Purchasing Advice

Do:

• Save regularly
• Stop using your credit card
• Clear your credit card
• Insure that if you are paying rent that the rent is paid by direct debit from your bank account to the landlord. (If you are living at home and paying parents rent you should also pay this into your parent’s bank account).
• It’s better to show savings displayed regularly in bank statements, ie weekly or monthly

Don’t

• Bet online,
• Miss any direct debits
• Use your visa card
• Miss any payments on other loans you may have
• Withdraw funds from savings

How much can I borrow?

The maximum mortgage available is 90% of the purchase price

How much savings do I need to have to purchase a property?

You will need to have at least a deposit of 10%

Plus legal fees

Plus stamp duty

So lets assume you are purchasing a property for  €200,000 you will need the following:

10% deposit                   €20,000

1% Stamp duty            €  2,000

Legal fees                     €  2,000

Total needed                €24,000

The amount you can borrow is based on a number of criteria as follows

• Employment
• Salary
• Children
• Other loans you may have
• Repayment capacity

Employment:
You should be in a permanent employment and not be on probation (exceptions can be made for professionals) like doctors who would be on contracts in different hospitals

Salary:

The amount you can borrow is a multiple of your salary with deductions taken if you have other financial obligations like child support, dependant children, and other loans, Credit Card Bills or if you have a partner who is not working

In order to get a mortgage you will have to be able to demonstrate to the bank that you can afford the mortgage required

As a rule of thumb, banks will want you to demonstrate that you can afford to pay your mortgage repayments and also be able to pay the mortgage if the interest rate increase by a level acceptable by the Central Bank* and subsequently each individual lender.

*The Central Bank requires advisers to stress test repayment ability by 2% over the current interest rate offered by each loan provider to the consumer.

Before you apply for a mortgage you should insure that your bank statements are in order. Some times you need to put a 6-month plan into place before you apply for the mortgage. This plan should include…

Clearing your credit card in full 6 months before applying for your mortgage.

Not using your credit card for the 6 months prior to applying for a mortgage.

If you need a credit card to book flights etc look at purchasing a prepaid credit card.

Fill in our on line application form to see how much you can borrow?

Mark Cahill t/a North Dublin Mortgages, Mark Cahill Financial Services, Company Pension, Pension Dublin is regulated by The Central Bank of Ireland