Embarking on the journey of buying your first home in Ireland is an exciting venture filled with possibilities. However, it can also be daunting, particularly when it comes to understanding and choosing the best mortgage options. With a myriad of choices and the availability of the first time buyer grant, it’s crucial to navigate this landscape with a well-informed mind and a broker like Pangea. This comprehensive guide aims to demystify the process, helping you find the best mortgage Ireland and utilise available grants effectively.
Understanding Mortgages in Ireland and the first time buyer grant:
In Ireland, mortgages vary widely in type and structure.
Types of Mortgages Available:
Fixed-Rate Mortgages: Your interest rate remains constant for a set period, offering stability in your repayments. Generally, they range from 1 year to 5 years but 10-30 year fixed rates are available.
Variable-Rate Mortgages: The interest rate can fluctuate based on market conditions, which means your repayments can go up or down. This is at the discretion of the bank you are dealing with. Its not linked to the European Central Banks lending rate – too many people make this mistake. Too many people believe they “know” what interest rates are going to do in the future and they “know” what the best mortgage Ireland will be in two years time. Variable rates are always uncertain
Interest-Only Mortgages: Initially, you only pay the interest on the loan, which can reduce your monthly repayments for a time. You need to be certain you can pay off big lump sums with this type of mortgage.
Cashback offers : This is very tricky to understand but forms a key part of the best mortgage Ireland table that we provide to our customers. Cash back is generally 2% of the mortgage amount with certain lenders in Ireland. It can vary. Some lenders will offer specific cashback amounts for switching. Its crucial that you develop a best mortgage Ireland assessment table where you can compare the all-in costs of each banks offer – including cashback.
Finding the Best Mortgage Ireland Offers:
Finding the best mortgage Ireland requires considering several factors:
Interest Rates and Terms: Compare rates from different lenders. Look for terms that match your financial situation. You can borrow upto age 70 with some lenders.
Lender Reputation and Service: Research lenders’ customer service records and reviews.
Expert Guidance: A mortgage broker can offer invaluable advice, helping you navigate through the myriad of options to find a deal that suits you best.
First Time Buyer Grant and Supports in Ireland:
The first-time buyer grant is a boon for those entering the property market. It provides buyers with upto €30,000 in cash towards the purchase of a newly built home. It is only available for new homes. The first time buyer grant is subject to a clawback if you sell the property within 5 years. The first time buyer grant also requires you to borrow at least 70% of the value of the property to be eligible.
Understanding the Grant: This initiative offers financial assistance to first-time buyers to help them purchase a new home. The value of the property needs to be less than €500k. Click here
Eligibility and Application: Criteria include being a first-time buyer and occupying the house for a certain period. Applications are typically made through the Revenue Commissioners.
Additional Supports: The first home scheme is another scheme designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment. Not all lenders provide this however so speak to your broker first.
Preparing for a Mortgage Application:
Preparation is key to a successful mortgage application.
Financial Health: Your accounts need to be in good working order, not overdrawn and showing sufficient repayment capacity. Insufficient repayment capacity is a major reason why customers fail to get mortgage approval. You need to work with your mortgage broker to establish just how much repayment capacity you need to show over the last 6 months. Too many people simply Google – best mortgage Ireland and the best rate that pops up – they assume that they will qualify for. This may not be the case and you need to prepare 6 months in advance of applying.
Necessary Documentation: Gather necessary documents in advance, including proof of income, bank statements, and identification.
Case Studies: Success Stories of First Time Buyers in Ireland:
Real-life examples bring to light how effective planning and use of resources can lead to successful home purchases.
Case Study : A young couple in Dublin, navigating through the complexities of the mortgage process, successfully purchased their first home with the aid of a 4 year green fixed-rate mortgage and the first time buyer grant. The property was worth €470,000 so the couple used the full first time buyer grant and had their own savings of €25,000 which meant that they only required a mortgage of €415,000. We also used our best mortgage Ireland assessment table to help them chose the mortgage offer that was most suitable for them.
Without the first time buyer grant they would not have been eligible for any mortgage as their €25,000 savings would be less than the 10% required by all lenders.
What happens when you search best mortgage advisor ?
Google is now a huge tool for searching for everything and mortgage advisors are now no different . The main search terms used are best mortgage advisor, best mortgage broker and mortgage broker Dublin. You need to be aware that the large Banks use paid ads here so they tend to show up near the top of search results. What you need to look for are the brokers on the first 2 pages. For best mortgage advisor there should be 20 plus results. Check the amount of google review customers have left. They should have 50 plus and be above 4 stars rating for you to consider.
Navigating the Irish mortgage landscape, especially as a first-time buyer, can be complex but rewarding. By understanding the different mortgage types, preparing adequately for your application, and making use of grants and supports available, you can make informed decisions. Your dream home in Ireland isn’t just a fantasy; with the right approach and resources, it can be a reality. Using a mortgage broker like Pangea Mortgages will help you with much more than the mortgage process. Our Best Ireland mortgage table and our understating of the first time buyer grant will help you find the best solution for your circumstances. There are also cashback offers which are very confusing and that we can explain to you in clear and simple English.
Start your home ownership journey today. Research your mortgage options, apply for the first time buyer grant, and take the first step towards your dream home in Ireland!