Would be First Time Buyers (FTBs ) in Athlone and its environs are getting their affairs in order before year end, to ensure they are primed and ready for action once new bank lending exemptions open again in 2019.
This is according to experts at MyMortgages.ie, who say that although November and December usually see a slowdown in the number of mortgages written, these are the months when there is a lot of ‘behind the scenes activity’, as mortgage seekers begin undertaking the necessary preparation work to get their mortgage applications together. This is on the back of the Central Bank’s announcement last week that there will be no changes to mortgage lending rules in 2019. MyMortgages.ie say they expect the number of First Time Buyers (FTB ) submitting mortgage applications to surge in the new year, as new research reveals that throughout the country, the cost of a mortgage is cheaper than the cost of renting.
Figures from data analytics company ‘The Information Lab’ show that in Westmeath alone, the monthly mortgage repayment for a three bed house is €720, whereas rent for the same property would be approximately €867, a cost difference of €147.
Joey Sheahan, Head of Credit at MyMortgages.ie commented, “in many areas, the cost of a mortgage is significantly lower than renting at the moment, as rents reach all-time highs around the country. More and more people are finding themselves paying through the nose for rental properties that do not meet their requirements, and so are looking to submit mortgage application to secure their own property and be left with much more affordable monthly repayment rates than they would for renting. While the mortgage market too has challenges, not least, getting a deposit together and finding a suitable property, in the main, the cost of mortgage repayments versus monthly rent when broken down make much more financial sense.”
The experts at Mymortgages.ie say all mortgage hopefuls should be aware of ‘red flags’ that banks will look at initially, and which could prevent them from progressing through the mortgage application process successfully.
The MyMortgage.ie ‘red flags’ list includes:
Overdrafts - authorised or otherwise
On line gambling referred to on your bank/credit card statements
Cash advances on credit cards, even on holidays
Non-documentation of regular payments such as rent
An irregular savings patterns
Erratic spending patterns
Poor credit rating
Mr. Sheahan advises mortgage seekers of the steps they should take to boost their chances:
Rent – ensure this is paid through your bank account as bank will not accept this as proven repayment ability unless it is evidenced on your bank statement
Overdrafts – even if you have an approved overdraft facility, it is better not to use it on a regular basis
Credit cards – ensure balances are cleared each month. Not only will this portray a better picture of the applicant - it will save interest, with some credit card companies charging up to 18%
Loans – ensure all monthly repayments are fully up to date
Savings – transfer your savings into one account and save a regular amount each month – do not make any withdrawals from this dedicated savings account
Mortgage FTB checklist
You will need the following to ensure your application is complete - photo identification, P60 for last year, pay slips, certificate of income, current account statements, savings accounts statements and loan/mortgage statements.