We know the mortgage process inside out so here’s a list of the most commonly asked questions:
Should I deal through a broker!
The alternative is to go directly to the bank yourself. Is it best to deal with a lender directly when they only have their own products to offer you? As regulated intermediaries we are obliged to look after your interest. Lenders pay intermediaries to give them business because it is good value for them to do so.
Will you take all of my salary into account
In assessing a mortgage application the key consideration lenders look at is ability to service loan repayments. In order to assess this, lenders review your current income and make estimations as to the likelihood of your income continuing into the future. They will usually take 100% of your basic salary and a percentage of any extra income such as overtime, bonuses, shift allowance.
What proof of income is required?
To prove your income you will need to provide 6 months’ payslips, your P60 for the previous year and have a Salary Certificate signed and stamped by your employer.
What is the difference between the Interest Rate and the APR?
The Interest Rate is the actual rate at which interest is charged on the amount you borrow. APR stands for 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 is charged monthly or quarterly.
What’s a fixed rate mortgage?
With a fixed rate mortgage, your interest rate and monthly repayments are fixed for a set time as agreed between the lender and borrower. Although a fixed rate means your repayments cannot increase for a set period of time, your repayments will not fall during the fixed rate period. As a result, you could miss out on lower interest rates and lower repayments. Fixed rates may cost more over the long run but they offer peace of mind as you know your repayments will not rise during the fixed rate period
How much of a deposit do I need?
A first time buyer will require a 10% deposit for property values up to €220,000. A 20% deposit will be required for amounts above this level. You will also need to show that you have funds to pay stamp duty and legal fees.
What else should I bear in mind when taking out a mortgage?
Variable rates offer the most flexibility. They allow you to increase your repayments, use a lump sum to pay off all or part of your mortgage or re-mortgage without having to pay any fixed rate breakage fees.
However, because variable rates can rise and fall, your mortgage repayments can go up or down during the term of your loan.
What’s the minimum amount I can borrow?
The minimum loan amount you can borrow for a mortgage is €40,000.
What’s the maximum amount I can borrow?
The maximum amount you can borrow depends on several factors such as your income and your capacity to repay your loan.
What incentives are the banks offering to new customers?
Some lenders are currently offering (July 2018) up to 2% of the loan amount as a cash back incentive. So for example for a mortgage of €200,000 you can get €4,000 back.
However, we will always take a long term view when advising you on a mortgage as the long term interest rate is generally more important than upfront incentive.
Can I pay a lump sum off my mortgage without penalty?
Generally speaking, if you are on a variable mortgage, then yes you can. However, if you are on a fixed rate mortgage, penalties may apply and it varies from lender to lender.