Hennelly Finance provides professional mortgage advice that supports our clients to achieve the right mortgage to suit their needs. We understand that no two mortgages are the same because everyone’s circumstances are different.
Our mortgage brokers are here to help. We believe that you should be able to select a mortgage to match your lifestyle. So, if you are a first-time buyer, looking to invest in property or somewhere in between; we hope that with our straightforward advice, you will find it easy to choose your own mortgage with the best mortgage rate to help stretch your money further.
What are mortgages?
A mortgage is a loan on a property or house that secures a loan and is paid in instalments over a set period of time. Mortgages secures your promise that you’ll repay the money you’ve borrowed to buy your home. Mortgages come in many different shapes and sizes, and each has its own advantages and disadvantages. Our mortgage brokers will ensure you get the right mortgage to suit your circumstances, while taking into account your future plans and your financial situation.
First Time Buyer Mortgages
For most of us, buying a home is the biggest financial decision we ever, make.That is why you need a mortgage broker you can trust! As a first-time buyer, finding the right mortgage can be daunting. You might wonder what it takes to get a mortgage, what type of mortgage you should choose, and how to secure the best mortgage rate. Hennelly Finance can help you to understand the different types of mortgages on offer, which mortgage will best suit your needs and even help secure mortgage protection insurance at a very competitive price. Our service is free, impartial and brings you the best mortgage rates and conditions from the main mortgage providers in Ireland. Our mortgage brokers will support you through every step of the loan application process to help secure your loan and achieve speedy approval from your lender, making your first home purchase as easy and exciting as possible.
Switching for best mortgage rates
The term ‘remortgage’ or ‘switching’ simply means changing your mortgage deal and/or mortgage lender. Better mortgage rates and conditions are key reasons for switching and can help to finance home improvements and travel, clearing bank loans, credit cards, car finance and credit union loans or even help the kids with a deposit for their first home. Mortgage switching cannot be used to invest in a business. Switching your mortgage is also a good option if you are keen to consolidate your debts. Sometimes it is hard to keep track of where all your money goes. By switching your mortgage you can transfer all your outgoings into one monthly payment – and you may find yourself better off. A high percentage of people are currently paying too much for their existing mortgage. Are you one of them? Our mortgage brokers have access to the very best mortgage rates and conditions available, so let us review your current mortgage. It costs nothing and could save you thousands! Call us today to review the latest mortgage rates and find out if switching your mortgage can help you achieve your financial goals!
Moving house is among one of the most stressful times in someone’s life. If you are considering trading-up, it is important you achieve the best value on your mortgage rate and conditions. Our mortgage brokers we can save you time, stress and potentially thousands of euros if you are considering trading-up, leaving you free to concentrate on enjoying your new home.
Buy to let
Buying an investment property or second home is very different from buying a family home or primary residence. Buying property to rent out privately is very popular in Ireland. Like any investment, a buy to let mortgage comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares this is probably the only way to start building long term profits.There are a lot of extra issues you need to consider as an investor, such as rental income, tenancy, stamp duty, income and capital gains tax. There is also a big difference in how you are treated by the banks when purchasing an investment property. For example, the interest rates, repayment options and mortgage terms are not the same as those available to you when buying your own home.
At Hennelly Finance, our mortgage brokers provide free, specialist advice on all areas of buying an investment property. We can advise you on the best investment mortgages currently on the market and help you achieve the best mortgage rates. Talk to us with regard to all mortgage products as certain terms and conditions will
apply. Call us now on 091 670123 to find out how much you can borrow today.
The Mortgage Process
At Hennelly Finance we are committed to helping guide you through the mortgage process and help you achieve the best mortgage rate and conditions to suit your needs. We take the time to detail the various stages of the process. This gives the borrower a structure and a timescale to follow, making the whole process work more efficiently.
Step 1: Establish how much you can borrow.
Most institutions have different lending criteria so different lenders will vary in the maximum loan amount they are prepared to lend you. To establish how much you can borrow you need to talk to one of our experienced mortgage brokers.
Step 2: Obtain ‘Approval in Principal’ (AIP)
‘Approval in Principal’ is an approval for the finance based on your income details. It states that a lender in principal is willing to lend you the finance, subject to certain conditions. It is not a legally binding contract. It is important to note that you will not receive a legally binding contract until all the conditions of the AIP are met. Our mortgage brokers will advise you of all the extra costs associated with a property purchase or re-financing so that you will have an accurate idea of how much everything will cost.
** When refinancing skip steps 3 & 4
Step 3: Search for a property
Now that you have an ‘AIP’ and you know the maximum the lenders are willing to lend you and the conditions attached to the loan, you can start looking for a suitable property in your price range.
Step 4: Pay deposit
When you have identified a property you like, you can place a refundable booking deposit and immediately get in touch with your mortgage broker at Hennelly Finance to progress to the next stage. Do not put down a non-refundable deposit because at this stage, you do not have a binding contract from the lending institution. Once you have identified a property and have paid your booking deposit, you will then wait approximately three weeks for contracts to be signed, upon which time the remainder of your deposit will have to be paid. Within the three-week period before signing contracts, it is imperative you obtain your ‘Full Loan Approval’ as your solicitor will not allow you to sign contracts without it. This is because you stand to lose your deposit if you cannot finance the rest of the purchase.
Step 5: Valuation
An independent valuation will need to be completed for the lending institution so they can establish there is sufficient equity on the property to cover the mortgage amount. Your Hennelly Finance mortgage broker will organise this for you and send it into the lender that you and your advisor have agreed upon.
Step 6: Full Loan Approval
Your Hennelly Finance mortgage broker will ensure that you have everything in place before contracts are due to be signed. It is very important that you do not slow down the process at this stage, so you will need to get any outstanding documentation the lenders require into Hennelly Finance advisor as soon as possible.
Step 7: Completion
Once contracts are signed, Hennelly Finance will organise protection to suit your needs, such as mortgage protection insurance, life cover and home insurance. These will be requirements of your lender (except for investment properties). Certain insurance must be in place before the lender will release the funds to your solicitor. Your Hennelly Finance mortgage broker will submit these to the lender and your cheque will be ready for issue.
Step 8: Receive your loan “cheque” and move into your new home!
Upon receiving the funds from your chosen lender your solicitor will then complete the purchase on your behalf, at which time you can move into your new home. In the situation of a refinance, your solicitor will clear the outstanding balance of your original mortgage and/or any other loans you have agreed to clear and will forward
the balance, if any, on to you. If you have any questions about the mortgage process, give one of our mortgage
brokers a call today on 091 670123.
Applying for a mortgage is much more difficult than it was in the past. Before a lender will approve your mortgage application, you have to satisfy a number of conditions first.
Underwriters want to see that you have the capacity to meet the stressed monthly repayments. This rate is usually 2% over the variable rate but differs between lenders. They will look at your current account to make sure there is no irregular spending patterns and you are living within your means. Repayment capacity can be satisfied in a number of ways:
- Existing mortgage repayments
- Regular savings
- Discontinuing other loans or outgoings
- Net Disposable Income
- After the stressed monthly repayment is paid, you must show you have a minimum disposable net income to live on.
Again, this varies so the following is just an example:
- Single Applicant €1,300 per month
- Joint Applicants €2,050 per month
- Additional for each child €250 per month
Loan-to-income limit (LTI)
There is a general limit of 3.5 times gross annual income for all new mortgage lending for principal dwelling homes, with some scope for flexibility. This includes lending to people in negative equity who are applying for a mortgage for a new property. This limit does not apply to buy-to-let mortgages.
Lenders will typically lend 70-90% of the purchase price. For first-time buyers of principal dwelling homes the limit of 90% Loan to Value (LTV). For non-first-time home-buyers, there is a limit of 80% of LTV on new mortgage lending. For properties other than principal dwelling homes, including buy-to-let properties, a limit of 70% LTV applies.
They will request proof that you have the deposit amount as well as the funds required for whatever fees are required e.g. solicitor and surveyor fees. If the deposit amount is being gifted to you, they want proof that the funds are available and, in some cases, will request the person gifting the money signs a declaration stating they will not look for the money back.
The gathering of documentation can take some time, but it must all obtained before you can submit your mortgage application.
- P60, last three months payslips and salary certificate
- If self-employed, 2/3 years audited accounts and Notice of Assessment as well as business current account statements
- 6 months credit card statements
- 12 months savings statements
- 12 months current account statements
- 12 months mortgage statements
- 12 months loan statements
- Photo ID and proof of address
An income tax rebate, the Help-to-Buy (HTB) incentive, aims to help first-time buyers of newly built homes to fund the deposit required. It also applies to once-off self-build homes. It consists of a rebate of income tax paid over the previous 4 years. It will run until the end of 2021.
Will my mortgage application be affected by COVID-19?
Lenders are still accepting new mortgage applications. The BPFI has a COVID 19 FAQ which gives advice on mortgages.
Whether you have questions about the documentation required or need help to understand your repayment capacity, our experienced mortgage brokers are available to help you work through the process. Give us a call today on 091 670123 to get started.
WARNING: if you do not keep up your repayments you may lose your home.