An ABC Guide to Mortgage Applications
10 Nov 2016
Does the mortgage process seem a little complicated? Applying for a mortgage is a big step and a new world of research and terminology awaits. While there is a lot of new information to take in, our alphabetical list of frequently used mortgage terms makes things as easy as A, B, C.
A – Application
All the saving, planning and preparation comes down to one thing - your mortgage application. Getting your paperwork organised is the first step to a successful application. Your personal mortgage advisor can let you know exactly what documents you need to supply.
B - Build Your Own
Building your own home? Mortgages are available for those who want to self-build at the same great rates. One of the main differences from a standard application is that you’ll need an initial Valuation Report that advises on the cost/value of the site and the estimated market value on completion of the build. Your personal mortgage advisor will talk you through this is detail.
C - Checklist
Use our mortgage checklist to find a detailed list of everything you’ll need.
D - Drawdown
This is the fun part. Mortgage Drawdown is when the mortgage funds are transferred from AIB and sent to your solicitor once all the required documentation has been approved.
E - Employment Documentation
For employees, 3 months of up-to-date payslips are needed to confirm your basic salary. If you’re self-employed, you’ll need 3 years’ financial accounts certified by your accountant and details of the tax you’ve paid.
F - First Time Buyer
When saving for your deposit, keep in mind as a First Time Buyer you will require a deposit of at least 10%. AIB can offer 90% Loan to Value up to €220,000 and over this amount 80% Loan to Value is available, with 75% maximum for a one-bedroom property.
G - Gazumping
Hopefully, gazumping is a term that you’ll never encounter. It occurs when someone makes a higher offer for a home when yours has already been accepted.
H - House Hunting
When you’re hunting for your perfect home, make sure you keep two eyes open and look out for the signs that a property has been well-cared for. Pay attention to the BER and how well-insulated a property is, or you may end up paying much more down the line.
I - Interest Rates
Your mortgage advisor will be able to take you through our current interest rates, and you’ll need to decide whether you want to repay your mortgage with a fixed rate, a variable rate or a split rate option which combines the two. With a fixed rate, your mortgage repayments will stay at the same level for an agreed period. A variable rate may rise and fall in line with market interest rates.
J - Judgement
Make sure you use judgement to determine that your new home is the right size and style, and in the right location for your lifestyle.
K- Know your Repayment Terms
If your mortgage loan is an owner occupier mortgage, repayment terms of up to 35 years may be available to you - subject to maximum age restrictions.
L - Letter of Loan Offer
When your mortgage application is approved, you’ll receive a formal letter laying down the conditions of the loan. Your solicitor will also get a copy.
M - Mover
If you’re moving home and looking to sell your current home, you’ll need to get to know the market. In order to find out what your current home is worth, get a valuation from more than one estate agent and check out the property price register.
N - No Fees
When you drawdown a new mortgage from AIB and pay by direct debit, you can enjoy fee-free banking on your AIB personal current account.
O - Other Costs
Don’t forget to budget for the other costs associated with buying a home. The main ones to consider here are legal fees for your solicitor, valuation report fees and surveyor’s fees.
P - Protection
When you’ve found the perfect home, make sure that you protect it with home insurance. You need to have both Life Assurance and Home Building Insurance in place before you can drawdown your mortgage.
Q - Quick to Apply
With our handy mortgage calculator, it couldn’t be easier to see how much you can afford to borrow and how much your mortgage repayments will be.
R - Rent
Rent is taken into consideration when applying for a mortgage. Your rent payments combined with your savings prove that you have the discipline to pay back your mortgage long-term.
S - Savings
Good Savings practice is an important step in applying for a mortgage. A savings routine will set you up for life and help with your mortgage application. Open a savings account to get started on the road to savings today.
T - Time to Find a Home
When you’re hunting for your perfect home, it can take time to find ‘the one’. At AIB, we offer 12-month* mortgage approval to give you more breathing space to make the right choice.
U - Useful App
AIB’s SmartMove App has a wide range of features for those looking to buy a home including Daft.ie integration and helpful hints and tips on saving.
V- Very Easy Appointments
Don’t be intimidated by the mortgage process. Our expert advisors are on hand to help you with every step of the process.
X - X-Ray Vision
X-ray vision and super powers are definitely not required to understand our mortgage T&Cs. Our mortgage advisors will explain it all.
Y - Your Personal Mortgage Advisor
From the moment you talk to us, your perso00nal mortgage advisor will be available to help with every step from your application to your sanction in principle, right down to when your offer is accepted and you sign the contract for sale.
Z - Zoom
What are you waiting for? Zoom over to our website and book an appointment with your local mortgage advisor today.
Do your mortgage questions go beyond this A-Z list?
* Please note mortgage approval for 12 months is based on initial sanction in principle lasting 6 months and letter of loan approval on the selected property lasting a further 6 months.Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland.
Copyright Allied Irish Banks, p.l.c. 1995.