Navigating the Urban Housing Market: Tips for First-Time Buyers in Dublin

Entering the housing market as a first-time buyer can be both exciting and daunting, especially in a bustling city like Dublin. With its vibrant culture, strong job market, and ever-growing population, Dublin offers immense opportunities but also comes with challenges such as high demand and competitive pricing. Here are some practical tips to help you navigate this dynamic market.

Understand the Market Dynamics

Dublin’s housing market is characterized by high demand and limited supply. The presence of multinational corporations, particularly in the tech and pharmaceutical sectors, has attracted a global workforce, driving up housing demand in the city. Understanding these dynamics is crucial as it influences both the availability and pricing of properties.

One of the first steps towards buying a home is saving for a deposit. In Dublin, where property prices are relatively high, this can be a significant amount. Typically, you’ll need at least 10% of the property’s value as a deposit. Start by setting a realistic savings goal and creating a budget to help you achieve it. Consider cutting back on non-essential expenses and setting up a …

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Mortgage Myths Busted

Mortgages for anyone can be confusing, especially for young people or first time home-buyers. There are several common misconceptions or myths when talking about mortgages. Here we will set the record straight and bust those mortgage myths. 

It is NOT true that you have to be an existing member of a bank to get approved for a mortgage. Mortgage applications are assessed on a case to case basis. Being established at a bank already does not affect the outcome or make you more or less likely to get approved. Existing members also do NOT get better agreements. 

Having evidence of gambling will NOT exclude you from being able to get you a mortgage. Having several transactions to online gambling websites may raise some concerns to lenders but occasional transactions will not strike your eligibility and will not be held against you. 

It is NOT impossible to get a mortgage if you’re self-employed. Many people think if you’re self employed it is challenging to get a mortgage and a home. Being self-employed does not exclude you from being approved from getting …

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When Do I Know If I’m Ready to Own a Home?

The decision to become a homeowner is a significant milestone in one’s life. It represents a step towards financial stability, independence, and the opportunity to create a place of your own. However, before taking the plunge into homeownership, it’s essential to assess your readiness. Let’s explore key indicators that can help you determine when you’re ready to own a home.

Financial Stability

Financial stability is a crucial factor to consider when contemplating homeownership. Evaluate your current financial situation by assessing your income, expenses, and debt obligations. Consider factors such as job security, income growth potential, and the stability of your financial foundation. Ensure you have a reliable source of income to cover mortgage payments, property taxes, insurance, and maintenance costs. Building an emergency fund for unexpected expenses is also vital. Having a stable financial position gives you confidence in your ability to meet the financial responsibilities that come with owning a home.

Debt and Credit Management

Assess your debt and credit situation to gauge your readiness for homeownership. Lenders typically consider your credit score and debt-to-income ratio when determining loan …

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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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Understanding the Impact: How Interest Rate Hikes Affect Irish Mortgages

In this blog, we journey through the intricate world of interest rates and their profound influence on our mortgages. With recent rumblings of potential interest rate hikes, it’s essential to understand how these changes can impact our financial lives. We’ll explore the key aspects of interest rate hikes, their implications for Irish mortgages, and provide real-life examples to help you grasp their significance. So, let’s dive in and gain a deeper understanding of this critical subject.

 

The Basics: Interest Rates and Mortgages

Before we delve into the impact of interest rate hikes, let’s refresh our understanding of the fundamentals. Interest rates are the cost of borrowing money, and they directly affect the amount you pay on your mortgage. When interest rates rise, the cost of borrowing increases, leading to adjustments in mortgage payments. Conversely, when rates decrease, mortgage payments may become more affordable.

The Ripple Effect: Monthly Mortgage Payments

Interest rate hikes have a direct impact on your monthly mortgage payments. As rates rise, your mortgage interest charges also increase, resulting in higher monthly payments. For example, let’s consider …

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Comparing the 2008 Financial Crisis to Recent Interest Rate Hikes in Ireland

In this blog, we look at insightful parallels between the infamous 2008 financial crisis and the recent interest rate hikes in Ireland. While each event has its unique characteristics, examining their similarities can provide valuable lessons for navigating the current financial landscape. We’ll explore the key resemblances between these two periods, highlighting real-life examples to deepen our understanding. So, let’s dive in and uncover the lessons history has to offer.

 

The Domino Effect: Fragile Housing Markets

Both the 2008 financial crisis and recent interest rate hikes have exposed the vulnerability of housing markets. In 2008, a burst in the housing bubble triggered a wave of foreclosures and plummeting property values. Similarly, interest rate hikes can impact affordability, leading to a potential slowdown in demand and a correction in housing prices. These dynamics remind us of the importance of balanced and sustainable growth in the housing sector.

Financial Strain: Increasing Debt Burden

During the 2008 crisis, many homeowners found themselves burdened with high levels of debt. Adjustable-rate mortgages with low …

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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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What you need to know about ECB’s raising interest rates

The European Central Bank raised interest charges more than what they initially announced. Over the past few months, the rates have increased by around 1.25%. The clients have not yet been reached by institutions including Bank of Ireland and Permanent TSB.

Customers have a lot of pain for the future because there are a lot of uncertainties. They now have to deal with high mortgage interest rates in addition to inflation, rising electricity and fuel costs. New customers face a direct problem because their five-year fixed rates increase by 2%. As a first-time buyer, you will receive a rate of 5.95%. Long-term fixed loans rise by 1.49% to 1.58%. (depending on size and running time). As a result, banks such as AIB, ESB, and Haven must raise their rates for new and switching customers. The current customers are not affected. Customers with tracker mortgages face an increase in interest rates due to contractual obligations. Some of the new customers must take an expensive rate, which means they must pay 240€ more than before the ECB increase.

If the AIB, EBS, …

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Compare Mortgage Rates of Irish Lenders

The ECB will continue to raise the interest charges over 2% by the end of the year 2022. In 2023 it will be up to over 3%. If you are a first time buyer you must have 10% of the  whole house price. If you have more than 10%, your rates will be lower. There are a lot of products out there and you must have a look at which one is the best for you. There are  products for first time buyer, second time buyer, self builder and switcher. Some of them have  some special products like green mortgages or for renovator.  

The following companies were compared: Bank of Ireland,  Finance Ireland, Avant Money Mortgages, ICS Mortgages,  Permanent TSB, Haven, AIB, EBS. 

Bank of Ireland has a lot of offers when you get a mortgage. If you get your first mortgage with this bank, they will give you 2000€ for saving up. They also have a  cashback system, so if you take a mortgage there they will give you 2% cashback of the mortgage and 1% extra cashback if …

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