askpaul on applying for a mortgage:

Hi, so if you’re considering going for a mortgage, you need to have some supporting documentation along with your application. So what do I mean by supporting documentation?

It’s really, really easy, you break it up into your accounts and your employment. So when it comes to your employment, you’re going to need three months pay-slips, you’re going to need a salary cert signed and stamped by your employer, as well as your last years EDS (Employment Detail Summary). As of 2019, P60 is replaced by the Employment Detail Summary. You will always need the previous year’s EDS at a minimum and, if you are using bonus pay/overtime etc, you will need the last 3 years EDS.

If it’s a case where you’ve got a pay rise over the last couple of months, you may need a letter from your employer just clarifying why that happened and when it happened. That’s just to support the application when we’re looking at your employment history.

The next thing you’re going to look at is your bank accounts and your bank statements regarding affordability to repay a mortgage. With your bank statements, you need six months statements of your current accounts, loan accounts and/or any credit cards that you have, and more importantly your savings accounts.

So, if you’re going for a first-time buyers mortgage, you’re going to need a 10% deposit. You need to show where that 10% deposit is, it should be in a deposit account or a savings account. If it is a situation where you’re lucky enough to get a gift from family members, you’re also going to need a letter from the family member saying they’re giving you a gift.

Most banks will not take the full 10% deposit with a gift from a parent or a family member, you’re going to require to at least save about 5% or 6% yourself – you should be able to show that. Ultimately, what the banks are looking for when it comes to your bank accounts, is your affordability to pay your mortgage. So what do I mean by that?

If you’re going for a mortgage application, your new mortgage is going to be €1,000, say €1,100 a month – you’re going to need to show that you can afford €1,100 a month. So your savings account should have €1,100, even a bit above that, say €1,200 a month, to be able to show the bank affordability. If you’re renting at the moment and it’s €1,000 a month, that can be used to show your affordability, but you’re going to have a €100 euro shortfall, you need to show where you’re going to save that €100 euro from.

Hope this video helps as always, if you have any questions, please don’t hesitate to get in contact.

Mortgage Application Checklist:

Employment:

• 3 months pay slips
• Salary certificate, signed and stamped by your employer
• Last years EDS (Employment Detail Summary)
• Letter from employer regarding recent salary increase (if applicable)

Accounts:

• 6 months bank statements for current account, savings accounts, credit cards and loan accounts
• Proof of 10% deposit
• Letter from family member due to deposit gift (if applicable)

Contact askpaul today for help in applying for a mortgage