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Getting a Mortgage in Ireland

September 01, 2022
It may not seem like it but purchasing real estate in Ireland is pretty expensive. Though the country is far less popular than the likes of France, Spain, Italy, and more, properties here are surprisingly in-demand. After all, the place has a stable economy, lots of beautiful sights, great food, and even better booze! It shouldn't surprise you that real estate here would cost an arm and a leg. Your best bet would be to get a mortgage in Ireland. It will help fund your property here in more ways than one.

Getting a Mortgage in Ireland

Will Your Residency Status Matter?

The answer here depends on various factors. For the most part, your residency status shouldn't matter since there are now laws that prohibit non-residents from purchasing property in Ireland. However, it's a bit of a different story when it comes to getting a mortgage. Many financial institutions are more open to granting mortgage loans to residents since they presented fewer risks. Some of them even insist that applicants have a local bank account before they can apply. Nevertheless, you aren't required to become a resident of Ireland to get a mortgage here!

What are The Different Types of Mortgages?

Although different financial institutions will offer up their own kinds of mortgage, there are basically two main types that are common all throughout Ireland. Firstly, there's the fixed-rate mortgage. Just as its name says, the interest rate will remain the same throughout the duration of your mortgage term. It's the more recommended type since it is less risky. Secondly, there's the variable rate mortgage, wherein the costs may go up or down depending on how the interest rates change over time. Though it presents a lot of risks, many go for this type since it can lessen costs at times.

Getting a Mortgage in Ireland

What are The Required Documents and Fees?

To apply for a mortgage in Ireland, you'll need to submit a few required documents. They include proof of identification (such as your valid passport or national ID), proof of income, and other documents that prove you creditworthy. It'd be best to provide multiple copies of each so that you don't have to submit the actual forms. Some financial will also ask you to provide proof of legal residency in Ireland if applicable. And don't forget to pay the fees too. They include the legal fees, the property valuation fee, and your mortgage broker's commission if you hired one!

What is The Process of Getting a Mortgage Here?

According to Wise, the process of getting a mortgage in Ireland is pretty straightforward. Firstly, choose an Irish bank or other financial institution that has the right mortgage product that you need. Send in an application and the required documents to get an offer in principle. Once you get the offer (in principle), find a property in Ireland that will fit your budget and negotiate its final price that can match the mortgage offer. Once that's done, conduct that valuation and other surveys that the mortgage lender requires. And upon completion, all that's left to do is to wait for their approval.

What are the Mortgage Lending Limits in Ireland?

Since 2015, financial institutions in Ireland have set lending limits for granting mortgage loans. There are two main types of these limits. The first is the loan-to-value (LTV), which is based on the ratio of how much you were loaned to the property value you have to pay. The second is the loan-to-income (LTI), which is based on the ratio of the amount of your loan to how much income you earn. More often than not, it's how you'll be able to meet either limit that will let the financial institutions determine whether you're worthy of the mortgage or not.

Getting a Mortgage in Ireland

Ireland may not be the wealthiest or the most expensive country in the world, but purchasing some real estate here will still cost a lot. Your easiest option is to get a mortgage here. Get to know all the basics of applying for one!

#mortgage   #real-estate-tips   #buying-property