- Secure employment and good income prospects including long term contract positions
- History of regular saving’s.and/or rent payments
- Evidence that you can afford repayments when stress tested
- Good credit history
- The typical minimum income to qualify for a mortgage is as follows:
Single Applicant €32,500
Joint Applicants €50,000
New Central Bank guidelines (imposed to slow down house price growth) place a limit of 3.5 times your gross annual income as your maximum mortgage. In most instances this limit will be applied.
This 3.5 times limit can be exceeded in certain circumstances.
The typical income levels where exceptions would be considered are:
Single applicant Income > €50,000
Joint Applicants Income >€80,000
Subject to the demonstration of strong financial management, facilities in the region of 4 times could be considered.
- Central bank deposit rules are 10% for first time buyers up to a purchase price of €220,000 and 20% on the excess over €220,000. A 20% deposit is required for second time buyers
- Facilities up to 90% will be considered where income levels are at the levels below and employment prospects are strong.
Single Applicant Income > €50,000
Joint Application> €80,000
- First time buyers (never purchased a home before in Ireland or elsewhere) deposit is 10% of the purchase price up to €220,000 and 20% on the excess
- Second time buyers 20% of the purchase price
- Some lenders are happy to have the deposit requirement provided by way of a gift, but as a general rule our preference is to see a steady savings pattern contributing to a share of the deposit
- The most important matter to consider is your comfort level with the proposed repayments .Rates will change during the mortgage term .The price you want to pay for a house should be driven by your feeling for affordability
- You need to demonstrate that you can afford your mortgage payments even if rates increase by 2%
- The longer the period over which you can demonstrate ability to repay – the better, but it should be a minimum of six months and preferably longer
- You need to be in secure employment. Being on a permanent contract is a requirement with most lenders but we are pleased to advise that some lenders will consider contractors where there is evidence of contractual work for over one year on a continuous basis and prospects for further continuous contract work into the future are strong.
- Lenders take a prudent approach. Employees should be employed for at least twelve months and have completed your probationary period.
- The sector in which you work should have long-term prospects as should the organisation for which you work.
- The more skills and qualifications you have that are relevant in today’s world – the better.
- Good regular savings record
- Minimum of personal debt and credit cards cleared monthly
- Prudent spending habits
- If you have taken out loans in the past – there should be no missed payments
- No on line gambling
- Try and keep it simple- not too many bank accounts – savings simple to follow