Important things to consider when applying for a mortgage.
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Loan-to-income limit (LTI)
There are different LTI limits for different types of buyers. If you are a:
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First-time buyer of your primary residence, you can borrow 4 times your gross annual income
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Non-first-time home buyer, you can borrow 3.5 times your gross annual income
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The LTI limits do not apply to buy-to-let mortgages.
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What is a first-time buyer?
You are a first-time buyer if you have never had a housing loan. ‘Fresh start’ applicants and certain other people are now also considered first-time buyers.
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Loan-to-value limit (LTV)
There are different LTV limits for different categories of buyer. If you are buying a:
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Property that will be your primary residence, a 90% LTV limit applies on the full value of the property. This means you will need a 10% deposit for your house or apartment.
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Property that will not be your primary residence, including buy-to-let properties, a limit of 70% LTV applies.​
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It is always important to pay close attention to how the lender's will view your mortgage application. I’m sure you have heard a lot recently about how it can be difficult to secure a mortgage but in our experience if you present the application as the lender wants it then you will have no difficulty securing the finance you want.
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​So take a look at a few simple items that the lenders will look at in assessing your application.
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Employees, full time permanent employment within the Republic of Ireland.
All salaries are mandated for a minimum 6 months.
Self-employed, 2 years audited accounts.
6 months "proven repayment ability" for mortgage being sought.​
Strong savings record for a minimum period of 6 months.
Good current account maintenance.
Evidence of rental payments mandated (if applicable).
Sufficient contribution to cover deposit, 10% / 20% / 30%.
No history of credit issues within the last 5 years.
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​These are just a snapshot but if you can present a strong application with good savings or rent payments or a combination of both then you are giving the bank a picture that you can meet the repayments you are looking to take on and that is key to the success of your application.
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Warning: If you do not keep up your repayments you may lose your home.
Warning: You may have to pay charges if you pay off a fixed-rate loan early.
Warning: The cost of your monthly repayments may increase.​