First Time Buyer Mortgage

It is no secret that property prices have fallen over the past year or so. This could mean that now is a good time. In the past Irish property prices have without doubt been overpriced. However with property now more affordable it is a very good time to buy - particularly for those who have nothing to sell.

Be careful about waiting for prices to go down even further. If you have found a place you want to live in then go for it. The chances are it will go up in price over the long term. (Remember you are buying a HOME not an investment, somewhere to live and that you can reasonably afford).

So while prices might go down even further does that matter? In the long run they will probably go higher than they are now.

If you need a First Time Buyer Mortgage then the following might help.

Whats the first step?

The first thing you need to do is get yourself into a position where you have access to a deposit. The maximum mortgage for Irish First Time Buyers these days is 92%. This means you will need a deposit of at least 8%. This can be from savings or a gift from a family member.
As well as being in permanent employment or self employed for more than 2 years a Mortgage Lender will generally also look to see that you can afford the new mortgage repayment. A track record of saving and or a history of rental payments will help your case.

Should I go direct or with a Broker?

Unless you are a personal finance expert you will need help and advice with the important decisions. You could go direct to your own bank but will they give you the best deal? A better option is to use an Independent Mortgage Broker who has access to at least seven mortgage lenders. Getting a mortgage is harder today than it has been for several years. A good broker will make sure you get what you need or as close to it as possible and also get you the best deal.

Should I opt for a fixed, variable or discounted rate?

With interest rates falling recently variable rates have been flavor of the month. However with the ECB rate now at 1% it is hard to see how rates can go any lower. With this in mind it could be a good time to think about fixing. The world economy will eventually pick up and when this happens rates will inevitably start creeping back up again.

How much can I borrow and how much will it cost me?

The amount you can borrow will generally be 4 or 5 times your yearly salary. However this varies between lenders for different types of borrowers.

There are some great First Time Buyer packages available at the moment with lenders like AIB offering rates as low as 2.4% and ICS (Bank of Ireland Group) offering €1,000 cashback.

If you are in the market for a First Time Buyer Mortgage contact MortgageLine for a Free Mortgage Review.

Even if you are not thinking of buying straight away it is never too early to contact us and see what your options are.

Stephen Hamilton
MortgageLine.ie