Whats a good ball park figure to be at for going for a mortgage , how far off am I at the moment

[gonick]

@sola1517 Thank you for the feedback , yeah clearing the debt of the loan would definitely benefit me in the long run , and if i do manage to double pay the loan each month id half my repayment time

 

[sola1517]

@gonick No worries. Just trying to come up with a happy medium for you. Just remember, the bank will stress test you when you apply so it’s important to not be so invested in your savings right now and to just get rid of the loan asap. The loan can impact what they will offer you and you don’t want the car loan to be the reason they offer you less in your mortgage. Also, when you apply for a loan, if you get rejected, you would need to wait 6 months to reapply. I know that’s the case with many banks, may not be all financial institutions though, so just be strategic in when you apply and to who.
Best of luck in your house hunting journey

 

[jmueller]

@gonick Have ye tried getting AIP? I had a car loan but it was no issue for the banks.

There's no one answer to this.

1. What value house are you looking at?
2. What will the banks even give ye at your max x4

If you went solo, banks would give you 180k. That'd give you a max house price of 200k. This would be 20k deposit. On top of that you've got fees - solicitor,valuation, stamp duty. Could be looking at another 6/7k minimum there.

If you went together, banks would give ye 320k, total house value of 355k. So ye,d need 35k together, add about 7/8k for fees. Because your partner has no debts, you might be able to get a mortgage together a lot easier as it'll balance out.

We bought for 225k, we ended up needing about 28k for everything to buy and another 4k for home appliances, furniture and bits and bobs. We were on about 10k under what ye currently are on at the time, I had a €280 car loan aswell and they were giving us our max. We didn't end up using the max at the time but we had the green light to buy up to 280k I think.

 

[gonick]

@jmueller Thanks for the info . Banks at the 4x is decent enough, on my own would be more a struggle. House values in the city are 200k+ for decent shape in decent estates , with needed renovations. Outside the city seeing ones from 130k up . We are flexible with the commute time to 20 mins or so from work and city so we arent confined to just the city . I still hope to clear a good portion of the debt from the loan . Stupid question what is aip ?

 

[nixfifty]

@gonick AIP = approval in principle. Effectively a letter from bank saying based on your current situation we will lend you X amount of money, subject to passing their future criteria and underwriters.

 

[gonick]

@nixfifty No i haven’t gone about that . I felt if im a year or two out is it worth going for ye reckon ?

 

[nixfifty]

@gonick Generally it only lasts six months (may vary by bank).

No point if you aren't going to apply soon - who knows what salaries you and your partner will be making in a year or two.