Remortgage Donegal Basics & Guide

Remortgage in Donegal, Ireland | Learn Remortgage Basics & Benefits

Remortgage Donegal and Remortgaging, also known as switching, is a process where a homeowner in Ireland replaces their existing mortgage with a new mortgage from a different lender or the same lender at a different interest rate or with different terms. Maybe your goal is to save money on monthly payments, reduce the total interest paid over the life of the loan, or release equity from the property, then Remortgaging is a great option that may be available to you.

Remortgage Donegal Basics & Guide | Advice First Financial

Remortgaging Process in Letterkenny, Donegal & Ireland

When remortgaging in Letterkenny, Donegal & Ireland, you typically go through a similar process as when you first took out your mortgage.

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1. You must complete an application with the new lender

2. Undergo a credit check and

3. Undergo affordability assessment

4. Provide supporting documentation such as income and loan details, bank statements & current mortgage statement

Once the Remortgage application is approved:

The previous mortgage will be paid off by the new lender, through your solicitor then you will start repayment with the new lender.

Benefits of Remortgaging in Ireland

Remortgaging in Letterkenny & Donegal may be an attractive option for homeowners who want to take advantage of:

  • Lower interest rates
  • Take different repayment terms, like extending the term
  • Consolidate debts*
  • Release equity from your property for home improvements
  • and other financial benefits

*Terms and conditions apply for equity release to refinance other debts, so advice is needed from an impartial advisor.

How Remortgage typically works in Ireland:

 

1. Assess your current mortgage:

We would start by reviewing your existing mortgage to understand its terms, interest rate, and any early repayment charges or fees. This will help you determine if it’s worth switching to a new mortgage.

2. Research your options:

We would look for different options available with your current provider as well as the other mortgage providers. We compare their offerings, such as interest rates, repayment terms, and fees. It is always best if you worked with a mortgage broker who can help you find the best deals.

3. Apply for a new mortgage:

Once you have selected a new mortgage product or lender, you will need to submit an application. This involves providing personal and financial information, such as proof of income and employment and details of the property.

4. Get a valuation:

Your new lender will require a valuation of the property to determine its current market value. This will help them calculate how much they are willing to lend you.

5. Legal work:

You will need to appoint a solicitor to handle the legal aspects of remortgaging. They will conduct searches on the property.

6.  Approval and switch:

If your application is approved and all the legal work is completed, your new lender will release the funds to your solicitor who will pay off your existing mortgage, and you will start making payments on the new mortgage.

Remortgage Requirements in Letterkenny, Donegal

The requirements to remortgage will depend on the individual lender’s policies, Central Bank guidelines, and your specific financial circumstances. However, here are some general requirements that you may need to meet to be eligible for a remortgage in Ireland:

Equity in your property:

You will typically need to have some equity in your property, which means that the value of the property must be higher than the outstanding mortgage balance. For a remortgage, you can borrow up to 90% of the value of your home.

Good credit score:

Lenders in Ireland will check your credit history to assess your creditworthiness and risk of default. A good credit history can improve your chances of getting approved for a remortgage.

Stable income:

You will need to demonstrate that you have a stable income and can afford the monthly mortgage payments. Lenders may request proof of income, such as payslips, bank statements, or tax returns.

Existing mortgage payments:

You will need to demonstrate that you have been making your existing mortgage payments on time and have a good repayment history. A mortgage statement will prove this.

Property valuation:

Lenders may require a valuation of your property to determine its current market value and ensure that it meets its lending criteria.

Legal fees:

You will need to pay legal fees to remortgage, such as solicitor fees, land registry fees, or other administrative fees.
It’s important to note that there will be costs associated with remortgaging, such as valuation fees, legal fees, and there be an early repayment charge with your current lender. Make sure to factor these in when considering if a remortgage is the right option for you.

Some lenders provide a cash-back option to help cover these costs. You should speak with a Mortgage Broker who will help you find the right provider and remortgage for you.

Remortgaging Costs in Ireland

There are several costs associated with remortgaging in Ireland, which you should be aware of when considering whether it is the right option. These costs can include:

Valuation fees:

Your new lender will require a valuation of the property to determine its current market value. This can cost between €150 to €185, depending on the lender.

Legal fees:

You will need to appoint a solicitor to handle the legal aspects of remortgaging. Legal fees can vary between solicitors, depending on the complexity of the transaction. We advice shopping around a few solicitors, this way you will get a sense of their fees. 
If you don’t have a solicitor, Advice First is happy to recommend one.

Mortgage application fees:

For investment properties and holiday homes, some lenders may charge an application fee for processing your remortgage.

Early repayment charges:

If you are on a fixed rate for your current mortgage term, you may be subject to early repayment charges when you switch to a new mortgage. You should check with your current lender what this fee would be before you switch. If you are on a variable rate, there should be no fee to switch to a different provider.

It’s important to factor in these costs when considering if remortgaging is the right option for you. In some cases, the savings you make from switching to a new mortgage can outweigh the costs of remortgage.

Applying for Remortgage?  Consult a Mortgage Broker or Mortgage Advisor

It’s always a good idea to speak with a mortgage broker or financial advisor to understand the specific requirements for remortgage and to explore your options. A mortgage broker or financial advisor can be very helpful when considering remortgaging in Ireland. They can provide you with expert advice and guidance on the different options available to you, and help you make informed decisions based on your specific financial circumstances and goals.

A mortgage broker can help you compare different lenders and mortgage products and may be able to negotiate better terms and rates on your behalf. They can also help you understand the costs associated with remortgaging, such as legal fees, valuation fees, and any early repayment fees or penalties that may apply.

A financial advisor may assist you in analyzing your financial condition and developing a strategy to reach your financial objectives. They can help you budget, manage your debt, and create a savings plan to ensure that you can afford the monthly mortgage payments and other expenses associated with homeownership.

Overall, working with a mortgage broker or financial advisor can help you navigate the complex process of remortgaging in Ireland, and give you peace of mind knowing that you have made informed decisions based on expert advice.

It is important to review your mortgage protection policy regularly which can be done through your Advisor.

Why use a Mortgage Broker like Advice First Financial?

Clear. Concise. Professional.
Advice First are trusted expert for Mortgage Advice and Financial Planning matters and works on your behalf giving you a choice of products and providers from across the market. We will work with you to understand your mortgage & financial goals and helps you create a plan to meet your personal finance objectives.
Our services can include Mortgage Advice, personal financial planning, life cover, serious illness cover, income protection, savings, investments, pensions, retirement planning, business financial planning, inheritance tax planning, and mortgages.
We will be able to explain the choices available to you in simple language allowing you to make an informed decision.

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Mortgage Service and Fee Agreement Donegal

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Your personal mortgage advisor from Advice First Financial can add significant value to your financial situation.

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Mortgage Protection Donegal

Mortgage Protection

Mortgage Protection Insurance pays your mortgage when you are not able to work through accident or illness

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Mortgage Application

Lenders need certain information, sent to them in a particular order. Talk to us about how to make your application.

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Online Mortgage Calculator

This calculator shows you what your monthly repayments would be for a mortgage, depending on the amount you borrow, how long you want the mortgage to last, and the rate you pay. The results are estimates only and may differ slightly from some financial institutions, as interest may be calculated in a slightly different way. Check with your provider to see what your repayments would be before applying for a mortgage. Our mortgage section has lots more information on getting a mortgage.

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If you have questions or need Remortgage Donegal advice, call 074 9103938 or email now

Frequently Asked Questions about Remortgage Donegal

What does remortgage mean?

Remortgaging means switching your existing mortgage to a new lender, or taking out a new mortgage with your current lender, in order to get a better interest rate, more flexible terms, or to borrow additional funds. 

How to remortgage your house in Ireland?

The process of remortgaging your house in Ireland involves several steps:

  1. Assess your current mortgage
  2. Shop around for new mortgage deals
  3. Apply for a new mortgage
  4. Valuation and legal work
  5. Clear your old mortgage

Overall, remortgaging your house in Ireland can be a complex process, and it’s important to carefully consider the costs, benefits, and risks involved before making a decision. Working with a mortgage broker or financial advisor can help you understand your options and make informed decisions about your remortgage.

Can I Remortgage My House in Ireland If I Own It Outright?

Yes, you can take a mortgage on your house in Ireland even if you own it outright. This is known as an equity release mortgage, where you take out a new mortgage on your property and borrow against the equity you have in it.

With an equity release mortgage, you can use the borrowed funds for a variety of purposes, such as home improvements, in certain circumstances the funds can be used for debt consolidation, or to invest in a new property. Terms & conditions apply.  When it comes to equity release for debt consolidation there are restrictions, so advice is needed, speak with a  mortgage broker.

 

Do you need a deposit for remortgage in Donegal?

Generally, you do not need a deposit when remortgaging in Ireland because you already own
the property and have an existing mortgage on it. When you remortgage, you are essentially switching your mortgage to a new lender or re-negotiating the terms of your existing mortgage with your current lender.

However, lenders in Ireland will require you to have some equity in your property, which means that the value of the property must be higher than the outstanding mortgage balance. This can provide some security for the lender and may improve your chances of getting approved for a remortgage. Generally, lenders will lend up to 90% of the value of your house if it is your family home, and up to 70% if it is an investment property.

Overall, the deposit requirements for a remortgage in Ireland will depend on the individual lender’s policies and your specific financial circumstances. It’s always a good idea to speak with a mortgage broker or financial advisor to understand the requirements and options available to you.

What salary do you need to get a mortgage in Donegal & Ireland?

The amount of salary you need to get a mortgage in Donegal and Ireland will depend on several factors, including the size of the mortgage, the interest rate, and the lender’s lending criteria. Generally, most lenders in Ireland will require you to be in full-time employment or self-employment to qualify for a mortgage. Some lenders may consider other sources of income, such as bonuses, overtime pay, or rental income.

 

It’s important to note that lenders in Ireland will also consider your credit score, debt-to-income ratio, employment history, and other financial factors when assessing your mortgage application.

 

Can you get a 100% mortgage in Donegal and Ireland?

It is generally not possible to get a 100% mortgage in Ireland. Most lenders in Ireland require a deposit of at least 10% of the property value, and some lenders may require a higher deposit of up to 20% or more, depending on the borrower’s circumstances.

However, some government schemes, such as the Help to Buy scheme, the first home scheme, and the Rebuilding Ireland Home Loan, may help first-time buyers to borrow the deposit needed.

What mortgage products are available in Ireland?

There are several types of mortgages available in Ireland, including:

Fixed-rate mortgages:

These mortgages offer a fixed interest rate for a set period, typically between 1 to 10 years, a couple of lenders in Ireland do offer fixed rates up to 30 years.
This can provide certainty and stability for borrowers, as the monthly payments will remain the same for a fixed period.

 Variable rate mortgages:

These mortgages have an interest rate that can fluctuate over time, depending on market conditions and the lender’s policies. This can provide more flexibility for borrowers, but it also means that monthly payments can change.

Interest-only mortgages:

These mortgages allow borrowers to pay only the interest on the loan for a set period, typically up to 5 years. This can provide lower monthly payments but will not reduce the principal balance of the loan. You do need advice if thinking about only paying interest on your mortgage.

Buy-to-let mortgages:

Mortgages that are intended for investment purposes.  They typically require a higher deposit and may have higher interest rates than standard mortgages.

Holiday Home Mortgages:

Mortgages that are intended for a holiday home purchase. They typically require a higher deposit and may have higher interest rates than standard mortgages.

It’s important to carefully consider the different types of mortgages and their associated costs and risks before selecting the right one for your needs. It may be helpful to consult with a mortgage broker or financial advisor to help you make an informed decision.

 

What are the requirements to remortgage Donegal and Ireland?

The requirements to remortgage will depend on the individual lender’s policies and your specific financial circumstances. However, here are some general requirements that you may need to meet to be eligible for a remortgage in Ireland:

  1. Equity in your property: You will typically need to have some equity in your property, which means that the value of the property must be higher than the outstanding mortgage balance.
  2. Good credit score: Lenders in Ireland will check your credit score to assess your creditworthiness and risk of default. A good credit score can improve your chances of getting approved for a remortgage and may also help you qualify for better interest rates.
  3. Stable income: You will need to demonstrate that you have a stable income and can afford the monthly mortgage payments. Lenders will request proof of income, such as payslips, bank statements, or tax returns.
  4. Existing mortgage payments: You will need to demonstrate that you have been making your existing mortgage payments on time and have a good repayment history.
  5. Property valuation: Lenders will require a valuation of your property to determine its current market value and ensure that it meets their lending criteria.
  6. Legal fees: You will need to pay legal fees to a remortgage, such as solicitor fees, land registry fees, or other administrative fees.

 

It’s always a good idea to speak with a mortgage broker or financial advisor to understand the specific requirements for remortgage and to explore your options. They can help you assess your financial situation, compare different lenders and mortgage products, and guide you through the remortgage process.

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