6 months have passed and you have saved and kept everything squeaky clean (check out this blog for the steps to get there). Bank statements are in order. Credit cards are within their limit and all my bills are paid up to date.
Now, what is the next step? What are the mortgage requirements? Check a mortgage calculator to see how much you can apply for? Google “mortgage calculator”? Simple rule of thumb is you can borrow 3.5 times your income or joint income. If two people are earning €80,000 together then you can straight away apply for €280,000. Perhaps you want more, then speak to us. We can guide you and calculate can you obtain more because in some cases we can extend this amount with the sanction of Central Bank.
Then it’s all down to the paperwork – 6 months bank statements, 3 months’ pay slips, copy of p60, p45 or revenue proof of earnings if you are self-employed. We would also require the last two years business accounts if you are self-employed or a company director with more than 20% shareholding.
If you have a credit card or personal loan then you should produce at least 6 months statements on these. Finally, your savings accounts will be in most cases required to show your ability to repay the mortgage coupled with any existing rent or mortgage you currently pay.
Your ability to repay the mortgage is crucial at the application stage. You must be able to show the lender that you can maintain and sustain the repayments with proof over the previous 6 months.
Once you have matched all the above you pass the application to us at Mortgage Plus to engage with the lender and obtain approval.
Here’s your list of mortgage requirements:
- 6 months bank statements
- 3 months’ pay slips
- Copy of p60, p45 or revenue proof of earnings if you are self-employed
- Last two years business accounts if you are self-employed or a company director with more than 20% shareholding
- 6 months credit card statements
- 6 months personal loan statements
- Proof of savings