Mortgage Advice Centre Donegal

A mortgage is simply a long-term loan that’s used to pay for a house.

Yes, it is possible to get a mortgage in Northern Ireland if you work in the Republic of Ireland. However, there are a few factors to keep in mind:

Lender Requirements – Some lenders in Northern Ireland may require you to be a resident in the UK or have a UK-based bank account, while others may be more flexible.

Income Verification – Your income from working in the Republic of Ireland will generally need to be converted into GBP. You may need to provide additional documentation to verify your income, such as payslips, bank statements, or a letter from your employer.

Credit History – Lenders will check your credit history, which may involve both the Republic of Ireland and UK credit reports. It’s important to ensure your credit history is solid on both sides.

Deposit – In most cases, you will need a deposit of around 10% to 20%, though this can vary depending on the lender and your individual circumstances.

Tax Considerations – If you earn income in Ireland but are applying for a mortgage in Northern Ireland, you should be aware of potential tax implications on both sides. It might be useful to consult a financial advisor for advice on cross-border mortgage applications.

Yes, you can get a mortgage in Northern Ireland even if you work in the Republic of Ireland, but there are a few important factors lenders will consider. Most Northern Irish lenders will assess your income in euros and may apply an exchange rate buffer when calculating affordability. Some lenders are more familiar with cross-border applications and may be better equipped to process euro income, especially if it is paid into a bank account in Northern Ireland or a UK-based bank. You will usually need to provide proof of income such as payslips, P60s, and employment contracts. A good credit history in both jurisdictions can help, especially if you have a UK address or banking relationship. If you plan to live in Northern Ireland and commute or work remotely for an Irish-based employer, you should explain this clearly to the lender. Mortgage advisers familiar with cross-border mortgages can guide you through suitable options. In practice, many people living near the border in Donegal, Monaghan or Louth have successfully secured mortgages in Northern Ireland.

This is area for confusion for lots of people. Especially for our friends living in or working in Northern Ireland who want to buy a home and live in the Rep. of Ireland. This is very prevalent for people around the border areas of Derry and Tyrone wanting to move to Donegal, where property prices are cheaper.

Firstly, can I stress that Mortgage lending is available to cross border workers, contrary to some information being given.
Whilst lending is available there are a couple of issues for those earning Sterling to be aware of, these apply whether you currently live in the Rep. of Ireland and working in Northern Ireland or the UK or those living in Northern Ireland and wanting to move to Rep. of Ireland

If you earn in Sterling there are 2 main challenges to be aware of, these are

• There are a limited number of lenders willing to lend. Not all lenders are in the market for you.
• The lenders that will lend will allow an exchange rate but will also reduce your Sterling income by 20%. As, in the first instance the amount of lending you qualify for is based on your income, the reduction of 20% does have a major effect on the amount of lending available. Where you have 2 people earning in Sterling this can, in some case, push them out of getting lending all together. Read More

Yes, is the answer, here comes the but.

If you earn in any other currency other than Euro there are 2 main challenges to be aware of, these are

• There are a limited number of lenders willing to lend. Not all lenders are in the market for you.
• The lenders that will lend will allow an exchange rate but will also reduce your income by 20%

As, in the first instance the amount of lending you qualify for is based on your income, the reduction of 20% does have a major effect on the amount of lending available. Where you have 2 people earning in a non-Euro currency it be challenging.

Our Mortgage Service…

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Your personal mortgage advisor from Advice First Financial can add significant value to your financial situation. Our mortgage service encompasses much more than form filling! Our extensive knowledge, market comparison technology and established relationships with Ireland’s mortgage lenders means you are in the best hands…

What we offer you………..Initial Discovery Meeting

• To learn about you, your requirements and financial needs
• To clearly explain the mortgage criteria applicable to you
• To reassure you by breakdown of any confusing jargon

Initial Research
Market analysis of the mortgage products available to identify a shortlist
of potential mortgage providers based on your priorities. We look at……

• Interest Rates
• Borrowing Amount
• Cash Back Offers
• The Process
• Discuss Any Challenges
• Discuss Any Challenges
• Total Costs
• Help to Buy Scheme

Application Support

• Assisting you to complete your mortgage application
• Preparing your application for approval
• Identifying, discuss & help overcome potential reasons for decline

Application Management

• Submitting your application, confirming receipt by lender
• 72hr application follow up with lender
• Dealing with any issues as they arise

Detailed Selection

• Discuss mortgage approval/terms of conditions
• Presentation of approval and up dated quotes for your selected Mortgage
• Dealing with any issues as they arise

Application Proceeding

• Help you get the property valuation completed
• Follow up to ensure all paperwork is submitted to the lender for formal approval
• Review of formal approval to ensure accuracy
• Co-ordination of your third-party interactions (lender, solicitor, estate agent, broker)
• Follow up to ensure all paperwork is submitted to the lender for cheque issue

Protecting Your Financial Health

• Completion of a financial fitness profile
• Identification of your financial needs
• Recommendations and quotations of financial needs
• Assisting you to complete your insurance applications
• Follow up to ensure all paperwork is submitted to the lender for cheque issue
• Co-ordination of underwriting requirements and documentation
• Follow up to ensure policies are issued correctly and in a timely fashion

And that’s not all….

• Unlimited phone and email access to your advisor and their support team
• Post completion service call to ensure all your requirements have been satisfied

This service is divided into 2 parts (1: Initial meeting & research, 2: Application & Loan offer). Our total fee for this comprehensive service is €945 (+23% vat) for standard residential mortgage applications. €95 payable on initial discovery meeting and initial research, €400 payable on application assessment with the balance €450 payable once an official Approval in Principle (AIP) has been secured from a lender.

For more complicated lending requirements fees will be arranged beforehand.

The fees paid at initial meeting, research and application stages are non-refundable even if the mortgage application is not successful. We will not go to application stage if we think we will not be successful. Once we have secured an offer and you elect not to proceed for any reason, we reserve the right to charge our fee for our advice and services. In the event of a lender rejecting an application from us on your behalf due to information or an unacceptable credit history not disclosed to us, we reserve the right to charge our fee.

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Download Fee Authority Letter to Client

There are a number of easy ways to begin your application

Get in touch with a mortgage broker, who will do all the work for you or get in touch with the lenders directly. Obviously, we would recommend the mortgage broker route as they will shop around all the lender and provide you with the best options for you. I would suggest dealing with a fee-based broker though. If the broker is not charging a fee, then they will only deal with lender who pay them a commission, which means you only get options from a select number of lenders rather than the entire market.

Here are some tips on getting mortgage ready

Every mortgage has a life span or term. The minimum term would be 5 years and you could also possibly qualify for the maximum term possible which is 35 years. For a family home the maximum term of the mortgage is determined by your age. The maximum to have the loan repaid is age 68 with some lenders and age 70 with others. For Buy to Let mortgages have a maximum term of 25 years.

A shorter term means you’ll pay your mortgage off quicker, but it also means your monthly repayments will be higher. It is good advice to clear your debts, including your mortgage, as quickly as you can, it is also important to have a life and have to money to do all the other things in life that are important. So, striking the right balance is very important.

You will need certain documents when you apply for a mortgage, and you should keep a copy of anything you give to a lender or broker.

Proof of ID, proof of address and proof of your Personal Public Service Number (PPSN)

Proof of income: latest P60, payslips, certified accounts if self-employed

Evidence of how you manage your money such as current and loan account statements for the last three to 12 months, depending on the lender

See the Permanent TSB’s full list of documents required here.
See the AIB’s full list of documents required here.
You can see that the lists are very similar, which is the same with all other lenders.
These lists will not be complete for everybody as they do not take account of your individual circumstances.

When buying a property, or switching your mortgage, it is not just your regular mortgage repayments you need to think about. There are a number of other costs involved which you should be aware of and ask your lender about. Some of these can be reduced or avoided by shopping around.

They include:

• Brokers’ fees – some brokers charge a fee to arrange your mortgage or for mortgage advice. This might be a percentage of the mortgage amount or a flat fee. Not all brokers charge a fee so if you are planning to use a broker it is important to ask about this and to shop around. If a broker is not charging a fee, check with them what lenders they advise on. They may only work with lenders who pay them commission and you may not get a full market comparison.
• Estate agent fees – if you are selling a property and using an estate agent you will have to pay a fee for this service. It is usually between 1% and 2.5% but can also be a flat rate.
• Solicitor’s fees – to look after the legal aspects of your mortgage a solicitor will charge a flat fee or a percentage of the mortgage amount, typically 1% to 2%. It is worth shopping around a few solicitors.
• Valuation fee – this is paid to a professional valuer to estimate a property’s market value and is required by the lender as part of your mortgage application. A valuation is valid for a short period of time, typically four months. You will need to get an up-to-date valuation of your property if you want to switch mortgage. Valuation fees typically run between €150 and €185.
• Structural survey fee – a structural survey is done to find out the condition of a property. If any issues arose during the valuation of the property or it is very old, your lender may insist on a structural survey. Even if your lender does not require it, you may want to get a survey anyway to be sure there are no problems with the building. The amount you will pay can be dependent on the type, age and location of the property. It is not always a requirement for the lender, but it is always recommended to have a structural survey done for your own peace of mind.
• Stamp duty – this is a tax payable on documents when you transfer ownership of a property. For residential property it is charged at 1% of the property value up to €1 million and 2% for anything above that.
• Local Property Tax – this tax, collected by Revenue, is charged on all residential properties and came into effect in 2013. It is a self-assessment tax, and you calculate what is due based on your own assessment of the market value of your property. It can be paid in a lump sum or spread out over the year.

You should take the above into account when you are working out how much you will be able to borrow.

You’ll generally need to arrange home insurance and mortgage protection before drawing down your loan.

Home insurance is a property insurance which covers private homes, buildings and contents. The cost of home insurance often depends on what it would cost to rebuild your house and how much it would cost to replace all of the contents of the house. The replace value of your property may be more than the purchase price.

When taking out a mortgage you’ll also need to consider how it’ll be paid off in the unlikely event of your death before the mortgage has been fully repaid. When you get a mortgage to buy your home, you’ll generally be required by your lender to take out mortgage protection. This is a particular type of life assurance taken out for the term of the mortgage and is designed to pay it off on the death of the borrower or joint borrower before the end of the mortgage term.

Wherever you are on your mortgage journey, whether you’re ready to make an application, or just want to ask some questions – we’re here to support you so book an appointment today with our mortgage team!

We’ll outline the mortgage process and the required documents you’ll need for your application and you can then gather and submit the documents required at a time that suits you, allow 1-2 weeks for gathering these documents.

Once the lender receives your application and supporting documentation, they will get back to you in 3 working days to let you know if it’s ready to go to our underwriting team for a full assessment, or if they need any further documents or information from you first.

Once they submit the documents to their underwriting team for full assessment, they will let you know if they can approve your application within 10 working days. In the rare event that they can’t come to a decision in that timeframe, they will be in touch to let you know and to inform you of when they will have a decision.
If you are using a mortgage broker the lenders will communicate this update to them who will in turn communicate with you.

Once your application for credit is approved, (called approval in principle, AIP) and you have found your home, you will be required to arrange for a valuation of your property. A credit check will also be undertaken on all applicants of the mortgage, and you will need to arrange Life Insurance and Home Insurance. Your lender will issue the loan offer to your solicitor and once you sign the documents, your solicitor will arrange the transfer of funds and collection of your keys to your new home.