Are you saving for a deposit to purchase your first home? MortgageSaver can help you take that all-important first step.
At Bank of Ireland we understand the challenges facing First Time Buyers in saving to buy a home. We want to help, with a top-up of €2,000 (less DIRT) on your savings in a MortgageSaver account when you draw down your Bank of Ireland mortgage.
You can save between €200 and €2,500 monthly in the MortgageSaver account. You must draw down your mortgage within 30 months of account opening. The Bonus Interest will be paid after your mortgage is drawn down. The Bonus Interest is subject to DIRT. Terms and conditions apply. Click here for full details.
Planning to Borrow?
There are a number of factors that can influence the amount you can borrow for a mortgage, such as:
- Your income
- Your history of regular savings and/or rent payments
- Your financial track record and other financial commitments
- The deposit you have saved
- And the cost or type of property you would like to buy
Here are some key things to consider when preparing to take on a mortgage
What we look for
When it comes to assessing your mortgage application, we’ll want to see that you will have some money left each month after you pay your mortgage and any other loan payments such as credit cards. By setting a monthly budget, you can demonstrate your ability to meet your financial obligations.
It’s important to show a record through your bank account of rent paid on a regular basis. It’s also a good idea to show how you have managed your day to day finances for a period of time, i.e. your current account operates in credit or within its overdraft ,and you pay as many bills as possible by direct debit to avoid missing payments.
Monitor your spending
Use 365 online to keep an eye on your finances, and make sure you always know how much is in your accounts. Our budget planner will help you get to grips with your day-to-day expenses and to identify areas where you might be able to save some money.
Saving for your Deposit
You will need to save at least 10% of the purchase price of your property and other associated costs. Under the Central Bank regulations, the maximum mortgage is generally 3.5 times gross annual income and 80% of the property value (90% of the property value for first time buyers). A Mortgage Saver account is a great way to build up savings over time and demonstrates your ability to put aside money on a monthly basis. We’ll also pay you Bonus Interest of €2000 (less DIRT) on your savings in a MortgageSaver account when you draw down your First Time Buyer mortgage. Terms and conditions apply - Click here for more details.
Be aware of other costs
Buying a house also involves other costs, such as valuation fee, stamp duty payment, solicitor fees and furnishing costs.
|Solictor Fees:||€2,000 approx.|
|Valuation Fees:||Approx: €150-€250|
|Stamp Duty:||For properties valued at up to €1,000,000 stamp duty is calculated at 1%. For a property valued at over this figure the stamp duty is calculated as follows: 1% on the first €1,000,000, and 2% on the balance over €1,000,000.|
Reduce your other debts
Reducing your other debts such as credit card balances and personal loans may increase the amount that you are eligible to borrow for your mortgage. It’s a good idea to try to reduce your other borrowings before completing your mortgage application.
House-Hunter mortgage approval
We can give you approval in principle for a mortgage amount even before you have chosen as suitable property. What’s more, approval in principle remains effective for a full six months.
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.