Get Mortgage Ready - top 5 things you need to know

Whether you’re a first-time buyer or trading up, there are five fundamental questions you need to answer to fast-track your mortgage approval:

• How much can I borrow?
• What deposit will I need?
• What Mortgage Protection Insurance will I need?
• What essential paperwork will I need to have ready?
• Is it worth shopping around for a mortgage?
   

How much can I borrow?

Your savings play a crucial role in getting a mortgage. The general rule is first time buyers and those trading up can only borrow up to 3.5 times their salary. It’s worth getting ‘approval in principle’ on a mortgage before starting your property search. Most banks have online calculators that help you work out how much you can borrow, this can be a good first step in figuring out how ‘mortgage ready’ you are.

A financial health check is a good idea to help set goals and start to budget for a mortgage. The Competition and Consumer Protection Commission (CCPC) has a good health check template you can download for free here.

What deposit will I need?

First time buyers need to produce a deposit of 10%, while second time buyers will need a deposit of 20% to secure a mortgage. It’s worth having the rough numbers in your head first, then popping in to talk to your bank on what’s possible. Be wary of overstretching yourself, ultimately your bank will seek reassurance that you’ll be able to make your potential mortgage repayments.

What Mortgage Protection will I need?

You can’t get a mortgage without having mortgage protection in place. Mortgage protection is an insurance policy that pays off your mortgage if you or your partner die.

Buying a house is time consuming, not least the paper work so it’s reassuring to know that with laya life you can get immediate mortgage cover for just €10.10 a month online in a matter of minutes! No medical checks, no family history checks and no fuss.

We know that your savings are precious, that’s why we’ve introduced a 10% discount for joining online and a further 10% if you’re a laya healthcare member.

Our simple process and immediate, affordable cover means that you can tick life insurance/mortgage protection off your to-do list today. Sign up online or call us on 01 536 8000 today.

What essential paperwork will I need to have ready?

It pays to be organised when it comes to getting a mortgage. All banks look for the following documentation so get them ready; payslips, proof of address and address history, proof of mortgage protection, employment history, photo ID, property and solicitor details.

It’s useful to do a quick sum-up of additional costs you are likely to incur when buying a house e.g. survey fees, mortgage protection, solicitor fees etc. If you’re self-employed, the documentation differs a little, you’ll need; 3 years financial accounts certified by a qualified accountant, 6 months bank statements, and 3 years Revenue Notices of Assessment and Tax Clearance certification.

Is it worth shopping around for a mortgage?

Absolutely, different mortgage lenders have different interest rates, so it pays to shop around when taking out a mortgage for the first time or if you’re looking to change your mortgage provider.

There are three main interest rates available and it’s important to know the options open to you and what is right for your personal financial circumstances; fixed rate, variable rate and split rate. The Competition and Consumer Protection Commission (CCPC) is an independent body that provides useful guidance on shopping around and what your rights as a consumer are.

Get a quote and buy life insurance and mortgage protection within minutes with laya life. Our experienced and friendly team are standing by to answer your questions; go online or call us on 01 536 8000 today.