No one claims that 2020 has been easy. However, the year we’ve all experienced has also shown how resilient us humans can be.
Many of the clients we partner with have boosted their savings during this year. We regularly share tips on how to save for a mortgage, and some people have been able to contribute more to their deposit over the last while.
That’s good news because banks are lending. Yes, even during a pandemic.
Make sure you are prepared
Mortgage application documents have always required to be thoroughly prepared.
During 2020, lenders have added some extra criteria to their lists to mitigate risk. Understanding how to reassure lenders that you’re a responsible borrower will go a long way to securing you the mortgage deal you’d like.
We support our clients by walking them through the mortgage process every step of the way.
Knowing what paperwork you need to get ready, how to get your finances in tip top shape and what documents you need to submit means that the mortgage process becomes much simpler.
We also advise our clients on what criteria the nine lenders in Ireland want to see. Providing the information upfront for lenders means that your mortgage application will be approved much faster.
Exemptions in the time of Covid
In general, banks are lending up to 3.5 times gross income. Whether your mortgage application is for an individual or a couple, the ceiling is 3.5 times.
However, lenders have some discretion to offer exemptions.
In the early part of the pandemic and lockdown, lenders withdrew their exemption offers. Thankfully, we are now seeing them come onto the market again.
Contact us to find out if you would qualify for an exemption and which lenders are offering them.
The Help to Buy Scheme in Ireland
The Help to Buy Scheme (HTB) is also a support available to people who are unable to save a deposit.
This scheme has increased from 5% to 10% and applicants can claim back up to €30,000.
Some conditions apply if you want to avail of the HTB scheme:
- You must be a first time buyer
- The property you’re planning to buy must have been built between July 2016 and December 2021
- You have to live in the property you purchase for at least five years
- Your tax affairs must be up to date
- You must ensure that the property you wish to buy has been constructed by a Revenue-approved contractor. A list of property developers and contractors approved by Revenue is available here. All the firms listed on this document are tax compliant.
Contact us today to discuss your mortgage needs. We’d be delighted to help you!