Lorraine Longmore (LIB QFA)

Here is what lenders really look at when they decide what you can afford:

If you have ever played with a mortgage calculator and thought “That looks great… but would a bank actually give it to me?”, you are asking the right question.

Lenders care less about the calculator and more about one thing:

Can you already show that you can handle that monthly repayment in real life?

That is where Proven Repayment Capacity comes in.

What is Proven Repayment Capacity?:

Proven Repayment Capacity (PRC) is your money habits on paper. It is proof, on your bank statements, that you can manage a payment similar to your future mortgage. That proof usually comes from:

Rent you pay every month
Consistent regular savings you actually leave in the account
An existing mortgage repayment (for movers or switchers)
A build up in an account ie your current account, from earned income. (Bonus/Commission is not considered) Once there is evident growth in the account, from earned income, over a 6 month period, this will be considered towards you repayment capacity.

If you are aiming for a €1,600 mortgage repayment, lenders need to see this being demonstrated through rent, regular, existing mortgage or a build-up in the account, over a minimum period of 6 months!

What lenders like to see:

When lenders look at your statements, they are asking:

Is rent paid on time every month?
Are savings going out regularly and building up?
Are bills and direct debits covered without bouncing?
No evidence of financial pressure/strain.

They are not looking for perfection, but they do want a clear pattern that says “this level of repayment is normal for me”, not a sudden jump.

Why this matters for you:

First‑time buyers

PRC is how you prove you can move from rent to a mortgage. If your rent plus savings are already close to your future repayment, you are showing the bank that you are basically paying a “practice mortgage” already. That can make your approval smoother and help you feel more confident about the step you are taking.

Second‑time buyers

If you are trading up, PRC shows that you can handle a higher repayment than your current one. Maybe your income has grown or debts have reduced since you took your first mortgage. A strong pattern of savings on top of your existing repayment can help demonstrate that the jump is affordable.

Switchers

For switchers, PRC is your safety net. It proves that the repayment you are on – or the slightly higher one you are considering for extra borrowing or a shorter term – fits comfortably into your monthly budget. This is especially helpful if you are looking for additional funds for renovations or debt consolidation.

How to use this in real life:

Once you understand PRC, you can turn it into a simple plan:

Pick a realistic target repayment based on your income.
Aim to show that amount through rent plus regular savings for a minimum of 6months
Keep your accounts tidy – bills paid, no repeated unpaid items.

If that target consistently feels too tight, it is a sign to adjust the budget before you fall in love with properties that will stretch you. If you are hitting it comfortably, it is a strong signal that you may be closer to mortgage‑ready than you think.

Want a second pair of eyes?:

You do not have to guess how a lender will view your situation. A broker can:

Estimate a sensible repayment and borrowing range for you
Review your statements and point out what looks strong (and what might need tidying)
Help you plan the next few months so your PRC story is as strong as possible when you apply

If you would like a straightforward chat about where you stand and what you can realistically afford – whether you are a first‑time buyer, a mover or a switcher – I am here to help.