Top Tips for Getting a Mortgage

 

 

Banks are lending, without a doubt. But they are also applying rigorous credit assessments and approval processes before saying yes to any mortgage applicant.

Applying for a mortgage is a big undertaking – and one which needs to start months before the application forms are even looked at. You might only get one bite at the cherry with a lender so it’s crucial you put your best foot forward.

We would advise anyone who thinks they might be in a position to take their first steps onto the property ladder in 2018 to begin the prep work at least 3, but ideally 6, months out.

Preparation is imperative before you approach any lender. Taking the time to speak with an expert who can tell you what you need to do is an invaluable exercise and one which will stand to you throughout the process.

Before they will give any consideration to a mortgage application, a bank will first look the applicant’s credit history and their recent banking history. Ultimately, what they are looking for is a capacity to repay any loan tendered and a propensity to do so – as evidenced by past behaviour.

There are a number of “red flags” that will put a lender off in part, or perhaps, in full – any applicant must ensure that these are not raised on their application. “Red flags” might include:

  • Overdrafts – authorised or otherwise
  • On line gambling referred to on your bank/credit card statements
  • Cash advances on credit cards, even on holidays
  • Non-documentation of regular payments such as rent
  • An irregular savings pattern
  • Erratic spending patterns
  • Poor credit rating

Steps applicants can take to boost their chances:

  • Rent: Ensure this is paid through your bank account as bank will not accept this as proven repayment ability unless it is evidenced on your bank statement
  • Overdrafts: Even if you have an approved overdraft facility, it is better not to use it on a regular basis
  • Credit cards: Ensure balances are cleared each month. Aside from their portraying a better picture of the applicant, this will save interest as some credit card companies charge up to 18%
  • Loans: Ensure all monthly repayments are fully up to date
  • Savings: Transfer your savings into one account and save a regular amount each month – do not make any withdrawals from this dedicated savings account

Other considerations:

  • Deposit: You do not need to have all of your deposit before you apply. Once you have confirmation that a gift is available, that will suffice for Approval in Principle
  • Employment: Being in permanent employment is often a plus. But applicants will be reviewed on a case by case basis. If you are self-employed then you must ensure that have all of your accounts fully up to date and all relevant returns filed with Revenue. Contract workers should include a copy of their CV as well as your last 3 p60s
  • Overseas buyers will need to request a copy of their credit history from the country in which they currently reside

You will need the following to ensure your application is complete:

  • Photo Identification
  • P60 for last year
  • Pay Slips – 6 most recent
  • Certificate of Income – to be completed & stamped by employer
  • Current Account Statements – last 6 months
  • Savings Account Statements – last 6 months
  • Credit Card Statements – last 6 months
  • Loan / Mortgage Statements – last 12 months

 

Source: https://www.rollercoaster.ie/Article/Stories/Top-Tips-for-Getting-a-Mortgage

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


By Christian McCashin
Home owners can save almost a third of the value of their mortgage by simply switching to a cheaper deal. A bank mortgage price war means anyone on an average variable rate can save hundreds a month on even a relatively small home loan of €150,000.

Joey Sheahan, of MyMortgages.ie said: ‘Many people assume that once they’ve taken out a mortgage with a lender for 20, 25 or 30 years, then that’s the end of the decision-making process. But mortgages are just like any financial product, they should be reviewed every three years to ensure you are not paying over the odds.’
Figures show anyone on ‘average’ mortgage rates can save between €40,000 and €100,000 by moving to another lender.
Brokers are expecting a surge in mortgage switching over the next year as banks ramp up their interest rate price-war with more households back in positive equity – which means the house is worth more than the mortgage – because of the surge in the property prices.

Davis Hall, of the Irish Mortgage Holders’ Organisations, said: ‘As consumers we don’t switch, we just have an obsession about not switching. We don’t engage in anything that involved a bit of hard work… It doesn’t make any sense to look at the price of a litre of petrol on garage forecourts and not be looking at switching your mortgage.
‘You’re also helping to spice up the market and contributing to kicking the market and let the bank know they can ring you back if they want if they have a better deal.’
More than one in five mortgage holders – 21% – could make savings by switching their lender, the Central Bank found recently.

And a Competition and Consumer Protection Commission report on mortgage switching revealed that while over a fifth of the adult population in Ireland hold a mortgage, limited evidence was found of switching.
Fewer than 25,000 of 740,000 mortgage holders switched their home loan – just 3.3% – in Ireland in 2014, a study by the European Commission found. Almost half – 44% – of all mortgage – holders surveyed felt the switching process would be too complex, while 27% of those who switched found no obstacles to the process.
More than a third – 36%- of their mortgage reported that they had to chase their lender to be kept informed during the switching process.

And a quarter said they considered switching but did not because they felt it would take too much time and too much effort.

Mr Sheahan, of MyMortgages.ie , said ‘We deal with clients on a daily basis who are unaware that switching could even be an option for them – many believe that they are simply ‘locked in’ to the contact and their current lender. And of those who have heard of switching most think it is ‘just too much hassle.’
‘People have also voiced concerns over the cost of switching but they don’t realise that most banks give cashback which will more than cover this from €1,500 up to 2% of the loan amount.’

Source: The Daily Mail 24 Nov 2017

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland.


Property purchasers struggling to save more than a 10% deposit should remember that there are ways to get exempted from the rule.

MyMortgages.ie Dublin Cork

 

Some 14 months on from the introduction of the oft-discussed and much-maligned mortgage lending rules, they certainly seem to be having an impact.

Mortgage approvals have slumped 15 per cent in the three months to the end of February, compared with the same period a year earlier. However, industry players say this is not down to the rules alone. Approvals rocketed ahead of their introduction, so looking year-on-year may not be a fair comparison.

Read More


MyMortgages.ie Dublin Cork

MORTGAGE brokers MyMortgages.ie have said that despite the Central Banks recent efforts to highlight the benefits of mortgage switching to consumers, the majority holders remain unaware of the potential savings that exist and of their eligibility to switch lenders.

Read More


Back to Top