In order to be as organised as possible, you should have the following information available to offer to your potential lender or broker.
Your deposit
Before applying for a mortgage, you need to be aware of the Central Bank’s mortgage lending rules. First-time buyers require a 10% deposit to be eligible for a mortgage, while second and subsequent buyers need 20%. Once you have your deposit together, you’ll need to gather a range of documents to give to potential lenders or a broker so that they can review your application.
In general, though, you will need to provide the following documents :
1: Proof of identification: A photo ID will be required. You can use an Irish driver’s licence or a valid passport.
2: Proof of your Personal Public Service Number (PPSN): This is usually found on a payslip, a tax assessment document, or correspondence from the Department of Employment Affairs and Social Protection or the Revenue Commissioners. Lenders are required by the Central Bank of Ireland’s Central Credit Register to obtain a customer’s PPSN for customer identification.
3: Proof of address: You can use a recent utility bill, or bank statement for this.
4: Proof of income: The lender will need to ensure that you will be able to make your mortgage repayments every month, so they will have to check that you’re earning enough money. To do this, they will require:
5: Proof of employment: Your employer will need to provide a stamped and signed Salary Certificate, which confirms that you’re a permanent member of staff, along with your basic salary. If you’re on leave from work at the moment, a lender will require a letter from your employer confirming your return date. Your employment must still be under the same terms and conditions prior to taking your leave.
6: Bank statements: Lenders require 6 months of continuous bank statements to evaluate your financial habits. This rigorous audit is carried out to ensure you’re managing your day-to-day spending properly. Your bank statements will show the lender that you’re financially sensible, that you can meet any recurring payments, and that you have the ability to save.There are some things to keep in mind:
Other documents may be required to verify savings that you have, or to verify a monetary gift towards your deposit.
7: Credit card and loan statements: The Central Credit Register (CCR) was set up by the Central Bank of Ireland to help prevent loans or credit facilities from being given to people who may not have the financial ability to repay them. As such, lenders are obliged to check your credit history through the CCR before giving you loan approval.
If you pay your credit card payment after the due date, your next statement will include a late payment fee. These late fees can pose as a red flag, as they symbolise poor money management or a lack of funds. What’s more, if you miss a payment and don’t try to repay it before your next statement is received, the credit card provider can report the missed payment on your credit history. This black mark will remain on your credit history for a significant period of five years. We’d recommend setting up a direct debit payment for your credit card and aiming to pay off the balance each month.
Information on consumers is stored for five years in the Central Credit Register and includes the following:
If you’re self-employed:
If you’re self-employed, the mortgage application process isn’t quite as straightforward. You will need to supply additional documents and information on your income, business performance, and trading accounts. This is because you need to prove that you have a stable income and you can afford to make your mortgage repayments.
Additional documentation needed includes:
If you’re building your own home:
Self-build mortgages are seen as being riskier for lenders, due to varying costs and timeframes being extended. You’ll need the following documents:
If you’re switching mortgages:
Despite the time and effort it takes to switch mortgages, the savings can be significant, so it’s well worth it in the long run. Once you’ve decided on your new lender, they’ll issue you with a mortgage switching pack that you will fill out.
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