As a first-time buyer in Northern Ireland obtaining a mortgage can seem like quite a daunting task at first. With property prices steadily rising, the difficulty associated with saving the initial deposit and a much more cautious attitude adopted by Banks and Building societies when it comes to lending on properties it can be difficult to get your foot on the property ladder.
For those who have already saved the initial deposit things are currently looking quite promising.
Mortgage rates on today’s market 07/10/2017 are currently at an all-time low and there are loads of great deals available providing you meet your Bank or Building societies lending criteria.
Do you Qualify for a First Time Buyer Mortgage ?
Until your application has been fully assessed by a qualified mortgage adviser it’s difficult to say whether or not you meet lending criteria.
Some of the crucial factors that will impact your application include.
- Employment Status – If you are self-employed do you have 2 – 3 years of accounts or if you are employed do you have a permanent contract.
- Credit Score – Do you have any adverse credit history or have you missed any credit card or loan payments in the last 2 years.
- Affordability – How does your income and expenditure stack up against what you are trying to borrow.
- Age – Do you intend to borrow beyond retirement.
Any one of the above factors could result in your application being rejected. If you have already been rejected for a mortgage don’t give up, criteria varies between one Bank and another so there is still a chance that you could be accepted by another lender.
Our mortgage advisers our in contact with Banks and Building societies everyday and will instinctively know who is most likely to accept your application saving you stress, time and hassle. Contact us *** today for your free mortgage appointment.
How Much can you Borrow on your First Mortgage ?
Again this question is hard to answer without being fully assessed by a mortgage adviser, as a rough guide it would be fair to say that most lenders would be willing to lend you 4 – 5 times your income, however, this figure can vary greatly after all of your current credit commitments are taken into consideration.
By clearing any loans or credit cards that you currently have you may be able to increase your intended loan amount considerably.
Which income can be considered when applying for a mortgage will also vary between one lender and another. Some lenders accept bonuses, retirement income or state benefits such as child tax credits or disability living allowance and some won’t.
How Much of a Deposit will you need ?
Saving an adequate deposit is probably the biggest stumbling block for the majority of First Time Buyers. A 5% deposit is currently the minimum deposit required for any standard mortgage.
The majority of lenders in Northern Ireland will offer 95% mortgages however you should be aware that the best mortgage products are reserved for those with bigger deposits as they represent less of a risk to the lender.
After the financial crash in 2007 100% mortgages were effectively banned however there are government schemes** available to help those who are unable to save the deposit required such as Co-Ownership or the Help to Buy ISA.
How Much will the Repayments be ?
Your monthly repayments will depend on the rate that you secure, the term and the loan amount. The majority of mortgages would traditionally have been structured over a 25 year term however certain lenders will allow you to take your mortgage out over 35 years thus reducing your monthly repayments. You should be aware that a longer term will result in you paying back more money in the long run.