That your income less expenditure still leaves enough each month to meet the proposed mortgage repayments. We look at your Nett (after tax) income each month and see what your outgoings are, and we can then assess how much of a mortgage you could afford to repay each month. Any rent that you are paying or savings that you have each month, will count towards this repayment capacity. Most first time buyers believe that paying high rent can count against you – but for repayment capacity, its actually beneficial.
Mortgage is 4x the Gross Income
With the first time buyer scheme, your income (combined if applying with a partner) times 4x is the mortgage amount you can get. Say for example you have two applicants, both earning €50k (combined €100k per year) – this would enable you to get a mortgage of €400k.
First time buyer deposit
With a first time buyer mortgage you can borrow upto 90% of the value of the property. This means, as in the example above, you only need to have a 10% deposit saved. The Banks prefer to see these savings as consistent weekly/monthly build up over say 6 months. Be consistent. Don’t try and put in an amount say €1,000 in month one and then need to take out €200 of this to cover expenses the next month. We can work with you to plan out your cashflows to prepare for a first time buyer mortgage. Getting consistent Bank statements that meet the lenders requirements is very important in a first time buyer application. We will help you put your best foot forward.