The word Mortgage comes from the old French word “dead pledge” which means that the promise finishes when the obligation is fulfilled or the property is repossessed. Lets not beat around the bush; never before has the word repossession been taken SO seriously.
You want to buy a house and you cannot pay for it in cash. Like the rest of us you need a mortgage? Getting a mortgage can have many positive and possible negative repercussions if mistakes are made.
The following insider’s guide touches on the different stages of successfully applying for the mortgage that ultimately allows you to buy your dream home.
A mortgage is a long-term loan that is secured on a property. Mortgage loans are usually set up and paid on a monthly repayment basis and can stretch over a period of 5-years to 40-years.
A mortgage loan must be used to purchase a property as this is the security that the banks are lending on. The truth is that you do not actual own the property; it belongs to the bank as long as they have the mortgage deeds to your home. It is only when you have paid off the mortgage and gained back the deeds of the house that your home is truly yours.
There was thousands of different mortgage products on the market during the property boom but now you have few options. Banks such as Halifax have left and now you have to be prepared to work hard to get a decent mortgage.
Banks will assess your application and either accept or decline your application based on the information you supply to them. There are around 19 different banks in the marketplace, you will find most of the Bank say they are opened for business but in reality they do not want to lend you money.
You have your main high street banks such as your AIB, PTSB and EBS. Then you have specialist lending banks such as IIB, ICS and a range of other banks that deal primarily through mortgage brokers such as Haven (broker division of EBS).
There are also Banks that deal primarily with the sub prime section. This is with people that cannot get a mortgage through their banks due to them not meeting the criteria set out by banks. This inside guide does not tackle sub-prime mortgages and this is one of the many reasons we find ourselves in the tough economic climate.
What I will talk about is the process of applying for a mortgage, getting approval and moving through the process until you get the house keys. The benefit of this is that you can make a more educated choice of what is the best mortgage in the market place for you, which means, ultimately means you will save thousands of euros.
A word of caution before you read on! This insider’s guide is no substitute for professional advice from your Bank, Mortgage Broker, Solicitor and other professional advisors.
But be cautions, very cautious of the advice you are getting!
Allan Matthew Cuthbert t/a Financial Wellbeing is regulated by the Central Bank of Ireland to advice on Mortgage,Savings, Life and Pension products