4.25 x Salary Mortgage

[karrose]

I'm wondering does anybody know the criteria for qualifying for a mortgage exemption up to 4.25 times annual salary?.

I have a site that I bought for 75k. Last year I made 58k gross and I got a 4% pay increase this year. I'm a single applicant and i have 24k in credit union savings. I'm saving 1910eur per month into AIB deposit acc. and paying 370per month in rent in a house share. I have no loans, no kids.

Would I qualify?.

31M. Level 7 degree, going into final year of level 8,(online paid by work). First time buyer. Looking to borrow as much as I can!.

 

[luebeaute]

@karrose This is just my experience, but maybe it’s helpful. We were looking for an exemption this month and were told by our broker that the central bank have significantly reduced the number of exemptions for first time buyers due to the overall LTI limit going to 4.0x this year.

 

[karrose]

@luebeaute Thanks. I'm sure your broker gave you solid information so i appreciate the heads up.

This time last year i'd have snapped your hand off for 4 times salary. Now its gone to 4 i'm looking for 4.25. Being greedy!

 

[thisguy64]

@karrose With owning the site and being single at the moment I'd recommend getting planning for the house you want then spilt the build into stages and just build what you need now with the 4x. If you eventually have a partner you'll have twice the money to extend it as needed. No need to go all in now.

 

[karrose]

@thisguy64 That's good advice. Thanks for that!.

 

[stancet]

@karrose For an exemption they'd usually look for strong cases with as few questions as possible, the big ones are dependents and liabilities. You'd have a strong case for an exemption in my opinion considering you're credit history is clean and you have tidy account operation. I was a mortgage Underwriter until recently so that would be my opinion but it's always down to lender discretion at the end of the day.

 

[jimdykes]

@karrose Every bank will have different exemption rules and front load exemptions in the first tree months of the year.

What I can tell you is that when I applied for my mortgage, I made 70k, was able to demonstrate 2.9k in ability to pay and still did not qualify for an exemption.

 

[pastor77]

@karrose I've heard they give the higher mortgage multiple at the start of the year when they set their budget. After this it tapers off and becomes hard and harder throughout the year to get approved on the higher multiples.

Best of luck.

 

[sfanacogdoches]

@karrose When looking for an Exemption the lenders really delve into your Disposable income.

Every applicant has to have a minimum amount left over each month even to get 4 x times income. The minimum will change if you are applying on your own, or with someone and/or you have kids.

So the take your Net Income, and then take off the mortgage repayment at a stressed amount (usually 2% above actual rate) and any other outgoings (loans, credit cards, maintenance).

If the remaining figure is deemed high enough to warrant getting an exception than you’re in with a good chance. The criteria does change frequently

 

[karrose]

@sfanacogdoches That's interesting. Thanks for the reply.

 

[faustina7]

@karrose Considering the above responses, would you look into the first home scheme (FHS) and help to buy scheme (HTB)?

 

[karrose]

@faustina7 Yes i'll be looking for HTB but FHS isnt open to self builders.