Please review the comments below.
Basic lending criteria
1. You should have savings of approximately 12% of the purchase price.
2. You should be in secure permanent employment or if self employed, be well established, with at least two complete years trading.
3. Your income should be greater than 30k if you are applying by yourself or 55 k if it is a joint application.
4. You should have a good credit history and be able to clearly demonstrate, through previous savings/rental payments, that you can comfortably afford the intended repayments on your new mortgage.
5.Maximum funds available are between 4.25 and 5 times gross salary.
Please review our Mortgage Calculator to check the current cost of mortgage repayments.
Lenders examine an application from a number of angles.
1. Affordability
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Well managed current accounts.
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A steady regular record of savings.
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A record of regular rent payments.
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If you have an overdraft facility, does it move to a regular credit balance also?
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Prudent spending habits.
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A minimum of personal loans.
2. Employment and Income
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Employment should be full time and permanent.
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Employees in certain sectors are experiencing difficulty in securing mortgages (e.g. construction).
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Focus is on basic income as opposed to bonus, overtime, or commission.
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Contract employees will not currently obtain 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
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Unnecessary or large credit card balances will work against you.
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Personal loan repayments may severely limit borrowing capacity.
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It is very important to have a good credit history with no payment arrears.
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Lenders will not consider applications where there are unpaid direct debits.
5. Savings
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Considerable emphasis placed on savings.
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Parental gifts towards a deposit are acceptable but they should not account for the full deposit.
6. Life Style issues
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Lenders look closely at your current account statements.
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It is no harm to live frugally prior to a mortgage application.
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Avoid on-line gambling at all costs.
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Keep your accounts in credit to display your money management ability.
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Your accounts must be able to demonstrate that they can take a mortgage payment (replacing savings or rent).
Each application is examined on its own merits and the above information should only be used as a guide to current lending criteria.
If you do not currently meet criteria but would like to meet a consultant with a view to building a plan for approval ,please give us a call.
You might also want to take life cover during this period, especially if you are planning to buy with a partner.This cover can be surprisingly cheap if you are in your twenties and in good health see.www.lifeinsurance.ie