Are you Mortgage Ready

When it comes to getting a mortgage it can seem like there is a lot to take care of. Buying a home is a stressful time. What to buy (and where)? How much to bid (and when)?  What else do you need to have in place before you start, here we help members with some things that they need to have in place before they apply.

It is vital that you get deeply involved with how you can afford repayments when you begin the journey to applying for a mortgage. This could mean that it could take a few months to get you mortgage ready.

Do you have your deposit?

The Central Bank have set out rules in relation to how much of the purchase price of a house can be borrowed – Loan to Value or LTV. A 10% deposit is required for all mortgage borrowers whether first time or second time buyers that is a Loan-to-value of 90%.

If you are looking for a house for €200,000 you will need to have a deposit of €20,000.

Your deposit can come from savings, a gift, equity from the sale of another property or the government help to buy scheme (terms and conditions apply).

How much can you borrow?

The Central Bank have set out rules in relation to Loan to Income or LTI.

First time buyers can borrow 4 times their annual gross income and for joint applications 4 times the joint annual gross income.

For second time buyers the limit is 3.5 times their annual income and for joint applications 3.5 times the joint annual gross income.

How’s your credit record?

If you have had credit before you will have a credit record on the central credit register (CCR).  You can request a copy of this from the CCR on www.centralcreditregister.ie .

If you have had problems in the past with credit, it is best that this is addressed before applying for a mortgage.  Please be upfront with us regarding any issues you have had or are having.

Can you prove your capacity to repay the mortgage?

A regular savings record to the approximate monthly mortgage repayment is an excellent indicator of ability to repay the mortgage.

Capacity to repay can also be proven through rent repayments or current loan repayments that will be finished by the time you drawdown the mortgage.

A combination of both examples above can be used.

What is your Employment Status?

You must be in permanent employment for that past 6 months and have passed any probationary period.

For self-employed people they must be self-employed for a minimum of 3 years.

Do you have good money management?

Your current and savings accounts should show good conduct.

Unpaid direct debits, unauthorised overdrafts and excessive gambling are all red flags when it comes to mortgage assessments.

You need to show you are living within your means and without financial stress.

The following is a snapshot of our Mortgage offering, check out that you are eligible to apply?

• The mortgage must be for the purchase or building of your principle private residence.
• Our current interest rate is 4% variable (APR 4.1%).
• Our minimum mortgage is €50,000 and the maximum is €350,000.
• Maximum term is 35 years (up to a maximum age of 70).
• You must have been in your current employment for 6 months and passed any probationary period.
• 1st time buyers and 2nd time buyers must have a 10% deposit.
• The maximum mortgage that can be offered is 4 times the gross annual income of a 1st time buyer or 3.5 times the gross annual income of a 2nd time buyer. This applies to the joint gross annual income of joint applicants.
• Social welfare payments cannot be included in the calculation of repayment affordability.

You can download our Are you Mortgage Ready Info Sheet here.

Please note: When applying for a mortgage with us you will need to speak directly with one of our mortgage team. Please call 053 9233 835.