Get Mortgage Ready
Savings Guide
Most mortgage lenders will require you to have saved 10% of the property value if you are a first time buyer and 20% of the value if you are a second time buyer as a loan deposit. P.S. check if you are eligible for any government support schemes under our ‘Guide Me’ section.
You will also need additional savings to cover the costs of your selected solicitor, stamp duty fees (1% of the property value), valuation report, and surveyor report. Your selected lender allows you to request a ‘gift’ of this amount from a blood relative – they will supply you with a gift form for your relative to complete.
Tip: You can apply for your credit rating report for free on www.ICB.ie.
This all may seem a bit overwhelming, we at Property24-7 are here to help and have document some useful tips to get you home.
Set Your Goal
Set your goal, see how much you can borrow here with our mortgage calculator and work out your 10% needed.
Get Advice
Book a meeting with a mortgage advisor at your chosen lender to work out what your future repayments will look like.
Clear Your Debt
Clear off any outstanding debt you may have acquired as this will be considered by your lender when you request a loan.
Work Our Your Timeline
Set a timeline for yourself to work towards, for example if you need a deposit of €15,000 and can save €400 per month, your savings timeline would be around 3 years.
Spend Wisely
Track your spending, use a budgeting app to help you manage your personal finances.
Start Saving
Work out how much you can save every month; be sure it is an affordable amount that you can commit to!
Open An Account
Open a mortgage saver account with your chosen lender and set up direct debits from your current account every month.
Repayment Ability Tips
Your lender will assess this as part of your mortgage application to ensure you can meet your loan repayments.
- It is favourable to set up your savings as a monthly direct debit to give you lender confidence in your repayment ability.
- If you are currently renting, make sure the payment transactions are visible on your bank statements so your lender can factor this in with your monthly saving outgoings.
- If you are living at home to help save, just make sure any bills you pay are visible also on your bank statements.
- As mentioned above ensure you have any previous loans paid off before drawdown of your mortgage.
- We know sometimes things can go wrong and you need to dip into your savings, try to avoid this for up to 6 months prior to your mortgage application.
What Do I Need To Apply For A Mortgage
You will need to supply documentation to you chosen lender to help them assess your ability to meet your future mortgage repayments.
Typically, you will need:
- Last 3 months payslips,
- Proof of ID,
- Proof of address,
- Last 6 months bank statements.