How much can I borrow?
There is no exact answer to this. The amount that you can borrow will vary greatly from institution to institution. The rough estimate is 3.5 times the total yearly income of the household.
Most lending institutions will not let you borrow more than 90% of the value of the property you plan to buy. So you should have some amount of savings prior to loan application.
First Time Buyers need to have a minimum of 10% of the price of the house in savings for the deposit
Investors or existing Homeowners trading up need a minimum of 20% of the price of the house in savings for the deposit.
What are the different types of mortgages?
In general there are a few types of mortgage products available in the market.
If you want to know exactly how much your monthly mortgage payments will be, you might prefer a fixed rate mortgage. With a fixed rate mortgage, the interest rate is fixed for an agreed period, which means your repayments will stay the same during this time.
With a variable rate mortgage, the interest rate can change. This means that during periods of falling interest rates, the monthly repayments on a variable rate mortgage will also fall. However, if interest rates rise, so will your mortgage repayments.
Step 1: Talk to a mortgage advisor
A mortgage advisor can give you advice on the best mortgage and associated insurance products to suit your needs. They will also provide you with all the information you need regarding the costs of your mortgage and any special terms.
We work closely with Tara Kelly (The Mortgage Shop Waterford 051 856102). Who is helping our clients by pursuing all the lending agencies and finding the best mortgage deal on offer. http://www.tmsireland.ie/
Step 2: Apply
Apply for your mortgage and any associated optional insurance products you require. Most banks require you to apply directly in the branch but you can also apply online with some.
Step 3: Approval
Your mortgage application will be assessed and if approved an offer will be made. To help speed up the process, it is important that the correct documentation is received.
Step 4: Mortgage Offer
You will then receive your mortgage offer which gives full details of the offer of the loan and any terms / special conditions that apply. At this point you will also be advised if a professional valuation of the property is required.
Step 5: Funds Released
Once you have signed the mortgage offer a copy is sent to your solicitor who will advise you on the legal aspects of your mortgage. Your solicitor will also advise your lender of the date that the funds are required.