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Does the rule which restricts all debt payments to 30% of income apply to the gross income or net income? Also, I assume that we would still need a deposit for an asset backed interest only mortgage? Many thanks

by Tara on 27 Sep 2014
Des Cooney

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Dear Tara,

Thank you for your enquiry.

As a general rule, mortgage repayments cannot exceed 33% of net income. This figure that may be lower or higher, depending on your individual circumstances.

Banks generally offer mortgages of up to 80% loan to value i.e. you will need to have a deposit of circa 20%. An interest only mortgage is called a ‘prêt in fine’ in France. The capital repayment is secured via an endowment policy with the lender; such a policy is structured to pay off the capital at the end of the loan period.

If you need further information please feel free to contact me direct.

I hope that this helps.


Des Cooney

by Des Cooney on 08 Oct 2014

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