding very promising.
 
ClubMan said:
Yeah - me neither. Treehouse, what are you on about and how is it relevant to the original poster's query? :confused:
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Seems pretty clear to me what he is on about. He's scoffing at a post entitled Nearly time to step up onto property ladder where the OP has debts and no savings of her own but whats a house (not an apartment) with a garden in a nice leafy South Dublin suburb but doesn't want to be greedy. All this with the background of an uncertain property market and on-coming recession.

I personally thought this post might have been made up to stir up such a debate.
 
groom said:
Seems pretty clear to me what he is on about. He's scoffing at a post entitled Nearly time to step up onto property ladder where the OP has debts and no savings of her own but whats a house (not an apartment) with a garden in a nice leafy South Dublin suburb but doesn't want to be greedy. All this with the background of an uncertain property market and on-coming recession.

I personally thought this post might have been made up to stir up such a debate.
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I wish it was a stir up to be honest. Its very nice to know some peoples struggles are other peoples jokes. had it been this time last year and I was in the same financial situation that I will be in soon, I would have been offered a mortgage no problem. and as I have not any experience in house buying being only 25 years old I have come here for advice. not for a laugh. I've come here for advice, as thats what I believed this site to be all about.
I also think that this may have been a good opportunity to purchase a house rather than an apartment, as the house prices are suppose to be falling, so that was just a query. obviously If I'm wrong do correct me.
 
wantogetahome, I think i can see where you are coming from. You are at a stage of your life where you are thinking abt getting home of your own. Nothing wrong with that and take it from me its a good feeling to have your own place. At the moment you are not in a position financially to get a mortgage, but then again you are only 25 and you have plenty of time. focus now on getting out of debt and saving. Just be realistic in the type of home you will be able to afford and just remember mostly for everyone their first place is the 1st rung of the ladder and will definitely not tick every box.
 
wanagetahome said:
I wish it was a stir up to be honest. Its very nice to know some peoples struggles are other peoples jokes. had it been this time last year and I was in the same financial situation that I will be in soon, I would have been offered a mortgage no problem. and as I have not any experience in house buying being only 25 years old I have come here for advice. not for a laugh. I've come here for advice, as thats what I believed this site to be all about.
I also think that this may have been a good opportunity to purchase a house rather than an apartment, as the house prices are suppose to be falling, so that was just a query. obviously If I'm wrong do correct me.
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No ones laughing. Its not a funny situation. Its tragic. Consider yourself one of the lucky ones that you weren't in a position to get a mortgage last year and now the decision has been taken out of your hands. You are right to seek out advice as you seem a bit naive and prone to debt and this is a major decision.
 
wanagetahome said:
I wish it was a stir up to be honest. Its very nice to know some peoples struggles are other peoples jokes. had it been this time last year and I was in the same financial situation that I will be in soon, I would have been offered a mortgage no problem. and as I have not any experience in house buying being only 25 years old I have come here for advice. not for a laugh. I've come here for advice, as thats what I believed this site to be all about.
I also think that this may have been a good opportunity to purchase a house rather than an apartment, as the house prices are suppose to be falling, so that was just a query. obviously If I'm wrong do correct me.
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Don't take anything above personally, there's always somebody on these bulletin boards eager to throw in a few jibes at someobody else, I could never understand why so just ignore them.

As for your situation, I'm 25 aswell and am around the life/financial stage as yourself.

I'm guessing by your post you're eager to purchase a house to live in for a considerable period of time, rather than as an Investment on a Ladder, or a quick flip. Nothing wrong with that. In terms of affordablity Can I suggest you post a "Money Makeover" stating your spending/savings/aspirations. You'll get some good answers in that section if you supply the information asked for.

If you are really struggling financially, it's probably not a great idea to take on a house at the moment. I'm perfectly happy to rent for another 5 years and re-jig my finances/goals to be in a better position to buy a place in 5 years time. Don't be fooled into thinking this is dead money, especially in the current climate.

House price decreases have a bit to go yet according to most sources, I would ...

i) Get educated financially and really understand how your finances work. Indeed this site is a great tool for that.

ii) Set goals long term ( ~ 5 years ) - use money makeover section

iii) Save and wait see what happens- delayed gratification (e.g. 10k + 1000/month for 5 years = 80k including interest! )

iv) When/if buying eventually Try think out of the "what mortgage would I get" mindset and change to the "what mortgage do I want" mindset
 
Hi

Have you considered shared ownership. I am not sure what schemes are available in the area you want and excatly how you go about getting your name on the list but as far as I know they just require the 10% deposit. I have a couple of friends who got homes this way and it works really well but get your name on the list asap via the County Council i believe.
 
Kate10 - there is a big difference between commercial loans, investment property mortgages and residential mortgages.
The O.P. is clearly referring to residential mortgages.
 
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