Being mortgage-ready means you’re a step closer to your new home
When you apply for a mortgage, all mortgage providers will want to see that you’re able to manage your money. So it’s a good idea to get your finances in order, to clear as many of your debts as possible and to begin saving regularly.
Guest Blog by Sean Mulpeter – Bank of Ireland, Mobile Mortgage Manager.
Monitor your spending
Start keeping a close an eye on your finances, and make sure you always know how much is in your accounts. Using tools like our online budget planner can help you get to grips with your day-to-day expenses and identify areas where you might be able to save some money.
Build up your savings
For first time buyers, you will need to save at least 10% of the purchase price of your property up to the value of €220,000 and then 80% on the remaining value – plus other associated costs. For those with an existing mortgage and looking to move house, a deposit of 20% is required. We have capacity to lend over these limits – come and talk to us as early as possible. For example, a Bank of Ireland Mortgage Saver account is a great way to build up savings over time. It also demonstrates your ability to set aside funds each month. That’s the kind of thing banks like to see. And once you start, you’ll be surprised how quickly your savings build up.
Be aware of other costs
Buying a house also involves other costs. Here are a few that you might face:
Solicitor Fees: €2,000 approx.
Valuation Fees: €150-€250 approx.
Stamp Duty: For properties valued at up to €1,000,000 stamp duty is calculated at 1%. For a property valued at over this figure the stamp duty is calculated as follows: 1% on the first €1,000,000, and 2% on the balance over €1,000,000.
2% Mortgage Cash Back Offer
At Bank of Ireland, we are giving you 2% of your mortgage back as cash 45 days after you draw down. This will take the pressure off those additional expenses as well as maybe getting you a well-deserved treat!
For example; if you were to draw down a mortgage of €350,000, you would get €7,000 back. This cash back offer is available for those who draw down between 3rd of June to 31st of December 2015. Bank of Ireland reserves the right to seek refund of the payment from the customer if the mortgage is paid back within 5 years. This offer is not available with any other offer. For more information on this Mortgage Offer, Click Here.
The maximum mortgage is generally 3.5 times your gross annual income and 80% of the property value (90% of the property value up to €220,000 for First Time Buyers, 70% of the full property value for Buy to Let) but these limits may vary.
A typical variable rate mortgage of €100,000 over 20 years costs €623.20 per month at Annual Percentage Rate (APR) 4.4%. A 1% interest rate rise will increase this repayment by €54.35 per month (APR 5.4%). The cost of your monthly repayments may increase.
For more information about getting mortgage-ready, talk to a Bank of Ireland Mortgage Advisor.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
Lending criteria and terms and conditions apply. Security and insurance required.
Bank of Ireland is regulated by the Central Bank of Ireland.
Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages and The Mortgage Store is regulated by the Central Bank of Ireland.