Three Ways to Ace Your Joint Mortgage Application
09 Feb 2017
Posted in: Mortgages
Applying for a joint mortgage as a couple can be confusing. Read AIBs advice on making it a smooth process with updated 2017 rules!
Acing your mortgage application as a couple takes some forward planning. In the last year, we’ve seen some changes to the central bank rules for first-time buyers as well as a new help to buy scheme which came into place in July. These changes can be confusing, but luckily, we’ve broken down everything you need to know below. Get to grips with these three key areas and you’ll be well on your way to getting an ‘A’ on your joint mortgage application
1. Put in The Research
Once you’ve made the decision to apply for a mortgage, your first step is finding out how much you can borrow in principle. You can do this in a matter of minutes using our Mortgage Calculator. Simply fill the online form out with you and your partner’s details and you’ll be given a figure for how much you could potentially borrow. Once you have this figure in mind, you can start looking at properties within your budget.
Make sure you and your partner are familiar with these two key factors:
1. The Central Bank rules now require first-time buyers to have a deposit of at least 10%.
2. If you’re in the market for a new build, you could potentially save under the new ‘Help to Buy’ scheme. This government scheme means that first-time buyers can benefit from a 5% tax rebate up to €20,000. To find out more on this incentive visitwww.revenue.ie.
2. Start Saving Together
As outlined above, as a first-time buyer, you’ll need to have a deposit of at least 10% . Sit down together and figure out a realistic amount you can save on a monthly basis. The My Money Manager feature on our online banking service is a fantastic way to analyse your current spending. You might be surprised at how much you’re spending on things like takeaway lunches! Use this to help you figure out your spending Achilles heel and resolve to sort it out.
Make a realistic monthly savings target and stick to it. A notice account (which requires you wait a certain number of days before you can make a withdrawal) is a great way to help you resist dipping into your savings. You can take a look at our savings account options for more information.
Saving together means you have someone else in the same boat – so make the most of the fact that you’re not doing it alone. Do a big shop and make your work lunches together, or invest in a couple of flasks and take it in turns to make each other ‘takeaway’ coffee. Then take pleasure in watching your savings accumulate.
3. Talk it Out
The moment you start to seriously think about a mortgage is the best time to speak to a mortgage advisor. They look at joint mortgage applications on a daily basis and know exactly what you’ll need to cover.
This foresight will be your saviour in the long term, you’ll leave with a comprehensive checklist of the documents you need to make an application – and this will save you chasing them down at the last minute. You’ll also be aware of the savings pattern you’ll need to stick to so you can make sure your finances are in good shape when you apply. It’s also an opportunity to ask any niggling questions you might have and get an expert answer. Appointments are free and can be booked with your local AIB branch.
Take the First Steps Today
Log on to our Mortgage Calculator today to get an idea of how much you can borrow today.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.