Which banks offer the max amount?

Posted by interyu on the old ezboard 20/05/05

Hi,

My salary is 30k and my girlfriend is 25k. We have no loans and pay credit card every month. Bank of Ireland and AIB can only offer Max amount 252,000 for our Mortgage. I need borrow more to buy a house for 350K. Which Bank offers Max amount Mortgage? Thanks

Interyu

Not sure who offers the maximum as a matter of course but your are looking for more than 4.5 times your combined earnings. €250K over 30 years at 3.1% (for example) is over €1,000 per month (excluding mortgage interest tax relief, mortgage protection life assurance and home insurance) and obviously more if rates increase over time. Are you sure that you can afford to service such a loan? Apologies in advance if you have already run these numbers and satisfied yourself that you are happy with this (or a greater) level of debt.

Simply prove to your chosen bank your capability to repay the loan. If the repayments will be over €1475 per month, then you would need to satisfy them that it will not put you at a financial disadvantage.

To do this you would need to be saving a minimum of €1750 per month or paying a combined rent and savings to bring you up to about that amount.

The reason why I say €1750 per month is that you need to pass the bank's stress test in relation to a rise in interest rates, and you also need to allow for insurances.

That is a massive chunk out of your disposable income btw, and will put you under a huge amount of stress.

HTH