Read 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 of your accounts in good order.
Central Credit Register (CCR):
The lenders will rely on the CCR as their primary source at working out whether a loan application is a good risk or not. To ensure you keep a good score with the CCR, keep timely repayments on loans/hire purchase, credit cards and overdrafts . You can check your credit report on www.centralcreditregister.ie
Regular savings is key to not only building up your deposit, but to show the lender a good savings record and the ability to repay your mortgage. We would advise that you set up a standing order to take a set amount from your salary each month as your are paid.
Lenders require proof of rent paid. If you are paying rent then we would recommend that you set up a standing order to your landlord, or parents if living at home.
The lenders need to be satisfied that you can live within your means and want to see that you are responsible with money. They may look at things like how you deal with credit card bills and your monthly spending.
Your accounts should be in credit/operating within overdraft limit. Repayments on loans and direct debits should be made on-time to avoid any unpaid items on your accounts.
We are always available to discuss your application at any time
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 €150 – €185.
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 01 801 5808