How to Choose the Best Mortgage Lenders in Ireland

Currently, there are 10 mortgage lenders in Ireland. These include Ulster Bank, ParmanentTSB, KBC Bank Ireland, ICS Mortgages, Haven, Finance Ireland, EBS, Bank of Ireland, Avant Money, and Allied Irish Banks. All of these mortgage lenders are financial institutions which give home loans to people who aspire to own a home.

You are probably thinking about how to pick the best of the 10. When choosing the lender that best suits your need, the major factor to take into consideration is the amount of mortgage you want to borrow. Each of the 10 mortgage lenders in Ireland will make an assessment of your assets, debt, and credit score, each differently. You should note that the Loan to Value Ration (LTV) is  the most important pieces of information that the lenders will look. LTV is calculated by dividing the money you are borrowing with the property’s estimated value. With the LTV, the lender will be able to understand the risks involved with lending you the mortgage. Normally, the LTV of a loan is 80 percent or less. It is important to understand that the higher the LTV, the higher the loan’s risk. Take for example, Ulster Bank gives you €170,000 to buy a house that is worth $185,000, the LTV ratio would be 91 percent. Because the LTV is more than 80 percent, the application of this mortgage will appear as very risky to Ulster Bank.

Another big factor to take into consideration when choosing a perfect financial institution is the interest offered by each of them. Each mortgage lender has different interest rates. Of course, this depends on the LTV level meaning that one lender can give a interest of 3 percent while others offer 4 percent for the same LTV. This can seem to be  a big difference, but it is important to find the lender that offers the least interest rate, ensuring that you save money on the mortgage payment that you make on a month basis, while also reducing the amount of money you will pay on the mortgage over time.

I understand that for first-time buyers, choosing a mortgage lender can be very confusing, You need to take time to identify a lender who can best satisfy your needs since it is the best way you can save money and get your hands on the best property in the market. With a mortgage broker, you can easily get the best lender since they work together with you and the lender to get you the best deal that is within your budget.

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