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House hunting? Use these simple steps to secure a loan

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Couple buying a home - picture posed

Couple buying a home - picture posed

Couple buying a home - picture posed

Ireland has seen the highest property price rises in the world this year. At 15pc, we're ahead of 54 other countries. It's completely unsustainable and is skewed by the investor rush to beat the Capital Gains Tax deadline of December 31.

We're also coming off a low base, given the slump up to 2013.

If you're in the market, you'll also be alarmed by the Central Bank guidelines on mortgage deposits - now 20pc of the purchase price - which is agreed by experts to be both unnecessary and overly burdensome. It's a good idea from a macro viewpoint, which is the way the CB thinks, but for ordinary people it's put them back on the first rung of the property ladder and with rents rising creating a double whammy.

If you're saving hard, there are a number of things you can do to make your mortgage application as smooth as possible:

1. A healthy deposit is really crucial. It must be in savings, not loans from parents or the credit union; lenders will look for a history.

2. If you have other debts like car loans or credit cards, clear them. It frees up disposable income, which lenders like.

3. Any missed payments on previous loans will have been recorded by the Irish Credit Bureau. For €6 you can see your credit record (www.icb.ie) which is invaluable.

4. Banks hate to see discretionary spending like bookmakers' accounts, store cards etc. Get rid of them.


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