Best Mortgage in Ireland in 2021

Mortgage

Useful information about financial products and debt management

If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

  • What percentage of the property value can I borrow?

    Depending on their lending policy, lenders may lend anything between 80 % to 92 % of the value of the property you want to buy as long as your income and other factors make your purchase affordable. If you get a 90 % mortgage, this means that you will have to fund 10 % yourself. For example, if you can afford to buy a house worth 300.000 €, your lender may lend up to 270.000 €. You will have to fund the remaining 30.000 € yourself.

  • What documentation do I need?

    You will usually need ID documents for all parties to the mortgage - a Passport or Driving licence and a utility bill to confirm current permanent address;
    Each PAYE applicant will also need to provide their most recent (original) P60, last 3 months’ payslips and last 6 months’ bank statements;
    Self-employed applicants will need to provide their last 2 years’ certified/audited accounts and last 6 months’ business bank account statements;
    Self-build applicants will need to provide a Fixed Price contract or detailed building costings.

  • Will I be accepted for a mortgage?

    Your lender will check your credit history before they decide to give you a loan. Most lenders use the ICB (Irish Credit Bureau), which keeps files on individual borrowers. If you are turned down for a mortgage and you have never had problems repaying your loans, you may want to check your credit record.

  • Whats the difference between a variable and a fixed rate?

    A variable interest rate is subject to change, and will rise and fall over the term of the mortgage. This means that the repayment may change throughout the mortgage term. You can make additional repayments to your variable rate mortgage at any time. It’s also possible to change to a fixed rate, if required. A fixed rate mortgage loan has a rate fixed for a specified period of time. This means that the monthly repayment amount will remain the same during the fixed period.
    If you have chosen variable interest rate, note that the Bank may increase or decrease the interest rate on the loan at any time.
    You can choose from Bank's range of competitive fixed and variable rate options. These rates vary depending on the amount of your loan relative to the property value, known as Loan to Value, or LTV. Alternatively you have the option to fix a portion of your mortgage and put the rest on a variable rate.

Factors lender considers when you apply for a loan

  • Your income - it's very common that lender asks for a proof of your employment and bank statement of your income;
  • Your credit history - when you fill out a loan application form lender usually checks your credit history. Note that if you have a bad credit history the lender may not give you the loan even though you have enough money to repay the loan;
  • Other loans - you may be refused a loan if you have other active loans;
  • The security of your job - this is important factor that indicates your capability of repaying the loan;
  • The amount of savings you have - this can help you look better and more trustworthy in the eyes of the lender.

You may be refused a mortgage if

  • Your income is not sufficient to repay the amount you want to borrow;
  • You have a bad credit history. This may cause a lender to turn down your mortgage application, even if you can currently afford to repay a mortgage;
  • You have too many outstanding loans or other commitments;
  • Your job is not permanent, is at risk or you have only recently started employment;
  • Your bank statements do not show that you can save or manage your money;
  • The house you want to buy has not been approved by a valuer. This could happen because the valuer thinks it is over-priced.

Annual Percentage Rate (APR)

APR – Annual Percentage Rate represents an annual cost (in %) of borrowing. It is the total cost of credit a borrower pays, expressed as an annual percentage of the amount of credit given. APR is a useful for comparing costs between different loans and different lenders. The APR takes factors such as interest rate and certain other fees and charges into account. In order to make it easier for you to compare one loan to other similar loans, lenders are required to tell you their APR before you sign an agreement.

Borrowing costs and fees

  • Administration fee - Some lenders charge this fee to cover additional services before you receive your mortgage. You may also be charged this fee for rearranging the terms of your mortgage. You may not get your money back if you do not go ahead with your mortgage application.
  • Arrangement fee - Some lenders charge a fee to arrange the loan. This can be around 0.5 % of the total cost of the mortgage.
  • Brokers' fees - Some brokers charge a fee to give you mortgage advice or to arrange your mortgage. Many brokers do not charge a fee so it's worthwhile checking in advance.
  • Estate Agents' fees - If you are selling your home, you will have to pay fees if you hire an estate agent to handle the sale. You will usually have to pay between 1 % and 2 % of the sale price or sometimes there is a flat fee.
  • Solicitors fees - Many solicitors charge a percentage normally 1 % of the mortgage amount to look after the legal aspects of your mortgage.
  • Fixed rate break fee - Most lenders can charge this fee is you have a fixed-rate loan and you decide to repay your loan early.
  • Indemnity Bond - An indemnity bond is a type of insurance policy that can be taken out by a lender when they give you a mortgage. The policy insures the lender against making a loss if they repossess your property and the house is worth less than the outstanding amount of the mortgage. It usually applies to larger mortgages where there is very little equity from the start. Many lenders waive this charge.
  • Structural survey fee - This pays for a structural survey to find out the condition of the property you want to buy. If issues were raised during the valuation of the property, or if it is very old, your lender may insist you get a structural survey. You may also want to get a survey done to satisfy yourself that there are no problems with the property.
  • Late payment fees - If you miss a payment you usually have to pay late payment fee, so make sure you never miss a payment to avoid extra charges, also please note that this can also affect your credit score, which can make it harder to borrow money in the future.

If you do not keep up your repayments you may lose your home!

If you're not able to pay back loan on time

  • Credit holidays - the delay of loan payments for a certain amount of time is called credit holidays. Credit holidays are available in some cases, such as a temporary loss of working ability or loss of job. In most cases credit holidays are granted for a period from one month to one year. This is common for longer-term loans.
  • Seek for help - if you can't find a solution with your lender, you can seek help by contacting the Money Advice and Budgeting Service. They will give you free and independent advice have to solve your money problems.

Check that the money lender is regulated

All lenders must be registered with Central Bank of Ireland. Before borrowing make sure that your lender is regulated to avoid illegal money lenders.

You may have to pay charges if you pay off a fixed–rate loan early.

The cost of your monthly repayments may increase.

Don't accept first loan you're offered, compare various lenders to make sure you get the best possible loan offer!

If you still need to take a loan

  • Look at your income and outgoings and think if you'll be able to pay all your bills and debts.
  • Calculate how much you can afford to repay each month.
  • If your budget shows that you'll have no money for extra payments then it means you can't afford to take a loan.

MoneyGuru24

  • Get to know us - MoneyGuru24 is here to help out every internet user who is searching for the right service and/or product in a specific niche. Our services are available for anyone free of charge. Our team’s main goal is to provide the best opinion about the product and/or service, by comparing specific features. We want our website visitors to get as much information as possible, to help them make the smartest decision.

  • Process description - Before displaying and listing services and products on our website, our team members from the research, marketing, and data departments come together and very carefully look into each of the company and its offers. Because of the team member experience, we can see red flags before anyone else. We spend many hours looking into all details, consumer reviews, specifics and brand provided information on every product even if it comes from the same brand. Only after collecting all the information we can find, we decide whether to display this brand with its product on our list or not.

  • Our Partners - We have high standards for ourselves and also for our partners. We work together only with companies with a good reputation, without any legal or ethical issues. Some partnerships are paid, which means that it can make an impact on the listing positions, but it's not always like that. Most of the time, the content department team decides the listing positions. If our page visitor has chosen a product and/or service from our provided list, he may be guided to partner’s websites to continue the process and we may get a commission from his purchase. Even if we sometimes get commissions from our partners, we don`t change our basic structure and overstep our principles about listed partner companies.

  • Useful feature description - We always think of ways to make our website more user-friendly. To save visitors time we have implemented a useful tool called “pop up window”. By moving a mouse cursor to the button “Apply now” you can access this window, which will show up giving you the additional information that could help you to get more important details about product/service and may also include product/service requirements. If you as our consumer or page visitor wish to know more about some specific product/service you can visit our "full description" page where our team has collected and published all information that can be useful for you.

  • Star rating system explained - We have also added a great tool to all of our listed merchants - stars. Every visitor after using a service or getting a product can rate how satisfied they've been with this brand and/or product on a scale from one to five, five stars being the highest level of satisfaction and one - the lowest. On the right side of stars, you can see the number of our customers that have rated this listed brand previously. To ensure a more objective rating, we let one consumer vote only one time per 24-hour window. The star feature also can impact position at the list. If you see products that have a small rating number or don't have a rating at all don`t be suspicious or hesitate to try them out. Empty star features may just show that this is the brand new partner or newly listed product provider.

  • Updates - With the help of the world wide web, information changes very rapidly in this century. Every few days our content team goes through all displayed information and compares it with the information from the source. If there are any changes, then we get approval from the source and the content team updates the newest information on our website. We do this because for us it is important to provide up-to-date information to our website visitors and potential consumers. Just keep in mind that we are only humans and we are doing our best!

  • Reach out to us - We understand very well that each consumer's experience can be very different. For us, it is important to hear not only great reviews but also complaints, suggestions and comments. For this reason, we have a section called “Contacts” where you can find the information on how to reach us. We suggest using an email as in that way we can investigate your described situation and send you an answer or give a call as fast as possible. Usually, our team answers in less than 2 working days.

MoneyGuru24 is not a bank, lender, broker or product issuer. MoneyGuru24 is not owned by a financial institution but is an independent company owned by private shareholders. All information provided on MoneyGuru24 has general and informative nature. Although MoneyGuru24 covers wide range of loan products and providers, keep in mind that those are not the only options available in the market and may not be the best fit for you. We do not consider your personal circumstances and financial situation and we are not recommending any particular products. If you choose to apply for a loan product through MoneyGuru24 website you will be dealing directly with the loan provider not with MoneyGuru24. It is recommended for you to read all relevant documentation given by the loan provider before accepting any financial product offer.

MoneyGuru SIA, Address: Cālīšpurva street 27, Baloži, Latvia, LV-2128
Registration number: 41503072001 Bank: Swedbank AS, E-mail: partner@moneyguru24.com
Copyright © MoneyGuru 2012-2022. All rights reserved.

By using our website, you agree to our use of cookies.