Mortgage FAQs
Applying for a mortgage
How much can I borrow for a mortgage?
The Central Bank of Ireland rules generally limit borrowing to 4 times your income for first-time buyers and 3.5 times for second-time and subsequent buyers. Some lenders may allow borrowing above these limits.
For more information visit Understanding mortgages.
How do lenders decide whether to approve my mortgage?
When you apply for a mortgage lenders will assess the following and decide whether to approve your mortgage application:
- Income and financial stability
- Credit history and existing debts
- Ability to meet monthly payments
- Required documentation
For more information visit Applying for a mortgage.
What is Approval in Principle (AIP) and how does it work?
Approval in Principle (AIP) is a lender’s initial confirmation of how much they may lend you based on your circumstances at the time of application. It helps establish your budget but does not guarantee a mortgage of that amount.
AIP is generally valid for 6–12 months depending on your lender. If you do not find a property within this time frame you will need to reapply. Depending on your lender, if your circumstances haven't changed you original AIP may be extended.
For more information visit From approval to closing.
Finding your home
What is a property chain?
A chain exists when your purchase depends on other linked transactions completing. This means that you may depend on closing the sale on your current home before you can afford to buy the new one.
Can the seller accept other offers after sale agreed?
Yes the seller can continue to take bids on their property even if they have gone 'sale agreed' with a buyer.
For more information visit From approval to closing.
Is 'sale agreed' legally binding?
'Sale agreed' is not legally binding and both the buyer or the seller can pull out at any time before contracts are signed.
For more information visit From approval to closing.
What other costs should I expect?
Besides your mortgage you should factor in the following costs:
- Valuation fee
- Stamp duty
- Survey costs Legal fees
- Home insurance
- Mortgage protection
- Other extra costs such as repairs, decoration, furniture, and appliances
For more information visit Applying for a mortgage.
After mortgage approval
How do I avoid delays?
Some delays will be out of your control however maintaining clear communication with your solicitor, lender and estate agent will help mitigate any further delays.When do I get the keys?
Once the funds have been transferred and closing is complete, the estate agent will release the keys.What is drawdown?
Drawdown is when your lender releases funds to your solicitor, who transfers them to the seller’s solicitor.What is the Letter of Offer?
The lender will issue the Letter of Offer when your bid has been accepted on a property and they are fully satisfied with the valuation etc. of the property. It confirms full mortgage approval amount and includes mortgage terms, interest rate, property details and conditions.
For more information visit From approval to closing.
