What to expect regarding loans

Sorry if done already (if so please direct me to the post and close this one). Say you were good for a €400K mortgage earlier this year from the banks what could you expect now? I know there are other factors , job stability etc, but any ideas?

it probably dropped to c 320k -350k now …mainly because of the banks valuers lowballing

I think you’d probably still be entitled to the same amount, but not for the same house.

You’re capacity to pay hasn’t changed, but if you’re still looking at the same house then it’s value will have.

I could be talking crap of course. What do I know?
:wink:

-Rd

I would say a large part depends on what the rationale for your income is: are you a bar tender? doctor? etc., ? Profession will now play a bigger part as the banks might look towards long term ability to pay off debt.

Previously, banks included overtime and bonuses to factor in mortgage approval amounts. I would imagine that they will examine pay checks more closely now, as bonuses in many private sectors or ease of access to extra overtime work will be reduced.

depends more on your deposit now too.

Only from a LTV perspective surely? Or is it that they take a large deposit as evidence of a good savings habit? It might not be though, as I may have cashed out on property in 06 or had a Bertie-esque lucky win on the gee-gees.

I am in a similar situation. My partner and I have received an A&P for max mortgage of €430K which is valid for another few months. We could also probably stretch this a little higher if needed by providing a guarantor. We have approx €60K in savings and both work full time in the financial services sector in the IFSC.

House prices are still falling but job security now be an issue for a lot of people in Ireland. Just wondering can anyone provide an opinion on whether they think the lenders will provide the same mortgage rates to us in the next 12 months during the current economic climate? Will house prices fall faster then the amount lenders are willing to lend in the next 12 months? Very unsure what to do. We will keep saving for the time being anyway. Any thoughts?

Don’t try to catch a falling knife. I wouldn’t touch the Irish property market with a bargepole until the shakeout has happened and it most definitely has not.

Yes we still have a deposit of 60-65K at the moment and are saving about 2k a month. So we have a decent depost.

My point is that even if we have a good deposit now and in the next 6 months, no one knows how much lending one can receive. I would presume that our A&P of a max €430 would decrease greatly in the next 3 - 6 months?

We are in the very same position…we are thinking on whether or not to close on a property at 510k right now…we are releasing 40k in equity in our apartment and putting savings to it also???..if we back out of this purchse…will we be able to relase that equity again???..big worry as if we cant we are 40k down on buying power instantly!
Should we take the plunge now??..while we can…we ahve already goten 125K off the asking price of the house!
What do people think…i would appreciate any and all opinions!!

I think the vulcher (sic) should release all the equity in the apartment and rent a plush pad in a posh suburb until the big game come along.

yes …maybe…but i actually have this sneaking suspision …that the middle ground properties,…have done 90% of their price drop right now…the 3bed semi’s, 4 bed family home…are the bread and butter housing…always in demand…the apartments and the trophy homes in rathgar etc for 2mill+ are going to fall more.
So maybe now…actually is a good time to buy inthe middle market???

Restrictive lending is a very good thing for prospective purchasers. Prices will have to fall to what banks are willing to lend.

It’s just an opinion, but I disagree. With less and less people qualifying for large mortgages, less and less people secure in their jobs, and less and less people with equity available to trade-up, even the prices of these “desirable” properties will have to come down. People may want them, but that won’t mean they are in a position to buy them.

Asking prices in good suburbs have been very sticky alright, but very few sales are actually closing. And at the top end of the market (1m+) the price drops have actually been the largest, even in the “trophy home” areas.

So I’m renting & waiting as long as it takes for the rent vs buy differential to reduce and for income multiples and houses to come into something near historical alignment. There’s a long way to go yet.

Bread and Butter housing is different?

Try when prices reach a multiple of four to five times gross income for the primary breadwinner in the demograph for prospective buyers. I expect to see less double income households in the next ten years as mortgages become less burdensome.

If it were me I wouldnt be in a hurry, as said previously if the banks cant lend it how can anyone buy it. I think prices are far from the bottom, have a lot further to go and the current world economy will see to that regardless of what the local EA would have you believe.

That makes sense to me. Though I’d call it at 4x household income.
So call that 4x €75k for a couple with average+ earnings for a figure of €300k. This should buy a decent quality 3/4 bed semi in most areas of Dublin. Of course it doesn’t. You have to go out to Tallaght/Clondalkin/Lucan/Blanch etc at this price. There’s no reason that kind of money shouldn’t buy one in Raheny/Cabinteely/ etc. We still have some road to travel here.

My god the STRESS!!!..i am stalling the closing until after the budget…and what has the muppet EA done only gone and put the house back on the market…while i hold the contracts!!!.. :open_mouth: …and less than what we had started negotiating at…and now just 30k more than what we are going to sign at!!!..mind u we have gotten 125k off from where we started… :stuck_out_tongue: …but it seriously makes me question the purchase…what to do… XX

I think you know the answer already - you thought you bargained down 125K but 95K of that has already evaporated? Let’s face it, there’s no way you’re getting a bargain today at 30K off asking price. Either re-negotiate (hard) or run for your life.

Wait and see what this house sells for at auction (if it sells):

myhome.ie/residential/search … LVMK372524

Needs a lot of work I would say, but AMV is €300 per sq ft.
Compare to asking prices for other houses around.