Every little helps (except when it means mortgages)

Tesco won’t be offering mortgages in Ireland despite rolling out a full host of financial services, this is also a departure from the UK proposition in which they are included, something we covered nearly four years ago.

Bothered? Maybe not, but you should be because any market with a functional duopoly is unhealthy, we saw for instance how AIB increased their rates and for 2 or 3 hours their prices were the same as BOI, but then BOI co-incidentally increased their rates by 25 basis points on the same day so the pricing difference occurred once again.

Why would Tesco decide not to enter the Irish market? They claim it’s regulation, one doesn’t need a Professional Diploma in Compliance to realise that much of our regulation is identical to the UK and in foundation is primarily based upon it, …

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Dichotomy in property – apartments versus houses

The recent liquidation sales have possibly started a new trend in the property market in Ireland, one whereby there is an increasing divide between the valuations in different types of property, we have long been saying that the only market worth considering is non-apartment second hand homes in cities, the liquidation sales have reinforced this belief.

While we may be part of Europe, when it comes to living spaces we believe that Irish people favour houses to apartments, we have not crossed that particular Rubicon just yet and unlike our European counterparts, there is still a wish to own the land under the dwelling, over time this may change, but with the exception of the bubble-times the overwhelming mortgage for a first time buyer was used to purchase a house and not an apartment.

The situation regarding the property market in Dublin (for instance) will likely be one where apartments are seen as a totally separate market, in the past many newly built apartments were not priced on a totally dissimilar basis to houses of comparable square footage in the …

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Synopsis of the ‘Code of Conduct on Mortgage Arrears’ February 2010

The Financial Regulator recently brought out a new code of conduct for mortgage arrears, the full length eight page document is here.

The code applies to: all of the regulated mortgage lenders in the state (this includes the sub-prime lenders), as well as all mortgage lenders operating here via other EU states (eg: Leeds Building Soc.)

It applies to consumers only, and only in respect of their principle private residence in the state. The code should be treated as an extension of the Consumer Protection Code.

Scope: The code covers finance for primary homes, lenders must adopt flexible procedures that aim to assist the borrower as far as possible. It sets out what the lenders must do in an arrears case but allows repossession where the code is not appropriate (fraud, breach of contract, abandonment). It doesn’t relieve the borrower from their duties to repay

Legal Background: S117 of the Central Bank Act 1989

Avoiding an arrears problem: Once …

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Apply for a mortgage online.

Mortgages in Ireland have yet to establish a truly ‘online’ presence, so if you got here by searching for an ‘online mortgage’ or something along those lines then I’ll break the bad news first, it ain’t gonna happen. What you can do is make an initial mortgage application online via this site, and one of the representatives from Irish Mortgage Brokers will call/email you back.

The actual process generally tends to be that you will speak to a qualified consultant (our team have qualifications varying from ACCA <accountant>, QFA <qualified financial adviser> to LIAM(dip) <mortgage diploma> along with various university certificates, diplomas and degrees in many topics), your consultant will help determine what you can or cannot obtain in the lending market for a property purchase and from that point it will be up to you to decide if you’d like to proceed.

After that you will (usually) meet with us and we’ll gather the various documents the bank need to underwrite the mortgage and …

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Self-Employed first time buyer?

Q: I am a first time buyer but I am self employed. Is it true the banks will not lend to me?

A: No not necessarily. If you have been self employed for 2 years or more and have Certified Accounts and Notice of Assessments (Tax Returns) for the the last 2 years proving your earnings than mortgage lenders will accept an application from you.

If they will approve you and how much they will approve you for will ultimately depend on how much you earn, your savings record, your day to day money management record in the last 3-6 months and your credit history record.

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Mortgage Questions: I am not in permanent employment. Can I get a mortgage?

Answer: If you are not in Permanent employment no mainstream mortgage lender will consider a mortgage application from you, while that may sound harsh, it reflects the reality in lending that the main thing a lender needs is security that the borrower has the capacity to pay back the loan in the future. Sub-prime Lender Start Mortgages may consider an application, but if you opt for a specialist lender you will pay  for it via the margin on their lending, they take on risky applications but they charge accordingly. The maximum loan they will lend is 75% of the purchase price. This type of application is assessed on a case by case basis & will depend on the length of your contract served etc. the length of contract remaining and your previous employment history.

However, to give a short concise answer – generally banks won’t lend to you if you are not in permanent employment, this is a question you will be asked by your mortgage adviser and it also appears on your salary cert.

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