How does AIB calculate how much I can borrow?

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

• You can borrow up to a maximum of 90% of the purchase price of the property.

• Up to 80% loan to value is available for a studio apartment valued at €275,000 or above or a one- bedroom property. We do not lend for the purchase of studio apartments valued at under €275,000

• 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 will be happy to take you through your financial situation and give you an idea as to how much you can borrow. Make an appointment in your local branch or over the phone.

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