Trading up or trading down
If you are trading up or trading down take a look at our buying a home page. Our buying a home guide has lots of information to help you, from when you begin to start thinking about buying somewhere new, right up to when you get the keys.
If you are trading up or down check that your original mortgage protection policy covers the mortgage. If not and your circumstances have changed e.g. health and age, you may find it difficult to source a new policy or it may be more expensive. If you are part of a group mortgage protection policy with one bank this cannot be transferred to another bank.
Central Bank mortgage rules
You will also need to be aware of the new Central Bank mortgage rules which came into effect in 2014 and introduced proportionate limits for loan-to-value (LTV) and loan-to-income (LTI) measurements for primary-dwelling houses.
LTI: A limit of 3.5 times gross annual income applies to all new lending for PDH purposes.
LTV: For non-first time buyers of PDHs a limit of 80% LTV applies on new mortgage lending. For example, if you can afford to buy a house worth €200,000 your lender may lend up to €160,000. You will have to fund the remaining €40,000 yourself. The LTV limits do not apply to borrowers in negative equity applying for a mortgage for a new property. For more information visit the Central Bank website.
Even if you have met the specified LTV or LTI, it is still up to the lender to make their own decision on lending to you. It is their responsibility to assess affordability and lend prudently on a case-by-case basis.