As a First Time Buyer, the idea of purchasing a new home can be a frightening prospect and you will be asking yourself numerous questions. How much can I (we) borrow? How much of a deposit will I need? Where should my deposit come from?
These are some of the questions we are here to answer, our aim is to give you the knowledge and peace of mind that you have a Broker who will guide you through the process and keep you up to date every step of the way, right up until you have your keys.
As a First Time Buyer, lenders will Mortgage up to 90% of the property value and allow you to borrow up to 4x your income. For example if you were to purchase a property for 300k you could borrow up to 270k from a lender. You would then need an income of 67,500 per annum to qualify for this amount, if you are applying as joint applicants this is a salary of 33,750 per annum each, however the split does not need to be equal
The deposit of 30k can come from savings, or via a family gift. Alternatively if you are purchasing a new build you can qualify for the Help to Buy Scheme, our rarely generous Government will offer up to 30k to fund your deposit. to qualify for the Help to Buy Scheme you must visit revenue.ie. Revenue will then calculate the income tax you have paid over the past 4 years and generate a Certificate up to the 30k value.
A key ingredient to any Mortgage application is Repayment Capacity……..if a lender is going to fund 270k of your new home, they are going to want to see your ability to pay this back. For example if your mortgage is going to cost you 1,000 per month, the lender will want to see you saving at least 1,000 per month for a six month period leading up to an application, ideally into a savings account, you should therefore see an increase of 6,000 over six months.
For any questions on the above information you can contact me directly at james.curd(at)yes.ie, alternatively If you feel like you are ready to start your application please follow the link to our online portal and I will be in touch – https://yes.ie/ref/1171b/jamescurd