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The 10 Most Common Mortgage Questions In Ireland Answered!
If you’re on a quest to find and purchase your very first home, you likely have some common mortgage questions you want answered. Fortunately, you’ve come to the right place!
In this article, we answer the top 10 questions on first-time buyers’ minds as they take those initial, crucial steps onto the property ladder!
Common mortgage questions asked by first-time buyers
Pursuing a mortgage for the first time is a daunting experience, and with so much involved and at stake, it’s natural that newcomers to the property market would have a wide range of queries. Let’s examine the 10 most common mortgage questions we encounter every day:
- 1. Do I need a flawless credit record before applying for a mortgage?
- 2. How much can I borrow?
- 3. How much do I need to save for a deposit?
- 4. Will outstanding debt affect my chances of mortgage approval?
- 5. What’s involved in the mortgage application process?
- 6. Are there any schemes available to help first-time buyers?
- 7. I’m a self-employed applicant – will this affect my chances?
- 8. What’s the difference between a fixed and variable rate, and which one should I choose?
- 9. Should I wait until I’ve found my dream property to apply for a mortgage?
- 10. Are there any hidden costs I should know about?
If any of the above questions have been causing you concern, keep reading to discover the answers and get some peace of mind for your upcoming mortgage journey.
Your common mortgage questions answered
1. Do I need a flawless credit record before applying for a mortgage?
Having a straightforward credit history certainly gears new applicants up for mortgage success, but that doesn’t mean that a few blemishes will automatically rule you out.
Your credit report won’t determine your mortgage interest rate, but it can influence whether your application is accepted or rejected. Lenders use the Central Credit Register to assess your repayment track record. You can request a copy of your credit report for free to check for any issues. If you’re unsure how your credit history might affect your mortgage application, it’s best to speak with an experienced mortgage advisor as early as possible.
2. How much can I borrow?
As a first-time buyer in Ireland, you will be eligible to borrow up to four times your gross salary, as per the mortgage measure changes introduced in January 2023. For joint applicants, this translates to four times the combined gross salaries.
However, the figure you are ultimately offered is dependent on several factors beyond income alone, such as regular expenses, existing debts, and general living costs. For public sector workers, some lenders may also allow borrowing limits up to 3-5 points above the salary scale, offering additional flexibility.
3. How much do I need to save for a deposit?
Both first-time and second-time buyers are required to have a minimum deposit of 10% of the property’s purchase price. However, if you have the means to pay a larger deposit, you can do this to lower the amount you will need to borrow and, subsequently, decrease your monthly repayments.
4. Will outstanding debt affect my chances of mortgage approval?
Not necessarily, as a responsible repayment history can often strengthen your profile.
Clearing debt will certainly help, but it’s best to consult an experienced mortgage advisor first to decide if it’s worth using savings to do this.
Lenders tend to focus more on whether you can comfortably meet all repayments.
5. What’s involved in the mortgage application process?
There are several important steps involved in the mortgage application process in Ireland:
- Find a trustworthy mortgage advisor to streamline the process and serve as an intermediary between you and potential lenders.
- Get organised by gathering required documentation such as payslips, bank statements, proof of address and P60/P45.
- Apply for approval in principle – a formal letter that shows a lender’s initial agreement.
- Find a property and make an offer.
- Obtain a formal loan offer.
- Engage a solicitor to begin the property conveyancing process.
- Conduct a property valuation.
- Draw down the mortgage (pending approval) and close the sale.
6. Are there any schemes available to help first-time buyers?
Yes. Government initiatives, such as Help-to-Buy and the First Home Scheme, can significantly reduce costs for first-time buyers.
If you meet the criteria, the application process is relatively straightforward; your mortgage advisor can walk you through the steps and explain how each scheme might improve your affordability. You may also want to explore the Vacant Property Refurbishment Grant if you’re considering renovating an older home.
7. I’m a self-employed applicant – will this affect my chances?
You can get a mortgage if you’re self-employed, but the process requires more documentation; typically two-plus years of accounts and Irish Revenue tax‑clearance certs.
Once you have everything in order, the application process is fairly straightforward!
8. What’s the difference between a fixed and variable rate, and which one should I choose?
A fixed rate provides you with repayment certainty for a set period (typically between 1 and 10 years). On the other hand, a variable rate may be lower at first, but it will change with ECB or market movements.
A mortgage advisor will help you to assess which one best suits your budget and financial profile.
9. Should I wait until I’ve found my dream property to apply for a mortgage?
No. Once you have secured approval in principle, you’ll know what you can borrow before you go house-hunting.
AIPs typically last six months and can strengthen your offers when dealing with estate agents.
10. Are there any hidden costs I should know about?
Yes. From stamp duty and legal costs to insurance and valuation fees, there are a number of hidden costs that might surprise first-time buyers.
To avoid any unwelcome financial shocks, it’s important to secure the services of a reputable mortgage advisor who will guide you through the process from start to finish.
The most common mortgage questions – answered with our help!
When navigating the complex terrains of both the housing market and the mortgage process, a helping hand can make all the difference. This is why working with an experienced mortgage advisor is a wise move, as you are far more likely to experience a smooth, stress-free journey.
At Symmetry Financial Management, our straight-talking team of mortgage advisors is here to offer tailored support, no matter what your situation. Our first-time buyer mortgage services include end-to-end guidance, from deposit planning to lender negotiations and beyond.
We offer tailored support that can help you avoid delays and skip the mortgage myths, enabling you to confidently take the next step on your property journey.
Ready to start? Contact us today to book a free, no-obligation chat with one of our mortgage specialists.
If you’d like a free, no-obligation consultation for your mortgage, pension or financial needs, get in touch here, call us on 01 6831673 or email us directly on info@symmetryfinancial.ie.
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