Getting Mortgage ReadyAugust 14, 2018
Starting the process of a mortgage application may seem a little daunting but our guide makes it easy. Here’s everything you need to know when preparing to apply for a mortgage. We want to support you every step of the way starting here:
Step One: Establish How Much You Can Borrow.
Under Central Bank rules, you can borrow up to 3.5 times your combined annual household income, and many lenders will allow you to borrow up to 90% of the purchase price of your new home. However, be aware that are significant differences in the amounts you can borrow as every lender has different ways of calculating your suitability.
Step Two: Choose a Lender
When looking for a mortgage, it’s worth investigating different lenders other than the bank you’re already with. You do not have to have a bank account or be a regular customer of any bank to apply for a mortgage as it is viewed as a separate financial product. Typically, lenders will consider the following:
- Your guaranteed and variable income
- Your age, and the maximum term of a mortgage available to you
- Your outgoings, including other loans and financial commitments
- Your other living expenses
Step Three: Put Together a Deposit
To buy your new home, you need to have at least 10% of the purchase price in the form of a deposit. You can raise the finance through whatever means are available to you, usually saving over time. Saving also helps demonstrate your solid financial history to any potential lenders.
If you are a first-time buyer, there is a Help-to-Buy scheme to help you raise your deposit and you can check out our guide to the scheme here.
Step Four: Understand ALL the Costs of a New Home
When calculating your mortgage, it is very important to remember that there are added costs to buying a new home other than just the property itself. Bear in mind that there will also be stamp duty, legal costs, potential survey costs, brokerage fees, and independent valuation to factor in.
Step Five: Demonstrate Your Ability to Repay
Your ability to pay your mortgage is one of the most fundamental factors that any lender will look at. Over a period of 6 months, you should seek to create a paper trail which will prove your ability to repay your loan. This includes evidence of regular saving, keeping on top of your rent payments or existing mortgage repayments, and an ability to pay off any outstanding loans you may have.
Step Six: Key Documentation
To support your mortgage application, you will need to provide the following documentation:
- A current P60
- A completed salary certificate from your employer detailing basic and variable pay
- 3 recent payslips
- Self-employed people will need to show a completed Form 11/Chapter 4 and tax clearance certificate
Step Seven: Ask Us for Help
As your mortgage broker, Sherry FitzGerald Financial Services can provide you with the insight, expertise and assistance that you need to ensure that we secure the best mortgage for you. We don’t work for the banks; we work for you. We can help you with every step of your mortgage application, checking and double-checking the details and raising any issues to make sure you are in the best possible position to get that new home.
Step Eight: Get Started!
You can start the process with Sherry FitzGerald Financial Services today by simply completing our online mortgage query form, and a member of our team will be in touch to discuss your specific needs.
For further details on getting mortgage ready, you can read our full guide here.
If there are any aspects of the mortgage process you are unsure about simply email firstname.lastname@example.org or call us on 1850 3000 30. We would be very happy to hear from you!
Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it
Warning: If you do not keep up your repayments you may lose your home
Mortgage Insight DAC t/a Sherry FitzGerald Financial Services is regulated by the Central Bank of Ireland. PSRA No. 002183