Starting the search for a mortgage - need advice

J

Jim Dwyer

Registered User
Messages
14
Hi,
I'm looking to borrow €550k over 25 years for new build. Some of this will be used to secure the purchase of a site, and remainder to fund construction cost.

I'm told that the financial organisations would consider me a 'strong' applicant in that risk associated with me as an applicant would be low.

However I'm just like many others in that I don't really know the best way to go about selecting the best mortgage provider to go with.

1) Should I use a broker?

2) Should I just try and make appointments to meet directly with as many banks/providers as possible?

3) How can I narrow down my search to those who are most competitive today?

4) What are the fundamental criteria I should use to evaluate the offers from the financial organisations?

5) How much room is there to negotiate with banks on the assumption they favour a 'strong' client?

6) What other considerations should I be taking into account?

Thanks.
 
1) Should I use a broker?

Depending on your LTV a broker may be able to give you more options. Its no harm to visit one and see what they can offer. You should also visit your own bank, as you are an existing customer.

2) Should I just try and make appointments to meet directly with as many banks/providers as possible?

Best advice would be Yes, but you can search online for what rates each bank offers. This is slightly harder now, as the ecb is dropping by the month and rates are changing quicker than some websites can keep up.
You can ask a broker which banks do they get quotes from, if you realise they dont quote from X bank, visit that bank, just to cover yourself.

3) How can I narrow down my search to those who are most competitive today?

Broker and Online, www.mortgages.ie. But visiting the bank itself will give you what todays rate is.

4) What are the fundamental criteria I should use to evaluate the offers from the financial organisations?

Go with whats lowest (cheapest) dont feel like you should go with X bank as you think they are a "better bank" but they are dearer.

5) How much room is there to negotiate with banks on the assumption they favour a 'strong' client?

LTV is really the only factor these days. Your own bank may do a better Fixed rate seen your a established customer, but in the current market, Standard Variable is best.
With trackers gone, i dont think any bank will negotiate on standard variable.
 
Jim Dwyer said:
6) What other considerations should I be taking into account?
Click to expand...

Jim,

This is what is on offer at each lender that brokers deal with. In this climate this is subject to change but just as a guide for you:

IIB will offer you 75% of site cost and 80% of build cost.
Haven /First Active / PTSB: 80% of site cost and up to 100% of build
AIB: 92% site and build.
BOI : 90% site and build.
Bank of Scotland - no self builds.
 
EBS were doing 100% self build a few weeks ago, i think they are still offering it.
 
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