Considering applying for a mortgage?
Evidence of ability to repay: This is also known as showing the repayment capacity to repay a mortgage. Basically you need to show, for at least the previous 6 months before applying for a mortgage, that you have proven ability to pay the proposed mortgage repayments. Evidence of your monthly rent repayment and/or evidence of a regular monthly savings amount are two of the main ways of showing the ability to repay. Another way would be, if you have just cleared a personal loan or if an existing loan will be cleared in full prior to drawing down your mortgage, the monthly repayment on this loan would show more repayment capacity. Furthermore, if you have a consistent build up in your current account balance, an average of this monthly increase can be taken into account also.
Main point here is to be able to show from bank statements, that you have the proven ability to pay a minimum of the proposed monthly mortgage repayment.
Proof of deposit: If you are a first time buyer you will have to pay 10% of the purchase price of the property from your own funds or from funds received as a gift.
If you are a mover you will have to pay 20% deposit and if it is an investment property you will have to pay 30% Deposit or this could be higher depending om property location.
Before approval of any mortgage application you must provide evidence of the necessary deposit funds. This can be way of funds you have in your name in your bank accounts or in investment or savings plans. You can also be in receipt of a non refundable gift, say from a parent, as part of your deposit.
Documentation gathering: This is the part of the process that can sometimes frustrate applicants and can be viewed as a lot of hassle!!! We in SYS mortgages look to make it as painless as possible for you!
Break it down into three sections; ID requirement:
- Photo ID (passport / driving licence) and proof of address ( bank statement / Utility bill) and proof of PPSN number ( payslip)
- Income documents
- Payslips – (minimum of last 4 consecutive recent payslips) Salary cert (provided by SYS Mortgages) to be completed and signed off by employer Employment Detail Summary from revenue website (old P60)
If you are self employed or a company director you will need to provide at least 2 years audited accounts and various revenue documents. Statements
Last six months of statements of your current accounts: Loan/mortgage accounts and savings or investment accounts. Make sure they are statements showing your name and address and account details. (Itemised transaction listings will not suffice.)
If you have the above 3 areas covered off you are well on your way to submitting your application. We in SYS Mortgages will do the rest for you by processing your application and keeping you updated along the journey.
This article was written by SYS Group mortgage adviser, Donagh O’Shaughnessy. Any enquiries can be sent to Donagh@sysmortgages.ie or give Donagh a ring on 0868358961.