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Frequently Asked Questions

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Why deal with a Mortgage Broker – Why avail of Mortgage Horizons expertise?

Which lender offers the best mortgage package?

What does the mortgage process consist of?

What are the normal lending criteria for a mortgage?

How much can I borrow?

How long does mortgage approval take?

Which rate should I choose?

What is loan to value?

Cost associated with a mortgage?

Why avail of Mortgage Horizons expertise:

Service

We pride ourselves on providing an unrivalled professional service to our clients.

  1. Each application is allocated to an experienced mortgage advisor
  2. Your dedicated consultant will deal with your application from start to finish.
  3. We provide fast decisions and deal promptly with all relevant matters.
  4. Wherever possible we meet with our clients in person.
  5. We strive to build long lasting relationships.

Experience

All our mortgage applications and enquiries are handled by highly experienced finance specialists.

Which lender offers the best mortgage package?

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.

Matters to be considered when choosing a lender include:

  • Lenders lending criteria – our consultants will advise you on this point
  • Current mortgage rates – both new business and existing customer rates
  • History of rates compared to the rest of the market
  • Market experience of lenders – commitment to the Irish market
  • Service factors – e.g speed of which mortgage can be processed and service throughout the life of the mortgage

Our experienced mortgage advisors will walk you through the products on offer and the rates available from our mortgage underwriters and provide all information you need to make it easy for you to decide what mortgage is best for you.

What does the Mortgage process consist of?

1. Making the decision to buy property

  • Once decision is made, start saving
  • Forgo entering into new loan agreements whenever possible
  • Keep a close eye on property market
  • Establish your property goals

2. Obtaining loan approval

  • Call us for an initial discussion (01 662 4595) – lending criteria, borrowing capacity, costs etc
  • Complete a mortgage application form
  • Assemble all information needed to support your application
  • Obtain formal approval in principle

 

3. Set your sights on a property

  • Choose your preferred location and match borrowing capacity with property goals
  • Be prepared to negotiate aggressively
  • Don’t rush or buy when you are not convinced
  • Be prepared to stretch – the property you want is usually just beyond your reach
  • Obtain approval in respect of the chosen property

 

4. Purchase a Property!

  • Engage a Solicitor – as part of our service we can provide details and contact names of a range of solicitors that would be more than willing to help you
  • Spend time reading your contracts and offer letters before signing and ask questions if you are not happy – both your solicitor & mortgage horizons will be more than willing to help where possible
  • Sign contracts for purchase of property
  • Sign Loan Offer Letter – arrange household and life cover (Mortgage Horizons would be delighted to help you with the arrangement of this cover)
  • Close sale and draw down mortgage
  • Move in & enjoy your new home!

What are the normal lending criteria for a mortgage?

  1. A Good Credit History
  2. Age 18 or over
  3. Age not greater than 70 at end of mortgage term
  4. Ability to repay – lenders will need to see current evidence of repayment capacity equivalent to stress tested (2% above standard variable) based on mortgage amount sought
  5. Secure employment
  6. Continuous employment for 1yrs
  7. Maximum mortgage available to Irish residents is 92%
  8. The primary focus is on repayment capacity.

How much can I borrow?

The key consideration for you is to be happy that you can comfortably afford your repayments.  Lenders look at two main areas when considering an application.

  1. Income
  2. Loan to Value

Income

Lenders look at both gross income and net income

  • Some overtime will be taken into account (if proven regular)
  • An element of bonus, to the extent, it is guaranteed, will be taken into account
  • Consideration will be given to length of employment and security of employment
  • For commission based income – lenders estimate normal income levels

Loan to Value

Irish residents qualify for a loan to value of up to 90% for Irish properties.
If any of the above appears confusing please do not hesitate to contact one of our consultants for a step by step explanation.

How long does mortgage approval take?

Once you give us a call or complete our application form we can assess your situation. 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 and make an appointment to meet you at your convenience.  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 on average within seven to ten days.

Which rate should I choose?

One decision which needs to be made is whether to choose a variable or fixed rate mortgage.  There are several factors to consider in making your choice.

We can discuss this decision with you in detail to ensure you get the best rate & term for your personal circumstances & to ensure you are comfortable with your choice.

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. Your mortgage consultant will discuss the various options open to you and provide you with explanations of the different options in an easy to understand manner.

What is loan to value (LTV)?

Loan to value is the percentage of debt you have secured against your property for example if you have a mortgage of €200,000 and the current market value of your property is €400,000 then your loan to value is 50%.

In the same way if lenders will extend 92% finance on a mortgage application then if you purchase a property for €300,000 then the maximum mortgage you can take based on a loan to value of 90% is €270,000.

Costs associated with a mortgage?

There are several costs associated with the mortgage process as outlined below:

Deposits

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. Previously, maximum facilities of 90% were available meaning that the remaining 8%, plus funds to furnish the home etc. needs to be found. Loans from parents very often form a part of the deposit.