Getting Mortgage ReadySherry FitzGerald
Supporting you every step of the way
Very few people begin the mortgage process fully ready and sometimes it can feel almost
impossible to prepare effectively. To navigate your way through this mortgage minefield,
you need an expert in your corner, advising you every step of the way. We have been guiding
applicants just like you through the mortgage process for more than 20 years. We know why
applications fail and how you can sail through the process with flying colours.
With Sherry FitzGerald Mortgages by your side, you’ll benefit from our experience andknowledge, giving you peace-of-mind that you’ll be getting mortgage ready with a genuine
expert. Our step-by-step handbook gives you the inside track on what lenders will expectfrom you, giving you a practical path to building your case toward a successful application.

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1. Establishing how muchyou can borrow
Under the Central Bank rules you are able to borrow 3.5 times
your combined annual household income, however in somecases, you could be eligible to avail of an exception to this rule,
meaning you could borrow more than 3.5 times your income if
required.
In tandem with this, most lenders can lend you up to 90%of the purchase price. Keep in mind that there will also be
significant differences in the amounts you can potentiallyborrow from various lenders. As every lender may havedifferent credit policies or methods of calculating yoursuitability, your maximum mortgage amount could differ andyou need to ensure that you are comfortable that your lender’sassessment of your finances is in line with your budget.
It’s important to point out at this stage that you do not have tohave a bank account or be a regular customer of the particularbank to apply for a mortgage. It is treated as a separate
financial product so you can apply to any bank, regardless ofany previous connection.

Typically a lender will consider four key aspects
1. Your guaranteed and variable income
2. Your age and potential maximum term of a mortgage
available to you
3. Your outgoings including other loans and commitments
4. Your other living expenses

4sherryfitz.ieHow we can help
This is your first decision to make on the road to owning your own home or
if you are thinking about trading up. And from this first stage, we are withyou every step of the way. Initially, as we have a detailed understanding of
the banks’ criteria and their underwriting calculators, we can give you very
accurate figures as to what each bank would be able to lend you. We can also
flag any issues with your application in advance and if we notice that there is
an issue that needs to be addressed, we can hold off applying and put a planin place to make sure that when you apply, you get approved.
From there, we will discuss with you which bank best suits your needs.
We work for you and not the banks so we will only work with whicheverbank ticks all the boxes and the one that gives you the best deal.
In the meantime, visit sherryfitz.ie and if you are a first-time buyer read our
informative guide on the Help-to-Buy incentive scheme for first-time buyers.
While there, you can also complete our online mortgage query form and amember of our team will be in touch with you shortly.

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2. Deposit and savings
In order to buy a home, you will need to have a deposit and the new rules implemented by theCentral Bank means lenders can lend you up to 90% of the value of the property that you want tobuy if you are a first-time buyer. And if you are a first-time buyer who is buying a new home, theHelp-to Buy (HTB) incentive has been introduced to assist you to fund the deposit required.
This incentive offers you a tax rebate of 5% of the property, up to a maximum of €20,000.
This rebate is available only on properties valued at €500,000 or less.
Otherwise, if you are not a first-time buyer, you can source your deposit from a gift or inheritanceor even a bonus from your employment. Many people still use the traditional method of saving fora deposit over time and this is also a good way to show your mortgage lender that you have a solidsavings record.

Working example

6•

You want to buy a house for €300,000•

Your lender may lend you up to 90% or €270,000•

But you will need to have the remaining 10% or €30,000 deposit yourself

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3. Employment status
Any prospective lender will take a close look at your employment status and in particular they arelooking for a solid steady income. Even if your monthly wage often includes bonuses, commission,and overtime, they are now taking a percentage of these earnings into consideration. You will alsoneed to have completed your probationary period, be fully permanent and demonstrate at least
6-12 months’ continuous employment in total.
If you are self-employed or run your own business, your lender will need to see two to three years
tax returns/audited accounts.

In advance of your application, you’ll need to gather key documentation relating
to employment, including...
•A current or most recent P60 confirming your salary•

A completed salary certificate from your employer detailing basic and variable remuneration•

Three recent payslips•

Self-employed people will need to show a completed Form 11/Chapter 4 and tax clearance
certificate as required

How we can help
As your mortgage broker, Sherry FitzGerald Mortgages can provide youwith the insight and expertise you need. At this stage, we will make surethat the income documents are the correct ones required for the bank,especially if you are self-employed. This ensures that the right documents
go to the bank leading to a quicker decision and also the approval for theamount sought.
Most importantly, if we see an issue with these documents we can flag
it with you before they are submitted. And if we need to delay yourapplication until any issues are resolved, we will advise you accordingly.
Like you, we are always focused on getting you the best possible outcome.
If you have not already done so, you can also visit sherryfitz.ie, complete
our mortgage query form and a member of our team will be in touch withyou very soon to discuss your needs.

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4. Understanding the associated costs withbuying your new home
Many people make the mistake of simply applying for a mortgage which only covers the price ofthe house they want to buy. There are several extra costs involved in buying a property and when
you are calculating the amount you’ll need to borrow, it’s important you take the following issues
into consideration.
1. Stamp duty will also apply to the purchase and the current rates are 1% of the purchase priceup to €1,000,000 and 2% of any value over that
2. Legal fees will need to be paid to your own solicitor. You will need to determine with them inadvance whether this is a flat fee or a percentage of the purchase price
3. Structural survey – before you sign contracts it is important to have the new home structurally
surveyed so you know there are no issues with the property. This cost can vary depending on
the size and condition of the property, but an average cost would start at €500 plus VAT
4. Broker fees – an experienced and independent broker will charge a fee for their services. This
cost varies from broker to broker. At Sherry FitzGerald Mortgages we charge a once off feeof €195 when your application is ready to submit. This is a small investment considering thethousands that could be saved over the full term of the mortgage
5. Valuation – before you draw down your mortgage, the property will need to be independentlyvalued by a professional valuer at the request of the lender. You should expect to pay a fee ofbetween €150 and €250 plus VAT, but this can vary

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How we can help
Understanding the associated costs with buying your new home is an important stage. As your mortgage
broker, we can explain to you when you have your amount approved as to what the maximum purchaseprice is, and that would include the savings you have.
For example, on a purchase price of €300,000 with a 90% mortgage of €270,000, you need 10% depositor €30,000 to start with. You then also need to cover costs as noted above. Stamp duty at 1% = €3,000.
Legal fees would be approx. €2,500, structural survey approx. €500, and bank valuation €150, and our own
broker’s fee of €195. In this case, the total required is €36,000 and that is before you spend any money onrefurbishment, furnishing or moving costs.
Visit sherryfitz.ie and use our handy online mortgage calculator to see how much you can borrow.

sherryfitz.ie95. Ability to repay
One of the key indicators taken into consideration by any lender will be your ability to pay any
future mortgage drawn down. Any lender will require proof that you can meet future mortgage
repayments, and not just based on today’s interest rates.
They need to be satisfied that if interest rates go up, you will be able to cope with possible futureinterest rate increases, and higher repayments. This repayment test (sometimes referred to as
a stress test) is usually stressed at 2% above today’s rates. It is up to you to present the best
possible case in demonstrating your repayment capacity.
By addressing a number of key issues over a period of at least six months, you can create a paper
trail of regular outgoings, and prove you have the capacity to meet future mortgage repayments
when the time comes.

Demonstrating your capacity to repay•

Monthly savings – it’s important to keep these regular and that you clearly show that you do
not dip back into your savings•Loans discontinuing – complete a full discharge of an existing loan before drawdown of themortgage•Rent to landlord – make it clear through a bank account that you are paying rent to a
designated landlord•

Rent to parents – similarly, handing over money to parents is best shown through your bankaccount, clearly itemising that money as ‘Rent’•Mortgage repayments – to secure a mortgage when trading up, you would have to be able todemonstrate a good credit history of payments

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How we can help
When we begin the application process, we look through your bankand savings statements to make sure that we can show the bank thatyou can take on a mortgage on a stress-tested basis. If interest rates
go up by 2%, any prospective lender needs to see that your current
financial situation ensures you can take that hit on a monthly basis.
For example on a €270,000 mortgage over 30 years that would costapprox. €1,215 per month based on a rate at 3.5%*. If rates went up
to 6%, that would cost approx. €1,500 per month.
This means that if you are renting and paying €1,000 per month andyou are saving €500 per month, then between your rent and yoursavings you have demonstrated to the bank that you can take on themortgage on a stress-tested basis.
At every stage of the process, we’re in your corner, providing you withclear advice and expertise.

*Based on a standard variable ratesherryfitz.ie11

6. Understand and future-proof your credit
history
When you apply for a mortgage, you will undergo a credit check where your lender will
apply to the ICB or Irish Credit Bureau, the biggest credit-referencing agency in Ireland. TheICB maintains a database of information on the performance of credit agreements, such asmortgages, car loans, credit cards, and more.
Each time you apply for credit from an ICB member like a bank or lender, they can accessyour credit file to check your performance. Typically, your repayment history over a five-year
period is included in this credit report, including where you may have missed payments. You
can order your own credit report and see for yourself how you score. If your credit score ispoor and can be improved in the short to medium term, it may be wise to postpone yourapplication until this is in order. Your financial advisor or broker can advise you on the best
course of action in this situation.

12sherryfitz.ieHow we can help
It is our role to ensure your application is in the best
possible condition before we submit your application.
If you have had an issue with a loan or credit card in
the past we can review the Irish Credit Bureau reportwith you. And if there is an issue, we can prepare adetailed explanation together. We will then include thisexplanation with your application form enabling thebank to make a commercial decision on the application.
Keep in mind that if you apply without telling themand they spot the issue, your application will probably
be declined so it is better to approach them with theinformation upfront. This is just another example of how
we can help you get mortgage ready.
Start the process with Sherry FitzGerald Mortgages
today. Visit sherryfitz.ie, complete our online mortgage
query form and a member of our team will be in touchwith you very soon to discuss your needs.

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7. Lifestyle, living and banking
You need to make a strong overall case to any prospective lender. They need to be assured
that you are a safe investment and someone who will repay their debts. How you manage
your money on a monthly basis is always a good indicator of this and small changes inlifestyle, living and banking habits can make a major difference to your suitability as aprospective mortgage holder. In our experience, there are four general issues to consider.
1. Credit card management – if you have a credit card you should try and pay off thebalance every month and ensure you are not building up expensive credit card debts
unnecessarily
2. Ensure that you can clearly live within your means. In other words, it’s important todemonstrate that you do not spend more money in a month than you earn
3. You should create a clear, logical view of your finances so try and present a clean andsimple banking picture. Have a limited number of bank accounts for review and make any
traffic between them crystal clear

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How we can help
If it is your first time getting ready for the mortgage
application process, you may not have been aware of thelevel of scrutiny which your finances will undergo. And
this is where our expertise comes in. As your mortgage
broker, we will go through your documents to make surethat you are meeting the required level so that when we
make the formal application, you get approval.
If you are not meeting the required level, we can put
a tailored action-plan in place for three to six months,
specific to your needs. Once that period has been
completed, we can then submit your application withgreater confidence.
By providing you with this level of service and expertise,
our team at Sherry FitzGerald Mortgages is committed
to getting you the best possible outcome.

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8. Recap – all the required documents andpaperwork
Now that you understand what is required of you, it will soon be time to sit down with your broker
and begin your mortgage application process. With this in mind, let’s do one complete check andlist the documents and paperwork you will need to present on the day.
•Personal
Photo ID: Valid and clear photo
Address verification: In date utility bill or bank statement (joint account where appropriate)•FinancialBank statements: No overdraft / No referral fees
Savings statements: 6-12 months
Credit card statements: Up to date
Loan statements: Up to date – Option ICB•

Employment
Continuous employment: 12 months – 2016 P60
Salary certificate: Basic vs. variable remuneration
Three recent payslips: Latest three prior to application•Self-employed
Form 11 & Chapter 4 for the last two to three years
Tax clearance certificates
Business bank statements

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Good luck on your mortgage application!
Now that you know what it takes to get your mortgage
application in good shape, it might be time to get yourfinances in order and start the application process.
It’s time to get started. Visit sherryfitz.ie and complete ouronline mortgage query form and a member of our team will
be in touch with you shortly.
To find out more about the application process, you can readour guide to the mortgage process on sherryfitz.ie.
Keep in mind that if there are any aspects of themortgage process you are unsure about simply email
financialservices@sherryfitz.ie or call us on 1850 3000 30.
We would be very happy to hear from you.

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sherryfitz.ieWarning: If you do not keep up your repayments you may lose your home.

Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on.

Warning: The cost of monthly repayments may increase.

Mortgage Insight DAC t/a Sherry FitzGerald Financial Services, Sherry FitzGerald Mortgages is regulated by the Central Bank of Ireland.