Antoinette McGrath, Newly appointed Mortgage Manager at Prosperous Financial, discusses how to make yourself more attractive to banks for a mortgage. Topics include navigating mortgage exemptions, understanding mortgage regulations, and the complexities of the mortgage application process.
Consult a mortgage broker at least two years before buying.
Maintain clean bank statements for better mortgage approval.
Deep dives
Understanding Mortgages and Financial Responsibilities
When getting a mortgage, it is important to understand the rules and how they work. A mortgage is essentially a loan where you borrow money, usually at a low rate because banks ensure repayment. They secure the property you're buying as collateral to recover their money if you default.
Central Bank Rules and Mortgage Limitations
After the 2008 property crisis, the Central Bank implemented rules to prevent over-lending. Currently, first-time buyers can borrow up to four times their salary, while second-time buyers are limited to three and a half times. A 10% deposit is typically required. Exemptions allow banks to exceed these limits in rare cases.
Starting Early and Mortgage Broker Advice
Starting the mortgage process early is recommended, ideally consulting a mortgage broker two years before buying. Mortgage brokers offer comprehensive advice and can help prepare financially for mortgage approval. They analyze finances, suggest improvements, and guide applicants through the process.
Key Considerations: Clean Bank Statements and Betting Habits
Banks review bank statements for consistency and financial stability. Regular betting habits can raise questions about financial responsibility. It's crucial to have clean statements, make repayments on time, and avoid patterns that may raise concerns for lenders.
Shared Equity and Help to Buy Schemes for Homebuyers
Shared equity schemes involve a third party buying a stake in the property alongside the buyer and bank. The Help to Buy scheme offers tax refunds to assist first-time buyers. While these tools aid home purchases, individuals should be aware of potential market impacts and seek guidance on utilizing them.
