Last Tuesday Pascal Donoghue delivered his budget for 2021. The old reliables were hit such as cigarettes and fuel. What would happen if everyone stopped smoking? – people would be healthy and wealthy. A pack of 20 now costs €14 so that is €5,110 over 365 days or if you are in the higher tax rate €10k per annum that you need to earn…. makes you think!!
On a more positive note for potential first-time mortgage applicants there was some good news in relation to the Help To Buy Scheme (HTB) in Budget 2021. This relates solely to new builds and new first-time mortgage buyers.
The extension of the HTB was necessary and will generate even more activity in the market in the months and year ahead. The announcement also brings a degree of certainty that was lacking in the market. First Time Buyers were unsure as to whether they would or could make the December 2020 deadline. With this uncertainty removed a new home may be within reach in 2021.
The salaries of many first time buyers are increasing year on year, so where last year they may have only qualified for €20,000 under the HTB scheme, many more could now secure the maximum €30,000 in January 2021, due to the fact that they can include their income for 2020 in the calculation.
Check out Revenue.ie for further information and to apply https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
We are still encouraging people to save. The past few months have seen less spending on many items such as holidays or heading out for meals. It has seen people invest in technology for their personal use and purchase new sporting equipment, bikes, rowers and weights have arrived in homes like never in the past. Also, how many of you have purchased new runners!!!
Mortgage criteria has not changed. You will still need savings and you still need to prove to the mortgage lender that you can afford to repay a new mortgage. This is done through saving a set amount each month or by paying rent. Typically for a mortgage of €270,000 over 30 years the mortgage provider needs to see repayment ability of €1200 per month for a 6-month period.
Lower interest rates and increased competition in the mortgage market are also making borrowing more affordable.
To find out more about the HTB scheme, mortgage lending criteria and to see how much you will qualify then just contact firstname.lastname@example.org or call +353 1 6246321 or call me directly on +353 87 2742520 at any time.