^Top

Q2. What documents will I need to supply to support my application?

Employees

Legal Fees
As a guide, solicitor's fees can be up to 1% of the total price plus 21% VAT and outlay. Some Solicitors now however offer a flat rate deal of between €800 to €1,000 plus 21% Vat and outlay. Outlay costs cover such items as searches and registration of the new mortgage. There should be no varience in outlay costs from one Solicitor to the next. We advise all clients to shop arround before deciding on a solicitor.

Stamp Duty:

In Budget 2007, Brian Cowen introduced a revamp of the Stamp Duty system.   The new rates of Stamp Duty provide that purchases of homes with a value of less than €1m are not charged Stamp Duty on the first €125,000, with the balance being charged at a flat rate of 7%. Properties in excess of €1m are liable for a further Stamp Duty on the amount over €1m at a rate of 9%.      

Indemnity Bond:
A lender will only take out an indemnity bond if the loan exceeds 75% of the purchase price of the property. The bond protects the lender from any potential loss on future sale of the property. Most lenders do not charge for indemnity bonds, provided the loan is for your primary residence. .

Valuation Fees:
A Valuation report by a registered Valuer is needed by the lender before a loan can be approved. This assesses the value of the property and is completely separate to the surveying process. The normal cost is between €100 and €150 per valuation.

Surveyors Fees:
Not to be confused with valuation fees. Although an extra cost, it is recommended that buyers hire a surveyor to assess if there is any structural damage with the new property.

Home Insurance
A building insurance required by the lender which notes the lender's interest on the policy.

^Top

Q 4. How Much Can I Borrow?

With the credit crisis lenders have reduced the maximum loan percentage significantly. Only some lenders now offer offer up to 92% of the property's value or the purchase price, whichever is lower.

The mortgage holder's income is also taken into consideration. Lenders will also note supplements to income such as overtime and guaranteed bonuses, however they will be careful not to base the loan repayment on these items.

Joe Pitcher Financial Services Ltd., have a number of online application processes which allow speedy decisions for our clients.

^Top

Q6. Do I Need Life Cover?

Life Cover and more specifically, Mortgage Protection, provides for the full repayment of the mortgage in the event of the death of one of the mortgage holders. It is required by the lender but does not have to be taken out with the mortgage provider.

^Top

Q7. Which Rate Should I Choose?-Fixed or Variable?

Fixed:
Allows you to plan your outgoings and bill payments by securing interest rates over a fixed period of time.

Variable:
Interest on the loan is subject to fluctuation. It depends largely on interest rates set by European Central Bank and Inter Bank Lending rates.

At JPFS Ltd. we will assist you in choosing a product to meet your specific needs and deal with your short and long term plans.

^Top