Everything you need to know. Useful information and documents to guide you on your mortgage journey.
How much can I borrow?
According to Central Bank of Ireland rules, a lender cannot lend more than 3.5 times your gross annual income. Your income includes your salary and other guaranteed income including any allowances that you receive regularly.
For first-time buyers, the maximum loan you can borrow is 90% of the total value of the home you wish to buy. This means you must be able to show that you have saved the remaining 10%.
For other borrowers, the maximum you can borrow is 80% of the value of the home you wish to buy. This means you will need to show proof of a 20% deposit.
We will also take account of your monthly outgoings, including any other loan repayments, to ensure that you can afford the monthly mortgage repayment.
A mortgage broker can help you calculate how much you can borrow, advise on the amount you need to save for a deposit and all associated costs of buying a home.
How do I apply for a mortgage?
Many customers will start by looking at properties to get an idea of what is available and how much it might cost to purchase.
Once you have an idea of what you would like to buy, then arrange a meeting with a mortgage broker who can explain your mortgage options and will help you prepare an application to a lender like Avant Money.
When Avant Money receives your mortgage application, we will assess it to ensure that it meets our lending criteria and that you will be able to afford the monthly mortgage repayments.
We’ll issue you with “Approval in Principle” which sets out the amount we will lend, along with any conditions or steps that you will need to follow. This is valid for a six-month period, so it gives you ample time to find and make an offer on the right home.
Why choose a mortgage broker?
Mortgage brokers are regulated and authorised by the Central Bank of Ireland to provide financial advice to consumers.
Mortgage brokers deal with many lenders and can help you choose the right one for you. Getting a mortgage is a major financial decision and getting expert advice is highly recommended.
Your mortgage broker will help you to complete a mortgage application to your preferred lender and advise you on the supporting documents that you will need to provide. Once approved, your mortgage broker will be there to guide you through each step of the mortgage process, right up the day you will move into your new home.
What do I need when meeting with a mortgage broker?
It is very helpful to be fully prepared for your meeting with a mortgage broker.
Don’t worry if you don’t have everything right now, but you’ll be able to make an application much faster if you can organise:
- Current account statements for the last six months
- Statements for any loans you may have, for the last six months
- Statements that show you have saved your deposit
- Last three consecutive payslips and a salary certificate from your employer
- Employment Detail Summary, which is available from the revenue.ie website
- Proof of your identity such as a passport or a driving licence
- Proof of your address such as a recent utility bill dated within the last three months
If you are self-employed, then in place of employment details, you will be asked to provide:
- Current account statements for your business for the last six months
- A tax clearance certificate or accountant certification that your taxes are up to date.
- Your most recent two years’ audited/certified accounts
- If applicable, your last two years’ Revenue Form 11, or your last two years Chapter 4 and indicative notices of assessment
What are the different mortgage types?
Today, lenders offer both fixed rate mortgages and variable rate mortgages. What is best for you depends on your personal circumstances.
If you choose a fixed rate mortgage, your interest rate is set for an agreed period, usually between three and ten years. A fixed rate means that your monthly repayments will remain consistent throughout your chosen period, helping you have certainty of your monthly outgoings.
At the end of a fixed rate mortgage, you may opt to take another fixed rate, or your mortgage will move to the prevailing variable interest rate offered at the time.
If you choose a variable rate mortgage, your interest rate may rise or fall over the term of the mortgage, which means your monthly repayments may change.
You can make additional repayments to your variable rate mortgage whenever you choose and you can switch to a fixed rate mortgage whenever you wish.
Remember that for all mortgages, your initial interest rate is set on the day that you draw down the mortgage.
How do I compare the mortgage rates from different lenders?
An APRC (or Annual Percentage Rate of Charge) allows you to easily compare mortgages for the same amount and term.
The APRC considers the costs involved over the term of the mortgage such as set-up charges and the interest rate. The lower the APRC, the lower your monthly repayments and cost over the full term of your mortgage.
While short term incentives such as cashback offers can look very attractive, it is important that you fully understand the true long-term cost of each mortgage offer. What might be a welcome short-term benefit now, could end up costing you a lot more over the life of your mortgage. Your mortgage broker can help you make this choice.
If you would like to understand how your current mortgage interest rate compares to any mortgage interest rate we may offer, you may contact any of our appointed brokers.
What if I want to switch my mortgage to Avant Money?
Switching your mortgage lender is an easy way to save money for many customers. We welcome applications from existing mortgage customers looking for a better deal.
Switching your mortgage may sound complicated, but it doesn’t have to be. Our mortgage brokers will be happy to explain the process to you and to show you just how much you can save.
There are many reasons to switch your mortgage, but for most customers, the savings in monthly repayments can add up to considerable savings over the term of the mortgage. It’s one of the easiest ways to save large sums of money so don’t put it off!
For additional information on switching your mortgage please visit CCPC Switching your mortgage guide.
What are the steps to getting a mortgage?
Getting a mortgage can be very straightforward with the support of our brokers.
1) Getting Started:
To get started, we recommend you arrange a meeting with a mortgage broker who will provide impartial advice and guide you through every step of the journey. Your broker will help you to understand how much you can borrow, what product might be best for you, and they will help you complete an application to your preferred lender.
2) Approval in Principle:
If approved, we’ll give you a document known as “Approval in Principle”. This sets out the terms of the mortgage that you can obtain and is valid for six months.
3) Mortgage Offer:
Your next step is to get an independent valuation of the property. This can be arranged through VMS for a fixed fee anywhere in Ireland. On receipt of a satisfactory valuation, we’ll issue you with a formal Mortgage Offer along with an information pack for your solicitor to complete.
In the final step, your solicitor will return the mortgage documents we need, and we’ll issue the funds to complete the purchase or to switch your existing mortgage.
How long will it take for my loan application to be assessed?
Upon receipt of your application and any other information we may ask you to provide, as set out in the mortgage application checklist, we will:
- Contact you within three business days to say we have received it and to clarify if there is any missing information;
- We will let you know our decision on your mortgage application within ten business days of receiving all the information we need;
- If we cannot make a decision within ten business days we will tell you why and when we are likely to make a decision.
Can I still apply for a mortgage during Covid-19?
Yes, we are continuing to accept applications and our mortgage brokers are happy to help you through the mortgage process, every step of the way. The broker you choose will help you to complete a mortgage application to your preferred lender and advise you on the supporting documents that you will need to provide. Once approved, your mortgage broker will be there to guide you through each step of the mortgage process, right up the day you will move into your new home.
What impact could Covid-19 have on my mortgage approval in principle?
Once you receive mortgage approval in principle, this will remain valid for 6 months. If there are any specific conditions to your approval, these will be outlined in your approval in principle letter. Should your circumstances change, please contact your broker as soon as possible and they will help you through the next steps or advise you on any additional supporting documents that you will need to provide.
What impact could Covid-19 have on my mortgage loan offer?
Your mortgage loan letter of offer is valid for 6 months up to and including the date of drawing down your mortgage. As part of the drawdown conditions we may ask you to provide your most recent income and bank statements, along with completing a declaration to confirm that your employment and income situation has not changed. Your broker will support you throughout the process to ensure you have everything you need.
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Choose your broker
A mortgage broker will help you compare the market and advise on the best mortgage options for you.