Buying your first home

Follow these steps to getting a mortgage. When you decide you want to own your own home, you might want to understand the process of getting a mortgage in more detail.

We’ve broken getting a mortgage down in to 8 simple steps.

Step 1: Work out how much you may be able to borrow

Start by finding out how much you may be able to borrow by using our online mortgage calculator*.

To help us work it out, you’ll need to tell us how much you think the property you want to buy will cost, whether you are you buying on you own or with someone else, what your current income is and your existing monthly commitments.

Step 2: Talk to one of our mortgage specialists

Make an appointment to meet one of our mortgage specialists in one of our branches, or they can come and meet you at a time and place that suits you best.

It can be good to talk face-to-face with a mortgage specialist or mobile mortgage manager who regularly advises people in your position and can help explain the mortgage process in plain English.

You can also arrange to chat to a specialist over the phone or by Skype or Facetime if that suits you better.

Step 3: Save for your deposit

If you’re a first-time buyer, you can apply for a mortgage of up to 90% of the value of a property.

That means that 10% of the purchase price will have to come from your own savings, (the deposit)

Movers generally need to provide 20% of the purchase price.

You also need to remember that you will have to pay other expenses when you buy your home - such as stamp duty, legal fees, home insurance and life cover, not to mention furnishings to make your new home liveable – so you’ll need to save for those costs too.

Our Mortgage Saver account* is designed to help you save the deposit for your home.

Step 4: Start your application

When you have your deposit saved, it may be time to apply for your mortgage. You don’t even have to have a property in mind at this stage.

Once you have started your application you’ll be given an acknowledgement of how much we could lend you based on the information you have provided (we call this a First Step Approval in Principle). We’ll also give you a list of the documents - salary information, bank statements, etc. - that you’ll need to provide so that your application can be fully assessed.

Step 5: Get your documentation in order

Lenders like Bank of Ireland want to see proof of your income and a record of your finances.

That means you’ll have to gather up documents like your payslips and P60 if you are employed and your most recent 2 years’ audited accounts if you are self-employed.

You’ll also need to provide your last 6 months’ current account statements (if your account is not with Bank of Ireland) and 12 months’ savings account statements demonstrating regular saving.

You can find a full list of the documents here.

When you have provided all of the documentation needed to assess your application you’ll get an acknowledgement of this too.

Step 6: House-Hunter Approval in Principle

When your application is successful you will get a formal ‘House Hunter Approval in Principle’ letter. This means your loan is approved and you can go house-shopping confident that your finance is in place. This approval generally lasts for 6 months.

House Hunter Approval in Principle however is not a formal loan offer so you can’t rely on it to enter into a sale contract.

Step 7: Find your home and complete your application

When you have found a suitable property and your offer is accepted, get back in touch with your mortgage specialist who will finalise your mortgage application. We’ll then send you a formal Mortgage Loan Offer to buy your new property along with details of any final requirements before you can draw down your mortgage loan.

For example, you’ll need to have a valuation carried out on the property by a valuer that we approve. We always recommend also that you get a property survey carried out for your own peace of mind as this can identify potential issues that you mightn’t otherwise see.

Step 8: Complete the purchase and get your keys

Once all is in order, your solicitor will draw down your mortgage funds and arrange to close the property purchase and transfer of title on your behalf.

The lender is Bank of Ireland Mortgages. Lending criteria and terms and conditions apply. A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. The total amount you pay is €148,114.60. We require property and life insurance. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income and 80% of the property value (90% of the property value for first-time buyers). A 1% interest rate rise would increase monthly repayments by €54.02 per month. The cost of your monthly repayments may increase – if you do not keep up your repayments you may lose your home. Available to over 18s only. Bank of Ireland Mortgage Bank u.c. is not responsible for information on third party websites.

Warning: If you do not keep up your repayments you may lose your home.
Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit, a hire- purchase agreement, a consumer-hire agreement or a BNPL agreement in the future.

Bank of Ireland Mortgage Bank u.c. trading as Bank of Ireland Mortgages is regulated by the Central Bank of Ireland.

*Terms and Conditions Apply. Mortgage Saver is provided by Bank of Ireland. Bank of Ireland is regulated by the Central Bank of Ireland