From the KBC mortgage calculator.
A single borrower
Amount that can be borrowed: €208k
I said to myself, that seems reasonable enough, manageable!
Then I put in joint income (reasonable incomes??)
Amount that can be borrowed: €337k (wtf)
Repayments over 30 years = €1,701.53 @ 4.56%
Riddle me this.
John and Mary get a mortgage for 337k, have a deposit of say 40k so they can now have buying power of 377k, that would get modest/reasonable, if overpriced house in most parts of Dublin.
2 years later Mary pops a sprog, decides its best to stay at home with little johnny, as sure by the time you factor in child care costs, sure she is only bringing home a few quid extra a week.
Now we have a situation where John has to service the mortgage of €1,701.53 on his own while providing for himself and his family. What is the take home per month on 50k (maybe €2,900 a month or so).
Over the next 3 years interest rates go up by 1.5%, (this adds maybe €20 per 100k, is this accurate?)this will add maybe another €75 per month, so we are up at near €1,800 per month.
I realise that I am using a lot of maybes in my calculation, I welcome the input of the people who can provide accurate figures (i wont get offended )
This excludes, water tax property tax, cost of bringing up a child, other kids coming along. holidays, etc…
Is it just me or is it wrong to give so much to a joint applciation compared to a single application!
I realise that banks are not giving out cash as easily as before, no wonder people have gotten themselves into financial difficulties in the past and will continue to do so , if my assumptions above are correct.
(Note: It could be the case that John earns 25k and Mary earns 50k and John stays at home)