Top Tips when purchasing a Property
- Only consider taking out a mortgage if you are happy that your income is secure and continuous. If you have any concerns in this area, do not buy!
- Always use an Independent Advisor like MC Financial; We have years of knowledge and experience for your benefit with a wide range of experts to advise you.
- Remember that if you deal directly with a lender, they will offer you their range of products only.
- Before you begin looking at properties, find out how much you can borrow, MC Financial can arrange this for you.
- The amount you can afford can be assessed by looking at your current savings and rental payments. For example, if you are paying rent of €700 and saving €250 regularly, this indicates you can afford no more than €950 per month.
- Prepare well in advance. Keep your current accounts well maintained, avoid credit card debt and other short term loans and save regularly.
- Organise your Mortgage Protection as early as possible as this can cause delays at mortgage closing. Mortgage Protection provides a lump sum to pay off the balance of your mortgage in the event of your death.
- Be very careful with introductory rates and always consider the rates that apply after the expiry of the discount period.
New Central Bank Guidelines
First Time Buyers:
You can borrow up to 90% on the first €220,000 of a residential property and 80% for any value above €220,000. Private Dwelling Homes (PDH) are subject to a limit of 3.5 times loan to your gross annual income. To qualify as a First Time Buyer, you must not have previously purchased or built a house in Ireland.
Second Time Buyers:
Mortgages for Second Time Buyers are subject to a limit of 80% Loan to Value.
Buy to Let Mortgages (Investments):
BTL mortgages are subject to a limit of 70% Loan to Value. This limit can only be exceeded by no more than 10% of the Euro value of all housing loans for non PDH purposes during an annual period.
Switcher Mortgages:
The regulations do not apply to Switcher Mortgages or refinancing of existing housing loan.
Negative Equity Mortgages:
Housing loans for borrowers in negative equity who wish to obtain a mortgage for a new property are not within scope of the Loan Term Value limits.
However, there are variables in terms of deposits and multiple incomes and exceptions are made on a bank by bank basis. We will be happy to go through your options with you based on your individual circumstances.
Warning: If you do not keep up your repayments, you may lose your home
Warning: The cost of monthly repayments may increase
Warning: You may have to pay charges if you pay off a Fixed Rate loan early.
If you are interested in buying a home whatever your circumstances, please call MC Financial for Independent financial advice that you deserve. We also have many special offers for all clients. Call 01-8228022 or alternatively contact info@mcfinancial.ie and we will be happy to help.
M&E Curtin (Financial Services) Limited T/A. MC Financial is regulated by the Central Bank of Ireland.
