Important notes!
1. Don't forget that you will need a deposit of between 8% to 10% of the purchase price.
2. In practice, lenders like to see a minimum income of 30k for an individual, or 45k for a couple.
We recommend that you review the note below in regard to lending criteria.
In general applicants with an adequate deposit, sufficient income and proven ability to afford mortgage repayments either demonstrated by savings or rental payments or a combination of both, should not have difficulty in securing a mortgage.
Our primary role, as your adviser, is to secure for you the lowest cost mortgage to match your circumstances .
The most important consideration is that you are happy that you can afford repayments. You should be comfortable that you can live with the repayments even if interest rates rise.
Please review our Mortgage Calculator and in doing so select any product and examine how changes in interest rates affect the mortgage repayments.
A number of lenders still offer 92% facilities. (Facilities greater than this are very rare and are really only available to first time buyers on the affordable housing scheme).
Lenders examine an application from a number of angles.
Lender's focus is on the following areas:
1. Is there evidence to show that you can afford the repayments?
- Well managed current accounts.
- A Good record of savings.
- A record of regular rent payments.
- If you have an overdraft facility, does it move to a regular credit balance also?
- Prudent spending habits.
- A minimum of personal loans.
2. Employment and Income
- Employment should be full time and permanent.
- Lenders will look at employment record over last three years to establish continuity.
- Employees in certain sectors are experiencing difficulty in securing mortgages (e.g. construction).
- Focus is on basic income as opposed to bonus, overtime, or commission.
- Contract employees will not currently get mortgage approval unless it can be demonstrated that it is a contract with a state body considered a contract of indefinite duration.
4. Credit history
- Unnecessary or large credit card balances will work against you.
- Personal loan repayments may severely limit borrowing capacity.
- It is very important to have a good credit history with no payment arrears.
- Lenders will not consider applications where there are unpaid direct debits.
5. Savings
- Considerable emphasis placed on savings.
- Proof of regular rent payments helps an application.
- Parental gifts towards a deposit are acceptable but they should not account for the full deposit.
6. Life Style issues
- Lenders look closely at your current account statements.
- It is no harm to live frugally prior to a mortgage application.
- Avoid on-line gambling at all costs.
- Keep your accounts in credit to display your money management ability.
- Your accounts should be able to demonstrate that they can take a mortgage payment (replacing savings or rent).