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.
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 firstname.lastname@example.org 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.