Mortgage

skulltown

Guys

Can anyone help me I am trying to get a mortgage for a apartment. Does anyone know which ones are best and what to look out for. I am currently with AIB.

Thanks

Marchbride

skulltown wrote: »

Guys

Can anyone help me I am trying to get a mortgage for a apartment. Does anyone know which ones are best and what to look out for. I am currently with AIB.

Thanks

Doesn't matter who were with in terms of day to day banking. Just have a clean 6 mths of consistent savings, no bad debts, decent deposit, permanent employment to cover the mortgage you're seeking and you should be ok. KBC & AIB are offering best rates with BOI offering their new incentive of paying your stamp duty (ave 2k) but they're interest rates over period of mortgage would outweigh that 2k+.. Best of luck with your application.

superman28

This is taken from Mortgages.ie which sums it up quite well for a first time buyer..

Lenders examine an application from a number of angles.

I would apply to a few banks and see what (if anything) comes back..


1. Affordability
•Well managed current accounts.

•A steady regular record of savings.

•A record of regular rent payments.

•If you have an overdraft facility, does it move to a regular credit balance also?

•Prudent spending habits.

•A minimum of personal loans.


2. Employment and Income

•Employment should be full time and permanent.

•Employees in certain sectors are experiencing difficulty in securing mortgages (e.g. construction).

•Focus is on basic income as opposed to bonus, overtime, or commission.

•Contract employees will not currently obtain mortgage approval unless it can be demonstrated that it is a contract with a state body considered a contract of indefinite duration.


4. Credit history

•Unnecessary or large credit card balances will work against you.

•Personal loan repayments may severely limit borrowing capacity.

•It is very important to have a good credit history with no payment arrears.

•Lenders will not consider applications where there are unpaid direct debits.


5. Savings
•Considerable emphasis placed on savings.

•Parental gifts towards a deposit are acceptable but they should not account for the full deposit.


6. Life Style issues
•Lenders look closely at your current account statements.

•It is no harm to live frugally prior to a mortgage application.

•Avoid on-line gambling at all costs.

•Keep your accounts in credit to display your money management ability.

•Your accounts must be able to demonstrate that they can take a mortgage payment (replacing savings or rent).


Each application is examined on its own merits and the above information should only be used as a guide to current lending criteria.

NewRunnerRoy

Most banks will only lend 75% of the price for an apartment and 92% for houses so you will need a bigger deposit if you are looking at apartments.