1: Bad credit history
All mortgage applicants need to pass a credit check This is an assessment of your financial history, highlighting any previous loans and debts and your track record meeting repayments. If you've arrears on a loan, regularly miss rent payments or fail to make your minimum credit card payments, then you're likely to find it harder to secure mortgage approval.
It's best to get your finances in order and prove you are financially responsible before filling out a mortgage application.
2: No savings
Lenders like to see mortgage applicants with a good track record of regular saving. If your bank statements show that you've never really mastered the art of squirreling away cash, it can give lenders cause for concern.
3: Income too low for your repayments
Lenders will look at your income, spending and saving patterns over a minimum of six months and may spot outgoings you've forgotten to consider. Aside from loans and mortgage repayments, we need to know that your income is sufficient to repay your mortgage as well as supporting your standard of living.
4: Missing paperwork
If you've returned from overseas or moved to Ireland lenders will still need a paper trail to establish your credentials. We'll require bank statements, rental agreements and employment records before we can proceed with your application. Have these in order before you make an application, as missing documents will slow down the process.
At Bank of Ireland, our dedicated Coming to Ireland team can help with any queries regarding your mortgage application.
5: Banking on an exception
Under the Central Bank's rules, mortgage applicants can borrow 3.5 times their (combined) income. Banks are allowed to offer exceptions, which could allow someone to borrow a greater loan-to-income (LTI) multiple or higher loan-to-value (LTV). Cases are considered individually and banks have a limited number of exceptions they can underwrite. Rather than making assumptions, talk to your bank early about your plans.
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