We are experienced mortgage brokers, so whether you are a first-time buyer or are borrowing to buy a second home or investment property, there are certain things that lenders look for. While you may not be able to easily change some of them (your job, for example), here are some steps you can take to improve your chances of borrowing what you need.
All our financial advisers are experienced mortgage brokers and know the particular terms and conditions that each lender applies. They will be able to answer any specific questions you have, and help you make the best case to a lender. Call us today on (local rate number) to make an appointment.
An Exciting And Overwhelming Time
Loan-to-value ratios; lending criteria, fixed or variable interest rates; there seems to be so much to get your head around as a first-time buyer . We recognise that buying your first home is a huge event and that it can seem overwhelming. At Clever Money, we offer a mortgage service that will guide you through every step of the way from working out how much you can borrow, right through to closing.
The Central Bank of Ireland’s new rules on deposits dictate that where the value of the property is under €220,000 first-time buyers may borrow up to 90%, providing the balance of 10% by way of a deposit. Where the property is selling for €220,000 or more, the LTV (loan to value) ratio must be 80%, which means that the deposit must be 20% of the value of the loan. Non-first-time buyers may borrow a maximum of 80%.
Our independent mortgage brokers are experienced in identifying the best buy-to-let mortgage lender for your circumstances including a number of interest-only products.
Remortgaging means one of two things; switching your mortgage to a different provider or taking out a loan on the strength of the value of your property.
It goes without saying that you should have secure employment and preferably in a sector that is relatively safe from the effects of recession. Full-time permanent positions are ideal. In certain circumstances, a long-term contract will be acceptable (with a state agency, for example). Lenders will look more favorably on you if you have held the position for at least a year.
2. Money Management
Show evidence of regular savings. Even if you are receiving a gift to help you make up the deposit, lenders like to see you have the discipline (and the disposable income) to save regularly. They like to see at least 50% of your deposit made up of your own savings. Lenders will assess your repayment capacity based on your ability to make regular rent payments, or, if this is not your first property, mortgage payments. Your current account should be in good shape. It’s OK to have an overdraft facility but ideally you will not be using it! Lenders look closely at how you spend your money so think about how your spending might come across and adjust your habits accordingly – don’t blow your wages on pay-day, for example, and cut down on that on-line gambling!
3. Credit History
Lenders want to see a clean credit history. Even where you are up to date on your repayments, it is best not to have a high level of personal borrowing. If you have short-term loans (a car loan for example, or credit card balance) try to pay them off before applying for a mortgage.
In 2015, the Central Bank of Ireland Introduced new rules for lending for the purposes of buying a principal dwelling and these include a rule that they can lend a maximum of 3.5 times your annual gross income. This rule doesn’t apply to buy-to-let mortgages.