Central Bank Rules for First Time Buyers
Loan To Value:
- First Time Buyers need to have a minimum deposit of 10%.
Loan To Income:
- The LTI limit restricts the amount of money you can borrow to a maximum of 3.5 times your gross income.
The Help-to-Buy scheme is scheduled to run until 31 December 2021 having been extended by the Government in the 2020 Budget. For New Properties only and all applicants must be First Time Buyers. Help-To-Buy scheme provides rebate of up to 10% of purchase price, Max is €30,000/€500,000 price. Must borrow at least 70%. Rebate based on income tax paid over the 4 years prior to purchase.
Fixed or Variable Interest Rate
Knowing your facts when it comes to your mortgage interest rate is very important. A Fixed Rate will give you the security of knowing what exactly your mortgage repayments will be for a certain period of time, for example 2 years, but with a Variable Rate mortgage your repayments fluctuate with the economy.
First Time Buyer 2 Year Fixed (LTV < 60%) available to First Time Buyers:
- Interest rate is 2.25% for 2 years, followed by 3%
- APRC is 2.9%
- Maximum Loan-to-Value is 60%
- Maximum term 35 years
First Time Buyer Variable Rate (LTV 60-80%) available to First Time Buyers:
- Interest rate is 2.95%
- APRC is 3.1%
- Loan-to-Value between 60% and 80%
- Maximum term 35 years
Significant savings available both on monthly repayments & overall interest charges.
One size does not fit all, your own bank offers just 1 product.
First Time Buyer Example
Mortgage: €279,000 (90%)
Loan Term: 30 years
Monthly Repayment: €1,146
Cashback – €5,580
Special Legal Package
Free Property Valuation
Savings/Gift – €15,500
Help To Buy – €15,500 (if qualify)
Make An Enquiry
How Can We Help
MC Financial can advise you on:
- Do you qualify for a mortgage
- How much can you borrow
- How much of a deposit will you need
- How long will approval take
- How long will approval last for
- What documentation do you need
- Which lender has the best rates
- Should you choose Fixed or Variable
- What is the longest term you can obtain
Contact Us for More Details
Why choose MC Financial? See Q6 in FAQ’s
Why not check out Michael’s dedicated mortgage Guide for First Time Buyers.
Would you like to talk to someone you can trust, who will give you the best options based on your circumstances? If so, contact MC Financial today on 01-8228022, firstname.lastname@example.org or call Michael anytime on 087 9321882