Expert Help The Whole Way Through The Process
At Clever Money, we will help you understand your borrowing limits, your deposit and your interest rate options. We will help you choose the most suitable lender based on your circumstances. Finally, we’ll help you pull together the various documents you need. We basically hold your hand the whole way through the process.
Central Bank Of Ireland’s Mortgage Rules
Since January 2015, the Central Bank of Ireland stipulates that, where the purchase price of the property is €220,000 or more,
first-time buyersmay borrow a maximum of 80% of the property value, which means that they must provide a deposit worth 20% of the purchase price. If your typical
first time buyercustomer is buying a property under 220,000, they may borrow up to 90% of the value, in other words, the deposit need only be 10%. There are exceptions to these rules. Call us today on 057 93 50079 to see if you can borrow more than the LTV ratios set out above.
How Much Can I Borrow?
Lenders work off the applicant’s Net Disposable Income (NDI), which is the money they have left after tax and other loans. As a general rule, a lender will advance funds up to the point where the
monthly mortgage repaymentsdo not exceed 35% of the applicant’s net disposable income. The use of the NDI approach provides for a more realistic assessment of an individual’s capacity to borrow and, unlike the income-multiples calculation, takes into account changes to personal income taxes, interest rates and other loans/savings. Under the NDI method, two applicants on the same income may qualify for different loan amounts depending on whether or not they have other loans, such as a car loan.
A Word Of Warning
Each lender uses a slightly different approach and even a lender’s online calculator will only give an estimate of how much you can borrow. Clever Money will help you ascertain exactly