Q. I am 33 years old and, with the help of my parents, I am now in a position to buy my first home. I would like some advice on the process. There seems to be so much financial jargon attached to buying that my head is in a spin. Short and simple please. Daphne – Foxrock Dublin 18

A. Thanks Daphne and yes you are right. You have to cut through the jargon to really understand what is needed to own your own home. Firstly, check your income – currently your annual gross ( before tax deductions ) income multiplied by 4 times is the maximum amount you will be allowed to borrow by any lender ( unless they use their allowable discretion ) If you have a partner it is also 4 times both your gross annual incomes. Secondly, do you have any debts ? A car loan will reduce the amount you are eligible to borrow. Thirdly, check to see your credit history if you have had loans or debts. A missed payment which is recorded in the Credit Agency will mean a mortgage decline. Fourthly you need at least 10% of the purchase price – preferably saved and regularly in an account at least 6 months before applying – so they know you have repayment capacity.. unless you qualify for the Help to Buy Scheme or the First Home Scheme and you are buying a new property or self-build within the parameters of this scheme. You will also need the costs. Lastly, as a first time buyer, you will be restricted to 90% of a loan. Now you know… best of luck.


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