Mortgage Complexities

You, a family member or a colleague may be contemplating a house purchase in the near future. Indeed, you may wish to switch your existing mortgage to avail of any reductions in rates that may happen as a result of recent pressure from the Oireachtas.

You may be aware that the Central Bank introduced new rules with regard to the level of deposit required when purchasing a house. To recap:

• 10% up to €220,000 and 20% on any amount over this for First Time Buyers.

• Private Dwelling House mortgages are subject to 3.5 times loan to gross income.

• Non First Time Buyers are required to have a 20% deposit.

• Buy to let Mortgages are subject to a 70% loan to value.

Notwithstanding these strict rules there are opportunities to avail of the value which is still available in the market today. Rates vary considerably across all lenders depending on LTV, fixed or variable, Interest Only etc. In addition there are various “Offers” available which make switching worthwhile. It is our belief that significant savings can be achieved over the lifetime of a mortgage if you plan well, and get the right advice at the outset.

Top tips on how to prepare:

•  A build up of regular savings over a period of at least 6 months (you will need advice on the amount required which will depend on the level of borrowing required).

• Evidence of required deposit, ie ;10% up to €220,000 and 20% over that for First Time Buyers. 20% for all non first time buyers ( only 5% of this needs be from regular savings).

• Satisfactory Credit Bureau record.

• Secure employment for a period of 6-12 months. Contract employment requires 12 months completed.

• Evidence of rent being paid through a bank account (if applicable).

• Min. 2 years audited accounts if self-employed.

At Money Plus, we will be happy to advise on your particular circumstances, as each application is different and each providers criteria is different. Our job is to analyse the information provided by you, and make a recommendation based on same. We provide impartial advice and our aim is to get the best Mortgage for you. This is probably the biggest purchase / decision you will make during your lifetime, so it is important that it is the right one!.

*We do not charge a consultation fee for the first hour.  Any fee charged thereafter will be agreed in advance.

** Pepper, a new entrant to the Mortgage market will consider mortgages with a 2 year satisfactory history. Past difficulties once rectified are acceptable. Assessed on a case by case basis.