As a mortgage broker in Dublin, our whole team spends every day of the week helping hundreds of customers get mortgages.
There are more than 250 mortgage products on the market in Ireland. And as an individual, navigating this market can feel a little overwhelming.
But there is good news!
We partner with our clients to follow a proven step-by-step process for mortgage applications.
Once you understand how to put together a strong application, most of the work is already done. Our promise to you is to remove the stress and make finding the right mortgage for you simple.
Calculate how much you can borrow
First things first, you have to get a strong idea of how much you can borrow for the property you wish to buy.
You can begin crunching your numbers by using our mortgage calculators. We have five calculators available for you depending on the type of mortgage you’re looking for:
- First time buyer mortgage calculator
- Switching mortgage calculator
- Investing in property mortgage calculator
- Home improvements mortgage calculator
- Moving house mortgage calculator
We will also work closely with you to calculate an accurate figure of how much you can reasonably borrow.
Lenders in Ireland are governed by the rules of the Central Bank. Under these rules, you may borrow up to 3.5 times your annual household income. (If you’re submitting an application as an individual, this figure will be calculated on your income alone. If you’re submitting an application as part of a couple, then your combined household income will be taken into account.)
As a general rule of thumb, most lenders can lend you a sum up to 90% of the price of the property you wish to buy.
However, different lenders have different criteria and different ways of calculating your suitability.
One of the services we provide to our customers is to help them understand how a lender is assessing their finances and whether this fits with their budget.
We work closely with nine lenders in Ireland.
This means that you are not obligated to apply for a mortgage by the same bank you do your day-to-day banking with on a regular basis. Your mortgage is considered a separate financial product and you are free to apply with any lender.
When lenders evaluate your mortgage application, they place a priority on four aspects:
- Your income
- Your age (to calculate a maximum term of mortgage)
- Your outgoings on loans and credit cards
- Your monthly household expenses
The importance of your deposit
We tell our customers all the time that your deposit is your superpower when it comes to a mortgage application.
These posts can help get you started on saving for a deposit:
- Saving a deposit for a mortgage in Ireland
- How to get help with a deposit for a mortgage in Ireland (including details on the Help To Buy Scheme)
- How to save for a mortgage
It’s a requirement by the Central Bank to have a deposit.
However, a deposit also plays another important role in your mortgage application.
It reassures lenders that you are a safe risk and know how to manage your finances well.
Lenders and your employment status
Mortgage lenders will place a lot of emphasis on your employment status.
Most of all, they are looking for a solid and regular income. Your monthly basic salary will be weighted more than bonuses, commissions and overtime but lenders do take a percentage of extra income into consideration.
It’s important that you have completed your probationary period by the time you apply for a mortgage,
And you’ll need to supply the following information:
- Your recent EDS with your salary details (downloadable from revenue.ie)
- A salary certificate from your employer showing all your earnings
- Three recent pay slips
Get clear on your credit profile
Lenders will run a credit check on you before making a mortgage offer.
It’s in your best interest to clear up your credit history before you submit your application.
If you have loans and credit cards, pay them off before you apply for your mortgage.
If you’re unable to pay them off completely, make sure you are keeping the payments up to date.
Take a look at your monthly expenses
Your mortgage application is about creating as robust a picture as possible of your financial status.
How you work with your money on a monthly basis is a strong indicator of your ability to repay your mortgage and lenders will be looking at how you spend your money.
Making even small changes to your lifestyle habits can go a long way towards helping you secure a mortgage.
For example, limit takeout to once a month instead of once a week. Keep the coffees to a minimum and plan staycations instead of regular city breaks abroad.
These can seem like inconsequential changes to make, but they’re not. Even the smallest improvement in how you run your finances can make a big difference to how a lender views your application.
Contact us to get your mortgage application in great shape
Contact us today to help you with your mortgage application.
We’d be delighted to have a confidential chat with you. And rest assured, we’ll help you every step of the way to your property dreams!