Mortgages for Northern Ireland Residents.
Living in Northern Ireland and want to buy in Rep.?
Northern Ireland residents are house hunting once again in Donegal, especially in the border villages. They are looking for bargain buys, which are available in Donegal.
Is lending available
Yes, lending is available for people living and or working in Northern Ireland, all be it, a little harder to get. The lenders will also reduce Sterling incomes by up to 20%. Which can lead to lower than expected lending amounts.
What is needed to make an application
The following items are needed to make a mortgage application,
- Photographic ID
- Address verification (household bills)
- Most recent 6 months’ bank account statements (for all bank accounts)
- Most recent 6 months’ savings account statements
- Most recent 6 months’ credit union statement (if any)
- Last 6 months’ credit card statements
- 12 months’ statement on all loans including Mortgages (if any)
- 3 months’ recent pay slips
- Most recent P60
- Salary Cert (your employer to complete)
- UK credit history report
If Self Employed
- 3 years’ accounts
- 3 years’ revenue notice of assessment
- Confirmation from accountant that all taxes are up to date
- Most recent 6 months’ business bank account statements (for all bank accounts)
- 12 months’ statement on all business loans
- Break down of build costs (template attached)
- Copy of Architects PI cover
- Gift letter if site was gifted (attached)
Things to watch out for
Check that you have not had any unpaid direct debits or unpaid standing orders on your statements (these are sometimes denoted by referral fees). If there are unpaid direct debits or standing orders, check why this occurred and explain this to your Financial Broker. Doing this can save a lot of time later in the process.
Show ability to repay
Can you show ability to repay i.e. paying rent? You can demonstrate an ability to repay by showing a strong savings history and strong payment history, i.e. ability to pay a specified rent each month. It is important that the rent and savings transactions can be seen on your bank account statements. Loans which have recently been paid off are also useful to show ability to repay.
Do you live within your means, avoiding overdrafts? If you have an overdraft, check your six months bank statements and ensure you are not continually falling into the overdraft. If you do not have an overdraft, ensure that you have never overspent and initiated an unauthorised overdraft.
Check also that you have not been “living from one pay cheque to another”. If this is the case, very strong savings records may help.
How is your credit history?
Don’t forget – if you are unsure about your credit history or if you missed payments in the past, log on to site like https://www.experian.co.uk/ and pay a small fee to get your credit report sent directly to you. There are a number of sites you can get your report from.
You should show this to your Financial Broker when applying for a loan.
Showing regular savings
Lenders will require evidence of savings. Not only is this showing that you can live within your means, it also demonstrates good financial planning and an ability to make repayments. Do you have 3 months’ payslips, current and saving bank statements?
Give us a call and we will assess your ability to get a mortgage and how much you can borrow.
The above is for information purposes only and does not constitute financial advice in any way, we recommend that you speck with us before making any financial decisions. We recommend a holistic approach to financial planning and we can help you put your plans in place.