Mortgages

Whether you’re a first-time buyer, looking to switch your mortgage, shopping for a buy-to-let property or just want to know what you would be able to borrow before you go looking at properties, we can find the best mortgage for you.If you are just starting out and wish to know how much of a mortgage you would get we can apply for an Approval in Principle which allows you shop with the confidence that you know how much you can spend.

With numerous competitive switching incentives and reduced fixed and variable rates on offer, an increasing number of borrowers are choosing to switch their mortgages in order to save money over the long term. We compare mortgages from all of Ireland’s major financial institutions, including AIB, Bank of Ireland, EBS, Haven, ICS, KBC Bank, Permanent TSB, Ulster Bank, Pepper.

We are here to make your mortgage experience hassle-free.

First Time Buyers

A first time buyer is someone who has never bought a property in his or her own name before.  If a couple are applying together then neither of them can have previosly bought a property in order to qualify for first time buyer status.

The following terms and conditions apply to first time buyers as specified by the Central Bank of Ireland:

  • Applicants can only borrow up to 90% of the purchase price of the property.
  • However if you are building a new house it is slightly different, it is the lower of 100% of the cost of building your house or 75% of the market value of your house when it is built.
  • The maximum amount you can borrow is 3.5 times your gross income (before tax income and excludes bonuses/expenses etc), if you are applying with your partner then you can borrow 3.5 times both incomes.
  • A 10% deposit is required by you.

Example: a property costing €200,000 requires a deposit of €20,000 and you can get a mortgage of €180,000.

  • A secure income, you must be at least 6 months in your employment (some banks may request longer).
  • Proof of repayment capacity through regular savings and rent payments.

Example; If the mortgage repayments are €1000 per month, you must show that you have the capacity to pay this amount back on a monthly basis through your current rent or savings.

  • A Good credit record with no missed payments on loans or credit cards. Each bank will run an ICB check on you (Independent Credit Check). This is an independent report that can be generated at the banks request which shows all of your credit history or the last 5 years. It includes records of all loans and debts that you have or had and your repayment record over these past 5 years. The banks are quiet strict on these point although there is may be some leeway given in certain cases.
  • You need to have Funds available to cover your deposit plus additional costs such as stamp duty, legal fees, valuation fees etc. This can be made up of savings plus a gift from a family member if required.
  • A valid passport or driving license.
  • A utility bill with your name and address (less than 3 months old).
  • 6 months up-to-date personal current account statements.
  • An up to date savings account statements.
  • An up to date loan and/or credit card statement(s).
  • Your 3 most recent pay slips.
  • Your current P60.
  • In addition, if you are self-employed, you will need 3 years up-to-date audited or certified accounts, confirmation that your tax affairs are up to date and 6 months recent bank statements from your main business current account.
  • Gambling transactions on your current account are prohibited by mortgage providers, if this is something you like to do or have transactions coming out of your account stop this immediately, or at least stop it from your main current account.
  • Overdraft facilites are looked at to see if they are used on a regular basis, if you live in your overdraft stop this immediately if possible.
  • If you are not already saving regularly start saving regularly on a consistent basis to show repayment capacity.  However, try to avoid at all costs dipping into this savings account.  The mortgage provider will not look favourably on the fact that you cannot live on your disposable income without using your savings from time to time.  You will have to start from scratch and prove you don’t need these savings for a 6 month period to prove repayment capacity.
  • Ensure that you don’t miss any direct debit payments for the same reason.  This applies to utility bills, loan repayments etc.
  • If you are paying rent by cash stop this right now and start paying using a direct debit or standing order.  You need to prove you are paying this rent and cash payments are harder to prove.
  • No matter how small your credit card bill is pay it off ASAP.  Many people make the mistake of neglecting these as they are only small however this affects your credit rating no matter how small the repayments are.

Getting approval in principle means that  you have the option of drawing your mortgage when you find a specific property or build your home.  It is like being given permission to go house shopping or to start planning your new build.  This is why we recommend you apply for the maximum amount you qualify for.  You only borrow what you need to purchase or build the property.  In fact you don’t have to draw down your mortgage at all if you don’t want to.  Your application will become obsolete after 6 months and you will have to reapply.

If you are a first-time buyer who either buys or builds a new built property between 19 July 2016 and 31 December 2019, you may be entitled to claim a refund of income tax and DIRT paid over the previous 4 tax years. If you qualify, it aims to provide you with money that you can use for your deposit. The amount of money that you are entitled to is the lessor of;

  1. €20000
  2. 5% of the purchase price of the property or
  3. 5% of the completed value of the property if you are building.

You must also occupy the property for 5 years.

The Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers.  It is now available nationwide from all local authorities.  The main benefit of such a scheme is that your mortgage repayments will be significantly smaller as the interest rate on the mortgage is much lower.  If you have a poor credit rating and have been declined for a mortgage on numerous times before you can still qualify for this scheme.

First Time Buyer Resources

Second Time Buyers

  1. If you are buying your second home/trading up, some different rules apply;

    • The maximum amount you can borrow is 3.5 times your gross income.
    • The maximum loan you can have is 80% of the purchase price of the property.
    • A 20% deposit is required.
    • The same requirements and documentation is required as that of first time buyers.

No matter what type of mortgage you are looking for, we can help you get the best mortgage rates!

Switcher Mortgage

If you already have a mortgage and providing that you meet certain criteria, it is possible to switch banks to save money and get a better deal on your mortgage.

The following criteria need to be met:

  • Your repayments must be up to date and no arrears on your existing mortgage.
  • Your property must be in positive equity. This means that the current market value of your home must be greater than your mortgage.
  • The maximum you can borrow is up to 80% of the market value of your home.

Benefits of Switching your mortgage to another bank;

  • You could end up significantly reducing your monthly repayments and as a result save thousands over the term of the mortgage.
  • You could pay off your mortgage over a much shorter term for the same monthly repayment
  • You may also be entitled to up to 2% cash back on the mortgage amount.
  • Some lenders pay a fixed sum towards your fees for switching.

Residential Investment Mortgage – Buying a property to rent out to tenants:

This is where an individual(s) is looking for a mortgage to buy a property and rent it out to tenants in order to generate an income from the asset.

The maximum loan you can get is 70% of the purchase price of the property.

A 30% deposit is required in most cases. This does not include stamp duty, solicitor and other related fees and charges.

There are 3 ways in which you can obtain one of these mortgages

  • Using the Personal Finance option
  • Using a Special Purpose Vehicle (SPV) option
  • Using a pension fund

These types of mortgages are quiet complicated and difficult to explain. If you would like more detail on this topic it is advisable to either conduct a conference call or set up a meeting with one of our experienced advisors

Whether you are:

  • inquiring about a mortgage and want to know how much you can borrow
  • what documentation you need
  • the deposit required
  • how to put your mortgage application together in order to get mortgage approval as soon as possible

We can help you get the best mortgage rates! For more information on First time buyer mortgages Click here.

Click here to download our free e-book on how to get your first mortgage.

If you already have a mortgage and are looking to switch your existing mortgage for a reduced interest rate or fix your interest with the best fixed rate available, we can help. We can also help you avail of the best cash back options available. These promotional options are changing on a monthly basis by all the providers, so we will ensure that you are kept up to date with the best ones.

Previous Credit rating issues?

If you have had trouble getting mortgage approval in the past due your credit history, mortgage brokers like ourselves are your best bet at getting a mortgage because we can apply on your behalf to some alternative lenders that may accept your application when banks and other institutions turn you down.

For more information on Switcher mortgages Click here.

If you have a number of outstanding loans and would like to consolidate them into your mortgage, this is now possible. You can reduce your monthly repayments with one loan and one direct debit while simultaneously reducing your overall monthly loan repayments.

This type of Mortgage is relatively new and at present is not offered by banks. It is only offered by alternative lenders such as Finance Ireland.

For more information on Loan consolidation mortgages contact us!

If you have a house that is in positive equity, you may be able to re-mortgage your house and generate cash for yourself to use on the following;

  1. Getting a deposit for another property
  2. Funds required for Education purposes of your children
  3. House improvements or renovations

This type of mortgage is relatively new and at present is not offered by banks. It is only offered by alternative lenders such as Finance Ireland.

For more information on Equity release mortgages contact us!

This is where an individual(s) is looking for a mortgage to buy a property and rent it out to tenants in order to generate an income from the asset.

For more information on this offering click here.

If you would like to find out more about Mortgages and how we can help you secure one, please contact us on: