Will I Qualify for a mortgage?

Please review the information below and if you are ready to apply for mortgage approval, please visit the link below and begin your journey to buying your first home.

Apply Online Here

Our business is arranging mortgages.

Established in 1994, we have helped thousands of clients in buying their homes. Many of our first-time buyers are determined to buy their first home but feel the task is daunting. We are here to make the process as simple as possible and to ensure you are getting the best value mortgage for your first home.

Your choice is between buying a new build or a second-hand property. The amount of finance available to you is similar in both categories but, the availability of incentives and grants for new builds can often make this option attractive to many people.

For a first-time buyer the following example should prove helpful as you set out on your journey.

You spot a newly built house for sale for €400,000 and wonder can you afford it.

As a first-time buyer the highest level of mortgage facilities you can get is 90% of the purchase price i.e. €360,000.

Therefore, you need €40,000 for your 10% deposit. You will also need funds to cover stamp duty and legal fees (approximately €4,000 for stamp duty and €2,000 for legal fees), in total €46,000.

If the property is newly built and will be used as your home and you are a qualifying first-time buyer (somebody who had never had a home mortgage in the past), you may qualify for the help to buy scheme of up to 10% of the purchase price subject to a maximum of €30,000. In this example the balance will be from your own savings.

Obtaining mortgage approval

The amount you can borrow is based on several factors including a borrowing limit of 4 times combined gross income.

To borrow €360,000, you will need to provide evidence that your current income is €90,000.

More importantly you will also need to demonstrate that you can afford the mortgage payments to get this level of mortgage. Assume the mortgage is over 35 years; the typical repayments will be approximately €1,500 per month.

If you can demonstrate this repayment capacity and your income is considered secure, then you are well on the way to approval and your first home.

The key principles of mortgage approval are as follows:

  • Income Security
  • Proven repayment capacity
  • Adequate Deposit
  • Good Credit History and Financial Management

Is your income secure?

  • You need to be in secure employment. Being on a permanent contract is a requirement with most lenders but we are pleased to advise that some lenders will consider contractors where there is evidence of contractual work for three years on a continuous basis and prospects for further continuous contract work into the future are strong.
  • Lenders take a prudent approach. You should be in continuous employment for at least twelve months and have completed your probationary period.
  • The sector in which you work should have long term prospects, as should the organisation for which you work.
  • The more skills and qualifications that are relevant in today's world - the better.

Can you afford the repayments?

  • The most important matter to consider is your comfort level with the proposed repayments. Rates will change during the mortgage term. The price you want to pay for a house should be driven by your feeling for affordability.
  • As your advisers we need to clearly demonstrate in our lender recommendations that you can afford your mortgage payments even if rates increase by 2%.
  • The longer the period over which you can demonstrate ability to repay - the better, but it should be minimum six months and preferably longer.

How much of a deposit do you need?

  • First time buyers require a 10% deposit.
  • Second time buyers 10% of the purchase price.
  • Some lenders are comfortable to have the deposit requirement provided by way of a gift, but as a rule lenders preference is to see a steady savings pattern contributing to 5% of the purchase price - some tolerance for larger gifts is evident with long rental history.
  • The two most popular support schemes for new homes are the help to buy scheme and the first home scheme. We would recommend that you take some time to familiarise yourself with these schemes.
    Help to Buy Scheme Information
    First Home Scheme Information

Can you demonstrate good financial management?

  • You should be able to show a regular savings record
  • Minimum personal debt and credit cards should be cleared monthly
  • Prudent spending habits
  • If you have taken out loans in the past - there should be no missed payments
  • No excessive online gambling
  • Try and keep it simple- not too many bank accounts - savings simple to follow