Q&A with Joey Sheahan – Head of Credit, at online brokers MyMortgages.ie and author of The Mortgage Coach

Head of Credit, at online brokers MyMortgages.ie and author of The Mortgage Coach

3. My husband and I both work in civil service. We are currently earning a combined €80,000 per annum. We have managed to save €17,000, saving €1250 per month. We have never had any loans or debt. Could we get a mortgage? We’re currently based in Dublin, but realise our salaries won’t allow us to buy here. We’re hoping to buy at home in Cork. Is this possible?

Yes, you are very suitable mortgage candidates. You should be able to borrow 3.5 times your income which is €280,000, and possibly qualify for an exemption, meaning you could potentially borrow up to maybe €320,000 – €360,000. Based on your current monthly savings amount, in 1 year your savings will increase by €15,000, which means you will have €32,000. This would allow you to purchase a home for €320,000. According to the most recent report, the average house price in Cork City is €313,000. As long as your employer confirms in writing that it’s ok for you to work from Cork, then there is no issue buying a house to live in Cork if your employer is based in Dublin.

Head of Credit, at online brokers MyMortgages.ie and author of The Mortgage Coach

2. My wife has inherited a home with her 2 siblings. They have made the decision to sell it. We expect to have €200,000 cash in 6-9 months’ time. We have not been saving. She is self-employed and her salary fluctuates, but she has made a minimum of €50,000 the last 3 years. I work as an engineer in a global software company and my salary is €90,000. I also take home €30,000 pa in bonus and shares. Can we use the €200k as our deposit, and still get a mortgage, even though we haven’t been saving?

Yes, absolutely. If you guys have been paying rent,  then the monthly rental payments will serve as proof to the ban of your ability to meet monthly mortgage repayments. If you are not paying rent, then you have ample time, between now and when you receive the inheritance funds, to start saving now to be able to show the necessary savings record of  6 months.

Head of Credit, at online brokers MyMortgages.ie and author of The Mortgage Coach

1. I’m a doctor (HSE) and my husband is a journalist (employee). Our combined income is €150,000 pa. I expect to qualify as a consultant in 2.5 years. We have saved €45,000. Given the housing crisis, we’re not sure if we should keep saving, and buy when we know our permanent location in 2.5 years (as I don’t know where I’ll get an appointment yet) or should we buy now in Dublin, to get on the ‘property ladder’. What would you recommend? How much could we borrow now, and how much could we be expected to borrow in 2.5 years?

You could borrow at least 3.5 times your combined income, which would be a loan amount of €525,000. You could potentially secure an exemption, given you are both high earners, meaning we could qualify for a loan amount of maybe 4.5 times your income, which would be €675,000. However, you would need to increase your deposit, as you would need 10% of the purchase price. If you are currently renting, I would give serious consideration to buying now as the rent you will pay in Dublin over the next 2.5 years will really add up. The average monthly rent in Dublin is approximately €2,000 so if you multiply this by 30 months, it means you could pay at least €60,000. The monthly repayment on €525,000 mortgage over 35 years at an interest rate of 2.2% would be much less at €1,793. If work dictates that you have to move county down the line, then you could rent out your Dublin property and the rent should cover the mortgage repayments, subject to any tax obligations.