The Top Mistakes to Avoid When Applying for a Mortgage in Ireland

Applying for a mortgage is a significant financial step that requires careful planning and consideration. Unfortunately, many applicants make mistakes that can delay approval or result in unfavorable terms. To help you navigate the process smoothly, here are the top mistakes to avoid when applying for a mortgage in Ireland and how to avoid them.

1. Miscalculating Affordability

One of the most common mistakes is miscalculating how much you can afford. Many applicants focus solely on the mortgage repayments without considering other financial obligations and lifestyle expenses. It’s crucial to create a detailed budget that includes all monthly expenses, such as utilities, groceries, transportation, and entertainment, in addition to your mortgage repayments.

How to Avoid: Use mortgage calculators provided by banks and financial institutions to get an accurate estimate of your monthly payments. Ensure your total monthly housing costs, including insurance and taxes, do not exceed 30-35% of your gross monthly income.

2. Not Considering Additional Costs

When buying a home, many people overlook additional costs such as property taxes, home insurance, maintenance, and potential repairs. These expenses can add …

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The Top Mistakes to Avoid When Applying for a Mortgage in Ireland

Applying for a mortgage is a significant financial step that requires careful planning and consideration. Unfortunately, many applicants make mistakes that can delay approval or result in unfavorable terms. To help you navigate the process smoothly, here are the top mistakes to avoid when applying for a mortgage in Ireland and how to avoid them.

1. Miscalculating Affordability

One of the most common mistakes is miscalculating how much you can afford. Many applicants focus solely on the mortgage repayments without considering other financial obligations and lifestyle expenses. It’s crucial to create a detailed budget that includes all monthly expenses, such as utilities, groceries, transportation, and entertainment, in addition to your mortgage repayments.

How to Avoid: Use mortgage calculators provided by banks and financial institutions to get an accurate estimate of your monthly payments. Ensure your total monthly housing costs, including insurance and taxes, do not exceed 30-35% of your gross monthly income.

2. Not Considering Additional Costs

When buying a home, many people overlook additional costs such as property taxes, home insurance, maintenance, and potential repairs. These expenses can add …

Read More →

Urban vs. Rural: How Location Affects Your Mortgage Options

When considering buying a home in Ireland, the location you choose—urban or rural—can significantly impact your mortgage options and overall experience. Each setting offers distinct advantages and challenges that can influence your decision. Here’s a comparison of mortgage options and considerations for buying in urban versus rural areas in Ireland.

Mortgage Options in Urban Areas

Urban areas, like Dublin, Cork, and Galway, offer a variety of housing options, from apartments to townhouses. Because these areas are densely populated and in high demand, they often have a higher cost of living and property prices.

Advantages:

Accessibility: Urban areas generally have more lenders and financial institutions. This competition can lead to better mortgage rates and terms for buyers. Employment Opportunities: With a concentration of businesses and industries, urban areas provide more job opportunities, which can positively impact your mortgage application by demonstrating steady income. Amenities and Infrastructure: Proximity to amenities such as schools, hospitals, public transportation, and entertainment facilities can enhance property values and make urban properties more attractive.

Considerations:

Higher Property Prices: Due to the high demand, property prices in urban …

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Switch and Save

Avant Money estimate that over €25bn of mortgages are on an interest rate higher than they need to pay.

With the cost of living at an all time high, could a 5 minute discussion with a broker save you money in the months and years ahead. It could be the best 5 minute chat you have ever had!

Switching your Mortgage from one provider to another is simple, your Broker will do the research for you and let you know if you will SAVE money.

Some lenders are offering a cashback incentive to help cover the costs with switching, this is a great benefit and something people should look out for. It’s not always right for everyone but certainly worth speaking about.

If you are looking for a financial health check, please drop me an email today or pick up the phone for a no obligation chat –  james.curd(at)mortgagebrokers.ie or 01 633 9248.

 

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First Time Buyers

First Time Buyers guide

 

As a First Time Buyer, the idea of purchasing a new home can be a daunting prospect and you will be asking yourself numerous questions. How much can I (we) borrow? How much of a deposit will I need? Where should my deposit come from?

These are some of the questions we are here to answer, our goal is to give you the knowledge and peace of mind that you have a Broker who will guide you through the process and keep you informed every step of the way, right up until you have your keys.

As a First Time Buyer, lenders will Mortgage up to 90% of the property value and allow you to borrow up to 4x your income. For example if you were to purchase a property for 300k you could borrow up to 270k from a lender. You would then need an income of 67,500 per annum to qualify for this amount, if you are applying as joint applicants this is a salary of 33,750 per annum each, however the split does …

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Unlocking Financial Freedom: Paying Off Equity Shares

In the realm of homeownership, equity shares have emerged as an innovative solution for individuals aspiring to step onto the property ladder. While equity shares provide a valuable opportunity to own a portion of a property, questions often arise regarding the flexibility of payments and the ability to pay off equity in lump sums. In this article, we will explore the intriguing possibility of making lump sum payments towards equity shares in Ireland and shed light on the specific guidelines governing this process.

Understanding Equity Shares 

Before delving into the intricacies of lump sum payments, let’s first grasp the concept of equity shares in Ireland. Equity shares, also known as shared ownership or shared equity, allow individuals to purchase a percentage of a property while the remaining portion is owned by a housing association or the government’s affordable housing scheme. This arrangement enables prospective homeowners to access the property market with a more affordable initial investment.

The Power of Lump Sum Payments

Now, let’s address the pressing question: Can a customer pay lump sums off their equity share in Ireland? …

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Four Alternatives for Policy Responses to Increased Mortgage Rates, According to David Willetts:

Introduction:

The recent findings by the Resolution Foundation have shed light on the significant impact of rising mortgage rates in Ireland. With projections indicating further increases in the coming years, it is crucial to explore policy options that can alleviate the burden faced by homeowners. In this article, we will delve into the implications of these findings and examine four potential policy responses to address the challenges presented by higher mortgage rates.

 

Creating a New Spending Program:

One approach is to consider the implementation of a new spending program aimed at assisting individuals facing higher mortgage payments. However, it is essential to evaluate the effectiveness of such a measure, considering the income levels of the affected population. Moreover, it is important to recognize that the increase in mortgage rates is a deliberate policy response to combat inflation, and protecting individuals from the impact of this policy may not fully address the underlying issue.

Exercising Lender Discretion:

Lenders can play a role in alleviating the burden of higher mortgage rates by exercising discretion in their lending practices. One practical measure …

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Best Places to live in Ireland outside of Dublin

Many people dream of living in Ireland: with its gorgeous countryside views and culture-rich cities, there’s not much to dislike. The biggest and most famous city in the country is the capital city of Dublin, famous for its pubs, diverse community, and unique culture. However, Dublin is also by far the most expensive place to live in Ireland. If you’re looking to move to the Emerald Isle and would like to save some money while doing so, here are some great areas outside of the capital to consider.

Galway

Located on the River Corrib next to the Atlantic Ocean, anyone who visits Galway will fall in love with it. Considered the cultural center of Ireland, this coastal town has a lot to offer at a fraction of the price of living in Dublin. Rental prices are 50-80 percent cheaper than in Dublin, and Galway still has a lot to offer culturally, with festivals throughout the year and many culinary options. In fact, Galway is so culturally rich that it was named the European capital of culture in …

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Pros and cons of a variable rate mortgage

A variable rate mortgage is a mortgage in which the interest rate on the outstanding balance changes periodically. Typically, these loans will have fixed, or “teaser” interest rates for a specified amount of time, after which the interest rate will change based on a variety of factors. In most cases, the initial interest rate on a variable rate loan will be lower than a fixed rate, which can be appealing for homebuyers. But it is important to be aware of the pros and cons before jumping into a variable rate loan.

Pros

Flexibility

The number one advantage of a variable rate mortgage is flexibility. With a variable rate mortgage, you don’t need to worry about penalties for things like increasing your monthly payment, or paying off your mortgage early. You also have the ability to make lump-sum payments on your mortgage throughout the year, which can be very helpful for home buyers with a fluctuating income affected by bonuses or commissions. If your life is likely to change relatively soon, and you plan on eventually moving or selling the house, …

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How to win a bidding war on a house

So, you’ve found your perfect home. The only problem is that the home that is perfect for you also happens to be perfect for several other buyers. In markets with high demand and low inventory, also known as seller’s markets, bidding wars can be quite commonplace. And because of already increasing demand, combined with a year-long halt in construction due to the pandemic, Ireland is in a seller’s market right now. This means that many houses will have multiple buyers attracted to the property, which can hurt your chances of securing the home of your dreams. In this blog, we’ll consider some strategies to ensure you walk away with your dream home

Make the highest offer

The most obvious way to win a bidding war is to simply make the highest offer.  Because the seller is usually trying to make as much money as possible, the highest offer usually holds a lot of weight. So, if you can scrape together some extra cash to outbid the competition, you will most likely be the top choice of the seller. However, under …

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