Wednesday 21 March 2018

Top tips on how to get bank to give you a mortgage

Charlie Weston

Charlie Weston

1 Be in a permanent job: Lenders want to see an income history that has a likelihood of continuing.

2 Have savings: You have to show the capacity to save. If you are searching for homes where financing them would cost €1,200 a month, you should show a proven ability to save that amount every month.

3 Have no loans or rolling credit card debts:

Clear loans where possible. In particular, don't carry any rolling debt like credit cards.

4 Try to buy before you have kids:

If we were to talk about a trend in credit refusals, the definite winner in 2012 was one-income families with children.

5Pay rent by standing order: Make it easy for the lender to see where your money goes and when.

6Maintain good current accounts and stay out of your overdraft:

If you always end up in your overdraft each month, your odds of getting a mortgage diminish rapidly.

7Have a clean credit record: Never miss a car loan or credit card payment. A single blip on your credit means a decline – plain and simple.

8Be from the EU and, if not, have a stamp 4 visa: This has to do with residency rights. If you can't satisfy either, forget about applying.

9If you are self-employed, make sure to have updated accounts and tax returns: The bottom-line figure for the lenders is the average income declared to Revenue for the past two years. The banks believe the taxman more than the accountant.

10Don't gamble online: We have seen this used as a reason for refusing otherwise perfect credit applications.

11Don't make extravagant purchases before applying:

Avoid big expenses in the six to 12 months before you apply for the home loan.

12Consider the interest rate: Be careful with introductory interest rates and always consider the rates that apply after the expiry of the discount period.

Irish Independent

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