Welcome to your new home

Lenders now look closely at basic income; bonuses and overtime cannot be guaranteed to be taken into account when a lender is assessing your application.

Make sure you have six month’s payslips, last year’s P60 and a salary cert completed by your employer (you can obtain a salary cert from your Financial Broker).

To obtain a mortgage you must have completed your probationary period and you should have at least twelve months continuous employment.

If you are planning to move location within the next few years then perhaps purchasing is not ideal for you. House prices can rise as well as fall, as we have seen in recent years, so if you are only purchasing for the short term, the risk of negative equity increases. Negative equity is when the outstanding mortgage on your home is more than the market value of your home.

This means that even when you sell the house you will be left with debt.

You must have between 10% and 20% of the purchase price of the property you intend buying. You must show the lender evidence on paper – e.g. bank statements and gift confirmation (if any) of this deposit prior to the loan offer being issued.

You should also consider the additional costs incurred in taking a mortgage, including the cost of the valuation and the cost of the solicitor. Shop around and find out what the average cost will be: it may vary a little due to location etc.

You should never instruct a valuation or solicitor until you get advice from your Financial Broker, as the valuer and solicitor have to be on your lender’s valuers and solicitor panel.

Lenders will require evidence of savings. Not only is this showing that you can live within your means, it also demonstrates good financial planning and an ability to make repayments. 

Check that you have not had any unpaid direct debits or standing orders on your statements (these are sometimes denoted by referral fees).

Get a copy of your credit history by logging on to http://www.icb.ie/ and paying a small fee.