Dos And Don'ts for Mortgage for Buying a Home in Ireland

Getting a mortgage is very easy when buying a home in Ireland. There are plenty of choices, and nowadays, there are plenty of choices within choices - for repayment policies, interest rates, etc. Here are some prompts about the dos and don'ts of Mortgaging in Ireland for buying a home.

 

Do Have A Diversified Research

Research different lenders and don't skip through incomprehensible terminology. Because you not only need to evaluate interest rates, you also need to decide whether you are comfy with a fixed or variable interest. For all that sounds complicated, you can get a simplified tour of the possibilities with the help of a mortgage advisor. This is a very good reason why there is a growing demand for an independent mortgage advisor in Cork, Dublin and other Irish cities.

Do Have An Accurate And Practical Mortgage Calculation Plan

There should be two aspects of mortgage calculation - facts and figures. While most people only consider the figures, i.e the repayment policy and actual cost of the mortgage, there should be a fact check about practical affordability and how well the loan can be carried on. So concentrate on the available interest rates and calculate how much the cost of credit will affect you for the long term, considering other living and family expenses. You may use the Online Mortgage Calculator of your Mortgage Broker to compare all the lenders' rates in one place and see how much each mortgage will cost you over specific periods. It is good to consult a Mortgage Advisor, who can prompt you about any hidden risks as well as the best benefits of your shortlisted mortgage schemes.

Do Save A Deposit, Get A Mortgage Approval in Principle And Secure Your Lunch Money

While you are searching for your dream home, start saving! Aim for mortgage Approval in Principle (AiP) so that you can move in as soon as the property hits the market. In a competitive market, you must be able to act quickly, and some sellers will not even show you a home until you have received preliminary clearance on mortgage AIP. So start saving even before you start looking for a house. And save, not only the deposit money but also other small savings to help yourself with a smooth sailing while you get into a mortgage.

Do Think About Other Expenses When Considering Pension Mortgage

In the traditional mortgage repayment routes, the first few years of repayment are only interests, which are comparatively small amounts EMIs. Then eventually, in the coming years, you increase the amount of the repayments to pay against the capital. Another policy allows borrowers to repay the capital at the end of the term and having to pay only the interest all along. This is how endowment mortgages worked back in the 90s. That was the best way out to handle the high prices of mortgages. But it isn’t the best option for millennials when market volatility is taken more seriously. With a single stock market crash or lack of funding, there could be so many risk factors where people may not have enough money to pay back the lump sum mortgage capital altogether.

Pension Mortgages are often considered a better alternative to endowment mortgages. However, the fact remains that paying only interest, for the time being, would have a greater capital repayment to handle sooner or later. The money that you have, can be utilised to grow the pension fund. And because pensions payments are tax-free, this can yield better cover.

Walsh Group, a pension advisor in Cork warns of the dangers of this idea - you are giving away a big portion of your pension money, there’s hardly anything left for you to have a substantial life in retirement. And not to forget, there may be more expensive needs for senior people, for healthcare and perhaps even nursing homes.

According to Walsh Group, pension mortgages are the best option for people who have personal pensions and have other assets. It may not be for those who have only have an occupational scheme or something like that.