Where do I start??????

E

evanne

Registered User
Messages
46
ok, I'm sure this question has been posted a million times here before, but here goes. I'm looking at buying property in the next 12 months. My OTE for this tax year is ~33k. Basic 23k + 10k commission. By this time next year that will be basic 25k Commission 15k OTE ~40k. I've no savings and my car (HP) is €150 pm,insurance db €105 pm.
My question(s)
should I look for approval in principle now based on my sal details or should I wait till I have savings?
Realistically how much can I borrow?
Should I buy something off the plans now, put down a booking deposit and then save the rest of the money whilst the house is being built?
I'm sorry if these are elementary questions but I'm really at a loss as to what is the best thing to do. I don't want to spend the next 12 months saving up to 12k and then be told that its not enough, or end up paying more for a house purely because I didn't buy off the plans.
BTW I'm in my job 1 year so I presume that rules me out for 100% mortgage?
Thanks
Evanne
 
evanne said:
ok, I'm sure this question has been posted a million times here before, but here goes. I'm looking at buying property in the next 12 months. My OTE for this tax year is ~33k. Basic 23k + 10k commission. By this time next year that will be basic 25k Commission 15k OTE ~40k. I've no savings and my car (HP) is €150 pm,insurance db €105 pm.
My question(s)
should I look for approval in principle now based on my sal details or should I wait till I have savings?
Realistically how much can I borrow?
Should I buy something off the plans now, put down a booking deposit and then save the rest of the money whilst the house is being built?
I'm sorry if these are elementary questions but I'm really at a loss as to what is the best thing to do. I don't want to spend the next 12 months saving up to 12k and then be told that its not enough, or end up paying more for a house purely because I didn't buy off the plans.
BTW I'm in my job 1 year so I presume that rules me out for 100% mortgage?
Thanks
Evanne
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are you planning to buy on your own ?

If you are , and are anywhere near dublin those wages won't cut it.....
 
evanne said:
insurance db €105 pm.
Click to expand...
What is "insurance db"?

BTW I'm in my job 1 year so I presume that rules me out for 100% mortgage?
Click to expand...
I don't think that lenders offer 100% mortgages to individual buyers but I could be wrong.
 
OK - I stand corrected. I thought that some of the 100% mortgage articles in the Indo (free registration required) mentioned that they were restricted to joint buyers but now that I check again they simply say things like:
Single applicants would need to earn more than twice the average national salary to qualify for a 100pc mortgage on the average Dublin house. [FONT=Verdana, Arial] Borrowers would need to earn between €70k and €83k to qualify for any of the four participating lenders 100pc mortgages, as our graphic here shows.
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Who did you borrow from and what do you earn if you don't mind saying?

[/FONT]
 
ClubMan said:
OK - I stand corrected. I thought that some of the 100% mortgage articles in the Indo (free registration required) mentioned that they were restricted to joint buyers but now that I check again they simply say things like:

Who did you borrow from and what do you earn if you don't mind saying?

[/size][/font]
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EBS and €50k. 100% mortgage on a house costing €219,950 in Limerick.
 
jhegarty said:
are you planning to buy on your own ?

If you are , and are anywhere near dublin those wages won't cut it.....
Click to expand...

Yes I am buying on my own, and no I'm not near dublin. 2nd hand 3 bed houses in my area for 180k. 2nd hand 2 bed house €155k.
 
With your HP you'll qualify for circa €145,000 at 100% (on your new income). If you had no outgoings this would rise to €165,000 - both assume you buy a two bed property as no lender offers 100% on one bed properties.

Sarah

www.rea.ie
 
Sarah W said:
With your HP you'll qualify for circa €145,000 at 100% (on your new income). If you had no outgoings this would rise to €165,000 - both assume you buy a two bed property as no lender offers 100% on one bed properties.

Sarah

www.rea.ie
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Thanks Sarah. Assuming I don't get 100%, and qualify for ~133k, there doesn't seem much point! What would your advice be? Should I give up and buy a house boat?:confused:
 
Why wouldn't you get 100%? You don't have to be in the same job for three years, just have a three year job history. If you go for a 92% mortgage you qualify for €160,000 even with your loan. Don't give up!

Sarah

www.rea.ie
 
Sarah W said:
Why wouldn't you get 100%? You don't have to be in the same job for three years, just have a three year job history. If you go for a 92% mortgage you qualify for €160,000 even with your loan. Don't give up!

Sarah

www.rea.ie
Click to expand...

Aha!! (Light bulb goes on!) :) 3 year job history- not 3 years in the same job..Apologies, maybe I'm just stupid- but I didn't realise that was the case. Thanks for clearing that up. 1 more question if you don't mind?
Should I save as much as I can say for the next 6-12 months, and then make the move onto the market or should I get out into the market now and then try and get the cash together for deposits etc...? Thanks
 
Should I save as much as I can say for the next 6-12 months, and then make the move onto the market or should I get out into the market now and then try and get the cash together for deposits etc...?
Click to expand...

Even if you put your name down for a new place now, you will still need to pay the deposit 3 weeks later, as far as I know.
 
The million dollar question! (Can I hear coughing? :D) ). I'm afraid only you can decide whether you are ready to buy. Do you rent or live at home at the moment? If you could get rid of the HP it would help but seeing as you may well qualify for 100% the issue of deposits isn't an issue (most lenders will allow you to borrow the 10% needed to sign contracts.

Sarah

www.rea.ie
 
Yeah, one year in the same job is not a problem, think BoI and maybe PTSB offer 100 per cent based on one year in same job. ALL of them offer individuals 100 per cent. if you can get it, why wait 12 months to save?
 
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