If you are taking out a loan for 80 percent LTV, Bank of Scotland promises to remain 1.25 percent above ECB base rate. Bank of Scotland are now a dominant force in the Irish mortgage market although it is fair to say that the bank caters more for re-mortgage customers and not really for first time buyers. First Time Buyers It is becoming increasing difficult for first time buyers to get mortgage approval. In recent months the Central Bank has circulated stricter criteria for lending, which they are encouraging lending organisation to adhere to. While this may be a factor in the decision making process, lenders are also concerned at the widening gap between salaries and rising house prices.
Couples have a better change of successfully receiving mortgage approval.
Depending on the lender, it is possible for couples to receive mortgages for up to three times the higher salary and then add on the lower salary. A recent survey by mortgage advisers MMPI found that Irish Permanent work under a different set of calculations to other financial institutions. The bank will loan up to 2.5 times joint incomes. The survey also found that it is possible to get a mortgage of up to four times salary if you have the capacity to repay. Some lenders base the mortgage calculations of your ability to make repayments, i.e. your monthly disposable income minus any existing debts.