The Central Bank has set out rules in relation to how much of the purchase price of a house can be borrowed – Loan to Value or LTV.

A 10% deposit is required for all mortgage borrowers, whether first-time or second-time buyers, resulting in a Loan-to-Value ratio of 90%. So, for example, if you are a first-time buyer and looking to buy a house for €300,000, you will need a €30,000 deposit. Your deposit can come from savings, a gift, equity from the sale of another property, or the government Help to Buy scheme (terms and conditions apply). You will need to set up a budget for yourself to ensure you can save enough money.

It is essential that you demonstrate affordability to repay your mortgage once approved. You can save for your deposit in your credit union, bank, or post office as long as Inspire Credit Union can get clear statements to see where you have saved. If you already own a home, find out how much equity the property has and whether you’ll have enough for a deposit on the house you want to move to.

The Central Bank have set out rules in relation to how much you can borrow - Loan to Income or LTI.

First-time buyers can borrow 4 times their annual gross income, and for joint applications, 4 times the combined joint annual gross income. For second-time buyers, the limit is 3.5 times their annual income, and for joint applications, 3.5 times the combined joint annual gross income.

Additional costs: Don’t forget to also factor in costs like a surveyor’s report, stamp duty, valuation and solicitor fees, which, altogether, can be a large sum.

If you have previously taken out a loan, credit card, or any form of credit, you will have a credit record with the Central Credit Register (CCR). This record provides a detailed overview of your borrowing history and repayment behaviour. You can request a copy of this from the CCR on www.centralcreditregister.ie.

If you have had problems with credit in the past, it is best to address them before applying for a mortgage. Please be upfront with us regarding any issues you have had in the past or currently experiencing.

• Stop/Reduce: Avoid large, non-essential spending (e.g., gambling, online shopping, subscription fees).
• Clear Debt: Clear credit cards, personal loans, or overdrafts, as these reduce your borrowing capacity.
• Check Credit Record: Ensure you have no arrears.

Inspire Credit Union must see that you can afford the mortgage repayments. This is shown through consistent monthly savings or current rent payments, that equal or exceed your future mortgage repayments. Capacity to repay can also be proven through rent repayments or current loan repayments that will be finished by the time you draw down the mortgage. A combination of these two examples can be used. A regular savings record of approximately the monthly mortgage repayment is an excellent indicator of the ability to repay the mortgage.

• We offer mortgages:
  - For the purchase or building of your Principal Private Resident (PPR)
  - Switcher Mortgages/Equity Release
• Our current rate is 3.85% (APRC 3.92%), capped at 4.40% (APRC 4.5%) for the first 3 years.
• Our minimum mortgage is €75,000 and the maximum mortgage is €500,000.
• Maximum term is 35 years (up to a maximum age of 70 based on the employer's confirmation).
• You must be in permanent employment and have passed any probationary period.
• A 10% deposit is required.
• Certain social welfare payments can be included in the calculation of repayment affordability.
• The maximum mortgage that can be offered is 4 times the gross annual income of a first- time buyer or 3.5 times the gross annual income of a second time buyer. This applies to the combined joint gross annual income of joint applicants.
• If you need support getting on the property ladder, there are government schemes that can help. The Citizens Information website includes details of the current schemes available to first- time buyers. You will need to meet the eligibility criteria of a scheme to qualify.

You must be in permanent employment and have passed any probationary period. Self-employed applicants must be self-employed for a minimum of 3 years.

Your current and savings accounts should show good conduct. Unpaid direct debits, unauthorised overdrafts and excessive gambling are all red flags when it comes to mortgage assessments. You need to show you are living within your means and without financial stress.

We welcome any queries and are here to guide you through every step of your mortgage journey.  Please contact our mortgage department and speak with one of our mortgage advisors who would be happy to discuss your mortgage application:
Contact Details:
P: 021 480 0010
E: [email protected] 
W:inspirecu.ie/mortgage