askpaul – EPISODE 2! Tips On Completing A Mortgage Application in Ireland

(soft electronic music) – Hi, and welcome to
episode two of Ask Paul. Today’s episode is gonna focus purely around mortgage application forms, and we’re gonna try and help you get a clean application into the bank and in turn get your
first mortgage approval. There’s a few things to
look out for here, folks, but let’s be honest and
let’s be commonsense about the whole thing. The first part of the
application is the simplest part, name, date of birth, your occupation, and the kind of property
you’re looking for and the amount you’re looking to borrow. What kind of trips people
up is the nitty gritty that it gets into behind the application, so the things you need to
accompany your application with. The first thing would probably
be an employer’s certificate certifying your salary,
your years of service, and that you’re permanent. If you’re self-employed, you’re gonna need three years accounts and
maybe an auditor’s report and a tax clearance certificate. If you’re PAYE worker you’re
probably going to have to give your three months wage slips as well to prove your income for
the last three months. The next thing you’re
going to be asked for is a six months accounts,
for your current accounts, or any other loans you have outstanding. For your current accounts, one thing to look out here for the bank, they want to see you
have the ability to repay the mortgage you’re looking for. They don’t look for clean accounts. If you have six months, if you get the last six months, maybe give yourself a month or two to make sure your bank accounts are really, really in good order. What I mean by that, if
you have an overdraft try not be in it every month. Try not to be broke by the
time it gets to payday. I know it’s easier said than done, but try to have a couple
of quid in your account by the time you get to payday, so it doesn’t look like
you’re on the breadline. Obviously, it’s going to
help your application form. One thing to point out here is a big, big no-no with the banks. Any type of Paddy Power, Betfair or any type of gambling on an account, even if it was just a couple of quid on a football match or race like that is a big no-no, they’re automatically throwing you out the door. So again, just make sure
you keep your accounts clean from that point of view. The other thing that doesn’t
work in clients’ favor is existing loans. Not that the banks dislike them, they like to be able to see
that you can repay loans, but it really has an impact
on what you can borrow. I’m gonna give you an example. A client that has a 50,000 annual income can borrow roughly 195,000 Euro. If that same client has a
500 Euro repayment on a loan, so, let’s say a car
loan, or a credit card, or a, I don’t know, student loan, say, well, then he can now
only borrow 184,000 Euro. So that’s 11,000 in the difference. So, again, before you go for
that mortgage application, try if possible to get rid of your loans. It would really, really help you. The other thing, I
suppose you wanna talk to when you get to these things is, using your debit cards. So, when you get your statements in, your six-month statements, it for sure has got loads
of debit card stuff, looks like you’re
spending every single day. It’s not going to be a great sign. Try maybe at the beginning
or the end of the week taking a couple hundred quid out and use that for your discretionary spend, rather than using your
debit card all over town. And that’s a big, big hint. The next thing I suppose
I’m gonna say to you is, take your time. I know it’s exciting, you’re getting on the first-time property ladder, and you’re really, really excited, but again, make sure you
get your accounts in order, get the correct property, and go through the correct
bank lending institution. Our next episode is gonna focus on whether to go through a mortgage
broker or directly to the bank. And we’re gonna go through
the pros and cons of both. So maybe come back here to us next week and have a look at that. Don’t forget to subscribe
on YouTube to our channel, and also like us on Facebook, and follow us on Twitter. As always any questions please
do not hesitate to contact me at: [email protected] – or alternatively drop a name
in the comments box below with your question. Thanks for tuning in. (soft electronic music)

One comment on “askpaul – EPISODE 2! Tips On Completing A Mortgage Application in Ireland”

  1. RIJON K L says:

    Hi Paul
    I have made a recent transaction to with my aib credit card and I am looking for a mortgage now. will that affect my mortgage.

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