Mortgage Questions Donegal | Frequently Asked Questions (FAQs)

Mortgage Questions in Donegal that Find a Mortgage receives. Here are some of the many Frequently Asked Questions about Mortgages we have compiled. You may find the list of our Mortgage FAQs useful.
How do lenders calculate how much I can borrow?

How much you can borrow really depends on what you can prove you can comfortably afford in monthly repayments for the life of the loan.
When assessing your borrowing capacity, the lenders will look at the overall financial situation. This will include:

  • Your income – only guaranteed income will be used for calculations. Bonuses and or overtime, which is not guaranteed, may not be taken into account.
  • Outgoings
  • Savings
  • Other loan repayments

A “stress test” will be carried out on all applications. This will show whether you could continue to pay your mortgage if interest rates were to increase.

What is the maximum term we can avail of?

The maximum term is 35 years or to age 68, whichever comes first. A couple of lenders will go to age 70. Our advisors will be able to advise which term best suits you.

How much of a deposit will I need to purchase my home?

For first time buyers or people switching provider can borrow up to 90% of the lower of the valuation or purchase price of the property. Second time buyers or mover, can borrow up to 90% of the lower of the valuation or purchase price of the property, provide they have no interest in any other property. Investors can borrow up to 70% of the lower of the valuation or purchase price of the property. Holiday home purchase is the same as for Investors.

This will vary between lenders and will also depend on the location and type of property.

I have a site and I am planning to build my own home – will I be able to get a mortgage?

 Mortgages are available for self-build customers subject to you meeting all the usual criteria.

See above for the loan to value amounts. Borrowing 100% of the build cost may be possible if you own the site already or it has been gifted you. Over all loan to value rules apply here though. Our advisors will be able to give you all the details.

What insurances will I need to take out with a mortgage?

There are two main types of insurances that you need to have in place before the lender will issue your loan. These are Mortgage Protection and House Insurance. You may also want to consider Income Protection. Our advisors will be able to advise on what policy best suits your needs.

What other costs are associated with purchasing a property?

Legal Fees:

You will need to choose a solicitor to act on your behalf.  It is worth shopping around to get the most competitive quote available. We have a panel of solicitors we are happy to recommend.

Valuation:

A valuation report must be completed for the lender. The standard valuation fee run between €150 & €185

Surveyors Fees:

A structural survey is not required by the lender (unless the valuation report states that a survey is required); however, for your own peace of mind we would recommend organising a survey on the property. Fees for a structural survey can vary between firms, so shop around. Again we are happy to recommend someone if you don’t have a surveyor in mind,

Stamp Duty:

Stamp Duty rates on land and buildings
Type of propertyConsiderationRate of Stamp Duty
ResidentialFirst €1 million1%
ResidentialExcess over €1 million2%
Non-residential6%*

For further information on Stamp Duty click here https://bit.ly/2Mjpoy2

Find a Mortgage fees:
See our full mortgage service breakdown

What Interest Rate options are available?

Variable Rate:
Your monthly repayments may rise and fall as interest rate changes over the life of the loan.
You have the option to make early or lump sum repayments without any penalty.
You can switch to a Fixed Rate at any time.

Fixed Rate:
Your repayments will stay the same for an agreed period. Some lenders offer up to 10-year fixed rates. This gives you the peace of mind of knowing that your monthly repayments are fixed and protects you from interest rate increases. Fixed rates are generally higher that variable rates.
A breakage cost may be incurred if you wish to pay a lump sum or switch to a variable rate during the fixed term.

Split Rate:
You can opt to split your loan between variable and fixed.

Who can I contact for advice and further information?

Please contact a member of our Mortgage Team who will be happy to answer all your questions 074 910 3938

Warning: If you do not keep up your repayments you may lose your home

Recommendation on Application for Mortgage

The best recommendation is by far to get guidance from a source not connected to the lenders. The ideal person to provide this advice is a Mortgage Broker (like us). Many people talk themselves out of a mortgage by contacting lenders directly without first seeking guidance.

Our advise is always to consult with a Trusted Mortgage Advisor, like us,  before making any mortgage or financial choices. The material above is provided for informational purposes only and in no way represents Mortgage and or Financial advice. We advise using a comprehensive strategy when making financial plans, and we can assist you in implementing your ideas.

Make Sure to Find a Mortgage Broker Donegal Advice

When looking for a Mortgage in Letterkenny, Donegal, and Ireland, engaging a mortgage broker might provide a number of advantages and valuable benefits. Some benefits of hiring Brokers and Advisors are: offering access to a wide range of lenders, helping you save time and effort, providing expertise and knowledge, negotiating power, and personalized mortgage service.

Make an appointment with one of mortgage advisors as you seek to find a mortgage in Donegal. Speak with us right now. We are available to assist you with your Mortgage concerns and worries. Ask us questions about mortgages. We offer advice on: first-time buyers’ mortgages, re-mortgage or switching providers, self-build mortgages, investor or property mortgages, and more. Contact findamortgage.ie in Letterkenny, Co Donegal, or by phone at 074 910 3938.

The Central Bank of Ireland regulates Mortgage Brokers in Donegal and the rest of the country.

Excellent
Based on 108 reviews
dana doherty
dana doherty
2023-02-13
Pascal, Tanya and the team were so helpful throughout our mortgage process from the initial meeting to final approval. They were very helpful and friendly. A pleasure to work with.
M C.A.
M C.A.
2023-01-30
Paschal is not only an adviser but a good person. He has helped me set up my mortgage 15years ago and he’s still around giving advice. He’s very trustworthy. Thank you Paschal and God bless you for all your good deeds.
Marie Wilson Burns
Marie Wilson Burns
2023-01-18
Pascal & the team are excellent to deal with - highly recommend
Paul Magee
Paul Magee
2022-12-15
Excellent service from Pascal and the team. For a first-time buyer, his mortgage advice and expertise took the hassle out of the entire process. Highly recommend.
Meanit Web Design Agency Donegal and Dublin
Meanit Web Design Agency Donegal and Dublin
2022-10-14
Independent, clear, honest, friendly, trustworthy - we recommend Pascal Curran and the team at Advice First to our clients in Donegal, friends and family. Just simply explained, professional, experienced financial advice to suit your specific needs.
james m
james m
2022-09-28
Pascal gives good unbiased financial advice. I'd recommend him over many of the other "advisers" available.
Warning: If you do not keep up your Mortgage Donegal repayments you may lose your home