Best option for low LTV Ratio

[Jerseygirl64]

Hi everyone
My 1st post on AAM so hope I'm posting in the right place.

Am closing a sale of our home as we needed to relocate. Looking to buy a new home and in fortunate position of being able to stay with family and not having to rent.

Looking at houses that are sale agreeing at around 480- 520k (South Dublin) and will need a mortgage of 60 to 80k so my LTV Ratio will be low - single income family with 2 children, salary of 45K - no other loans

In process of applying to EBS for mortgage approval as they advised a rate of 3.75% 5 year fixed

Given our LTV ratio will be low, what would be our best options for lenders? Other half plan will be able to return to work after we relocate so ideally Looking for option that will allow overpayment in the future too

 

[RedOnion]

so ideally Looking for option that will allow overpayment in the future too

Just to clear this bit up first, you are legally entitled to overpay every mortgage. It's covered in Irish legislation, EU directive, and the terms and conditions with your lender.
The extra bit is some lenders allow you to overpay a certain amount before calculating if they can charge a break fee on the overpayment.

 

[misemoi]

Afaik there is a minimum mortgage balance, so you may find that you need to borrow more than you really need to be able to get a mortgage. I recall KBC had a min of 100k so others may be similar. Once you have purchased your new home you can then overpay back down to the expected level of 60-80k.

 

[RedOnion]

I recall KBC had a min of 100k so others may be similar.

Avant have minimum of 100k.
PTSB is 40k. BOI is about 25k, but it'd be an exception.
Borrowing 60 to 80k shouldn't be an issue with any lender.

 

[Jerseygirl64]

Just to clear this bit up first, you are legally entitled to overpay every mortgage. It's covered in Irish legislation, EU directive, and the terms and conditions with your lender.
The extra bit is some lenders allow you to overpay a certain amount before calculating if they can charge a break fee on the overpayment.

Thanks for this Redonion - I was confused about this as a broker told me only certain lenders would allow overpayment - spouse due a small inheritance in a few years so we'd ideally look to do lump sum payment to reduce our term if we could

 

[RedOnion]

@Jerseygirl64
It causes confusion.
There's a key post on it if you want to learn more. Just note AIB have recently announced they will also allow an annual overpayment without break fee.

Thread 'The policies of the different banks on overpaying a fixed-rate mortgage' https://www.askaboutmoney.com/threa...s-on-overpaying-a-fixed-rate-mortgage.219800/