Mortgage advice

You have two options; a repayment mortgage or an interest only mortgage.

With a repayment mortgage you repay both the capital and the interest together in instalments over an agreed period of time. Provided you keep up your repayments, your entire mortgage will be repaid at the end of the term.

With an interest-only mortgage, you pay the interest due but none of the amount you have borrowed. While your repayments will be less than an equivalent-sized repayment mortgage, at the end of the term you still owe the original amount that you borrowed. The remaining capital will be repaid under the conditions outlined by the mortgage lender. You should be aware that very few lenders now offer interest-only mortgages.

You will need to make a decision on which type of interest rate is going to work best for you. Mortgage interest rates fall into two main categories; fixed-rate and variable rate, although there are a number of variations within each of these categories.

A fixed-rate mortgage is set for a particular period of time, and the interest you are charged will stay the same throughout a predetermined fixed rate period.

With a variable rate mortgage, your interest rate can change at any time. This means your payments could rise or fall as interest rates fluctuate.

New build properties can be attractive for many reasons; however, it is important to remember that when it comes to applying for a mortgage, lenders apply different mortgage lending criteria than they do when lending against established properties.

Our team of experienced mortgage advisers understand that only certain lenders will accept mortgage applications for new build properties and will ensure that you only apply to appropriate lenders, saving you time and helping you to secure your new home.

When applying for a mortgage, most lenders will look for information in relation to your income, employment status, existing loans and spending habits. This helps them to determine whether or not you can be relied on to pay back the loan.

The required documents may vary from lender to lender but usually, you’ll be asked for the following:

• Bank statements: You’ll be required to provide the lender with your personal bank account statements for the previous six months.
• Proof of ID and proof of address: Usually these can be in the form of a current valid passport or current driving license and a recent utility bill.
• Proof of your Personal Public Service Number (PPSN): This is usually found on a payslip, a tax assessment document or correspondence from the Department of Employment Affairs and Social Protection or the Revenue Commissioners.
• Credit card statements: Usually two or three months of credit card statements are required.
• Proof of income: If you’re a PAYE employee, you will usually need to provide payslips for the previous three months. If you’re self-employed you’ll need to provide certified accounts, likely for the previous two or three years, and a copy of tax returns from the previous two years.
• Stamped employment status report: You’ll need to provide an up-to-date employee status report completed and stamped by your employer.

A mortgage is the biggest financial commitment most of us make in our lifetimes and it is vital that you are protected should the unexpected happen.

Fairstone’s advisers can help you choose a comprehensive protection package that suits you and your family’s needs.

We can help ensure that, in the event of the worst-case scenario, your home is protected, and you can still meet your mortgage payments.

This could include:

• Life cover
• Critical illness cover
• Cover for long-term sickness