How to get a mortgage? Mortgage123’s Sales Director Sean Corbett was a guest on Phoenix FM, Blanchardstown on Wed, 5th June. During the interview, he answered some listeners questions.
How is the Property Market?
There is currently a very different property marketplace in comparison to where it was at the start of the year. For Dublin, a lack of housing did contribute to rise in house prices. Hence, borrowing or entering the property market has become a little more complex.
One thing to note about the use of mortgage calculators by lenders is the importance of choosing a lender carefully as no two lenders will offer the same rate.
In other property news for Dublin, council apartments are for sale in Dublin for approximately €160,000 which Sean believes indicates a stabilising market in Dublin. It was explained that it is perhaps more cost efficient to buy, than it is to rent, and that it is worth buying your own property while this is still the case.
While the Dublin market appears to be settling, the property market around the country seems to still be inconsistent. The best way to navigate the current market is to find a broker, one that does not charge a fee and is able to deal with all banks.
Why should you use a broker to get a mortgage?
To put it simply, a broker works for you, banks work for the banks. It is best to use a broker in order to genuinely get the best rate for you. On top of that, brokers do not charge a fee. They are paid a commission by the lender once you buy your property.
Brokers will prepare buyers for what is to come by ensuring they are financially savvy. A good piece of advice is to start saving long before you even consider entering the property market. See this Article for more Benefits from Using a Mortgage Broker.
How much can I borrow monthly?
It is important to bear in mind that rates will differ from lender to lender and mortgage calculators can also vary. Typically, you can borrow up to three and a half times your annual income and 10% is the minimum deposit. Just be sure that you can demonstrate good, consistent saving habits and that you are living within your means. This will reflect well on lenders, and you will have an easier time getting mortgage approval.
Buy to Let mortgages are preferable for “seasoned investors” rather than the average buyer. Interest rates are higher for investment mortgages and buyers who are interested in such properties are usually already experienced in renting housing. The Rent to Buy Scheme is also not applicable here.
How to Get a Mortgage: Mortgage Deposit
Realistically, you should pay 10% of the borrowed amount as a deposit, but should you need support, a blood relative, usually your parents, can give you a “gift” as a deposit.
In terms of other aspects to getting a mortgage, some lenders are not as lenient. For example, having children can reduce the amount you can borrow. It is harder to get a mortgage if you have children already, so it is often advised to procure your mortgage before you start a family if possible.