LATEST PROPERTY NEWS 15-May-2024
OBTAINING A MORTGAGE: SOME COMMON QUESTIONS 15th May 2024
A mortgage broker can access the mortgage market for you, but you can use our mortgage search to compare them yourself. Our mortgage guides have useful tips and advice to help you find the right mortgage.
What help can first time buyers get?
There are some government schemes available that could help to reduce costs for first time buyers.
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Other questions regarding your present accommodation, i.e. rented, sharing, living with parents, will be asked.
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Loan-to-Value Limits (LTV)
A 10% deposit is usually required for first and second-time buyers. However, the Revenue's Help to Buy scheme can reduce this requirement for newly built properties.
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Top tips for obtaining a mortgage include securing AIP before house hunting, demonstrating financial responsibility, managing your finances well, maintaining stable employment, and being proactive in your property search.
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Credit History: Your credit history plays a significant role in mortgage approval. Lenders will assess your credit score and history to determine your creditworthiness. Ensure you have a good credit score by paying bills on time and managing your credit responsibly.
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Regularly review your budget and savings progress. If necessary, adjust your budget to accommodate changes in income or expenses.
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If you have a preapproval, it indicates that a lender has reviewed your financial information and is willing to lend you a certain amount. Brokers may ask about this to better understand your position in the homebuying process.
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Inquire about any fees and closing costs associated with the mortgage. Some lenders may have lower interest rates but higher fees, so it's essential to consider the overall cost of the loan.
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AIB, BOI, ULSTER BANK,
PTSB EBS MORTGAGES
APPLICATION FORM QUESTIONS
Thinking of applying for a mortgage?
Here is a selection of the detailed questions mortgage lenders will ask you before considering your application.
Obviously you will need to give personal details such as
your name, address, phone number, date of birth &
number of dependents (if any).
Also you will be asked how long you have lived at your
current address as well as details of your previous address
if you moved less than 3/5 years ago.
Other questions regarding your present accommodation, i.e. rented, sharing, living with parents, will be asked.
You may also be asked questions regarding your married/seperated/divorced status. If you are currently living in rented accommodation, your parents address and phone number may be required.
If the mortgage application is a joint one, then details of the second applicant will also be needed.
You will be asked to indicate the reason for your application:
First time purchase
Investment
Equity Release
Other
Moving house
Refinance
Mortgage approval, if granted, may only last 3 to 6 months, depending on the lending institution.
Employment Details
You will be asked questions regarding your current employment status such as:
Employment Sector
Occupation
Net salary p.m.
Gross basic salary p.a.
Overtime p.a.
Bonus p.a.
Commission (e.g. if you are a salesperson)
Don't assume a temporary increase in salary, such as a bonus or commission, will be considered in your ability to repay your mortgage. Other income, such as rental income, should also be mentioned.
You will be asked for details regarding your employer such as:
Employer Address
Length of service
If less than one year in current position you may have to state:
Your previous occupation
Your length of service
Your previous employer's name and address
Salary payment method Bank / Building Society Direct Credit Cheque Cash
Self Employment Details
If you are self employed you will be asked about your personal financial details.
Self employed applicants will need to submit copies of their last three years audited accounts, accompanied by their accountant's confirmation of the applicant's current tax position.
You need to supply your:
Business name, address and type of business you are engaged in.
The date your business was established and your shareholding and director's fees and payments (if any).
Your average annual profit for the last 3 years
Your savings and investments will also be considered with regard to:
Bank Details
Financial commitments
Details of all credit cards in this section along with any existing mortgages. Credit card statements will be carefully checked for such items as bookmaker or online gambling payments, which will not help your application.
Are any of these loans to be re-finanaced /redeemed as part of your mortgage loan?
Name, Account Number, Present Balance & Date Account Opened
Lender
Amount Present Repayment Repayment Purpose To be
Account Borrowed Balance frequency amount of loan re-financed
Name and Address of Bank/Building Society
Sort Code
Account Number
Do you have a Laser Card?
Has either applicant any other financial commitments not indicated above including overdraft, Life Assurance, Separated Person's Maintenance Payments etc?
Each applicant will have to declare if they have ever been declared bankrupt or insolvent, or are currently undergoing such proceedings.
Other related questions will include:
Have you ever had a court order/judgement registered against you?
Made an arrangement with creditors?
Fallen into arrears on payment?
Been refused finance?
Have you currently any legal action pending against you?
Details of Present Property
If you have ever owned a previous property, you may be asked:
Have you previously owned a property?
Do you currently have a mortgage? Have you had a mortgage in the last twelve months?
If you have, or have had a mortgage in the last 12 months, please submit a copy of your most recent annual statement. If you own, have sold, or are disposing of a property
Address of property
Year of purchase
Original Price
Amount borrowed
Amount still owning
Payment per month
Date repaid (if applicable)
Sale price
Estimated value
Proposed sale price
Name of presentor most recent lender
Account number
Full Address of Property to be Mortgaged
Detached Semi-detached Bungalow Terraced House
Flat / Apartment
Number of Rooms Number of Bedrooms
Construction Type: Traditional Brick / Block Timber Frame Pre-cast Concrete
Area of Dwelling
Floor Area
Mortgage Required
Questions in this section relate to:
Use of Property
Do you intend to reside at the property?
Is the property intended as a secondary residence/ holiday home? Other uses?
Is the property Freehold? Leasehold?
Is the property newly constructed?
Do you require stage payments?
Do you intend to let or part let?
Will any business activity, trade or profession be carried out at the property? You will need to provide details if this is the case.
This is by no means all of the questions you will have to complete on an application form for a mortgage, but it may help prepare you for the "inquisition" by the lender into both your lifestyle and your financial position.
Although we will do our best to provide you with accurate details, information provided is subject to errors or omissions. This information is intended as a general guide and has no legal standing. You should always seek professional advice for your own particular situation.