Best-Mortgage-Broker-LPI-Award

Hegarty Financial Management win Best Mortgage Broker 2016

We are delighted to have received the prestigious LPI Award for Best Mortgage Broker 2016. This follows on from our 2015 AI International Finance award for Mortgage Advisory Services.

We thought we would take this opportunity to discuss current Mortgage Rules and offers available to First Time Buyers and those considering switching their Mortgages.

The Central Bank is due to review mortgage rules this summer and will shortly open a public consultation on the mortgage rules, the results of its review will be published in November.

First Time Buyers

Under the current rules, First Time Buyers usually need a deposit of 10% of the first €220,000 cost of a home and 20% of the remainder of its value.

Mortgages are generally limited to 3.5 times gross income for all borrowers.

With regards to the deposit savings used to purchase a property, one area often overlooked is the reclaiming of Deposit Interest Retention Tax (DIRT). This rebate is available to First Time Buyers who purchased their property from mid October 2014 to 31st December 2016.

We would also like to take this opportunity to emphasise the importance of getting pre-approval for your mortgage.

Here is a useful list of all necessary documents which should be gathered in plenty of time prior to applying for your Mortgage;

  • Proof of identity i.e. copy of current Passport or Driving Licence
  • Proof of income P60s, payslips etc.
  • Proof of employment – Letter of confirmation from Employer
  • Proof of savings and outgoings i.e. Bank Statements/Current Account Statements
  • Proof of address i.e. Recent Utility Bill or Bank Statement dated within last 3 months
  • Proof of repayment capacity i.e. Rent or Regular Savings
  • Applicants must be aged over 18 and under 70
  • Family gifts only for deposit purposes with a letter confirming that it is a gift and is not a loan

Switching Mortgage Lender

There are plenty of offers available to switchers. For example, Permanent TSB are offering 2% cashback to switchers, along with other incentives, while KBC will give you €2,000 towards your legal fees, a 3.2% variable rate and 50% off your home insurance in year one.

If you are currently considering applying for your first Mortgage or perhaps switching, Ross will be happy to go through the process with you and assist you with your application. Ross can be contacted by phone at (01) 4972544 or alternatively by e-mail at ross@hegarty.ie