June 1, 2023 in Mortgages, Property

Preparing for a mortgage application

Red brick home in Ranelagh Dublin 6 Mortgage available. Family Assurance Specialists.

Confident that you can handle the monthly repayments on your new mortgage?  All lenders will need you to prove that you can afford your new monthly repayments for at least 6 months before they will even look at your mortgage application.

If your new mortgage repayment is going to be €5k a month and you are currently paying €3k a month either in rent or in current mortgage repayments, then you need to show regular savings of €2k a month to prove you can handle the new €5k monthly repayments.  This is known as DRA – Demonstrated Repayment Ability.

Whether you are a first time buyer or a seasoned home buying professional, securing mortgage approval in 2023 in an art form!  In addition to the macro prudential lending rules put in place by the Central Bank [Limits to the multiple of your income you can borrow], you are also subject to the (possibly arguably) overly cautious lending practices of the Irish lenders.  Nonetheless, these are the rules and you have to learn to navigate them.  

Preparation is key to this. 

Preparing your bank statements for someone to scrutinise, show evidence of savings, show proof that you can afford your monthly mortgage repayments.  Before you can enjoy the benefits of Location, Location, Location, you need to show Evidence, Evidence, Evidence!

The best approach to take when planning on buy a home is to meet with a qualified adviser from Family Cover, well in advance.  You may already be further along the process than you thought or you may be further behind than you thought.  Either way, a conversation with someone who does know will put you on the right track.  Together we create a plan of action, review your lending options – Which lender?  What type of interest rate?  How can I get the money that I need, for as little as possible and with the least amount of hassle?  That’s your Family Cover Adviser’s job.  Make an appointment to meet with someone today.

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