How to calculate borrowing limits when FTB status is gone?

Apologies if this is in the wrong section, but it is a query rather than a debate, and is not a “what’s it worth” either.

Jammie Mc Jammington here sold in 2006 because I did not know if I was staying or going, so I began to rent. Put the money into a few banks, where it has grown nicely (until recently) and been adding to it.

So, like other people here, waiting to get close to the bottom (either this side or t’other) before I get on the ladder again. I am thinking when we are at that point, the ratio of 2.5 times annual salary will apply again, but how do the banks calculate how much you can borrow if you have no property but a deposit when you are not a FTB? Should I just assume that they will want 10% or more as a deposit of the “value” of the property, and 2.5 times annual salary as a max?

Any insight is greatly appreciated. All the mortgage calc’s have either FTB, or trading up options.

Edit: Removing typos. I kan’t sweam ti tpye twiday.

Very easy in your case, it is all cash .

Normally the banks assume a value on what you are about to sell and give you a bridging loan for that ( a special high interest mortgage) + a topup mortgage for the difference if you are upsizing .

If downsizing they give you a bridging loan which should clear in full when the house sells.

The problem now is that the banks are only lending to STBs who have extremely low mortgages in relative and absolute terms and preferably a public sector job too.

If you buy gaff#2 for €200k and have €100k you must fund €100k ( plus furniture solicitor etc ) . The income multiple applies to the €100k and in that scenario the LTV is 50% .I would advise you to be under 50% LTV if possible and also that the €100k is 2.5times income meaning you must earn €40k when you take the mortage out …they will go to 3x easily meaning €33k income to get €100k mortgage .

But they do not want an STB with a high LTV mortgage .