(1)Who are Mortgageapproval.ie?
Mortgageapproval.ie is a website operated by Chrome Capital Ltd. Chrome Capital Ltd is authorised by The Central Bank of Ireland (Ref: C54002) to engage in the business of being a Mortgage Intermediary. The business is run by Emmet Graham and Barry Sheridan who between them have over 30 years experience in the mortgage broking business.
(2) How long will Approval take?
If you are interested in seeing if you qualify for a mortgage or perhaps what loan amount you are likely to get approved for, then simply fill in our pre-approval enquiry form, submit to us and we will revert to you within 24 hours.
If you would like formal approval then we would again ask you to complete our pre-approval enquiry form and following on from this, our preference would be to meet with you in order to complete an application.
Following our meeting we will analyse and then present the completed application form and supporting documentation to your best fit lender.
We would normally expect to have approval within 10 working days.
This approval in principle will outline the level of finance available, the term and the rates applicable along with any conditions that need to be met prior to loan offer.
The next step would be to arrange a loan offer letter. This will issue following a valuation of the property you are buying and assuming you have met any of the pre-offer conditions outlined in your approval in principle. Most lenders will issue an offer letter within a week following receipt of the completed valuation.
(3) What documentation do I need?
Set out below is our standard document check list:
- Copies of last six months (most recent) current account/ bank statements
- Copies of last three (recent) payslips
- Copies of most recent P60’s
- Salary Cert completed by your employer(s) - This will be supplied by us
- Last two years audited accounts if self employed or last three years revenue returns (P21 forms)
- Copies of most recent credit card statements
- Copies of any savings statements
- Copies of last 12 months statements on any existing loans including current mortgages.
(4) How much can I borrow?
In general most lenders will calculate what you can borrow based on a set percentage, typically 30-35%, of your net disposable income (NDI).
All other loans and financial commitments would be included in the this calculation.
For lower income earners this can be maxed at 20% of NDI. However, this can rise to 50% for higher income earners.
Each lender will have a different allowed percentage of NDI for different income bands, and will apply different stress test rates to determine final amounts. This is where they calculate the mortgage repayment as a % of your NDI by using an interest rate up to 2% higher than the actual interest rate that will apply.
They will also want to see a defined amount of remaining disposable income evidenced in your current accounts, after having allowed for their proposed mortgage repayments (at a higher stressed interest rate).
Again these figures will vary from lender to lender.
Other factors come into play such as your age, your buyer status (first time buyer, trading up, etc) number of dependents and number of income earning applicants.
In short the key criteria lenders are looking for are:
- Your credit history
- Your savings record
- Clear evidence over a period of time showing that you can afford the proposed mortgage even if interest rates increase by 2%
- Your income and occupation
- The sector in which you are employed
- Whether you have sufficient income after loan repayments to live a normal life.
(5) What factors affect how much I can borrow?
Perhaps the most important factor is your ability to repay the loan. For obvious reasons lenders ensure that your repayments will not overstretch you financially. The mortgage repayment as a proportion of your net income is used as a factor to determine a suitable level of borrowing.
One factor affecting the size of your repayments is the period of time you have opted to pay the loan back over (the mortgage term). Most lenders will allow a maximum 35 years for the repayment of the loan for First time buyers- and 30 years for those trading up or buying again.
Spreading the loan over a longer period will reduce the payments but the total interest you pay over the life of the mortgage may be higher.
The next factor is the amount you want to borrow as a proportion of the value of the property, known as Loan to Value ratio (LTV). Because a mortgage is a loan secured against a property a lender will want to make sure that the amount they are lending could be recovered from selling the property if the worst happened. The maximum allowed is 92% LTV but most lenders limit this to 90% LTV.
(6) Can I Re-Mortgage?
The re-mortgage market is currently extremely limited with only three lenders offering this facility. Those that do offer very limited terms whereby only your existing mortgage balance OR your existing balance plus an amount added only to facilitate home improvements can only be considered. The maximum Loan to Value is 80% of your property’s current value.
Short term debt consolidation is available from just one lender at present and only at a maximum LTV of 75%. The amount of short term debt that can be consolidated is limited to €20,000 although they can consider double that amount if the short term debt is from the same bank.
(7) What Costs are Involved in taking out a mortgage?
As a guide you should budget in the region of €1,000 plus vat for legal fees.
We will charge you a processing fee of €350
A valuation fee of €130 is also payable as the lender will require a valuation before a loan offer is issued.
You will need to have life insurance to the value and term of your new mortgage in place prior to drawdown. Your Mortgageapproval.ie consultant will be happy to provide you with the cheapest market price for this product
Redemption penalties may arise if you are breaking a fixed rate mortgage agreement. If you want to remortgage and are in a fixed rate you will need to check with your current lender what, if any penalty is payable on breaking the fixed rate agreement.
(8) How long does the process take?
A mortgage can typically be completed in one to two months.
When we receive an application we will advise you within 24 hours of the rates available, the best lender for your circumstances and the documentation we need to complete a transaction. If you have the documentation available we will meet you within a couple of days.
After our consultant meets with you it takes about 10 days for approval and from 1 to 2 months thereafter to close the transaction.
(9) What should I do if my current mortgage is in arrears?
Unfortunately many of us run in to problems with repaying debt.
If you are in an arrears situation it is important that you act to rectify the position as quickly as possible.
If your mortgage is in arrears, pick up the phone and talk to your lender and see how they can help.
You will not be able to take out a new mortgage if you are currently in arrears or experiencing any repayment difficulties with your present mortgage provider.