Trying to get a mortgage

M

MrLeary

Guest
Hello.

Me and my girlfriend are trying very hard to get a mortgage. We both earn around the minimum wage mark, but we do not smoke or drink or generally spend alot of the money. We have both only been working full time for a year, so we have not been able to save alot of money.

There is a house near us that would be our dream home that is selling for 249k. We could easily afford the repayments and still have loads left over, which is frustrating since we simply do not have the deposit. There is a ocean of infomation for first time buyers, but some direct advice would be very welcome.

We would like to know if we have any options, or without a deposit at all it cant be possible. We could probably get around 3,000 from friends and relatives, but thats all for the very short term. If there are options that we are unable to find please let us know before this house gets snapped up!

MrLeary.
 
249k over 30 years will cost about 1400 per month. Thats before you pay for power, fill the oil tank , life insurance , home insurance.


I presume your total take home pay is less than 3k , so I am sorry but I don't see any bank giving you a mortgage on those figures.
 
If you dont have the proper deposit, the only way I can see you getting the house, is my going into your local county council and enlisting for the shared ownership scheme or the other scheme they have on offer. Under one of the schemes you only needed 1,000 euro deposit but I dont know if they have changed the deposit amount that is needed since I last heard about it.

Most banks would want to see a regular savings account so that they know you can actually save and also that you can save enough to make the repayments.
 
If you could "easily" afford the repayements then you can most likely easily afford to save up the 25k deposit over a period of 3-5 yrs. Like everyone else has to do.
 
Slaphead said:
If you could "easily" afford the repayements then you can most likely easily afford to save up the 25k deposit over a period of 3-5 yrs. Like everyone else has to do.
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Unfortunately not everybody has been saving the deposit in recent years....but that's another story!!! Anyway, I agree with Slaphead: save the deposit and see where you are in a few years' time.
 
Bob_tg said:
Unfortunately not everybody has been saving the deposit in recent years....but that's another story!!! Anyway, I agree with Slaphead: save the deposit and see where you are in a few years' time.
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well i've sort of been caught in the same boat, i had a 5% deposit saved but now i need 10%, suits me fine though as im happy enough saving while the prices fall. I have the money almost sorted and might bid on a few things this spring.
 
have you tried rent to buy ? you pay 3k and thats it.then you agree to hand over a deposite of say 15k after 5 years and pay the rest monthly over 20-25 yrs. try the website rent to buy.they are based in cork.
 
I will check out anything that gives us a chance! I do not mind waiting to save, but we live in a smallish village just outside of dublin, and the houses come and go pretty quick. Like i said, its a dream home so thats why we are trying to push it. If it stays up for at least 7 months then we have a chance, but it will probably be gone by then.

The rent2buy only has a few selected properties. Dont know if they would try and sort somthing out with the owners of the apartment.

Thanks for the advice so far. Im feeling optimistic that we will be in a home sometime next year. We are both very secure in our jobs, and every week that passes is more money piled up for the deposit.

MrLeary.
 
MrLeary said:
we live in a smallish village just outside of dublin, and the houses come and go pretty quick...Dont know if they would try and sort somthing out with the owners of the apartment.
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Is it a house or apartment you are looking to buy?
 
A two bedroom apartment with an attic. Its actually next door to us! We are on the ground floor. We are renting from my girlfriends brother, but this place is falling apart.

MrLeary
 
The reason I asked is you need to consider the following (assuming in the longer term you & your girlfriend will be planning on having children):
1. You only get one stamp duty exemption as FTB's and will have wasted it on an apartment instead of waiting to find the house you want to settle down in 5 or so years down the line.
2. If you wish to sell your apartment at that stage then to move to a house you are running the risk of negative equity. This means you would have to find the cash to pay the difference on your old mortgage, deposit for new house & stamp duty for it also.
3. Apartments on the outskirts of Dublin are at high risk of falling further in value and will be very difficult to sell/rent in the future. You will also have an management fee to pay annually on it.
4. Banks are demanding a much higher deposit (c. 20%) for apartments for this reason.

My advice would be to keep renting and save for a deposit, and when the time comes that you can afford to buy & get mortgage approval there will be plenty more houses available.
 
Have you looked at your current earnings are to low, but if you can get overtime / additional jobs to bring your joint income over €50K, it might be an option to consider for 2010, if you have not already bought and are willing to buy a new home.
 

In the current climate would you not be better to sit it out and wait until you have a bigger deposit saved before making an offer on the house? It could even be cheaper by then. Is there any other people interested in the house? How long has it been on the market.
 
Agree with Gazzer, rents and house prices are falling, save your money until it bottoms out, I'm sure the cash will come in handy if you get married etc plus I find renting gives me great flexibility.
 
Our appartment is in a small development. We seem to be the only ones with major condensation issues, which we are correcting, but its causing some damage to the house.

I think we will wait and save for a deposit. It depends how low the appartments will come. If we give ourselves a year, we could probably save around 12k, which is not enough at the moment.

I think the push for the house is because once the houses start to go back up and we do not have the deposit, we will be outpriced in the village and will have to move away if we want to have a home of our own, so we feel like were on a time limit.

Thanks for the comments so far. All of them have been a great help!

MrLeary.
 
that house could be 229 in a few months time. The market is going in one direction. Take your time.
 
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