Getting an Irish Bank Mortgage
What type of people are being approved for mortgages these days? Michael Dowling of the Independent Mortgage Advisers' Federation says that there are two classes of sucessful applicants. Civil and public servants are assessed by the banks as having the most secure employment prospects. The second category are medical professionals, including consultants, doctors and dentists, especially if they are employed in the public sector.
The banks are now examining new mortgage applications very carefully, looking for proof that the aspiring home owner has a record of regular saving equal to the mortgage payments they will be liable for if their mortgage is approved. Banks are also on the lookout for "stress items", examples of which include overdraft referral fees, delayed loan repayments and large credit card repayments.
Loans and monetary gifts from parents are no longer taken into account in mortgage approvals. Some banks are now in a situation where they are currently planning to ask parents providing guarantees in respect of their children's mortgages to repay the outstanding arrears. Rental income is also now excluded from the mortgage approval process.
Irish banks have a limited amount of funds earmarked for new mortgages and are ensuring that the home owners they lend to have security of employment and also have the ability to repay the mortgage from their own resources.
This report is based on a recent Irish Times newspaper article.
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