When looking for content to put on the new look website I thought why not once and for all come up with a calculator that gives a fairly accurate appraisal of how much an individual or a couple can expect to borrow in the Irish market. Surely it was just a matter of breaking the excel codes for the calculators on offer from each of the banks and tweaking them to form one universal calculator.
Alas I was wrong!
Each bank is unique in its appraisal of customers and how much they will lend them. For example, if we look at the four leading banks in the broker market who are all currently lending and apply the figures for the following couple (who are unmarried first time buyers):
Applicant (1) – age 34 – basic salary €45,000 – no overtime or bonuses
Applicant (2) – age 32 – basic salary €37,000 – no overtime or bonuses
BANK (1) will lend this couple – €351,000
BANK (2) will lend this couple – €361,000
BANK (3) will lend this couple – €396,350
BANK (4) will lend this couple – €402,800
Then to complicate things further how will banks treat the following:
- Bonuses/Commissions – some banks will only allow 10% of the figure whilst another will allow 50%
- Children – some banks will reduce the mortgage amount if a couple have children
- Self-Employed vs PAYE – banks in general will give less to self-employed applicants
- Some banks will only let you borrow to age 65 whilst others will let you borrow to age 70
- If you want to keep a property and rent it out – some banks will allow the rent from the current property to be used to improve your mortgage amount whilst another will not
Therefore in conclusion there is no one fit mortgage calculator for the Irish market, each customer is unique. Hence, our advice would be to contact your broker and see what you can borrow? We do not charge any fees so why not send us an email and we will put your details into each of the calculators and see what results they will give you.
Fran Cooke QFA