PTSB & IIB Mortgage Formula!

P

Pexus1976

Registered User
Messages
189
Hi there,

Anybody know the formula PTSB use to calculate the amount they can approve an applicant based on his/her income??

And what are the Loan To Value on the various PTSB mortgages
ie self build, first time buyer, remortgage, purchase, investment property?
 
Re: PTSB Mortgages

Hi there,

Ok I may need some help on this what NDI (Net Disposable Income) figure (35 -45%) do Permanent TSB use.... and if this changes what factors affect it?

Do Permanent TSB use a Stress Rate and if so is it always 2% above their standard variable rate???

All input appreciated.

Thanks
P
 
Re: PTSB Mortgages

on incomes up to €75000, they allow a max repayment of 35% NDI
incomes over €75,000 its 40%
incomes over €125,000 its 45%

They do not stress test the rate

Max LTV

FTB 100%, Remortgage 92%, Investment 90%, interest only Investment 90%.
 
Re: PTSB Mortgages

Thanks a million Molly :)

So if you were earning 20K the calculation would look something like this:

20K * 81% = 16,100


16,100 / 12 = 1350 (No existing loans in this example so this figure remains as it is)


1350 * 35% = 469 (were 35% is the NDI)


469 / 4.10 = 114,390 (were 4.10 is the standard variable rate)


Max approval amount based on 20k is 114K

Is that correct?
 
Re: PTSB Mortgages

Is it safe to assume that any lender applies such rules rigidly or automatically? For example I thought that some or all lenders would take other income such as rent a room income and so on into account.
 
Re: PTSB Mortgages

"Is it safe to assume that any lender applies such rules rigidly or automatically? For example I thought that some or all lenders would take other income such as rent a room income and so on into account."

I'm using this calculation as a rough guide for the amount an applicant can be appoved for..... not sure if this is even correct. Maybe if one of the mortgage lenders that visit this site can advise?

I've seen some mortgage calculations on various sites that automatically take into consideration rent income from letting out a room. But am unsure on how they calculate this?

Thanks
P
 
Re: PTSB Mortgages

Almost right - the net income is calculated at 93% of the €20,000 = €18,600. Divide by 12 and multiply by 35% = €542.20. On a tracker rate of 4% and 35 years the CTP is 4.43 (you were using the discounted variable rate) so the loan is €122,500. PTSB do not add in room rental

Sarah

www.rea.ie
 
Re: PTSB & IIB Mortgage Formula's

Thanks Sarah :)

I have just a few more question concering mort calculations....

How does this calculation differ from the IIB Homeloans formula:
  • Do they calculate net income using 93%?
  • How do IIB take in to consideration room letting income into their equation and is this optional?
  • What is the formula for this?
I'm assuming all other criteria remain the same as per the PTSB formula.



All input appreciated...
Thanks
 
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