How to get a mortgage in Germany

The rights to a real estate property that are held by the person who owns the property (house, land, apartment etc.) are given to a bank in order to receive other benefits in return. These benefits are usually cash benefits. The mortgage is used in banking as security for loans. The possible amount of the mortgage is determined by the value of the property. Mortgages can be given by banks. In case people need help regarding mortgages there are different branches that can help. Mortgage brokers help people to arrange the mortgage between the borrower and lender and a real estate agent helps buyers and sellers find or sell a property. Getting a mortgage has several advantages such as that the interest rates are generally lower than for other types of borrowing and that a mortgage is easy to repay due to it is repaid little by little on a monthly basis. But a mortgage can also be disadvantageous because the interest rates on mortgages are changing from time to time and can increase suddenly o the borrower has to pay …

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The All You Need to Know Self Build Mortgage Guide

Self Build Mortgages are different from typical mortgages in the fact that it is difficult to put the key in the door immediately. These homeowners typically build their home from scratch or have to extensively renovate their property. If you are thinking about building here are some helpful tips:

Maximum Mortgage – The most one can borrow is 3.5 time their annual total income. Self-build properties are calculated by adding the site price plus the build cost plus. The banks also calculate the final valuation once the building process is completed. Most of the time, the method which yields a lower mortgage value is the method that is picked. Extra Money – It is smart to make sure to have extra money set aside in the case of unforeseen expenses. A smart bet would be to set aside approximately 10% of the total cost. You don’t have to be an expert to apply for a self-build mortgage. You also don’t need to hire a company to undertake the project. Building yourself will save you money in the long-term and can …

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Irish Insurance Brokers

Insurance brokers can offer a wide variety of services to customers. Some brokers specialize in certain areas of Insurance, investments, Pensions and other financial products. The main benefit of using the services of a broker over say a bank is that with a broker there are a number of different services offered to the client. In most cases banks are tied to an insurance agency so the client can only get 1 quote with them. In a brokerage, you will find a number of different providers with multiple different quotes and rates. This gives the broker some leverage over the insurance agencies in order to get the client the best deal available to them. 

For a potential client, the most time efficient way to price the market for a policy is to use a broker. The broker will offer the most suitable product available at the best price and in many circumstances improve on the policy already in place through a bank. 

There are a variety of insurance products on the market to suit every need. Life assurance on the …

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Safety Nets for Consumers in Mortgage Arrears

According to The Central Bank of Ireland, at the end of June 2019, there were 723,280 private residential (PDH) mortgage accounts for principal dwellings held. Of this, 61,901 accounts still had outstanding payments, also referred to as being in arrears. as of June, there were a total of 61,901 total accounts in arrears. Within that, over 18,000 were within 90 days overdue, almost 5,000 were up to 180 days overdue and a staggering 27,792 accounts were over 720 days overdue. However, at the end of the quarter only 1,407 homes were repossessed. So what protections do homeowners have when they are in arrears? In Ireland there are many codes and acts that are specifically designed to protect the family home from repossession.

The main code that deals with family homes, is the Code of Conduct on Mortgage Arrears (CCMA) which was put into place in 2013. The code is issued by the Central bank and relates to customers in arrears and pre-arrears situation. It does not however deal with investment properties. This code requires mortgage lenders to apply the Mortgage …

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Mortgages on the rise

A sense of impending doom has been a huge part of economic and political decisions within the last few months due to the ever uncertain Brexit debacle. These feelings are slowly beginning to fade in Ireland due to the increased time that Irish businesses and banks have had to prepare for the EU split. Although this event is bound to cause slight fluctuations, economists have noted that the economic future for Ireland is still bright. 

Banks and buyers alike are taking note of this promise, which has been obvious through the most recent data in relation to mortgage approvals and house prices. According to recent bank data, there has been a  significant rise in the number of home related mortgage applications and acceptances. 

The Irish Bank and Payment Federation found that from April to June, there were 10,157 mortgages taken out, which is an 8.8pc rise from the previous period. Using yearly comparisons, it has been shown that the issued mortgage rate this time last year was around 800 acceptances lower. It topped the approvals for the first three months …

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Parent’s continue to pay

Mortgages can be extremely overwhelming to any buyer, but especially those new to the market. Competition in the market is at extremely high levels, especially within the major Irish cities. This is due to rising house prices, little availability, and the intensity that comes with making an offer against other prepared competitors. In order to make an offer on any property, there are many hurdles that you must be able to jump through to even begin being an eligible purchaser. 

Loans have become much harder to get approval for as a first time buyer, especially if your credit history is not as detailed or robust as another person applying for the same type of loan. With high intensity competition beginning at stage one of getting a loan, many possible home buyers feel distressed from the get go. 

With Brexit on the horizon, banks have an iron hold on most of their funding; they are being extra selective about loan recipients in the hopes that they will have no issues in the repayment process.

Under the Central Bank rules, first time …

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Mortgage rates take Irish lendee cash

Ireland has been known to have one of the highest interest rates on mortgages out of all of the countries in the European Union. High interest rates are not uncommon, due to differentiation of financial records of possible lendees, but a high average rate surely is. According to a survey done by Goodbody stockbrokers, a mortgage rate in Ireland is 1.7 times more than the Eurozone average. 

Although this is extremely high, when you take out many of the benefits and cash back opportunities that the Irish banks provide the rate ends up lowering to around 1.25 times more. This rate is still high, leaving some people who have taken out a loan with significant extra costs as the years of their loan repayment diminish. 

A recent study by the Central Bank has proven this point, showing that a family who has a loan of €300,000 could pay up to €60,000 extra in a scenario where the loan lasted for 25 years. This is a very large sum of money, all of which is owed to the bank simply for …

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Mortgage lending trends

Bank’s lending practices have been on a rollercoaster ride that has yet to have slowed down. Due to many different economic factors, the trends tend to increase and then decrease with ease over short periods of time. The factor that has the most influence on these decisions by the bank is Brexit. Behind this name, there lies an endless amount of disruptions that are unpredictable in categorical and economic related areas and loom over every decision that the bank makes.

In general, Brexit has slowed down the lending process. That being said, there are some times in which Brexit brings about significant positive changes in the market. After the Brexit deadline was extended to October 31, 2019, there was a significant rise in the amount of lending. This change in some ways rebooted the market, given that the beginning of 2019 had a slow start. 

After the extension, approvals for mortgages increased by 10pc for the year on year comparisons. There were 4,926 loans that had been approved, totaling up to €1.14 billion according to the Banking and Payments Federation …

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May 2019 mortgage approvals offer high hopes

The mortgage scene is finally beginning to see some positive growth, especially for first time buyers. Recent figures have just been released for May 2019, which have shown substantial upward traction in regards to the approval of loans. 

The statistics indicated that there has been a 10pc increase in approvals when comparing May 2018 to May 2019. During May 2019, 4926 applications for loans were approved by at least one of the banks. Additionally, there was a 19.9pc increase from April to May of this year. 

Most of the approvals from May seem to have been heavily dominated by first time buyers, who made up 51pc. This demographic  is heavily marked to via social media and other online platforms. Additionally, banks advertise to this untapped market by offering exemptions that make getting a loan more affordable. 

This seems to have been effective, give that approvals are high for this month. If approvals are high, this indicated that there were also a very large number of first time buyer applications that the bank saw during the previous months. Mover purchases also …

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Both Political Parties are Pointing Fingers

The Increase of difficulty in attaining mortgages coupled with rising home prices has caused Ireland to have the lowest rate of home ownership in 50 years. The main group affected is young people looking to buy their first home who do not have enough money saved up to meet the 10% deposit required to attain a mortgage. Additionally, Fianna Fáil Leader Micheál Martin stated, “a litany of failures,” when discussing how the increase of homeless children falls on the current government’s policies. Mr. Martin discussed how Ireland used to be one of the highest home ownership rates in the EU to now one of the lowest at 68%.

The government may be too complacent with policy or foreign multinational corporations are bringing in a lot of short-term employees who are looking for renting, but something needs to be done to increase home ownership following this statistic. Owning a home provides long-term equity to people in a form other than cash that can be a safety net in times of trouble. Additionally, having to pay rent during retirement years can cause …

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