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Mortgage FAQ’S

 

What is the best variable rate available to me?

The best variable rate will depend on the amount you want to borrow and your Loan to Value. We will advise you on the most suitable lender unique for your circumstances.

 

What is the best fixed rate available to me?

The best variable rate will depend on the amount you want to borrow and your Loan to Value. We will advise you on the most suitable lender unique for your circumstances.

 

What happens after my fixed rate expires? Do I go onto the higher standard variable rate or the lower loan to value variable rate or can I fix it again?

This varies lender to lender and it is very important when considering the best lender for you.

 

What incentives are the banks offering to new customers and in what circumstances are these clawed back if I decide to switch lender in time to come?

Some lenders are currently offering (Jan 2017) up to 2% of the loan amount as a cash back incentive. So for example for a mortgage of €300,000 you can get up to €6,000 back. However, we will always take a long term view when advising you on a mortgage as the long term interest rate is generally more important than upfront incentives.

 

Can I pay a lump sum of my mortgage without penalty?

Generally speaking, if you are on a variable mortgage, then yes you can. However, if you are on a fixed rate mortgage, penalties may apply and it varies from lender to lender, these penalties vary from lender to lender.

 

Can I increase my payment and if so how much extra interest will this save me?

If you are on a variable rate mortgage you can increase payment and we can easily calculate the saving for you.

 

Do all lenders offer self-build mortgages and do all the lenders have the same criteria?

The majority of lenders offer self-build mortgages, however some do not. The criteria differ from lender to lender and we will advise you on the most appropriate lender for your unique circumstances.

 

What happens if my self – build runs over budget?

The lenders generally build in contingency to cover any cost overruns, however as each self-build case is different we will review costing with the engineer/architect before submitting the application. In the event of a unforeseen over – run we can help you negotiate with the mortgage lender.

 

Will I get a mortgage if I am on probation or on contract employment?

This very much depends on your circumstances, qualifications and employment history etc. It also varies from lender to lender and we will advise you on the most suitable lender for you based on your own unique circumstances.

 

Can I get a mortgage for a holiday home and do all the banks charge a higher interest rate for this type of loan?

Yes, it is possible to get a mortgage for holiday homes. Some lenders apply a buy to let rate which is generally 2% higher than the home loan rates, however it is possible to get home loan rate and we will advise you on same.

 

Can I retain my own property and get another mortgage on a new property at the same time?

Yes, it is possible to retain your own property subject to lending criteria, however this may create taxation issues and may have an implications on your home loan rate.

 

If myself or a partner has a house or a mortgage already does this impact on what I can borrow?

Yes, it does, if one of you has an existing house you will be restricted to 80% of the purchase price under Central Bank rules. However, the lenders are allowed some discretion and it will very much depend on the strength of your application.

 

Will all the lenders lend me the same amount of money?

Since the introduction of Central Bank guidelines mortgages are capped at 3.5 x salary. In theory the amount you are able to borrow should be the same across all lenders but in practice the lenders are allowed to make exceptions from time to time. They also treat additional income e.g. overtime, bonus, shift allowance, child benefit etc., differently so it is very much case by case.

 

What happens if I have had arrears in the past?

All lenders and credit unions report to the Irish Credit Bureau, and the mortgage lenders will access this when you apply for a mortgage. However, if the arrears were more than two years ago this may not impact on your application at all. If you have any concerns in this area, please contact us.

 

Do all the lenders look for the same amount of information for a mortgage application?

Generally speaking, yes, however some lenders look for three months’ bank statements as opposed to the standard six months.

 

Can I get a gift as a contribution towards my deposit?

Yes, it is possible, we will advise on the implication on same.

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