Getting a mortgage in Ireland can be difficult because most banks make you show a connection with the country. For many banks you will need to have a deposit that is 30 percent above purchase price. They also look at your income closely to see if you can actually afford the loan. If you pay taxes in the UK, banks in Ireland will consider you a non-resident for mortgage purposes. You can also be classified as a buy to let investor even if you play to occupy the home. There are many factors to consider before getting a mortgage.
Your age can also affect your mortgage deals as well. Many lenders set cut off points for repayments over 70 years, if you are over 30 you will probably have to secure a shorter and more expensive mortgage. The options are available at fixed and variable rates; interest rates will be something that you must discuss with your bank or broker. Deposits on property are usually subject to borrowing rates around 4 percent, and when it comes to mortgages better terms are offered when the mortgage is under 70 percent.
Banks in Ireland have recently started broaching loans with caution stemming from Irish property crashes. A few lenders are only offering home loans on a repayment basis. A repayment basis includes interest and payments towards capital loan amounts. There are not very many options if you choose to only pay interest.
Some lenders will give you the choice of variable or fixed when it comes to your rates. Most Irish mortgages are variable rates, with maximum terms of 35 years. A variable rate gives you the flexibility of changing interest rates in the economy. If you choose a fixed rate then you will not deal with changes in interest rates, but you will not profit from lower rates. With fixed rates, the monthly repayments will stay the same throughout the life of the loan. Fixed rates offer stability, but this is coupled with high premiums to account for the lender’s risk. If interest rates change drastically, lenders can lose large amounts of money.
These are very important things to keep in mind before getting a mortgage in Ireland. If you are risk averse, it may be in your best interest to go with a fixed rate. If you are feeling risky, you may want to choose a variable rate. Yes.ie is a broker that can also answer any other questions you may have about the mortgage process.