Your Questions: Will switching to N26 for banking affect my mortgage application?

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Your Questions: Will switching to N26 for banking affect my mortgage application?

Posted on 27Aug

Charlie Weston

I am planning on applying for a mortgage in the new year and I wonder if it will go against me that I am not technically with a bank for my day-to-day money management?

A: It is worth noting that N26 is actually a bank in the technical sense. It is regulated by the central bank in Germany, and it is also protected by the €100,000 bank deposit guarantee scheme that Irish bank customers are protected by, according to Joey Sheahan, who is head of credit at MyMortgages.ie. Revolut is not, as yet, classified as a bank. But it is going through the regulatory process, he said.

Regardless of which of these you use, Irish mortgage lenders will not see it as a negative that you no longer hold a current account in a traditional bank, Mr Sheahan said.

All they need to see is six months’ banking history. This is so that they can get a clear picture of your money management style, i.e. do you pay your bills on time and in full? Are you ever in or out of an overdraft facility? Do you have an online betting account?

It is the answers to these questions, and more, that will have a real bearing on the likelihood of a successful application.

However, some banks will offer incentives to applicants to open current accounts with them. They may offer a lower interest rate, of say 0.2pc.

While there may be charges associated with the current account, the savings on the mortgage interest could outweigh the cost of the account.

It is important to consider your options and take advice from an expert before making a final decision.

Q: My father is leaving the country for the first time in 50 years (he went to the UK when he was 21) and is going to visit my sister in Australia for a month. We have been struggling to get travel insurance for him. Some companies are quoting very expensive prices, while others simply say he can’t take a policy with them. Is this allowed? Surely it is ageism at its finest?

A: Unfortunately, insurance companies usually charge more when the risk increases, and when it comes to our health, the risk generally increases as we get older.

However, a number of insurance providers will quote for people aged over 70, subject to the person being in reasonable health, according to Deirdre McCarthy of Insuremyholiday.ie. Let’s assume that if he is off to Australia for a few weeks, he is in good health. Most policies that offer cover will typically limit it to 31 days for any one trip from door to door.

So it would be wise to ensure that his travel plans have him back in time to stay within the 31-day period, Ms McCarthy added.

The cost of the cover will be substantially greater than the typical two weeks in Marbella for someone like you, who is probably still in their 30s or 40s.

Q: I recently changed jobs and am about to take up a new customer service position in Cork. It is the first time I’ve changed jobs since I moved to Ireland last year.

I heard from friends about emergency tax, and they told me I need to get my tax credits organised or I will lose a lot from my first pay cheque. How do I avoid this?

A: Emergency tax is applied by an employer where it has not received a Revenue Payroll Notification for the current year for an employee, or where it has not been provided with a PPSN (personal public service number).

If you haven’t given your employer your PPS number, you will be taxed under normal emergency tax rules, according to Eileen Devereux, commercial director at Taxback.com. This means you are allowed a single person’s rate band for the first four weeks of your employment. You will be taxed at the standard rate of 20pc on income up to the limit of the rate band.

Income above that rate band will be taxed at the higher rate. After four weeks, your full income will be taxed at the higher rate of 40pc.

The best way to avoid being placed on emergency tax is to give your PPSN to your new employer as soon as possible, and to ensure that your employment is registered, Ms Devereux said.

You can find your PPS number on any previous payslips, or correspondence you have from Revenue.

Banks want to see six months’ banking history when you apply for a mortgage. This is so they can get a clear picture of your money management style.

Emergency tax is applied by an employer where it has not received a Revenue Payroll Notification for the current year for an employee, or not received a PPS number.

You can see the full article here.

Source: Irish Independent

MyMortgages Limited trading as MyMortgages.ie is
regulated by the Central Bank of Ireland.

 


Your Questions: Should I use my pay increase to reduce my mortgage, or save it?

Posted on 12Aug

Charlie Weston

Question: I have just been promoted at work and got a pretty big pay increase. I am going to treat myself and the family to a holiday this year, as we have not been able to afford one since we bought our home two years ago. My wife thinks maybe we should throw an extra few euro on the mortgage each month, but I am not sure. Maybe we should just save it?

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Irish Examiner: “Making Cents: The step-by-step guide to securing a mortgage”

Posted on 06Aug

By Grainne McGuinnes,  August 05, 2019 Read More


Newstalk: Joey Sheahan, Head of Credit, MyMortgages.ie Talks to Newstalk’s Sinead Ryan

Posted on 06Aug

Mortgages was the hot topic for this evening’s Consumer Call  in with Sinead Ryan.

Karl Deeter from Irish Mortgage Brokers and Joey Sheahan from mymortgages.ie were on Sinead’s expert panel offering advice, and answering listener queries.

Check out the full podcast ‘Consumer Call In: Mortgages’ here:

https://www.newstalk.com/podcasts/consumer-corner-on-the-hard-shoulder/consumer-call-mortgages

MyMortgages Limited trading as MyMortgages.ie is regulated by the Central Bank of Ireland.


Sligo Weekender: “€8.9m of home sales in May amid call for help for buyers”

Posted on 01Aug

15/07/2019

There were 71 houses and apartments sold in Sligo in May, to a total value of €8.9m, but there has been a call for the government to extend the Help to Buy Scheme to help many who cannot afford to buy.

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Bray People: “Calls to extend Help to Buy Scheme”

Posted on 01Aug

31/07/2019

Calls have been made to extend the Help to Buy (HBT) scheme to include second-time property buyers in Wicklow.

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Irish Independent: Your Questions: Our son is off to college and we can’t get a grant. Can we borrow?

Posted on 29Jul

Charlie Weston 27.07.19

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Westmeath Independent: “Government urged to extend Help to Buy scheme”

Posted on 29Jul

27/07/19

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Dungarven Observer: “Calls for government to extend and expand Help to Buy Scheme”.

Posted on 29Jul

Roscommon Herald: Help Needed For Struggling First and Second-Time Buyers

Posted on 25Jul

An extension of the Help-to-Buy scheme is crucial and it should be expanded to include all buyers of a primary residence not just first-time-buyers. This is the contention of experts at MyMortgages.ie, who say while it’s widely accepted that first-time-buyers need the security of the Government financial support scheme being extended past its December 2019 deadline, second-time-buyers have had less attention, with falling numbers in mortgage approvals showing that they too are struggling.

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