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The Financial Column

Welcome to the Financial Column in association with Moneyplus, Bridge Street, Boyle.

Q. We have saved a sum of 9k with regular sums of  €500pm over the past 18 months. We had hoped to secure a mortgage of approx. €150k to purchase our first home in the New Year. Our family have offered to make up the shortfall in the 10% deposit. However I am now advised that we must have all of the deposit saved from regular savings. Is this correct?

A. This is not correct. The new Central Bank rules state that First Time buyers require a deposit of 10% up to a purchase price of 220k, and 20% on amounts over that. However, only 5% of the required deposit amount must be evident from regular savings. In your case the total deposit required is 15k. Only 750 of this must be built up from regular savings.

However, there are other criteria which are set by each lending institution which may require you to show a larger savings pattern over a six month period. Ability to repay a mortgage of 150k over a set number of years must be evidenced by either a) monthly savings b) rent payments into a bank account or, c) loan finishing, or a combination of all three.

Disposable income, other loan repayments, & number of children will also have an impact on the amount which you qualify for. Each institution have their own method of calculation. It is important therefore that you consider all your options when applying for a mortgage. .

If you need any further information we at MoneyPlus are happy to carry out a preliminary assessment. This usually takes an hour if we have all the information and we do not charge a fee for this.

MoneyPlus are experienced investment and financial brokers and have been in the business of financial and investment planning for many years.  They are dedicated in providing bespoke financial planning advice to clients. If you would like further advice on the above or any other financial information please contact Belinda McCauley in our Boyle office on Bridge Street on 071 9194000 or [email protected]

 Boyletoday.com/MoneyPlus accept no responsibility for any decisions taken as a result of advice provided in this column.   A reliable recommendation can only be made following a full detailed consultation taking an individual particular circumstances into consideration

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