Tips to Succeed as a First Time Buyer
Alison Fearon from switcheroo.ie mortgages discusses latest trends in the mortgage market
Tips to Succeed as a First Time Buyer
Alison Fearon from switcheroo.ie mortgages discusses latest trends in the mortgage market
Tips to Succeed as a First Time Buyer
Alison Fearon from switcheroo.ie mortgages discusses latest trends in the mortgage market
Understanding what banks are looking for and what the full mortgage process looks like is critical to avoid pitfalls in your application. We understand what each bank is looking for, how they differ and what will help a first-time buyer succeed in getting the mortgage and ultimately the home they are looking for.
The Central bank has set out guidelines for what mortgage providers can lend to customers. For Fist time buyers this is up to 4 times their household income. So if the household income is €100k then the mortgage amount will be up to €400k. However, each bank has their own affordability models to understand what mortgage amount they are comfortable lending. These affordability models include other lifestyle expenses such as childcare, any other loan repayment and general cost of living expenses. Understanding these items are important as each will have an impact on what you can borrow.
Understand what you can afford
Having a Robust
Saving Strategy
The typical down payment for a First Time Borrower is around 10%of the property value. There are government supports such as the Help to Buy Scheme and First Time Buyers Scheme which can provide support for deposit, but most lenders look to see at least 5% of the deposit coming from the mortgage applicant.
It is always recommended to also have savings that will cater to additional expenses such as stamp duty, valuation costs, and legal fees. Ensure you have a saving account where you can build your deposit and have a solid plan to show your mortgage repayment ability.
Along with your deposit you will also need to demonstrate that you can cover the monthly mortgage payment. This is referred to as your Proven Repayment Ability. This is typically demonstrated by either rent or saving or a combination of both. It is important that you have at least six months of accounts that can show this repayment ability.
Ensure you have a saving account where you can build your deposit and have a solid plan to show your mortgage repayment ability.
Ensure your Financial Footprint is Streamlined
When a lender determines your financial credibility, they will check your income, outstanding debts, credit history, Proven Repayment Ability and down payment. Most lenders will do a forensic review of your last 6 months’ statements of all your accounts including credit card, revolut, savings and bank accounts. If you are planning to get a mortgage for your home, you should ensure that you pay your debts in time and avoid taking new loans. Ideally you should consolidate accounts as much as possible so you can present a clear and transparent financial profile for your application. For example having spare credit cards does not help as lenders will assume you use them even if you don’t and there is no balance on them. Having just a current account and a separate savings account is ideal for a bank.
Choose the Right Mortgage Products and Lenders
Choosing the right mortgage products and lenders is one of the significant decisions your need to make. The lender and mortgage product will determine the interest rates and payments that you will repay for your mortgage. There are a variety of loan options that different institutions offer. Some loans have lower rates, while others have cashback. Some banks might be able to offer a higher loan than others. Other features to consider are term, fixed period, consolidation, green mortgage discounts and prepayment options. Banks also tend to incorporate internal affordability calculators that help determine the amount of loan you are eligible for.
Given this breath of options it is important to engage with a mortgage advisor. At Switcheroo.ie we understand the pros and cons of each lender and will provide a comprehensive cashflow comparison that will help you make a more informed decision. We will work with you to package your application that presents you case in as good a light as possible.
Approval in Principle
The next step is to receive an Approval in Principle (AIP). An AIP means that the lender has agreed to offer you a loan for the purchase of your home but is subject to certain conditions including the valuation of your new home. While an AIP is not legally binding it is an excellent indication of what the lender is willing to offer you.
Many estate agents require that you have an AIP before viewing a home. Thus, it is recommended that you get an AIP so you can view properties as well as know the houses you can afford to purchase.
Approval in Principle
The next step is to receive an Approval in Principle (AIP). An AIP means that the lender has agreed to offer you a loan for the purchase of your home but is subject to certain conditions including the valuation of your new home. While an AIP is not legally binding it is an excellent indication of what the lender is willing to offer you.
Many estate agents require that you have an AIP before viewing a home. Thus, it is recommended that you get an AIP so you can view properties as well as know the houses you can afford to purchase.
Choose a Home that is
Right for you
After receiving your AIP it is time to find the home you want. While this is a very nervous and exciting time it is important to consider your lifestyle needs. When deciding and selecting a home that is right for you and your family, you need to consider multiple factors to ensure the house you choose meets your needs and budget. Are you looking for a new build, or would you prefer to purchase a second-hand house that needs some work? You also need to consider the local amenities you want for your new home, the location and any commute it will require. It would be best if you also thought about your future needs, such as an addition to your family.
When you have found your home, you will need to put down a deposit. At this stage the deposit is refundable as you have not yet exchanged contracts with the vendor.
Loan Offers
Your bank will need to be notified that you have a property so they can progress your mortgage. For this they will then require a valuation of the property. The valuer must be from an approved list of valuers. If he house is over 100 years old or if the valuer identifies any structural issue you will also need to get a survey
After the bank is satisfied with the valuation , they will issue you a loan offer which formally confirms that your mortgage application has been evaluated and approved. This is legally binding and so you are on the final stretch of the process to getting the keys to your dream home. Now you will engage your solicitor and exchange contracts with the vendor. When you have done this you and the vendor are both committed to the transaction.
Drawdown and
Moving in your Dream Home
The final stage when obtaining your mortgage and dream home is the solicitor confirming that the property you want to purchase stacks up from the recommended legal perspective. You are also required to get mortgage protection insurance. The insurance is designed to provide security to the mortgage in the event you die or suffer a disability. The life assurance company will pay off the loan in case of such events. Additionally, you will need e home insurance that covers the rebuilding cost of your home. After completing the process and securing your dream home, it is time for the thrilling adventure of moving into your new home. The move-in day is when you have finally graduated from just a homebuyer to the official homeowner.
switcheroo.ie is dedicated to offering well-informed data-driven advice and guidance in each step of home buying in Ireland. If you are considering this or any other mortgage product, be sure to get professional advice and register at switcheroo.ie
Choose a Home that is
Right for you
After receiving your AIP it is time to find the home you want. While this is a very nervous and exciting time it is important to consider your lifestyle needs. When deciding and selecting a home that is right for you and your family, you need to consider multiple factors to ensure the house you choose meets your needs and budget. Are you looking for a new build, or would you prefer to purchase a second-hand house that needs some work? You also need to consider the local amenities you want for your new home, the location and any commute it will require. It would be best if you also thought about your future needs, such as an addition to your family.
When you have found your home, you will need to put down a deposit. At this stage the deposit is refundable as you have not yet exchanged contracts with the vendor.
Loan Offers
Your bank will need to be notified that you have a property so they can progress your mortgage. For this they will then require a valuation of the property. The valuer must be from an approved list of valuers. If he house is over 100 years old or if the valuer identifies any structural issue you will also need to get a survey
After the bank is satisfied with the valuation , they will issue you a loan offer which formally confirms that your mortgage application has been evaluated and approved. This is legally binding and so you are on the final stretch of the process to getting the keys to your dream home. Now you will engage your solicitor and exchange contracts with the vendor. When you have done this you and the vendor are both committed to the transaction.
Drawdown and
Moving in your Dream Home
The final stage when obtaining your mortgage and dream home is the solicitor confirming that the property you want to purchase stacks up from the recommended legal perspective. You are also required to get mortgage protection insurance. The insurance is designed to provide security to the mortgage in the event you die or suffer a disability. The life assurance company will pay off the loan in case of such events. Additionally, you will need e home insurance that covers the rebuilding cost of your home. After completing the process and securing your dream home, it is time for the thrilling adventure of moving into your new home. The move-in day is when you have finally graduated from just a homebuyer to the official homeowner.
switcheroo.ie is dedicated to offering well-informed data-driven advice and guidance in each step of home buying in Ireland. If you are considering this or any other mortgage product, be sure to get professional advice and register at switcheroo.ie
HAVE QUESTIONS
Read our FAQ
You're called Switcheroo.ie but do you help First Time Buyers and Home movers?
Yes, we absolutely do. As long as you are looking to buy a residential property we stand ready to help. We like the name Switcheroo as you are switching home if you are a mover and even if you are a buyer you are switching from tenant to homeowner!!!
What’s the best mortgage I can get?
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages come with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Don’t stress too much! You can find out pretty quickly to see if it’s worth your while. From there we will guide you through the process and make sure you get the right mortgage for you and make the process as simple as possible.
If I am a switcher how much can I save?
The Central Bank of Ireland published research that showed that many existing mortgage holders can save over €10,000 euros by switching their mortgage. It will depend on your specific circumstances but just 20 seconds on our calculator will show you what its worth for you to switcheroo.
What documents will you need from me?
Initially, none. The first step is for you to take our Financial Health Check in your secure customer portal. This will help us understand your circumstances and see if you are mortgage fit but we don’t need documentation at that stage. Only later when we move on to preparing your submission to a lender, will we need to make sure that your information is accurate, and we’ll need documentation from you then. Those include proof of your identity, income, utility bills with proof of address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Do you perform credit checks?
Our job is to make sure that you have the best possible chance of being accepted. So, we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
I want to switcheroo, what’s next?
On our website there are calculators that will help you figure out what you can save or what your mortgage would cost. From there you’ll need to register into your customer portal so we can perform a Financial Health Check on you to assess what you can afford.
If all is well, we will then ask for more details on your current circumstances and the specifics of the house you want to mortgage.
Usually, this shouldn’t take more than 60 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have and tell you exactly what documents you’re going to need. From there, the expert team will guide you through the application process and keep you updated on progress. You can check progress online and we will keep you updated along the way.
What does Switcheroo.ie do with my data?
It’s all explained in our privacy policy, but basically: we won’t spam you and we won’t pass on your data to other companies so that they can spam you. We hate that.
How does Switcheroo.ie make money?
Yep, we don’t charge any commission. If you get a mortgage using Switcheroo.ie, the lender you use pays us a commission. Some intermediaries charge you an additional commission but not us, we are free forever. These commission never affect our advice. Our reputation and livelihood depend on us always giving our customers the best possible advice. The important bit is we’ll never charge you a penny.
HAVE QUESTIONS
Read our FAQ
You're called Switcheroo.ie but do you help First Time Buyers and Home movers?
Yes, we absolutely do. As long as you are looking to buy a residential property we stand ready to help. We like the name Switcheroo as you are switching home if you are a mover and even if you are a buyer you are switching from tenant to homeowner!!!
What’s the best mortgage I can get?
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages come with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Don’t stress too much! You can find out pretty quickly to see if it’s worth your while. From there we will guide you through the process and make sure you get the right mortgage for you and make the process as simple as possible.
If I am a switcher how much can I save?
The Central Bank of Ireland published research that showed that many existing mortgage holders can save over €10,000 euros by switching their mortgage. It will depend on your specific circumstances but just 20 seconds on our calculator will show you what its worth for you to switcheroo.
What documents will you need from me?
Initially, none. The first step is for you to take our Financial Health Check in your secure customer portal. This will help us understand your circumstances and see if you are mortgage fit but we don’t need documentation at that stage. Only later when we move on to preparing your submission to a lender, will we need to make sure that your information is accurate, and we’ll need documentation from you then. Those include proof of your identity, income, utility bills with proof of address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Do you perform credit checks?
Our job is to make sure that you have the best possible chance of being accepted. So, we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
I want to switcheroo, what’s next?
On our website there are calculators that will help you figure out what you can save or what your mortgage would cost. From there you’ll need to register into your customer portal so we can perform a Financial Health Check on you to assess what you can afford.
If all is well, we will then ask for more details on your current circumstances and the specifics of the house you want to mortgage.
Usually, this shouldn’t take more than 60 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have and tell you exactly what documents you’re going to need. From there, the expert team will guide you through the application process and keep you updated on progress. You can check progress online and we will keep you updated along the way.
What does Switcheroo.ie do with my data?
It’s all explained in our privacy policy, but basically: we won’t spam you and we won’t pass on your data to other companies so that they can spam you. We hate that.
How does Switcheroo.ie make money?
Yep, we don’t charge any commission. If you get a mortgage using Switcheroo.ie, the lender you use pays us a commission. Some intermediaries charge you an additional commission but not us, we are free forever. These commission never affect our advice. Our reputation and livelihood depend on us always giving our customers the best possible advice. The important bit is we’ll never charge you a penny.
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to
support you through your application
Don’t take our word for it, read what our customers think of us
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to
support you through your application
Don’t take our word for it, read what our customers think of us
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to support you through your application
Don’t take our word for it, read what our customers think of us
Really happy with the advice and service provided by Switcheroo!! I was looking to switch to a better rate which they helped me with and having gone through this I will save thousands off the cost of my mortgage, and there are no charges for Switcheroo’s service. Definitely would recommend them and will come back to them when my fixed term ends.
Jairo
Switcher – CORK
Switcheroo people helped us through the process of the purchase of our new home, they have been extremely professional and very helping throughout all the phases, and even when the timeframe was tight for use they have been able to put us through the final stages. We couldn’t recommend anything better than their service, and if we ever need another mortgage we will know where to reach first.
Connie Robertson
Switcher – Galway
We would highly recommend working with this team! The online portal made everything really straightforward, and, in the end, we knocked 6 years off the term of our mortgage thanks to the great rate they secured for us
Ciaran and Denise
Switchers – Dublin
Switching our mortgage with Dylan as our agent has saved us thousands of euros. Dylan’s attention to detail, prompt replies, regular contact and friendly professionalism enabled us to negotiate our way through the process.
Kathleen
Switcher – Wexford
Very happy with our switching process with Alison from Switcheroo, everything carried out in a quick efficient manner. Even when additional information was required everything was handled very smoothly. Would highly recommend to anyone considering switching
Janice
Switcher – kildare
We switched our mortgage with Alison who helped us through the process step by step very efficiently. They have been very helpful, efficient and are excellent at their work. We saved thousands and I would recommend their services to anyone.
Niall
Switcher – Wicklow
Alison and the Switcheroo team were a great help in assisting us process our mortgage. Instead of having to deal with different customer service officials within the bank we had one point of contact in Switcheroo who kept us updated and kept the process moving.
Susan
First Time Buyer – Dublin
Switcheroo and especially Alison made the whole process as painless as possible. Her diligence and help in explaining and guiding us through the process was invaluable. I would have no hesitation in recommending Switcheroo
Gary and MJ
Switchers – Dublin
Alison and her team made a very daunting task of switching mortgage into something stress free. She supported us entirely throughout the whole process, and her advice was clear, concise and professional. We would have no issue recommending Alison and her team.
Andrea and Ian
Switchers – Meath
As first time home buyers, we found the online process of securing a mortgage very straightforward. It was easy to upload the documents and they responded to any queries we had immediately. We would definitely recommend them and will be using them again when the time comes to switch after the fixed rate expires.
Michael and Kate
First Time Buyers – Meath
We would highly recommend using the Switcheroo Team! The online portal made everything really transparent and straightforward. The team in Switcheroo successfully helped us get credit approval after we were turned down by another bank due to a minor credit issue. Luke and Dylan were so helpful and communication was brilliant.
Cannot thank the team in Switcheroo enough. We are now owners of our dream home.
Karen and Shane
Movers – Dublin
Switcheroo helps us switch our mortgage to a cheaper rate. I have to say that both Luke and Dylan were brilliant, they were the best that I have worked with in any financial institution! They were so prompt and pro active with any query I had and Dylan’s help over the last 2 weeks to hit our target date of today was exceptional. I got several updates per day and even when I called him on his day off, I got a text back within minutes. I will definitely be recommending to my family, friends and work colleagues to look at switching their mortgage with this team
Mark
Switchers – Galway
Really happy with the advice and service provided by Switcheroo!! I was looking to switch to a better rate which they helped me with and having gone through this I will save thousands off the cost of my mortgage, and there are no charges for Switcheroo’s service. Definitely would recommend them and will come back to them when my fixed term ends.
Jairo
Switcher – CORK
Switcheroo people helped us through the process of the purchase of our new home, they have been extremely professional and very helping throughout all the phases, and even when the timeframe was tight for use they have been able to put us through the final stages. We couldn’t recommend anything better than their service, and if we ever need another mortgage we will know where to reach first.
Connie Robertson
Switcher – Galway
We would highly recommend working with this team! The online portal made everything really straightforward, and, in the end, we knocked 6 years off the term of our mortgage thanks to the great rate they secured for us
Ciaran and Denise
Switchers – Dublin
Switching our mortgage with Dylan as our agent has saved us thousands of euros. Dylan’s attention to detail, prompt replies, regular contact and friendly professionalism enabled us to negotiate our way through the process.
Kathleen
Switcher – Wexford
Very happy with our switching process with Alison from Switcheroo, everything carried out in a quick efficient manner. Even when additional information was required everything was handled very smoothly. Would highly recommend to anyone considering switching
Janice
Switcher – kildare
We switched our mortgage with Alison who helped us through the process step by step very efficiently. They have been very helpful, efficient and are excellent at their work. We saved thousands and I would recommend their services to anyone.
Niall
Switcher – Wicklow
Alison and the Switcheroo team were a great help in assisting us process our mortgage. Instead of having to deal with different customer service officials within the bank we had one point of contact in Switcheroo who kept us updated and kept the process moving.
Susan
First Time Buyer – Dublin
Switcheroo and especially Alison made the whole process as painless as possible. Her diligence and help in explaining and guiding us through the process was invaluable. I would have no hesitation in recommending Switcheroo
Gary and MJ
Switchers – Dublin
Alison and her team made a very daunting task of switching mortgage into something stress free. She supported us entirely throughout the whole process, and her advice was clear, concise and professional. We would have no issue recommending Alison and her team.
Andrea and Ian
Switchers – Meath
As first time home buyers, we found the online process of securing a mortgage very straightforward. It was easy to upload the documents and they responded to any queries we had immediately. We would definitely recommend them and will be using them again when the time comes to switch after the fixed rate expires.
Michael and Kate
First Time Buyers – Meath
We would highly recommend using the Switcheroo Team! The online portal made everything really transparent and straightforward. The team in Switcheroo successfully helped us get credit approval after we were turned down by another bank due to a minor credit issue. Luke and Dylan were so helpful and communication was brilliant.
Cannot thank the team in Switcheroo enough. We are now owners of our dream home.
Karen and Shane
Movers – Dublin
Switcheroo helps us switch our mortgage to a cheaper rate. I have to say that both Luke and Dylan were brilliant, they were the best that I have worked with in any financial institution! They were so prompt and pro active with any query I had and Dylan’s help over the last 2 weeks to hit our target date of today was exceptional. I got several updates per day and even when I called him on his day off, I got a text back within minutes. I will definitely be recommending to my family, friends and work colleagues to look at switching their mortgage with this team
Mark
Switchers – Galway
