Branch Manager and Mortgage Advisor

The best advice is to start the process of applying for a mortgage well before you start seriously looking for somewhere to buy.

• It's never too early to talk to us and even if you're not ready to get a mortgage now, we can help you put a plan in place to be mortgage ready when the time comes.
• You'll need to find out for sure how much you can afford to borrow, which (together with your savings) will determine your property price range. This is particularly important if you're in a more complex financial position, such as a contract worker, being self-employed, or where your salary relies on a lot of commission.
• You'll be at an advantage compared to rival buyers who do not have a mortgage in principle. Most estate agents / auctioneers and their home selling clients will require you to have a mortgage approval in principle before you make an offer on a property you like. Some Estate Agents may ask to see evidence that you have an Approval in Principle when you are making an appointment to view a property.

In regards to how long it will take. Usually once you submit your full set of documents, it will generally take up to 5 working days to get a decision on your approval in principle (AIP). This AIP will then be valid for 6 months so you can start looking or place an offer on a property.

When assessing an applicant/s for a mortgage, we run through a series of criteria that takes account of your sustainable long term income and your financial commitments. We look at your net take home pay, deduct any financial commitments like loans/short term debt, child care costs. We also assess your ability to meet the repayment on the proposed new mortgage should interest rates increase by 2% above today's level. This is called Stress Testing, and it provide extra peace of mind that you can meet repayments not just today, but also if rates go up somewhat in the future.
We also have to work within two Central Bank limitations
Loan to Income limit - Under this limit we cannot lend more than 3.5 times your gross annual income (combined gross annual income for a couple). For example a couple earning €30,000 each = €60,000 and multiplied by 3.5 times gives a maximum mortgage lending limit pf €210,000.

Loan To Value limit - Under this limit we can lend up to 90% of the purchase price of the property to a First Time Buyer and 80% to Second Time Buyers (Those who have previously had a mortgage).

There's no right or wrong answer to this question – It depends on your own personal circumstances and the choice is up to you.

If you're the type of person who'd rather know exactly how much your mortgage repayment will be each month, a fixed rate mortgage might be the better option for you. On the upside this gives you peace of mind, but the down side is that if interest rates go lower, it means you could end up paying more interest on a fixed rate than you would've had you opted for a variable rate mortgage. You may also have a breakage fee if you choose to exit the fixed rate contract early for example if you sold the property or want to make a lump sum payment to the mortgage during the fixed rate contract period.

With a variable interest rate, your repayment may rise and fall in line with interest rate changes, so you don't have that certainty as to what your mortgage repayment will be each month for the next few years. A variable rate also allows you the freedom to modify your mortgage and your mortgage repayment should you wish to increase the monthly mortgage repayments or pay a lump sum off the mortgage. There are no breakage fees or penalty should you wish to pay off all or part of your mortgage early during the mortgage term.

And if you still can't choose? Well, you don't have to. You can have your cake and eat it too. For customers who are unsure of what type of rate to select, EBS provide the option of splitting the loan amount in two, so you can avail of both the variable interest rate on a portion of the loan and a fixed interest rate on the remaining portion of the loan.

An Approval in Principle (AIP) is the first step in the mortgage process for most people. You should apply for an AIP as soon as you've made the decision to build or buy a home. There is no cost in applying for an AIP and once approved, it is valid for 12 months. An AIP from EBS is fully underwritten/assessed and gives you a strong indication as to the level of mortgage finance you qualify for (subject to conditions), should you find a suitable property. To apply for an approval in principle, you'll need to complete an application form and return it with some income documents and your bank statements.

EBS recognise that you are bringing a site with planning permission to the transaction which has an inherent value, so depending on the site value, build cost and completion value of the project, you may not need to have a 10% deposit. For example if a First Time Buyer applicant already has a site (with no mortgage) for say €50,000, plans to build their home for €250,000 and the completed property will be worth €300,000 – EBS can lend the full €250,000 build cost if required (assuming the applicants qualify for affordability), which means they don't need the 10% deposit, but can keep their savings for the property kit-out/furnishings etc.

Deposit – If you own the site, this acts as your deposit and EBS can offer up to 100 per cent of the construction costs as long as the value on completion of your home does not exceed 90 per cent for First Time Buyers (FTB) or 80 per cent for all others. If you are purchasing the site you can get up to a 90 per cent loan (FTB) / 80 per cent (others) of the total site value plus construction costs.

Lending Assessment – The application is assessed in the very same way but there are some additional steps and information required. For a loan offer to be issued, you will need to show you have secured full and final planning approval (Grant of Permission) and submit detailed costings drawn up by a suitably qualified architectural designer or engineer with professional indemnity insurance.

Funds Release - One of the major differences between a standard mortgage and a self-build mortgage is the way the money is released. With a standard mortgage, the funds are released in one go, whereas with a self-build mortgage the capital is released in stages throughout the construction of your house. You only make repayments on the amount you draw down at each stage.