Read our Top Tips to Secure Mortgage ApprovalRead our Top Tips to Secure Mortgage Approval and find out what the lenders are looking out for in a potential new mortgage client. These top tips should help you in getting your paperwork in order.
Obtaining mortgage approval with any financial institution is all about showing the lender your ability to repay your mortgage so it’s important to have all your accounts in good order.
Check out our Mortgage: Step by Step Guide.
1. Speak to a Lyons Financial Services Adviser: If you are thinking about buying your new home, then you need to be considering taking out a mortgage. At Lyons Financial Services our Mortgage Advisers are here to help at every stage of your mortgage application. We can give you lots of good advice about everything from saving for your deposit to getting all your paperwork in order. Our mortgage advisers can be contacted on 1890 304 304.
2. Getting your documentation together: Lenders will need to see proof of your income, employment and your ability to repay the mortgage. Here’s a quick guide to what documentation you will need to gather, however a full checklist is included in our mortgage pack.
– Salary cert completed by your employer
– Recent Payslips
– 6 months bank statements
The lenders will require to see your ability to repay the mortgage so it is imperative that your accounts are in good shape. Please see our Top Tips with some useful advice on how to get your accounts in order for mortgage approval. We are always available to give you advice on how best to do this.
3. Approval in Principle: Once you have your deposit saved it is a good idea to get an Approval in Principle put in place with a lender. At Lyons Financial Services we will research the market on your behalf to see which lender best suits your needs. It is worth noting that an Approval in Principle is not a legally binding agreement. However, it is invaluable when house hunting. You have the confidence to know that your mortgage has been approved and the estate agents and vendors will be happy to accept an offer on the property knowing that you have the finance in place to purchase the house.
4. House Hunting and Making an offer on a property. We would always recommend that you have a Structural Survey carried out on any second hand properties. We would be happy to recommend someone to carry out the survey for you. Once you find the property that is perfect for you, put in an offer, and if it’s accepted, get back on to us.
5. Once the offer is accepted, put down the booking deposit. This booking deposit is refundable up until you sign the contracts. Contact Lyons Financial Services and let us know the property details and solicitor’s details. We will then arrange a valuation of the property on your behalf. On foot of the valuation report your loan offer will issue from the lender. A copy will be sent to your solicitor along with the legal pack.
6. Insurances: A Life Policy and House Insurance Policy will be a condition of the loan offer. We will have one of our consultants contact you to advise you on your options.
7. The Contract for Sale: The contract for sale is a binding agreement between you and the seller. It sets out the agreed price and completion date, subject to checks and searches that must be satisfied from your point of view. Your solicitor will look after this for you. Once your solicitor is satisfied that everything is in order, you will sign the Contract for Sale and a closing date is then agreed. This is usually 2 weeks after the contracts have been signed and returned to the seller.
8. Closing Date and receiving the Loan Funds. As soon as you have been advised of the closing date please advise Lyons Financial Services. We will then put the insurances in place, and ensure that all documents are received with the lender in a timely manner to avoid any last minute delays in you receiving the loan funds. Your solicitor will request the loan funds from the lender and arrange for the completion of the transaction. After that, the keys are yours!
The final stages of the mortgage process may seem daunting and a little overwhelming. Lyons Financial Services are here to help every step of the way and answer any questions that you may have.
From the moment you first think about buying a property until you have the keys in your hands (and beyond), we are here to help.
How much you can borrow really depends on what you can prove you can comfortably afford in monthly repayments for the life of the loan.
When assessing your borrowing capacity, the lenders will look at the overall financial situation. This will include:
- Your income – only guaranteed income will be used for calculations. Bonuses and overtime may not be taken into account.
- Other loan repayments
A “stress test” will be carried out on all applications. This will show whether you could continue to pay your mortgage if interest rates were to increase.
The maximum term is 35 years. This will depend on your age and will vary between lenders. Our advisers will be able to advise which term best suits you.
We can look for loans of up to 90% of the lower of the valuation or purchase price of the property. This will vary between lenders and will also depend on the location and type of property.
Mortgages are available for self-build customers subject to you meeting all the usual criteria.
We can look for loans up to 92% of the cost of the build. You will need to supply additional documents relating to the cost of the build. Our advisers will be able to give you all the details.
The Interest Rate is the actual rate at which interest is charged on the amount you borrow.
APR stands for the Annual Percentage Rate (APR) which is the total cost of your mortgage over its term, taking into account both interest rate charged and other fees, as well as whether interest in charged monthly or quarterly.
There are two main types of insurances that you need to have in place before the lender will issue your loan. These are Life Assurance and House Insurance. You may also want to consider Income Protection. Our advisers will be able to advise on what policy best suits your needs.
You will need to choose a solicitor to act on your behalf. Some solicitor’s fees can start at €1,000, not including VAT and outlay. It is worth shopping around to get the most competitive quote available.
A valuation report must be completed for the lender. The standard valuation fee is €130.
A structural survey is not required by the lender (unless the valuation report states that a survey is required); however for your own peace of mind we would recommend organising a survey on the property. Fees for a structural survey are approx. €400, but can vary between firms.
Our advisers will be able to advise the duty payable.
- Your monthly repayments may rise and fall as interest rate changes over the life of the loan.
- You have the option to make early or lump sum repayments without any penalty.
- You can switch to a Fixed Rate at any time.
- Your repayments will stay the same for an agreed period. Some lenders offer up to 10 year fixed rates.
- This gives you the peace of mind of knowing that your monthly repayments are fixed and protects you from interest rate increases. Fixed rates are generally higher that variable rates.
- A breakage cost may be incurred if you wish to pay a lump sum or switch to a variable rate during the fixed term.
Split Rate: You can opt to split your loan between variable and fixed.
Please contact a member of our Mortgage Team to discuss our Mortgage FAQs or any other mortgage queries on 1890 304 304.