How much you can borrow really depends on how much you can comfortably afford in monthly repayments for the life of your mortgage, which may be up to 35 years for owner occupiers, depending on your age.
When assessing how much you can borrow, we look at the detail of your overall financial situation – including income, outgoings, savings and other loan repayments. Then we calculate the monthly mortgage amount that you can afford to repay. You’ve probably been through the same exercise yourself and have a figure in mind that you think is manageable.
It is important, though, to remember a few key points:
Most importantly, only reliable and sustainable income should be included in your calculations. By this we mean guaranteed income – bonuses and once-off payments may not be included
For your primary residence, AIB may offer up to 90% loan to value for First Time Buyers.
For Movers up to 80% loan to value is available
For one bedroom properties, the maximum you can borrow is 80% of the purchase price
Remember that your outgoings may increase in more ways than just the monthly mortgage repayment.
There’s the cost of life assurance and home insurance to consider. As well as optional payment protection insurance if you wish.
We will then carry out what’s called a “stress test”, this checks whether you could continue paying your mortgage if interest rates were to rise.
We will then provide you with an indication of how much you can borrow.
A Mortgage Advisor at your local AIB branch will be happy to take you through your financial situation and give you an idea as to how much you can borrow.