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IF SOMEONE TOLD you a few years ago that you would be contemplating buying a house, you probably would have laughed in their face.
Either you had no money, no job or it looked like the banks were simply closed to mortgages.
Fast forward to today, be it good or bad, the property market is heating up again.
However, during years of recession, you never contemplated getting on the property ladder, but now you’re not so sure.
There’s one problem. You haven’t a clue where to begin.
We asked two of Ireland’s largest banks Allied Irish Banks (AIB) and Bank of Ireland (BOI) some of the most commonly asked questions.
What is expected of someone in terms of a deposit?
Previous to the new rules, applicants to AIB needed a minimum 8% deposit for mortgages up to €400,00.00 and a 15% deposit for mortgages over €400,000.00.
Bank of Ireland customers could borrow up to 90% of the property value which means it was typically at least 10% of the purchase price – for example that’s €17,500 on a €175,000 property.
However, new mortgage lending rules are soon to come into effect, so best take a look at these. Here’s what you can get for €220,000.
What about job stability, do I have to be in a job for a certain time period?
AIB: Employment status has evolved over recent years and our criteria reflects this changing environment:
BOI: There are a number of factors that can influence the amount you can borrow, but each application is given careful consideration taking all of the applicants’ circumstances into consideration. Factors taken into consideration include:
How long do you have to have lived in Ireland?
AIB: There is no limit as to how long an applicant is resident in Ireland before they can apply for a mortgage.
BOI: In general applicants should be resident in Ireland but we will also consider applications from expatriates who have definite plans to move back to Ireland.
What about if you have just returned from abroad, do you have to wait until you apply?
Both banks said that there is no limit as to how long an applicant must be back in Ireland, but generally applicants should be resident in Ireland. The key issue is your employment and the requirements that are set out in the above answers.
Applications from expatriates who have definite plans to move back to Ireland may also be considered.
What’s the story with my credit score and how does that impact on getting a mortgage. Can I improve on it if it is low?
AIB Bank explains that a credit history is a reflection of an applicant’s previous repayment record and ability to manage their repayments. In a situation of a previous poor credit history AIB said it would need to review the reasons and their recent track record.
If their circumstances haven’t changed it would suggest there may be difficulty in taking on further commitments, said the bank, adding if the issue is historic or an applicant’s circumstances have improved the bank may consider an application.
Bank of Ireland said it is keen to see that mortgage applicants can afford to take on a mortgage and still have enough money left each month to enjoy their new home – even if rates increase.
They advised people to do their sums.
Do your calculations and have a good understanding of what you can afford, how much you can put into the sale and how you will repay your mortgage. Mortgage calculators can help you work out how much you can borrow and how much you can afford to repay.
You should be able to demonstrate through your bank account that you can take on your mortgage repayments.Make sure any rent you pay goes through your bank account rather than pay your landlord or flatmate in cash.
If you are living at home and making a contribution to the household, set this payment up as a standing order.
Do I need to have savings?
This is pretty important. Bank of Ireland said it’s really important to show that you have saved regularly over 9 to 12 months – it demonstrates that you are serious about getting a mortgage and also shows (along with any rent you’re paying) what you can afford in mortgage repayments
I have a loan already, will this matter?
It’s a good idea to pay down credit cards and personal loans as much as possible as additional borrowing could affect the amount you can borrow for your mortgage.
You will need to show how you can cover additional costs such as stamp duty, legal fees and any additional expenses that might be required to make your new property habitable.
How closely do I have to watch your spending – Paddy Power accounts, shopping sprees etc. Is it time to give up
The assessment of an application is based on repayment capacity and an applicant’s personal spending is not an issue once there is sufficient disposable income to fund the proposed mortgage repayments, said AIB.
The bank will look for evidence that a customer has proven their ability to live on the disposable income that will be available. This is done by requesting evidence that an applicant has being saving, paying rent or a mix of both to the tune of the proposed repayments for a minimum of six months.
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No worries for Boris: he’ll just announce the return of the bendy bananas and all England will celebrate FREEDOM…….
@Mike Finnegan: Given that Theresa May ‘won’ that vote by a margin of 133, and Johnson by 148, with May gone within six months, it probably won’t be so worry-free for Boris.
But obviously the question is what happens next, i.e. after him, since this is probabkly the beginning of the end. Jeremy Hunt or Liz Truss basically I think. The former would be the pragmatic caretaker who would be realistic about Northern Ireland and the Protocol – and would steer the UK in the direction of arrangements akin to rejoining the customs union (but not literally since that’d still be political suicide).
The latter would likely be a lightweight choice so intent on proving she didn’t really mean to vote Remain in 2016, that she’d end up being worse than Bojo for Ireland, but might inadvertedly also set up a greater probability of the Tories being ousted in 2024.
Just to clarify, since I didn’t specify this correctly: Johnson had a bigger margin against him (148) than May (133), so the expectation woud be that if May lasted 6 months after the vote, Johnson would be expected to last shorter (I wrote that Johnson won by a larger margin while I should have said that his winning margin was significantly smaller than May’s).
He’ll romp home thanks to the bulk of his MP’s being spineless toadies. Suits him to have the vote ahead of the impending disastrous by elections as another no confidence vote can’t be called for twelve months.
He’ll coast home.
@Shaun Gallagher: No coast home only a matter of time now
@Shaun Gallagher: More than 40% of Tory MPs voted against him – he’ll continue on because he’s got no self-awareness or honour, but his government is weakened to the point of uselessness. I’d hate to be living in Britain now
Tory theatre.
Suits Johnson. Should wait until the end of the month following two upcoming by elections. Wouldn’t surprise me if Johnson has something to do with the timing of this vote. On the other hand, it is probably easier for the opposition to deal with Johnson than with alternatives. I’d like to think that Johnson winning the vote will prove a blessing in disguise.
@alan: think you’re right. Two heavy defeats in the by elections could encourage a few more Tories to vote against. At the moment they be lucky to get 100 against BG.
@alan: I’d say there’s a lot of very worried Tory back benchers that are looking at 2 more definite by election defeats and looking at their own seats going if they support Bojo. I think his time is up….PG!!!!
@alan: It’s win win really. If he loses he’s gone, and good riddance. If he stays they’ll limp through the next by elections and he’ll stuggle to win any general, he’s too tainted. If the Tories were smart they’d oust him now and rebrand, new start etc etc. They won’t though.
@Rob Hunt: I agree. But the problem is that Starmer (like Bacik here), while I don’t doubt his (or her) integrity and commitment, is not right for the job. When you are dealing with Johnson these values are worthless. This isn’t helped by Labour (here and there) having no clear political vision or message. For the time being, it seems that nationalist, populist politics can’t be beaten by reason or argument or even policy. Johnson and his public school army know this and make full use of it. I think this, along with Labour’s lack of political nous might keep him in office.
I think the problem is that they have no real replacement for him in the Tory party so they’ll hang onto him for another while.
I think the tipping point was Boris been booed at the weekend. The penny has dropped for the Conservatives that he is now a liability. He will probably still win but hopefully a high number of votes against him will be the beginning of the end for him. In hindsight the Brits will see how much damage he has done to the UK. It was their folly to elect him.
A ‘formidable political force’? That statement is laughable in itself.
Boris is a man devoid of all the qualities one would normally associate with the holder of such high office, but the problem the Tories have, in my opinion, is they seem to have no MP to replace him who is much better! Maybe that’s because most of the people he has surrounded himself with are lackies and brown nosers who have continuously parroted the same lies as Boris has since he became PM!
“Some” sections of the crowd?
He will win but the real problem is that under the rules there cannot be another vote for 12 months
A Single vote win is a victory for Boris Johnson according to the Conservative Party, except when it’s a border poll on Irish Unity then there different rules .
Even if he wins it now only a matter of time. Look at thatcher and Theresa may
Don’t worry, the useless tories will bottle it when it’s put to them. Bojo is brutal but heaven help them if they end up with Patel or Raab running the show. Frying pan & fire come to mind
The Looney party Will back Him as most of them are Like Him
But hey he delivered Brexshit….isn’t that what the majority wanted. Pity they didn’t know what it really was they were voting for.
Lets hope its another preforming CHIMP.
Goodluck MR Johnson
Brandon Lewis & Suella Braverman on Sky news just new batting for Boris. Sickening listening to the crap they’re coming out with. So many of the tory party are dilusional muppets
Margin of victory not big enough, he’ll be forced out by his own party.
2 by-elections coming….if he looses both. He is toast….he has 6 months to go max
@Kevin50: I think Johnson survived by a margin effectively of 32 votes. 211 expressing confidence and 148 against him. That reads like a reasonable vote of confidence, but it’s only 32 short of the 180 simple majority of no confidence. Only 32 MP’s needed to vote differently out of 359.
@David A. Murray: and don’t forget about the 51 that are on payroll so we’re effectively voting for their jobs
@Jay Munnelly: were*
Anyone would be better than that Bullingdon Baffoon!
Well that’s a joke he should be gone but 5he spineless didn’t stand up to be counted.
Start of the end thank God
No sympathy anymore for the UK public – you’ve elected a bunch of lying narcissists that have no respect for you .
Johnson’s letter to his party’s MP’s listing his government’s achievements (and promising more of the same) was some piece of creative interpretations of his record. It’s very hard to swallow (and I don’t mean physically).
More lives than a bag of cats . More lies to the bewildered to keep power. Better enjoy it as they’ll be 10 to 15 years paying for it
A foregone conclusion, the turkeys have got into the habit of voting for Christmas over there. They obviously think that lunacy is the way to go.
211 effectively voted to say they would lie to better their careers over the good of the uk
In fairness, Britain is a complete basket case at the moment. Who knows where he’ll be in 6 months. The British get what they deserve voting for this tossbag and Brexit.
Rees Mog and the
Spineless fillets protecting their own interests as usual. Have at you chaps and God save the Queen…
This guy keeps bouncing back like a boomerang on elastic.
The Indians, are circling
Delighted for Boris, A great leader
@Mick Cullen: — You’ve set the bar so low that a microbe couldn’t get under it.
If he wins this evening, I believe he will go to the country sooner rather than later.
Of course he has no interest in holding an election, because he’d lose.
He is some boyo
He should do the decent thing and go now, the writing is on the wall for all to see.
211 effectively voted to say they would lie to better their careers over the good of the uk
@Jay Munnelly: exactly
lemmings d lot of them
I’m gonna have to stock up on popcorn.
The vanity and avarice of a cultureless nation of subjective plebs is finally come to fruition.
Brilliant.
Any nation that openly endorses a two tier society deserves everything it gets.
Well done.
Habemus Papam.
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