Equity release for people over 60

There is a growing need for equity release for people who have properties with a lot of equity but who also don’t have money or an income to sustain them. This is often the twin forces of property prices that have risen so strongly in the last 30 years coupled with greater financial needs or low pension provision.

In this video some of the details are described and mentioned by David Brady of Spry Finance.

Spry Finance Q&A from Seniors Money on Vimeo.

Some points worth noting are that at times you may borrow money and make no repayments and this creates a reverse amortization or ‘growing loan’ effect. That said,  you can also pay the interest and in that case the loan doesn’t grow.

Equity release loans are underwritten on the borrowers age and the value of the property, because there isn’t an expectation of repayment you don’t have to qualify for the loan based on earnings the way you would with a regular mortgage.

To find out more you can make an enquiry …

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Talking property and mortgages on the radio

We were glad to chat with Wendy Grace on Spirit Radio about mortgage switching and the time it takes to get it done.

Our view is that the biggest enemy to most people isn’t rates or delays, it’s inertia, so getting on top of your finances is key.

Talk to a broker today! Don’t walk by massive savings, there are still great deals to be had.

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Obtain a loan of up to 4x your income

The European Central Bank set a ceiling in 2015, allowing borrowers to take out loans from lenders who wish to lend them up to 3.5x their income. However, the ECB recently declared that as a borrower, you may request 4x your income. The loan-value caps will remain the same as before the change, so first-time buyers will be able to borrow 90% of the property’s value, while second-time buyers will be able to borrow 80% of the property’s value.

One unique suggestion received by the ECB was that borrowers earning less than €60,000 be able to obtain a loan of up to 4.5x their income. After the rate crash, the mainstream banks removed development lending. Thus, smaller builders needed alternative finance providers to realize some projects because the extent of the limits was affecting them. Clients now have their own criteria for obtaining a mortgage due to domestic inflation (which was 8.6 percent in September), rising cost-of-living crises, and rising interest rates on loans.

ICS Mortgages, a non-bank lender, tightens its loan acceptance criteria. So, if you take a loan …

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How Open Banking and API change the way you bank

The United Kingdom introduced open banking legislation in 2018 to support and improve the loan system. Prior to this legislation, the loan application and paper processing took a long time to check and complete. As a result, the mortgage lenders made a lot of money thru open banking because it makes working with loans easier and lowers administrative costs, they also do not have to select data points manually. It also encourages the transition from traditional banking to online banking. But what exactly is “open banking?” It means that banks are permitted to disclose information about a customer’s financial data to third parties.

However, not all businesses agree that automating work processes is a good idea. Nine out of ten knowledge workers who analyze this believe that automatic work has enhanced employees’ work lives. The standardization process helps you minimize errors, save time, which in turn allows you to reduce costs and increase productivity and efficiency.

Our world is becoming more fast-paced and more technological so you must keep up with the progress. A lot of companies use big data …

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AIB Mortgages

AIB advertised their mortgages extensively. Therefore, the first thing you notice when you visit their website is a section on mortgages. They have an appealing and good structured website where you can find a calculator, make an appointment, and learn some information about your situation. A video about a couple who obtains a mortgage from AIB is also available. In this video, the clients explain how that works. They claimed to be extremely glad to accept the mortgage from this bank because everyone there is polite and helpful. AIB has professionals that can explain everything to you about mortgages and your options. They also have an App that gives clients a good overview. Additionally, the fact that clients can upload their documents from home makes everything simpler for them. You may find a wealth of general and situation-specific information on mortgages on their website.

AIB has a community spotlight on their website where you can watch a video about the important work being done for the local community and the advancement of the transition to a sustainable living. They …

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Increasing rates across the continent

According to a recent poll, Ireland’s average mortgage rate is 2.64%. This is only 0.01% higher than it was the previous month, when it was 2.63%.

Irish rates have decreased as the economies of the rest of Europe have gotten more expensive. With the release of these new figures, Ireland actually dropped out of the top five most costly Eurozone nations for the first time in five years.

Ireland’s rate of 3.10 per cent, is higher than the average rate of 2.21 per cent in the Eurozone. Still, Ireland’s rate is lower than it was a year ago: 5.95 per cent this time last year.

The average interest rate on Irish fixed-rate mortgages is 2.49 percent and 3.77 percent on an Irish variable-rate mortgage.

Ireland now has the Eurozone’s eighth-highest mortgage rates, trailing only Germany and the Netherlands. Households in these countries, on the other hand, tend to take out much longer-term fixed rates than Irish households (up to 20 years or more), which typically have higher rates.

The average interest rate across the continent is increasing. Latvia has the …

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The 10 Mortgage Lenders in Ireland

There are 10 mortgage lenders available in Ireland. These include (no particular order):

AIB Avant Money Bank of Ireland EBS Finance Ireland Haven ICS Mortgages KBC Permanent tsb Ulster Bank

Many mortgage holders qualify for a change of mortgage and could thus save significant amounts of money. It is important to compare your options before deciding on a mortgage. The central bank’s mortgage lending rules impose a limit on the amount of money a bank is allowed to lend.

Currently, Irish banks can lend up to 3.5 times a borrower’s annual income. Lenders may exceed the 3.5 loan-to-income limit for 20% of the total loan value in a calendar year. Lenders examine bank statements to understand a borrower’s ability to repay. You will be asked to submit six-month bank and credit card statements.

This post was written by Veronika Pluháčková who was a research intern at Irish Mortgage Brokers in May of 2022.

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Are Irish banks the most generous in Europe?

Mortgage rates are rising, but at the time of writing they are higher in Germany than in Ireland, that isn’t the strange bit though.

What’s really strange is that the risk free rate in Ireland is higher than the mortgage rates available. In other words, financially speaking it is safer (if by ‘safe’ you mean accepting a lower return) to lend to a person in Ireland on a house than it is to lend to the Irish government. This is insane and it won’t last.

The response will need to be one of two things.

Banks stop lending Banks raise mortgage rates (or perhaps a little of 1 and a good dash of 2).

Take a look at government bond yields from last week, if a bank has a choice they can lend to the Irish government at 2.8% but they lend to people at closer to 2%. This is typically seen as an impossibility in financial markets so it will only last for a short time because as a rule there is no arbitrage, markets close them down …

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Mortgage switching 2022

Last year of the people approved for a mortgage about half of those are first-time buyers. The slowing in the numbers approved for a home, comes as some lenders have already said they increasing their rates. (AIB, Bank of  Ireland, EBS, Haven and Permanent TSB). Around 775 homeowners need mortgages or are switching to another lender at any given time

If you want to buy a house, you have to pay the owner for the house and have to pay your bank for lending the money. Still more than 200,000 households repaying their mortgage on standard rates.

Homeowners should now consider their rates. But there is a risk for those on fixed rates. If they roll out of fixed-term contract in one or two years, the rates could be higher. The prospect of higher mortgage costs is prompting to switch from variable or short-term fixed rates in a bid to the expected increase.

If you decide to switch mortgage, you need a solicitor to take care of the processing, paperwork and liaising. The cost and workload is about half of …

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Understanding Your Digital 1003 Form

Looking to get a mortgage? The first thing you need to know before starting the mortgage process is understanding your digital 1003 form. This is how you can apply for your mortgage online. Knowing what to expect before you start helps you know what to fill out and how to do it properly.

 

What is a 1003 form?

 

The 1003 Mortgage Application which can sometimes also be called The Uniform Residental Loan Application is the form that mortgage lenders will have you use to apply for a mortgage in the United States.

 

The application asks questions about the borrower’s employment, assets, debts as well as questions about the property in question. 

 

The reasoning behind having to fill out this information is for the lender to decide if the borrower is worth the financial risk.

 

What information does it need?

 

A 1003 form requires information about your current financial status.

 

This includes; Your last 2 years employment history, monthly income and your assets. 

 

If the borrower owns any other property they must disclose …

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