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08 Mar 2017

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Getting a mortgage on your own can seem like a pipe dream.



While you might think you can’t get a mortgage by yourself, you’ll be happy to hear that it is possible to buy a house on your todd.

Step away from that Adele album and let’s get cracking!

Totting up how much you can afford

The steps involved in buying a house on your own are essentially the same as buying with a partner. The harder part is expectation management, saving the deposit on your own, and finding a house you like in your price range.

The first thing you need to do before you start picking out tiles and wall fittings is figure out how much you can potentially borrow. While you might have done rough calculations, it’s time to break out the calculator.

Most applicants can borrow 3.5 times their gross income. In the case of couples, this usually means a larger sum, as this would be two gross incomes added together. In case you’re wondering, your gross income is the sum you’re on before the taxman makes his cut.

So let’s say you make €50,000 gross income. Multiply that by 3.5 and you get your maximum mortgage value of €175,000.

How do I calculate my Mortgage Affordability?

That quick calculation and the €175,000 is the upper limit for the price of houses you can potentially buy. Once you’ve done these quick sums, we recommend that you get in touch with a financial institution (we’d be delighted to chat!) and arrange a relaxed mortgage meeting so you can get your ducks in a row.

To work out if you can afford a mortgage, your mortgage advisor will go through your documents and finances. If you fill in your paperwork, provide your documents, and everything works out you’ll be awarded

‘Approval in Principle’.

Your deposit will come into play here. As a first time buyer, you’ll need a 10% deposit tucked away on properties costing up to €220,000. For properties above €220,000 you’ll need a 20% deposit. Saving up for the deposit is no one’s idea of fun! Steady on though: you don’t need the whole deposit when you go in for your meeting with your mortgage advisor.

Top tip: Tot up your incoming and outgoing expenses in a list and figure out what you can cut back on to stretch your pennies further. For example, if you find that your TV and internet package is on the expensive side, you can use a site like Bonkers.ie to potentially find a better price and net some extra savings.

I’ve found a house I like...what’s next?

You’re well on your way. You’ve saved your deposit, got Approval in Principle, and are eyeing up a house you want to buy. From here, you’ll board your journey to the hallowed ‘Sale Agreed’. But just remember, there are a couple of extra costs associated with actually buying a property:

  • Stamp duty – a tax on processing documents related to buying and selling a property. This usually knocks in at about 1 to 2% of the cost of the property.
  • Legal fees – everyone’s favourite! The fancy word is ‘conveyancing’. Generally, set aside 1% of the property price for a solicitor. Shop around for the best deal.
  • Home insurance and life assurance. Home insurance is a given, though some lenders may also require you to take out a life assurance policy.
  • Valuation report – when you’re sure you want to buy and make an offer, a valuer will come in and examine every nook, cranny, and structural skeleton to make sure the property is worth the price quoted. Usually, a valuation will cost around the €150 mark – so definitely worth it!

In brief, once you have mortgage approval you can bid and agree on a property. You’ll choose a solicitor and sort insurance, as well as the nitty-gritties mentioned above like valuation and stamp duty. Once the valuation comes through, you’ll take your next steps. Usually, this involves haggling over any issues or moving on with your lender who’ll issue a formal mortgage offer letter.

Then comes the exciting part, where the seller’s solicitor will issue a contract to your solicitor. You’ll sign the offer letter and the purchase contracts and a closing date will be agreed on. The final pieces of paperwork will be sorted and you’ll come out of the other end as the owner of your very own home.

Want to get your foot on the mortgage ladder?

Now you know it’s possible to do it on your own, you can get the ball rolling with your mortgage application. Book a 30 Minute Mortgage Meeting now.

In the meantime, like us on Facebook for more house hunting tips!

EBS d.a.c. is regulated by the Central Bank of Ireland.

The content of this blog is expressed in broad terms and is limited to general information purposes only. Readers should always seek professional advice to address issues arising in specific contexts and not seek to rely on the information in this blog which does not constitute any form of advice or recommendation by EBS d.a.c.

EBS d.a.c. neither accepts nor assumes any responsibility in relation to the contents of this blog and excludes all warranties, undertakings and representations (either expressed or implied) to the fullest extent permitted under applicable law.

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