Irish Guide to Home Loan Mortgages, NC Mortgage Brokers Ireland.

Costs and expenses of moving

Making an offer

Finding a property

Things to consider when viewing property?

Offer accepted

What type of mortgage and rate is best?

Completing and moving in

Exchanging contracts

Choosing the right Mortgage

Net proceeds from the sale of your present home

Financing the move

Get an indication of how much you can borrow

Other fees involved

Choosing a solicitor

Costs involved in Moving

Costs and expenses of moving

Before you start hunting for a new home, work out how much money will be available so that you know in what price range to look.

Once you have found a property you would like to buy, the next step is to make an offer, normally through the estate agent. Most sellers build a certain amount of leeway into their price, so it is usual to offer less than the seller is asking.

In deciding what you are prepared to pay, bear in mind things like the property's state of repair and how much you would have to spend on building work or redecoration.

Your first offer might be up to 10% below the asking price. It is then up to the seller to either accept that price, or try to negotiate a higher one. If there are several potential buyers interested in that particular property, the vendor may have enough bargaining power to insist that his full asking price is met. Indeed, in a strong market, the property may sell for a price in excess of the asking price!

If you know that many people will be interested in the property (perhaps because good properties of that type are scarce in the market), and you are very keen on it, you might consider offering the asking price up front to avoid a “bidding” war.

Once you have decided what sort of property you are looking for and the area where you want to live, contact as many local estate agents as possible. Ask them to send you details of suitable properties on their books on a regular basis.

Once you have identified a property you are interested in, it is worth calling the relevant estate agent once a week or so to ensure you get an early look at properties which have only just been placed with the agent. In this way, they will know you are a serious buyer and they will generally make the effort to contact you when new properties come up.

Once you get started, you will probably see a lot of different properties in a fairly short period of time. Keep a record of each one you have visited, together with a few notes reminding you of its good and bad points. Then you can look back on this list to check that you are still fulfilling your requirements in the properties you are viewing.

A property check list is a great tool to help ascertain all the things you deem important in a property. It also keeps you focused. Bring a copy of this with you to every property you view. Property and relationships are not too dissimilar! It's highly unlikely that you will find everything you are looking for in just one so be flexible and prepared to compromise.

Once your offer has been accepted, the estate agent will confirm this in writing. You can then go ahead with arranging a survey and finalising your mortgage arrangements. The acceptance of your offer is not legally binding until you and the seller exchange contracts.

At this stage you will have to finalise your mortgage arrangements and call NC Mortgage Brokers on 1890 450 890 and we will take you through each step of the Mortgage Application process and arrange a letter of offer for you.

There are a wide range of mortgages in the market at the moment. That’s why when you get mortgage advice from NC Mortgage Brokers, it will be based on experience. Choosing the right mortgage rate is not a matter of facts and figures - it’s about the way you live.

For detailed overview of the different rates available refer to our FAQ section for Moving House.

All that remains after exchanging contracts is to pay over the money needed to buy the property, less any deposit already paid at exchange, on the agreed date. Your solicitor will get the mortgage funds direct from the lender and the remainder (if any) from you, and then pass it all on to the seller’s solicitor. Once payment has been confirmed, you can collect the keys to your new home from the estate agent.

With your survey safely completed and the lender happy with it, you can move to the stage of getting a formal mortgage offer from your chosen lender which will detail all the conditions of the loan.

Typically at exchange (unless exchange and completion are on the same day), you will have to put down a deposit of 5 or 10% of the purchase price. You also need to make sure that the building is insured as you are now legally obliged to buy it (your solicitor will help make sure that this happens).

When you have signed the contract, your solicitor will deliver it to the seller’s solicitor in exchange for the contract the seller has signed. From this point onward, both you and the seller are legally committed to the deal.

It is important to organise your mortgage as soon as you think you have found a suitable property. The loan may take a few weeks to process, and the person you are buying from (and the estate agent) will want to know your mortgage lender is all set to go.

Estimate what price you think your home will fetch. If you have had an estate agent's valuation, you can use this as a guide but you might get more, or less, depending on the state of the market. If houses in your area change hands frequently, you could ask neighbours and friends how much they bought or sold their house for. You can then deduct from this the balance of any mortgage to be paid off on your present home and the estimated costs of selling it.

For very rough budgeting purposes, allow approximately 3 per cent of the sale price to cover these expenses.

Add together:

the likely net proceeds from the sale of your present home (i.e. after repaying your present mortgage)
the maximum mortgage you can comfortably afford
other available capital or savings.

Deduct from the total of these, the estimated expenses of moving, including the various fees and stamp duty and allowing for essential repairs, possible redecoration or improvements. The result of this calculation should give you the approximate maximum price you can afford for your new home.

Once you have clarity as to how much you’d like to borrow, get approval in principle from NC Mortgage Brokers and this will advise you exactly how much the banks/building societies are willing to lend.

One call to NC Mortgage Brokers on 1890 450 890 and we will arrange an Approval in Principle for you within a few days. In the interim, you can use the online calculators as a yard stick to find out how much you can borrow.

Valuations

A professional valuer has to look at the home you want to buy and then write up a valuation report. This valuation report makes sure that the property is worth at least the amount you are paying for it.

The fee for a valuation is approximatly €127. Be aware that a valuation report does not detail any structural inadequacies in the property, it merely to advise lenders on the actual market value of the property.

Structural valuations

In some cases you will need more than just a valuation report to make sure your new home is worth the amount you’re paying for it.

A structural surveyor’s report is far more wide ranging than a valuation report. It can highlight faults that aren’t easy to see. It can also give you an estimate for any repairs or renovations that need to be carried out. In addition, if the damage can be rectified with out incurring huge costs, you may be able to use the survey results to negotiate a reduction in the asking price of the property to compensate you for the extra expense you will incur further down the line.

Stamp Duty

This is a tax payable to the government when you buy a new or second-hand home. However, in certain circumstances, you might not have to pay it. (New homes are exempt from stamp duty provided they are owner occupied and the floor area is less than 125 metres square). All other properties incur stamp duty.

Mortgage Interest Relief

This is a tax relief you are entitled to on mortgage interest payments.

Enquiries in relation to the tax relief at source for mortgage interest should be made to: TRS Section, Collector-General, Sarsfied House, Limerick. LoCall: 1890 463 626

Finding a solicitor to carry out the conveyancing on the property, who is competitive and experienced in this area, is important. Prices can differ from one solicitor to another - so don’t be afraid to shop around.

Put aside between 1% to 1.5% of the purchase price of your new home to cover solicitor’s fees, before VAT. There will also be other related costs, for example, phone and fax charges, as well as a payment to the Land Registry or Registry of Deeds Office.

NC Mortgage Brokers can help and give you a list of solicitors who will be able to help.

Don’t forget to budget for all the other costs associated with moving:

Legal Costs,
Stamp Duty (if applicable)
Estate Agents fees
Valuation fees
Structural survey
Insurance (Life, home and Conents)

A Helpful Guide to Moving House

First Time Buyers