Mortgages

Buying a home is the single biggest financial transaction that anyone makes in their lifetime and with the high cost of property in Ireland today, house purchase is an even bigger investment decision than ever before. With over 160 different mortgage offers currently available, it's important to get the best independent advice on the best option to suit your needs and the various conditions applying to your particular mortgage application.

Through its agencies, Advance Financial Services places business with all of the major loan providers in the marketplace but before reaching that stage, prospective home-owners are taken step-by-step through the full mortgage process including completing the necessary mortgage application forms.

Professional, independent advice from Advance Financial Services means potential housebuyers need not compromise on their mortgage arrangements and end up paying more than was necessary.


Specialist Mortgages

At Advance Financial Services we offer finance to people who have been unsuccessful in getting a mortgage from the main banks and building societies. We understand that people often face financial ups and downs for reasons outside of their control. We believe that these circumstances should not prevent you from getting a mortgage.

In Ireland, tens of thousands of people are refused mortgage finance every year, very often for the most trivial of reasons. We have an open-minded approach to lending and therefore have been able to offer mortgage finance to many satisfied customers throughout Ireland.


Borrowing Limits

First-time buyers might have the option of borrowing up to 100% of the purchase price of the property, subject to income criteria. Most lenders will allow up to 92%, with a couple offering up to 95% in certain circumstances. Lenders have different criteria when deciding the maximum amount of loan you can service.

Some will base it on a multiple of your income or joint income, while others will base it on a percentage of your disposable income - typically this will be in the region of 35% - 40%. Lenders will have different criteria on overtime, bonuses, commissions etc., but will generally allow certain percentages of these income to be taken into account. Some will also include a possible rent received from the rental of a room in your home.


Repayment/Annuity Loans

This is the traditional type of mortgage that most mortgage holders would have for their home loan over a set term of generally between 10-35years. Some lenders will now allow repayments up to 40 years depending on your age at the outset of the loan. Loans are repaid monthly, based on current interest rates or a fixed rate if that is the preferred option. The monthly repayment amount is made up of interest on the loan and some of the capital (the sum borrowed).

In the earlier years, interest would be a greater part of repayments but as time goes by, more and more capital is repaid. As the mortgage is guaranteed to be repaid at the end of the term, this is the most popular form of mortgage.


Interest-only Homeloans / Residential Investment Property Loans

It is now possible to have a mortgage where you pay ‘interest only’ to the lender on a monthly basis. No capital is being paid off the amount that is borrowed but capital has to be repaid at some stage, either on maturity or at the end of the agreed interest-only period.

Some will opt for an interest-only period in the earlier part of their mortgage to reduce their outgoings and switch to a repayment mortgage at a later stage. There is usually an option to pay off lump sums during the loan’s lifetime.

Investment property buyers may opt for an interest-only mortgage with a view to selling the property after a number of years and then repaying the capital sum.


Pension-backed Mortgages

Like an endowment mortgage, a pension-backed mortgage does not see any capital repaid until the end of the loan term. The client pays an interest-only amount to the lender and invests normally a monthly amount into their pension plan.

The tax-free lump sum from the pension plan is used to repay the mortgage at the end of the term.
This can be very tax efficient as you are maintaining the maximum interest relief because you are not repaying any capital. As you are investing in a pension plan, you can also claim tax relief on the contributions at your highest rate.

This option has become more popular, especially for self-employed people and where commercial properties are involved.


Contact a member of our team for more information on
Mortgages click here.