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Frequently Asked QuestionsChoose a topic below:
We pride ourselves on providing an unrivalled professional service to our clients.
We do not charge you fees for our service. Lending institutions pay Mortgage company of Ireland fees for introducing business to them. The level of payment to mortgage company of Ireland is typically around .75% of the mortgage. We also provide, if requested at the outset, a fee based service, charging you the client an agreed fee and in turn refunding fees received from the lender to you. The choice is yours.
The Irish market is very competitive. No single lender can claim to offer the best package. There is a wide range of mortgage products available and significant differences between lenders in regard to lending criteria. Our role is to advise on a mortgage product that best suits your needs.
The arrival of Bank of Scotland into the market drove lenders margins down for the benefit of borrowers. Bank of Scotland continue to compete aggressively although they tend to restrict facilities to 80% of property value.
AIB offer equally good variable rates in addition to impressive fixed rates, while maintaining a cautious approach with income multiples.
ICS offer an excellent range of rates backed up with very efficient service.
IIB are particularly strong in the re-mortgage area.
Irish Permanent probably the best known lenders in the market, consistently provide quality products and service.
First Active are primarily a mortgage bank and offer excellent first time buyers and re-mortgage facilities.
Matters to be considered when choosing a lender include:
The primary focus is on repayment capacity.
Use our calculators to estimate your borrowing capacity and review the typical lending criteria above. The next step is to give us a call or complete our secure on line application Based on the information we will generally be able to advise you straight away whether you will qualify for a mortgage and we will also provide you with an estimated borrowing limit. Our consultant will then advise you of the precise information required (see point 11 below) and make an appointment to meet you. At that meeting our consultant will explain the various options available and will guide you through the completion of any application forms required. We will then submit the applications to the chosen lenders and we would expect formal approval in two to three days.
Lenders look at both gross income and net income. As a guide lenders will advance up to 3.5 times the gross income of the main earner plus 1 times the gross income of the second earner. In reviewing net income repayments on all borrowings including the proposed mortgage should not exceed 40% of net income.
Loan to Value
Irish residents qualify for a loan to value of up to 92% for Irish properties. Foreign residents borrowing in Ireland are usually limited to a loan to value of 70%.
Most lenders offer products, which allow you split your mortgage into fixed and variable elements. It is important to bear in mind that breaking a fixed rate contract may involve penalties. Please click here to view current mortgage rates. Your mortgage consultant will discuss the various options open to you.
The First Time Buyers grant is only available to a first time buyer of a new property. It is not available for the second hand buyer.
A grant of 3,810 is available from the Department of the Environment for new houses (including flats and maisonettes) where the buildings in question meet the conditions of eligibility as laid down by the Department.
These conditions include:
Savings are a key part of the mortgage process. Whereas banks currently place less reliance on savings than in the past, the discipline of saving cannot be underestimated. As max facilities of 92% are only available the remaining 8%, plus funds to furnish the home etc. needs to be found. A steady savings record helps an application. Banks will require evidence of the deposit in the form of savings books etc as part of the loan underwriting process. Loans from parents very often form a part of the deposit. Savings also reduce the necessity for short term borrowing which may have a strong impact on cash flow following a house purchase.
10 (b). Stamp Duty Rates STAMP DUTY RATES Nov 2001
There is relief for first time buyers as per above table. Stamp Duty on property transfer is expensive in Ireland. For larger properties, the rate is as high as 9% of the value of the property. Funds need to be set aside by the borrower to cover stamp duty, which is payable on closing. Lenders do not advance funds to pay stamp duty.
10 (c). LEGAL FEES
Use 1% of property value plus vat at 20% as a general guide. In addition outlay for stamp duty on the mortgage document and other miscellaneous costs might add in the region of 400 for a standard mortgage. Should you require a solicitor, contact us and we would be happy to make a recommendation.
10 (d). INDEMNITY BOND
Indemnity Bonds are insurance policies taken out by the lender to insure against a potential loss in the event of a forced disposal of the property. Lenders only take out such bonds when the loans exceed 75% of the value of the property (which is highly likely for first time buyers). Many lenders waive indemnity bond charges.
10 (e). SURVEYORS FEES
It is recommended that you employ the services of a qualified surveyor to check the property for any structural problems or to advise you on any matters that may involve significant outlay e.g. dry-rot, subsidence, dampness etc. The structural survey is usually not a condition of the loan offer and is a completely different matter to the valuation, which is carried out on the lenders behalf. Use a reliable firm, agree their fees at the outset and insist on a written report. Budget 200 approx.
10 (f). VALUATION FEES
Before a lender will issue a formal offer letter in respect of a property, they require an independent valuation from a qualified valuer. We will arrange this for you. Budget 125 approx.
Lenders require mortgage holders to take out a life insurance policy. This policy provides for the repayment in full of the mortgage in the event of death of one of the mortgage holders. You are not required to take this policy out with the mortgage provider.
The lender will also require that you take out a building insurance policy on your house and that the interest of the lender be noted on the policy.
NOTE: We will provide you with the application form for signature together with Status Forms for your Employer.
In general the profile that lenders are looking for in respect of non-resident and a residents are very similar. Many non-resident mortgages are for investment purposes perhaps with the intention of returning at some time in the future with the property initially being available for rent. In such instance, mortgages are usually charged at the investment mortgage rate, which is typically ½% higher than home loans and may not attract some of the discounted offers available to resident home owners. With e-mail and fax facilities, there is no reason to expect any significant delays in processing non-resident applications. The main difference is the percentage loan to value. For residents this is 92% and for non-residents the normal limit is in the region of 70%.
In certain circumstances, foreign banks are willing to advance in the region of 60% facilities to Irish residents buying properties overseas. We do not currently act for any foreign banks in this regard. Irish banks will only fund overseas property by taking security on existing property in Ireland. We can provide facilities in this area.
Office, 97 Malahide Road Dublin 3