How do I get my foot on the property ladder?
A question of finance
A It is fair to say that “genepool economics” has had a major effect on the Irish property market.
First-time buyers who were lucky enough to have the bank of mum and dad to fall back on for a deposit got on the property ladder with greater ease.
But there are options available to you at this stage and the appropriateness or practicality of each is up to you.
You could get a 100pc mortgage.
On the basis that you might have some other loans you could use your savings to eliminate these loans and credit cards debts which will free up more of your net income to repay the mortgage and therefore increase the amount of a loan that you can repay.
A lender will take into account the income you will get in calculating the amount they are willing to lend you.
Depending on your job it is possible to borrow more than normal.
For example, trainee solicitors earn very little during their apprentice years and in the period after they qualify.
Lenders, however, appreciate that these individual's income is pretty much guaranteed to rise considerably over the life of the mortgage.
Finally, while your parents may not be in a position to give you money, they could help by guaranteeing the mortgage.
You can borrow more money and if you fail to make the repayments then the lender can go after your parents for it.
This is the downside of this type of loan. Ultimately your parents' home is also at risk if you default on the mortgage.
CYRIL KEEGAN
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