Mortgage FAQs – Frequently Asked Questions

Q - What are the main terms and conditions of my mortgage?

You are advised to read the documentation you receive from your financial institution or solicitor. It will take no more than an hour and could be very valuable later. The main terms and conditions are:

1. You must keep the property in good nick and repair at all times

2. You must not let the property without the consent of your financial institution.

3. You may lose your home if you do not meet the regular payments.

4. If your financial institution has to pursue you through the courts you may be required to pay their court costs as well as your own.

Q - I think I have a bad credit rating – what does this mean?

You can obtain a credit report to see for yourself what your credit rating is like. A bad credit rating doesn’t necessarily mean you will be refused a mortgage. There are specialist lenders in the market who can help you. Your financial adviser will discuss this option with you.

Q – I am self employed, don’t have accurate accounts or some of my income is cash – will this affect me?

The short answer to this is that it could but again your financial adviser will give you more advice on this. It does not necessarily mean you will be refused a mortgage.

Q – I am involved in a separation or divorce at the moment – should I just wait a while until this is settled?

You should talk to a solicitor and/or financial adviser as soon as you can. Get the right advice and then decide if you are going to act now or wait.

Q – Exactly how much will a mortgage cost me?

Your financial adviser will get many quotations for you and you can then compare how much they will cost. The mortgage offer may or may not refer to TRS (tax relief at source) and this will reduce the amount you pay per month. Find out more about TRS here (www.revenue.ie )

Q – Should I go for a fixed or variable rate?    

The truth is that no one is sure how mortgage interest rates will go over the next few years. If interest rates are going to go up then a fixed rate option may be preferable if they are likely to fall then a variable rate may be more attractive. Your broker will be able to give you uptodate advice on what is available to you as the market changes.

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