Getting a mortgage and buying a home is a very big step in life and also a very big commitment. After all, your house is probably the most expensive thing you will ever buy.
Of course, before you buy the house, you have to go through the often drawn-out and daunting experience of applying for a mortgage. If this all sounds familiar and you are getting ready to kickstart your journey to mortgage approval and home ownership, here are some tips to help make the process less stressful and more successful:
- Do your research: It’s useful to start your mortgage journey with an idea of what and where you would like to buy. Ahead of time, you should look at property websites and apps to see what’s available and familiarise yourself with asking prices in the areas you like. Once you have an idea of what you would like to buy, a mortgage broker can explain your options.
- Know your savings goal: It goes without saying that saving is a huge part in preparations for a mortgage but this doesn’t need to feel endless. It’s worth noting that the maximum you can borrow is usually three and a half times your gross annual income. For first-time buyers, the maximum loan is 90% of the total value of the home you wish to buy. This means you must be able to show that you have saved the remaining 10%. For other borrowers, the maximum you can borrow is 80% of the value of the home you wish to buy or remortgage.
- Be organised: While your broker will help gather the documentation you need during the application process, there are some standard documents you can have ready in advance to help speed things along. These include your current account statements for the last six months, statements for any loans you have and the last three consecutive payslips and salary certificate from your employer.
- Understand the different types of mortgages available: Most lenders will offer variable rate and fixed term rate mortgages but there are other options. Avant Money recently introduced its unique One Mortgage, which offers a fixed rate for your full mortgage term. That means you will pay the same monthly repayment for the life of your mortgage, ensuring peace of mind when it comes to financial planning. So if interest rates rise, you can be sure that your mortgage repayments won't.
The Avant Money One Mortgage
Life has its ups and downs, but the new One Mortgage from Avant Money doesn’t. The One Mortgage offers you complete peace of mind with one fixed interest rate for the full term of your mortgage, protecting you against the possibility that interest rates might rise.
These fixed interest rates start at 2.25 per cent (2.30 per cent APRC) and there are different options available depending on your loan-to-value (LTV) and the term you choose for your mortgage. For example, if you were to get a 15-year mortgage with a 60 per cent loan-to-value, you could avail of a fixed interest rate of 2.25 per cent (2.30 per cent APRC) for the full term of the mortgage.
Of course, a lot of mortgages will have terms longer than 15 years, which doesn't mean you can't avail of Avant Money's fixed interest rates for the full term of your mortgage. In fact, Avant Money is the only lender offering a fixed interest rate mortgage for terms beyond 20 years in Ireland at the moment.
So if you were to get a mortgage with a term of 30 years with an LTV ratio of 80-90%, you could avail of a 3.10 per cent fixed interest rate (3.16 per cent APRC).
The fixed rate is just one of the benefits of choosing the Avant Money One Mortgage. In addition, the One Mortgage offers you flexibility by allowing you to pay up to 10 per cent of the balance each year with no redemption fees, as well as the confidence that any early redemption fee will never exceed 2 per cent of the mortgage balance if you redeem the mortgage early, and more.
About Avant Money
Avantcard DAC trading as Avant Money is regulated by the Central Bank of Ireland. Lending criteria, terms and conditions apply. Avant Money considers mortgage applications for the purchase and refinancing of owner-occupied residential properties in the Republic of Ireland (ROI) only. The property is mortgaged to secure the loan. Applications only from residents of ROI over the age of 18, subject to repayment capacity, financial status and property valuation. Maximum Loan-to-Value of 90%.
To learn more about the Avant Money One Mortgage visit: avantmoney/Mortgages
Rates are correct as at 04/10/2021 and are subject to change.
APRC is the Annual Percentage Rate of Charge. This rate allows you to easily compare mortgages from different lenders. It considers all the costs involved over the term of the mortgage such as set-up charges and the interest rate. The lower the APRC, the lower your monthly repayments and cost over the full term of your mortgage.
The Loan-to-Value is the amount you want to borrow as a percentage of the value of your home.