With rents continuing to soar in Ireland and in particular in certain parts of Dublin the dream of owning a home remains as strong for most people as it has ever been.
However for some, their dreams and hopes are dashed as they weren’t aware of certain criteria which must be fulfilled in order to obtain a mortgage. Rob O’Neill Managing Director with Citywide Financial explains the most common reasons for a declined mortgage application.
LACK OF SAVINGS. Mortgage applicants have to be seen to be saving every month. A minimum of 10% of the purchase price in personal savings is necessary for nearly all lenders.
NON PERMAMENT OR CONTRACTUAL EMPLOYMENT. In order to obtain a mortgage you must have a permanent job and have seen out your probationary period.
It is imperative to have a GOOD CREDIT HISTORY,so missed loan or credit card payments are a no no. You can get a credit check done with the ICB. www.icb.ie
DEBT. Having too much debit will reduce the amount of mortgage you will qualify for. Bear this in mind if you are considering buying a house in the not too distant future.
ONLINE GAMBLING ACCOUNTS – If you are a regular online gambler evidence of this would be very obvious through transactions on your bank account statements. This is to be avoided.
MISSED DIRECT DEBIT PAYMENTS. Make sure you plan ahead and meet any payments due from your bank account where your wages are paid into. Unpaid fees and missed direct debits are to be avoided at all costs.
However don’t be despondent. Making small changes to your finances so that your 6 month track record reads well will, go a long way to convince lenders that they should approve you for a mortgage.