A mortgage will not issue unless the property you are buying has at a minimum been covered against fire. The sum to be covered (at a minimum) is the re-instatement value of the property and not the purchase price. Reinstatement value should include all costs incurred in returning your property to its former state.
The interest of the lender must also be noted on the policy. The re-instatement value is calculated based on the independent valuation which is carried out for the lender or at your request.
In most cases the lender requires sight of the original policy at least one week prior to mortgage issue.
You should seek independent professional advice and discuss the various cover options available.
Mortgage Protection
Mortgage protection (life cover) is required to be in place prior to drawdown of the mortgage. This is essentially an insurance policy which pays off the mortgage balance on the occurrence of the death of one or any of the insured parties.
It is advisable to start the mortgage protection policy application process at the earliest possible opportunity. Delays may be caused if further medical information is required.
In most cases the lender requires sight of the original policy at least one week prior to mortgage issue.
You should seek independent professional advice and discuss the various cover options available.
Solicitors
Solicitors play an important role in the buying process. They ensure that the property you are buying has good title and that ownership can be transferred from the present owner to you as smoothly as possible.
They also ensure that any existing mortgage on the property is paid in full. It is upon their instructions that your bank will issue your mortgage to them to complete the purchase.
It is important that you engage a solicitor who takes time to explain the legal process and with whom you feel comfortable.
Their legal fees need to be factored into your overall spend and you will be given a written breakdown of their charges prior to you engaging them. Please check with our panel solicitors who have agreed a very competitive set fee of €900.00 plus VAT and outlays.
Buying your new home
Buying your first property is quite a daunting task and most buyers get very confused along the way.
Rule1.
Estate Agent’s though friendly and helpful are looking to sell to you a property on behalf of their client, the vendor, for as much of your money as possible. They look to you for buying signals and are trained to show you the property in the best possible light. Buyer beware!
Rule 2.
If you are thinking of making an offer on a property do not discuss it with the Estate Agent, do your own homework and have confidence in your own ability to negotiate. If not, please contact buyTogether and we would be happy to negotiate on your behalf.
Start Looking
When you decide to start looking for a property draw up a wish list of your requirements and look for a property that matches all or most of the list.
Investigate the market properly, you should start looking at least six months before you intend to buy. With internet access to property web-sites you can store information on properties and areas that are of interest to you. Knowledge is the key to a good purchase.
Viewing
When you decide to view properties make sure that you do not visit too many on any one day. We have known people who have seen 5 or 6 properties in one morning having spent no more than 5 minutes in each and end up confused.
Try to look at 2 or 3 properties and spend as long as is needed to acquaint yourself with the property. Sit in the chairs, look out the windows, get a feel for the property and the neighbourhood.
Property websites usually have very good photographs of all properties on their sites, however, do take more when you visit, it is advisable to ask the estate agents or occupants permission, particularly if the pictures are to be taken internally.
Draw up a short list of properties and view again and again until you are happy to make a choice.
The Loan
In most situations you will need a mortgage which at best will be 92% of the value of the property. This means that you will need to have at least 8% saved and in reality more than this to cover extras such as solicitors fees, stamp duty if required, and any other outlays.
Most financial institutions will issue a mortgage over a 40 year term subject to age restrictions, however, the most important aspect of any mortgage is your ability to repay.
Mortgage facilities are based on your ability to repay as calculated against your net disposable income. This figure is taken after deduction for other commitments such as car loans or loans which will still be in place when the mortgage is due to issue. Loans like these will have severe adverse implications on the sum that you can borrow. It is very important that you find out from your bank or broker exactly how much you can borrow, the terms and for how long the approval is valid.
You will then need to decide what type of mortgage to choose, fixed or variable. It is best to take advice from your bank or broker, but remember it is advice, you ultimately must decide the type of mortgage that will best suit you.
Discuss with your mortgage advisor your Tax Relief at Source (TRS) allowance. How much you are entitled to and for how long; but take care as it can change during the course of your mortgage.
Finally, please remember that this is your mortgage which happens to be provided by a financial institution. In situations where your income increases you can opt to increase your mortgage re-payments, this will lead to a reduction in total interest paid and the mortgage term will reduce.
As this is a voluntary reduction you can stop paying at any stage, however, it is advisable to discuss this type of arrangement with your mortgage provider.
Buying a new property will most likely be one of the largest transactions of your life. The above is a brief synopsis of some of the steps involved and we strongly advise that you seek appropriate professional advice.
If you any questions or would like to register with buyTogether please contact us or register online.
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Home Insurance
A mortgage will not issue unless the property you are buying has at a minimum been covered against fire. The sum to be covered (at a minimum) is the re-instatement value of the property and not the purchase price. Reinstatement value should include all costs incurred in returning your property to its former state.
The interest of the lender must also be noted on the policy. The re-instatement value is calculated based on the independent valuation which is carried out for the lender or at your request.
In most cases the lender requires sight of the original policy at least one week prior to mortgage issue.
You should seek independent professional advice and discuss the various cover options available.
Mortgage Protection
Mortgage protection (life cover) is required to be in place prior to drawdown of the mortgage. This is essentially an insurance policy which pays off the mortgage balance on the occurrence of the death of one or any of the insured parties.
It is advisable to start the mortgage protection policy application process at the earliest possible opportunity. Delays may be caused if further medical information is required.
In most cases the lender requires sight of the original policy at least one week prior to mortgage issue.
You should seek independent professional advice and discuss the various cover options available.
Solicitors
Solicitors play an important role in the buying process. They ensure that the property you are buying has good title and that ownership can be transferred from the present owner to you as smoothly as possible.
They also ensure that any existing mortgage on the property is paid in full. It is upon their instructions that your bank will issue your mortgage to them to complete the purchase.
It is important that you engage a solicitor who takes time to explain the legal process and with whom you feel comfortable.
Their legal fees need to be factored into your overall spend and you will be given a written breakdown of their charges prior to you engaging them. Please check with our panel solicitors who have agreed a very competitive set fee of €900.00 plus VAT and outlays.
Buying your new home
Rule1.
Estate Agent’s though friendly and helpful are looking to sell to you a property on behalf of their client, the vendor, for as much of your money as possible. They look to you for buying signals and are trained to show you the property in the best possible light. Buyer beware!
Rule 2.
If you are thinking of making an offer on a property do not discuss it with the Estate Agent, do your own homework and have confidence in your own ability to negotiate. If not, please contact buyTogether and we would be happy to negotiate on your behalf.
Start Looking
When you decide to start looking for a property draw up a wish list of your requirements and look for a property that matches all or most of the list.
Investigate the market properly, you should start looking at least six months before you intend to buy. With internet access to property web-sites you can store information on properties and areas that are of interest to you. Knowledge is the key to a good purchase.
Viewing
When you decide to view properties make sure that you do not visit too many on any one day. We have known people who have seen 5 or 6 properties in one morning having spent no more than 5 minutes in each and end up confused.
Try to look at 2 or 3 properties and spend as long as is needed to acquaint yourself with the property. Sit in the chairs, look out the windows, get a feel for the property and the neighbourhood.
Property websites usually have very good photographs of all properties on their sites, however, do take more when you visit, it is advisable to ask the estate agents or occupants permission, particularly if the pictures are to be taken internally.
Draw up a short list of properties and view again and again until you are happy to make a choice.
The Loan
In most situations you will need a mortgage which at best will be 92% of the value of the property. This means that you will need to have at least 8% saved and in reality more than this to cover extras such as solicitors fees, stamp duty if required, and any other outlays.
Most financial institutions will issue a mortgage over a 40 year term subject to age restrictions, however, the most important aspect of any mortgage is your ability to repay.
Mortgage facilities are based on your ability to repay as calculated against your net disposable income. This figure is taken after deduction for other commitments such as car loans or loans which will still be in place when the mortgage is due to issue. Loans like these will have severe adverse implications on the sum that you can borrow. It is very important that you find out from your bank or broker exactly how much you can borrow, the terms and for how long the approval is valid.
You will then need to decide what type of mortgage to choose, fixed or variable. It is best to take advice from your bank or broker, but remember it is advice, you ultimately must decide the type of mortgage that will best suit you.
Discuss with your mortgage advisor your Tax Relief at Source (TRS) allowance. How much you are entitled to and for how long; but take care as it can change during the course of your mortgage.
Finally, please remember that this is your mortgage which happens to be provided by a financial institution. In situations where your income increases you can opt to increase your mortgage re-payments, this will lead to a reduction in total interest paid and the mortgage term will reduce.
As this is a voluntary reduction you can stop paying at any stage, however, it is advisable to discuss this type of arrangement with your mortgage provider.
Buying a new property will most likely be one of the largest transactions of your life. The above is a brief synopsis of some of the steps involved and we strongly advise that you seek appropriate professional advice.
If you any questions or would like to register with buyTogether please contact us or register online.