John F. Loughrey & Associates Ltd. t/a The Mortgage Centre is regulated by the Central Bank of Ireland.
Who is a first time buyer?
A first time buyer is a person, (or, where there is more than one buyer):
How much can I borrow?
The amount your mortgage provider will lend you is based on your salary. Each lender will have its own formula for calculating how much they will lend to you. The maximum amount you can borrow is 92% of either the property value or the purchase price – whichever is the lower. Repayment terms vary between 5 years and 40 years depending on your age.
What is a Property valuation?
To assess the value of the property a registered valuer must complete a market valuation report on your property. This is a prerequisite for all lending institutions, and each financial institution has its own panel of valuers. The cost of this valuation depends on the value of the property and the minimum costs you can hope to incur will be €127 plus VAT @ 21%.
What Insurance cover do I need?
It is mandatory to take out both building cover on the property you intend buying and life cover on your own life.
How much will it cost to set up my mortgage?
At The Mortgage Centre we shop around to find you the lowest possible mortgage deal. The Mortgage Centre may charge a fee in some circumstances. You will be responsible, for your own legal fees, valuation fee and any survey fees.
Am I eligible for the “Rent A Room” Scheme?
The “Rent A Room Scheme” was introduced by the Finance Act 2001. Its main aim was to increase the availability of rented residential accommodation and permitted a person to let a room (or rooms) in their principal residence. Gross annual rental income of up to €10,000 is exempt from tax.
Other Costs e.g. Valuation, Conveyancing
There are a number of other costs associated with buying a house. These need to be taken into account when deciding how much you can afford to borrow.
Valuation Fees
A mortgage valuation report is required before any mortgage can be agreed by a lending institution. You are responsible for paying the fees for the valuation. The valuation report provides an open market value of the property only. You may want to consider a more detailed Structural Survey. Occasionally the lender may require a more detailed survey than is provided in the Mortgage Valuation Report, the cost of which, is payable by you. At The Mortgage Centre, we can recommend a panel of leading Valuers.
Legal Fees
Legal fees can be a major cost when purchasing a house. The legal work, which includes transfers of ownership of a property, is called conveyancing and this is completed by a solicitor. Costs will vary but most solicitors’ charge a percentage fee relating to the purchase price of the property. Always get a quotation before instructing them to do the work.
Legal Fees will be incurred in the preparation of documentation, this provides the lending institution security over the property and any other security requested. To minimise the cost, the lending institution will use the same solicitor for the security documentation as used for the conveyancing.
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