The mortgage process involves quiet a lot of documentation and we have set out below the different stages involved from arranging mortgage approval to closing your mortgage.

• Stage 1: Make an Appointment
  It is important to sit down or discuss with one of our Advisors your requirements.  They will need you to provide or confirm a number of details in order for them to assess your case accurately. Once the Advisor has checked that you meet the criteria the next stage is t submit an application for approval to the chosen bank.
• Stage 2: Application Submitted to Lender
  In order to submit an application to the lender, you must meet their documentation requirements and in this regard we have provided a checklist of the required documentation along with the necessary application forms, declaration etc.  The Advisor will then review all documentation, put together a lending report and submit your case for approval to the lender.
• Stage 3: Approval in Principle
  Once the lender has underwritten your application and they are satisfied it meets with their criteria they will issue Approval in Principle, which will include conditions of approval.  This will then allow you to secure your property, once the property is secured we will then have to arrange a valuation to be done on the property and sent to the lender.  Once all Approval in Principle conditions are meet the bank will then move your application to the next stage which is Loan Offer.
• Stage 4: Loan Offer
  The bank will issue the loan offer along with a legal pack to your solicitor, you must contact your solicitor to arrange time to meet to sign contracts and other legal documentation.
• Stage 5: Arrange Insurance
  Once all the 5 stages of the mortgage process is completed. You can now arrange your mortgage protection and home insurance.
• Stage 6: Mortgage Closing
  The final part of the mortgage process is to ensure that all conditions set by the bank have been met. Your solicitor will have returned the documentations to the lender for final sign-off. Once the lender is satisfied that all conditions of approval have been met by you, they will release the cheque to your solicitor to complete the buying process for your new home.

Yes, Ireland Mortgages is 100% Irish owned and all information contained in this site is specifically tailored for the Irish financial Services Market. Ireland Mortgages was developed by Brendan Kelly and other financial industry experts. Brendan has over 20 years experience working in the financial sector and in the past 10 years has been running his own financial advisory firm in Celbridge, Co.Kildare.

Here at Ireland Mortgages we are committed to providing quality customer service.  We are an independent mortgage firm and will research the market to find the most suitable mortgage product to suit your individual needs.

USP:

• 98% Mortgage Approval Success Rate
• Free to choose any lender that meets with our clients requirements
• Collectively our Advisors have over 68 years experience in arranging mortgages
• Access to lenders which provide clients with more options and flexible for the future
• Access to Discounted Rates, Cashback, Money towards your legal bill, 6 months free building insurance
• Discounted Premiums for Mortgage Protection
• Provide an After Sales Service to out Client

A mortgage is a loan required to finance the purchase of a property. A mortgage allows individuals to buy a property now and pay for it over a number of years.

When you are obtaining a mortgage you will need to put down a deposit. The amount of this deposit will depend on whether you are a first time buyer or non-first time buyer, and also on the lender’s criteria for the amount they will lend compared to the value of the property.

The mortgage amount will be the purchase price of the home, less the amount of your deposit (which can be made up of savings and any financial gifts from e.g. parents). As with all loans, mortgages must be repaid by the borrower with interest. Your interest rate can be fixed or variable.

Regular payments must be made over the term of the mortgage to repay the mortgage loan. These payments are usually made monthly and are made up of two parts – the first part is the principal amount borrowed (also called capital), and the other part is the interest. The interest is the fee the lender charges for borrowing the money.

The larger the deposit that you can put down, the less money you will have to borrow, hence the less interest you will have to pay over the term of the mortgage.

If you are a non-first time buyer (NFTB) you will only be allowed to borrow 80% of the property price.

For those looking to purchase a buy-to-let (BTL) property, you will only be allowed to borrow 70% of the property amount.

If you currently have a mortgage and are in negative equity, these LTV rules do not apply. If you are in negative equity and wish to change property you should discuss your options with a Financial Broker.

Also, when applying for a mortgage the maximum loan amount a lender can grant is 3.5 times gross income.

Exemptions may be sought for either loan to income (LTI) or LTV limits, and these are granted by lenders on a case by case basis.

• Deposit – All borrowers will be required to put a deposit towards the cost of the property. This will not be less than 10% for FTBs and 20% for NFTBs unless an exemption is granted.
• Legal Fees – You must use a solicitor to carry out conveyancing work when purchasing a property. Conveyancing is the transfer of legal title of property from one person to another, or the granting of an encumbrance such as a mortgage or a lien. You should discuss with your solicitor how much they will charge for (a) their professional services and (b) the other ancillary costs in the conveyance.
• Valuation – All lenders require that a valuation is carried out on the property prior to granting a mortgage. In most cases the valuation is instructed by the lender but is paid by the borrower.
• Mortgage Protection Insurance – If you have a mortgage on your family home, you are legally required (with some exceptions) to have life insurance cover to pay off the mortgage should you die before the end of the mortgage term. This is called mortgage protection cover. Your Financial Broker can advise on the best options for mortgage protection to suit your circumstances.
• Home insurance – Most lenders will require that you take out home insurance to protect your home in the event of fire or other damage. The valuation report completed in relation to your property will detail the minimum level of cover required. You are not obliged to purchase home insurance from your lender – you can source this insurance from any regulated insurer of your choice.
• Stamp Duty – When purchasing a property you are required to pay stamp duty to the Revenue Commissioners. If you paid VAT on your house, you only have to pay stamp duty on the base price of the house – before the VAT was added. Since 7 December 2011 there is a single VAT rate of 2% on all non-residential property.

You are required to take out a Mortgage Protection Plan and Home Insurance Cover when applying for a mortgage.  These insurances are required by the lender as part of the mortgage application.

Up to 90% finance (subject to €220,000 per central bank rules which is €198,000), 80% if you are Trading Up and for Buy to lets 70% , the general rule of thumb to calculate the amount you can borrow is 3.5 times income’s.

Mortgage interest relief is a tax relief based on the amount of qualifying mortgage interest that you pay in a given tax year for your principal private residence (your home). A tax year means the period from 1 January to 31 December.

Mortgages taken out after 31 December 2012 do not qualify for mortgage interest relief and all existing mortgage interest relief will be abolished entirely after 31 December 2017.

Lenders are now looking 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 months of 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 six months (but preferably twelve months) in 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’ve witnessed within the last number of years, and therefore 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 will be required to 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 valuation and solicitor have to be on your lender’s valuer and solicitor panel. Your Financial Broker will have details regarding this.

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. Do you have six months’ payslips, current and saving bank statements?

When you go to your Financial Broker you should bring with you:

• Six months’ payslips
• Six months’ current account statements
• Six months’ saving bank statements
• Six months’ loan account statements
• Last year’s P60

Check that you have not had any unpaid direct debits or standing orders on your statements (these are sometimes denoted by referral fees).  If there are unpaid direct debits or standing orders, check why this occurred and explain this to your Financial Broker. Doing this can save a lot of time later in the process.

You can demonstrate an ability to repay by showing a strong savings history and strong payment history, i.e. ability to pay a specified rent each month. It is important that the rent and savings transactions can be seen on your bank account statements.

If you have an overdraft, check your six months bank statements and ensure you are not continually falling into the overdraft.  If you do not have an overdraft, ensure that you have never overspent and initiated an unauthorised overdraft.

Check also that you have not been “living from one pay cheque to another”.  If this is the case,  very strong savings records may help.