How To Get Mortgage Approval? | First Time Buyer Guide
How much can I borrow?
As a first-time buyer the maximum mortgage the lender's can offer you is x 4 times your gross annual income. For example, if your gross salary is €100,000 the maximum mortgage a lender could offer you is €400,000.
You may qualify for a Central Bank exemption which would allow you borrow more than x4 times your salary.'
How is a mortgage assessed?
To qualify for a mortgage there are 4 main things that lenders look for when assessing an application:
- Income - You must either be in full time employment or on a rolling contract. In certain circumstances a probationary period can be waived depending on your line of work and employment history.
- Repayment Capacity - This is evidenced through savings, rent, cleared loans or AVCs paid over the last 6 months.
- Deposit – First time buyers must have at least 10% deposit to cover their mortgage. This can be evidenced through savings, a gift, inheritance or shares. You must ensure there is enough funds in place to cover stamp duty and legal fees.
- Credit History - Your credit history and score play a significant role in the lenders decision. A positive credit history enhances your chances of securing a mortgage and may impact the interest rate you are offered.
What are the costs associated with a mortgage?
- Stamp Duty 1% of the purchase price
- Legal Fees €2,500 A typical budget including VAT and outlay
- Valuation fees €150 - €185 - Depending on the bank valuer
- Surveyor fees €350 - €500 - Not compulsory but highly recommended
Benefits of using a mortgage broker?
- Access to all the lenders on the market
- Best interest rates
- Expert and impartial advice
- Save time and effort
- Negotiation skills
- Knowledge of mortgage market
How to Apply for a Mortgage?
You can start your application today by making an enquiry. We will discuss your mortgage options and, if all is in order, we will set you up on our online portal to begin the process. Click HERE to make an enquiry.
