November and December usually see a slowdown in the number of mortgages written however these are the months when there is a lot of behind the scenes activity, a Cork broker has said.
Would-be first time buyers (FTBs) across the country are getting their affairs in order before year end, to ensure they are primed and ready for action once new bank lending exemptions open again in 2019.
MyMortgages.ie said that mortgage seekers begin undertaking the necessary preparation work to get their mortgage applications together in the final two months of the year.
This is on the back of the Central Bank’s announcement recently that there will be no changes to mortgage lending rules in 2019.
MyMortgages.ie say they expect the number of FTBs submitting mortgage applications to surge in the New Year, as new research reveals that throughout the country, the cost of a mortgage is cheaper than the cost of renting.
Figures from data analytics company The Information Lab show that in Cork alone, the average monthly mortgage repayment for a three-bedroom house is €720 whereas rent for the same property would be approximately €880, a cost difference of €160.
Joey Sheahan, Head of Credit at MyMortgages.ie said: “In many areas, the cost of a mortgage is significantly lower than renting at the moment, as rents reach all-time highs around the country.
“More and more people are finding themselves paying through the nose for rental properties that do not meet their requirements, and so are looking to submit mortgage application to secure their own property and be left with much more affordable monthly repayment rates than they would for renting.
“While the mortgage market too has challenges, not least, getting a deposit together and finding a suitable property, in the main, the cost of mortgage repayments versus monthly rent when broken down make much more financial sense.”
MyMortgages.ie said that FTBs should begin the preparation work at least three, but ideally six, months out and advised on some red flags to look out for:
• Overdrafts – authorised or otherwise
• Online 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 patterns
• Erratic spending patterns
• Poor credit rating
Source: Cork Independent 13 Dec 2018
MyMortgages Limited trading as MyMortgages.ie is
regulated by the Central Bank of Ireland.