You must show a history of being able to repay the amount of the mortgage repayment, stress-tested (i.e. assuming a higher interest rate than applies today). Use a mortgage calculator like Karl Jeacle's to calculate the repayment on your proposed mortgage if interest rates were 6%. If the stressed mortgage repayment on your proposed mortgage is €1,500 per month and you’re currently paying rent of €750 per month, you'll need to be saving at least another €750 per month for at least six months before you apply for your mortgage to show you can afford the new mortgage repayments.
Try to clear off your car loans or personal loans if you can. The monthly repayments on these loans can reduce the amount of a mortgage you’ll qualify for.
Keep your bank statements in order. Most lenders ask to see three to six months current account statements. They don’t like to see referral fees on a bank statement as it shows you’ve gone beyond whatever overdraft limit (if any) they agreed with you. Too many referral fees on a current account statement can be a cause for the application to be declined.
Make sure that your repayments on any existing loans are paid on time. Mortgage lenders will ask you for a twelve month repayment statement on existing loans. If your repayments on a car loan or a personal loan are repeatedly “bouncing” or the lender has to re-submit the Direct Debits regularly, this will weaken your mortgage application.
File your P60 and pay-slips - you'll be asked for them regardless of who the lender is.
Allow plenty of time. At the time of writing, some lenders are taking 2 - 3 weeks to process a mortgage application just to initial decision stage. Some of the lenders are a bit quicker, but in many cases they're the lenders with uncompetitive interest rates, so they're probably not as busy.
To take this a step further - they will generally require 3 years accounts if someone is self employed, so if you are thinking of becoming self employed in the next while, get the mortgage sorted first, if possible.
as a retired bank manager i would always investigate within reason the security of applicants job. after all everything else could be grand but if applicant made was redundant problems could arise. i am conscious that what appears to be a safe job now may prove otherwise unless you were a state employee!
[*]You must show a history of being able to repay the amount of the mortgage repayment, stress-tested (i.e. assuming a higher interest rate than applies today). Use a mortgage calculator like Karl Jeacle's to calculate the repayment on your proposed mortgage if interest rates were 6%. If the stressed mortgage repayment on your proposed mortgage is €1,500 per month and you’re currently paying rent of €750 per month, you'll need to be saving at least another €750 per month for at least six months before you apply for your mortgage to show you can afford the new mortgage repayments.
[*]Try to clear off your car loans or personal loans if you can. The monthly repayments on these loans can reduce the amount of a mortgage you’ll qualify for.
Keep your bank statements in order. Most lenders ask to see three to six months current account statements. They don’t like to see referral fees on a bank statement as it shows you’ve gone beyond whatever overdraft limit (if any) they agreed with you. Too many referral fees on a current account statement can be a cause for the application to be declined.
Make sure that your repayments on any existing loans are paid on time. Mortgage lenders will ask you for a twelve month repayment statement on existing loans. If your repayments on a car loan or a personal loan are repeatedly “bouncing” or the lender has to re-submit the Direct Debits regularly, this will weaken your mortgage application.
File your P60 and pay-slips - you'll be asked for them regardless of who the lender is.
Allow plenty of time. At the time of writing, some lenders are taking 2 - 3 weeks to process a mortgage application just to initial decision stage. Some of the lenders are a bit quicker, but in many cases they're the lenders with uncompetitive interest rates, so they're probably not as busy.
