If you’re thinking of buying a property to invest in, we can help.
We can’t advise on being a landlord, but we can help with:
✔ Competitive rates
✔ Expert advice over the phone or in branch
Whatever stage you’re at, everything you need to know is here. Read a guide, watch a video. Take your time. And when you’re ready to chat we’ll help however we can, wherever it suits you.
Think of a mortgage as a loan to get your feet on the property ladder.
Let’s look at a couple of basics.
Basically a mortgage is a loan used to buy a property. And the property becomes the security for the mortgage loan. A bank agrees to lend you money to buy, build or renovate a property and you agree to repay it.
When you apply for a mortgage with us we can usually give you what’s called an Approval in Principle. This shows how much we’re able to lend you based on the information you’ve given us. Of course, this isn’t a loan yet, but you can go property hunting confident of what you can afford.
There are rates to consider. We’ve competitive fixed and variable rates, but what do these mean?
Fixed Rate or Variable Rate?
You can chose between a fixed interest rate, a variable rate, or a combination of both.
A fixed rate mortgage has a rate of interest which doesn’t change for a set period of time, so you know exactly how much you pay every month. A fixed rate makes it easier to budget for payments. But remember it’s fixed for a certain time like three, five or seven years and if you change it before the end, we may charge you a fee.
A variable rate mortgage has a rate of interest which can change. We will always tell you in advance if it is going to go up or down and how your monthly repayment amount will change as a result.
Some people are used to investing in property to the point of being professional. For others it may be their first time; if it is, this section will help you.
There isn’t a bank that will lend you all of the money to buy a property, so you need to have enough money saved to pay a deposit.
Getting into the habit of saving can be hard, but once you realise that a place to rent is the goal it’s worth every cent.
Here’s some tips:
Budget your spending
You need to know what’s going out of your account versus what you have coming in.
Set up a savings account
Figure out how much you need to save. Put your details into our Savings Calculator and you’ll get a clear idea of how much you need to be saving each month in order to meet your target.
We have lots of different saving accounts to choose from. Consider an online notice deposit account.
We’ve all seen the figure of how much you can save by switching providers for things like your internet and electricity. Set aside a switching day, so you can get them all changed.
Build in a buffer for fun and set aside some money each month to treat yourself with. Sign up for AIB Everyday Rewards to get cashback from lots of stores when you shop.
Check out our savings options
Pop into a branch, make an appointment on aib.ie or ask us to call you back when you can speak with one of our Mortgage Experts.
You don’t need any documents or deposit saved to chat to an expert. We’ll make sure you’re on the right track from the start by helping you make a plan to get the deposit together. If you can’t make it to a branch, we can come to meet you, so this may also be an option for you.
Get your paperwork together
Once you’ve saved your deposit you will need to show us that you can afford to keep repaying the mortgage. Your Mortgage Expert will tell you exactly what documents you need to give us, such as payslips, bank statements, credit card bills, self-employed accounts and proof of saving or gifts.
Apply for Approval in Principle
Once you have your deposit together, you can apply for a mortgage and receive an Approval in Principle. This is when we agree, in principle, to give you a mortgage, based on the information you’ve given us. Then you’ll know how much you have to spend on the property. There will be more conditions you’ll have to meet, but we’ll make these clear so you’ll know what else you have to do before we can lend you the money.
What happens after I get mortgage approval?
Once we give you approval in principle, you can go house hunting confident of what you can afford.
Make an offer
If you’ve found a property you like, you can put down an offer. Have a surveyor check the property out. Once you’re satisfied the house or apartment is structurally sound, you can put down your booking deposit.
Get a Solicitor
You’ll need a solicitor on your side. We will appoint a solicitor from our panel to represent our side. You have to pay for their services as well as the services of your own solicitor.
Next, tell us once you’ve made an offer; we need to know the property details, including its value. This can be easily arranged by calling our Central Valuations Team on 0818 100 051.
Sign the offer letter
When we’re happy they’ve received all the relevant property details and any other things we’ve asked you to do (they are all laid out as conditions) we’ll send a formal offer letter from our solicitor to you and a copy goes to your own solicitor. This is the official contract, so review it carefully together. Once you’re both happy, sign and return it to us.
Mortgage protection and home insurance
You’ll need to have both mortgage protection and home insurance in place before we send the money to your solicitor. Our AIB Financial Advisors will be happy to discuss your life / illness cover and income protection options. Once those details are confirmed, the mortgage loan can go ahead.