It isn’t the salary that counts, its the salary and mortgage you’re looking for. Child benefit is min €140 per month, so there’s only a net deduction of €60 per child.
It sounds like a ridiculous means test for anyone looking for a mortgate with repayments over about €1200 per month. Say you’re on a big salary - 5k net - would BOI give them a mortgage with repayments over 3k? I doubt it.
What interest rate were they quoting for this test? I don’t think is is as simple as suggested
Irony is, if you had no kids (but were 20/ 30 somethings of an age where you would be likely to have them) they’d make no deduction at all to allow for that possiblility. Hence we have swathes of young couples in NE who can’t afford to have kids, as the mortgage takes a huge whack of both incomes and leaves very little over.
As for child benefit - it’s only going one way - down… so anyone counting on that for the mortgage is in big trouble.
I don’t think they are so wrong with this. 1600E is 400E a week on average for everything that isn’t child or mortgage related. Food. Electricity. Gas. Car repairs. Bus tickets.
While you reckon that maybe the 600E per month calculated on the children could cover this, you don’t say - for example - whether childcare is payable. If it is, I doubt that 600E would be remotely adequate for three children for a month. I don’t know what mortgage payment you are looking at but for me but having 1600E left over after mortgage payment would probably be a bit on the tight side if you want to make sure you occasionally have room to save some money for, say Christmas, updated car, new camera.
Nor do you say how much of a mortgage payment you are looking at but interest rates are only going up in the medium term. So you need to factor that into your calculations also.
I’m not sure that Bank of Ireland are being completely unreasonable here to be honest.
So I rang my branch to complain and ask if BoI ar simpy not giving out mortgages- nice guy I spoke to said the guys on the 1850 number just put figures into a computr and if it says no thn it is no, no independence of thought- he said w shoud get approval no problem- he wpud send me out the forms
Nice guy may be talking through his hat - credit underwriting is centralised in BOI, so the branch do not have lending discretion for mortgages. They can put a good word in for you… but the underwriters have the power to say yay or nay. interesting to hear what the outcome is? keep us posted?