Frequently asked questions
A mortgage is the contract between you and the lender that allows you to get a loan to buy a property. It sets out the terms and conditions of how a lender will give you the money you need to buy your house or flat. This will include all your personal details, covering things like the term (the amount of time over which you’ll pay the money back) and the interest rate (the rate of interest the lender will charge you for the loan). In the simplest terms, you’re promising the lender you won’t spend the money on something else, and that over time you’ll pay it back.
The amount you can borrow is regulated by the Central Bank of Ireland. This is to try and avoid situations where you have borrowed too much money and then run into difficulty later on and be unable to repay your mortgage. If you don’t pay your mortgage you could lose your home which is a bad situation for anyone.
Generally, if you have a decent deposit (around 10% of the house price for First Time Borrowers and 20% for Second Time Borrowers) and you can show you have a regular income, you should be able to borrow around three and a half times (3.5x) your annual income.
There is some flexibility around this and some of the banks will allow you put a deposit of just 10% of the house price and also they might allow around four times your annual income (4x). This will all depend on the specifics of your situation and this is where EZmortgages.ie will help you navigate the different complicated rules and algorithms the banks use to lend to customers. We understand what the different banks will typically accept and so by using us we will make your mortgage application a lot less work, stress free and generally EZ.
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages coming with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Here are a number of the consideration’s banks will use to provide you a mortgage:
* The mortgage duration/term – How long do before you have fully paid them back
* The LTV – How much of a deposit or loan to value of the property can you have?
* Fixed or Variable rate – Do you want a fixed rate that does not change over an agreed period or a rate that fluctuates with different money market rates e.g. European Central Bank rate?
* Income stability – what is the source of your income and is it likely to fluctuate?
* Financial obligations – do you have other debts of financial obligations such as child care that need to be paid?
* Lowest rate of largest size of loan? – Do you want the cheapest rate of the most amount of money that you can borrow?
… and on and on and on … its complicated stuff! But don’t worry as we are on your side and will do everything we can to figure out what type of mortgage you need and get it for you.
Don’t stress too much! In our experience most people who are eligible for a mortgage will get one but you want to make sure you get the right mortgage for you and make the process as simple as possible.
Yup! You could…. If this is what you like to do at weekends (if banks are open or when you are busy at work) ….we call this Option B, B as in Bad!
Lets’ go through Option B and our recommended Option EZ.
You approach all of the lenders separately and look for a mortgage loan directly from each of them. This would entail approaching 5+ lending institutions, set up probably a dozen meetings/calls. Then fill out an application for each institution and provide documentation separately for each. You will then spend your time chasing them back and forth ensuring they have everything they need. When they do come back to you, you then would have the not so fun task of analyzing each response and figuring out which bank was offering the best mortgage for your specific circumstances.
You could get EZmortgages on your team. We are regulated by the Central Bank of Ireland and have a responsibility to work for you to give you the best advise we can. Have an impartial conversation with us as to what you need. We will advise you on what the best mortgage and provider is for you and you fill out One application with documentation and then let us do all the legwork and figure it out for you!!!!!
|Option B||Option EZ|
|Fees||No additional charge beyond the mortgage you get. |
As in no additional arrangement fees but this assumes you get the best deal in the market
We charge no fees and we are regulated to get give you the best advise for your mortgage.
|Who is on your side||Well… let’s be diplomatic and say that there is no one providing independent advice to you.||We have your back!
We are regulated to provide impartial and independent advice to you! Bank are not!
|Hassle factor||Each institution you approach will require a full application process so to cover 5 institution = 5x hassle.||We do all the leg work so no matter how many banks we asses it is always just 1x hassle for you.|
You could end up saving thousands of euros a year like other EZmortgages customers! We can find you the best deal, and we’ll be here to help you switch as quickly and easily as possible. You can start by heading over to the Mortgage Calculators, and getting an idea of how much you could save by switching.
Typically, the minimum deposit you’ll need to get a mortgage is 10% of the value of the property if you are a First Time Buyer, but obviously a number of other factors are taken into consideration. If you are a Second Time Buyer you will typically need 20%. These are general restrictions that have been set out by the Central Bank of Ireland so that you don’t borrow too much money and be over indebted – there are however some exceptions to this which the banks can make. We can’t promise to get you a mortgage, but if there is one out there for you, we’ll find it.
Initially, none. The first step is for you to answer a few questions, so that we understand your circumstances. When we move on to preparing your submission to a lender, we will need to make sure that your information is accurate and we’ll need some documents from you. Those include proof of your identity, income, bills and address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Our job is to make sure that you have the best possible chance of being accepted. So we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
A credit check takes place only when we apply for your Agreement in Principle (AIP) with a lender. An AIP is when a lender says they’re likely to give you a mortgage based on some basic information. This isn’t 100% guaranteed and you’ll need to give more information before the lender can be certain. We will always let you know when that’s going to happen and make sure that you’re OK with it first.
An Agreement in Principle (AIP), also known as a decision in principle (DIP), is a certificate or statement from a lender. It agrees that ‘in principle’ – or probably – they would lend you a certain amount of money. This is given after a lender has seen some basic information about you.
Its important to get one when you are looking for a property as it gives you a very good indication of what you can afford.
Once you’ve worked out how much you want to borrow and the size of deposit you can put down, you’ll need to sign up and provide us some basic information. Usually, this shouldn’t take more than 15 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have, and tell you exactly what documents you’re going to need to get an Agreement in Principle (AIP). From there, the expert team will guide you through the application process and keep you updated on progress.
Nothing; our service is completely free, from start to finish! Just like any intermediary, we get paid by the lenders for processing your mortgage application. This fee is a fraction of a percent of the value of your mortgage. We’ll always tell you exactly what we’re getting paid when you apply of your application so you know the full story.