CUSTOMER SWITCHER/HOUSE MOVERS/FIRST TIME BUYER INCENTIVES:
A number of banks have various incentives for new customers (Mortgage Switchers/First Time Buyers or House Movers) the main incentives in the market currently are as follows:
2% CASH BACK OFFER*:
By moving or switching your mortgage to certain providers, the bank will offer 2% of the value of the mortgage as a lump sum on completion (you therefore receive a lump sum into your bank account within 30 days of completing the mortgage) E.g.:
INTEREST RATE SAVING:
Do you know what rate of interest you currently pay? If it’s not one of the rates below, you may be paying more than you should:
Interest Rate: APR**:
Loan to value ratio less than 50% 3.00% 3.20%
Loan to value ratio between 50% & 80% 3.10% 3.20%
Loan to value ratio greater than 80% 3.50% 3.60%
1 Year Fixed Rate 2.99% 3.30%
2 & 3 Year Fixed Rates 3.45% 3.65%
You will be receiving your Annual Mortgage Statement for 2015 shortly and if one of the above rates does not apply to you, there could be a considerable saving made with regard to monthly repayment or indeed reducing the overall term to run on your mortgage at no additional cost.
Call us to see what we can do for you.
*2% Cashback: (Terms & Conditions Apply)
**APR: (Annual Percentage Rate which reflects the actual yearly cost over the full term of the loan)
Note: Rates subject to certain terms and conditions and also subject to change.
First Time Buyer/House Mover Mortgage Process
Applying for a mortgage is much more difficult than it was in the past. Before a lender will approve your mortgage application, you have to satisfy a number of conditions first.
Underwriters want to see that you have the capacity to meet the stressed monthly repayments. This rate is usually 2% over the variable rate but differs between lenders.
They will look at your current account to make sure there is no irregular spending patterns and you are living within your means. Repayment capacity can be satisfied in a number of ways:
- Existing mortgage repayments
- Regular savings
- Discontinuing other loans or outgoings
Net Disposable Income
After the stressed monthly repayment is paid, you have to have a minimum disposable net income to live on. Again, this varies so the following is just an example
- Single Applicant €1,300 per month
- Joint Applicants €2,050 per month
- Additional for each child €250 per month
Lenders will typically lend 90% of the purchase price of the property to first time buyers. They will request proof that you have the deposit amount as well as the funds required for whatever fees are required e.g. solicitor and surveyor fees.
If the deposit amount is being gifted to you, they want proof that the funds are available and in some cases will request the the person gifting the money signs a declaration stating they will not look for the money back.
The gathering of documentation can take a while but it is all required before you can submit your mortgage application.
- P60, last 3 months payslips & Salary Certificate
- If self employed, 2/3 years audited accounts and Notice of Assessment as well as business current account statements
- 6 months credit card statements
- 12 months savings statements
- 12 months current account statements
- 12 months mortgage statements
- 12 months loan statements
- Photo id and proof of address