Mortgages Options in 2020
Mortgage Confusion
A new decade is upon us and 2020 is set to be a busy year for Mortgage Lending, we are currently seeing weekly enhancements to both mortgage criteria and interest rates which is being welcomed by customers, all be it confusing.
With such a variety of lenders and products in the marketplace, it is a great time to get a Mortgage approval.
These are all options open to customers
- First Time Buyers,
- Home Movers,
- Switchers,
- Equity Release
- Self Builds,
- Buy to Let Mortgages,
- Pension Mortgages
- Non-resident Mortgages.
Some lenders have preferential offers such as:
- Cash back,
- Switching incentives
- And other offers to attract consumers.
Cash Back Offers
With some lenders now offering cashback on their mortgages, it’s not surprising that customers, especially first-time buyers, are being tempted by these cash lump sums. The most important question to consider before jumping around the kitchen with excitement is; do these offers actually offer the best value over the mortgage term? For more click here
Lender |
Cash Back Offerings |
|
AIB |
None available to first time buyers, €2,000 to switcher |
|
Bank Of Ireland |
2% cashback – first-time buyers, movers and switchers Extra 1% available to BOI current account holders only , after 5 years |
|
Permanent TSB |
2% cashback – first-time buyers, movers and switchers until 30th June 2019 & 2% cashback each month – on mortgage repayments from a PTSB Explore account until 2027 |
|
Ulster Bank |
€1,500 cash towards legal fees – available to first-time buyers, movers and switchers until 30th June 2019 |
|
KBC |
None available to first-time buyers, €3,000 available to switchers |
|
EBS |
3% cashback – first-time buyers, movers and switchers until 31st Dec 2019. 2% upfront, 1% in 5 years |
Are Mortgage cashback offers good value?
Now this is great question to ask yourself.
These cashback offerings whether you’re looking to buy your first home or switch mortgage, it’s essential to shop around and take advice to make sure you’re getting the best deal for your situation
Switching Incentives
There is a lot of noise around at the minute about switching your mortgage to a different lender. So, let’s look at Should, Could & Would you switch providers.
Long answer short. Yes, if you are paying more than you should. That is, if your interest rate is higher than what is available for other providers. Always get advice though from someone who is not tied to any one lender, before switching your mortgage. While some offers look great, you need to know the full picture.
You need to know exactly what is being offered, the pro’s and the con’s. Your existing provider might offer a better rate than you are currently on as well, so check with them. For more on Switching Mortage Providers
The government’s Help-to-Buy scheme
The cashback offerings having also been extended is another bonus to those First Time Buyers.
First time buyers who qualify for the scheme can factor the tax rebate into their deposit requirements. This will ease the burden a good bit. The big issue is that the Incentive is only available on new builds.
Main Highlights
- Designed to assist First Time Buyers with obtaining deposit required to purchaseor build a new property to live in as their home.
- It is a refund of income tax paid over the previous 4 tax years.
- It is only available if all parties to the purchase are First Time Buyers .
- LTV must be greater than 70%.
- Purchase price must be no greater than €500k.
- Refund is 5% of the purchase price to a maximum of €20k.
- Building Contractor for purchases must be registered on the Revenue website as eligibleFor more on the help to buy scheme
Clearly the mortgage market is ever changing and developing and as such can leave people somewhat overwhelmed in an evolving climate.
Advice First Financial as Mortgage Brokers monitor all these changes, making it easier for our customers to find the right mortgage for them.
We offer an enquiry service, and our dedicated staff are always available to assist you and answer your questions.
Advice First Financial are not tried to any lender, meaning we offer unbiased advice on your mortgage requirements.
If you want help, we are happy to advice.
Call us today in Letterkenny: 074 910 3938
Get Advice
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