Will I Qualify for a mortgage?

Our business is arranging mortgages. We hope we can look after you.

The key principles of mortgage approval are as follows:

  • Your income should be secure .
  • You can provide evidence of affordability from recent rent and savings patterns that you can afford repayments 
  • You have an adequate cash deposit 
  • You have a good credit history, well managed finances and typically no loans or credit card debt.

1. What is the maximum mortgage limit.

  • Central Bank rules place a limit of 3.5 times your normal gross income as your maximum mortgage.
  • Exemptions above 3.5 times gross income are very difficult to secure at present.

2. How much of a deposit do you need?

  • First time buyers 10% ( Help to buy scheme available to qualifying applicants to fund 5% for new house or apartment purchases or self builds)
  • Second time buyers 20% of the purchase price
  • Some lenders are comfortable to have the deposit requirement provided by way of a gift, but as a general 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
  • Deposit exemptions are available at present so that second time buyers with strong incomes are not restricted to a minimum 20% deposit. Each case is assessed on its own merits.

3. 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.

4. 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 their is evidence of contractual work for over one year on a continuous basis and prospects for further continuous contract work into the future are strong.
  • Lenders take a prudent approach. Employees should be employed 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.

5. Can you demonstrate good financial management?

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