Finance: obtaining a mortgage
Although the lending policy of institutions vary from one another below is a very broad summery of what is required to obtain a mortgage.
Earning capacity
PAYE employees in permanent employment need a P60 and a letter from employer confirming your employment status and your annual earnings. That letter will also confirm if you get bonuses, or if/when your annual income rises. Contract workers or the self-employed will need considerable more proof of earnings and security of income, including audited accounts and evidence of work contracts.
Credit History
The institution will check your credit history so if you think you might have a black mark get a copy of it from the Irish Credit Bureau (www.icb.ie) this will save you a lot of grief by trying to sort out any old credit problems you might have had in the past.
Other debt
If you are a first time buyer you can improve your chances of getting the mortgage you want by minimising your existing loans. Lenders will look at how much of your income is going to servicing these debts and adjust the amount they are willing to loan you accordingly.
General documents required when seeking a mortgage
1. A copy of your latest P60
2. Copies of your most recent pay slips – different lenders will require pay slips for different periods of time.
3. Copies of current loans and mortgage statements where appropriate
4. Evidence of savings – bank, credit union, pension statements
5. Completed Employer Enquiry Form – this is a form to be signed by your employer stating that you are in employment and earn X amount.
6. Copies of your bank statements for the last six months
7. Two forms of ID, a passport photo and a utility bill