What is the Help To Buy Scheme (HTB)

The Help To Buy (HTB) Scheme is a government initiative aimed at helping first time buyers of newly built properties with their deposit to buy or build their new home.

The HTB Scheme is only applicable to properties that are bought or built as the first-time buyer’s home. It is important to note that it does not cover investment properties.

You must take out at a mortgage of at least 70% of the purchase price.

You must be tax compliant.

A further specification is that you must live in the property for at least five years from the date you move in.

Let our experts here at MyMortgages.ie help you get €30,000 towards your new home purchase under the Help To Buy Scheme. (Note: This is based on a new build property for a first time buyer with a purchase price of €300,000.)

How much can I claim under the Help-to-Buy scheme?

The maximum tax refund is now 10% of the value of the property or €30,000 – whichever is LOWER. The rebate is only available on properties valued at €500,000 or less.

This means that if you purchase a property for €300,000, you can claim the maximum rebate of €30,000. But if you buy a house for €400,000, the relief will be capped at €30,000.

Who can apply?

Any first-time buyer of a newly built home can apply for a tax refund under the Help to Buy scheme. In order to qualify as a first-time buyer under the scheme, you must not have previously purchased or built a home yourself or with any other person.

If you’re a joint buyer, and one applicant is a first-time buyer and another applicant is not, you cannot apply for the grant.

When does the Help-to-Buy scheme end?

The extented Help to Buy scheme rate of €30,000 is scheduled to run until 31 December 2021, having been extended in the 2021 Budget.

How do I apply?

You can apply online through Revenue’s MyAccount service. And as long as you are tax compliant, Revenue will provide you with a summary of the maximum refund available to you within around five working days,

 

Contact info@mortgagebuddy.ie or call (051) 843684 to see if you qualify.

Self build mortgages

 

Self build mortgages

Building your own home can be a very exciting time as you have put months of thought into size , design, energy rating etc. . But it can be confusing when it comes to getting your self build mortgages as there are so many variables – purchasing or getting gift of the site / how do I draw down the loan / do I pay for all the loan straight away / do I need to draw down the full amount that I am approved for etc.

At Mortgage Buddy we will meet you at a time that suits. You don’t have to limit your appointment to 9 – 5. We deal with a number of Irelands leading lenders which ensures that we get the mortgage that is the best fit for you.

We will take you through the mortgage process from beginning to end taking care of all paperwork, from initial application right through to drawing down our final stage payment.

Once you have your approval in Principal in place ( AIP) you can start to draw down your loan.

How much can I borrow:

  • You can borrow up to 3.5 times your salary
  • First time buyers can borrow up to 90% of the site cost/value plus 90% of the cost of construction or 90% of the value on completion whichever is lower.
  • Second time buyers can borrow up to 80% of the site cost/value plus 80% of the cost of construction or 80% of the value on completion whichever is lower.

Mortgage Features

  • Choice of fixes and variable rates. You can choose a combination of both if you wish.
  • Max LTV 80% ( second time buyers ) 90% first time buyers
  • Self build mortgages are drawn down in 4 – 6 paymentsInterest only options are available while drawing down your loan
  • You will need to be over 18 years of age at the time of the application
  • A term of up to 35 years is available depending on your age at outset
  • You will require a mortgage protection policy. We will be able to provide you with a full comparison of the market as we have agencies with all the life companies in Ireland.
  • You will also need to have additional fees to cover your mortgage valuation fee ( between €130-160 ) Stamp duty ( 1% of the purchase price) Legal Fees and in some cases a structural survey
  • It is acceptable to receive a gift of part of the deposit, but the banks do like you to have shown the ability to save for your deposit yourself.

Buy To Let Mortgages

 

Investing in buy to let property?

Thinking about investing in a buy-to-let property? Then you need to explore buy to let mortgages and the options available. The Mortgage Buddy can guide you through the process and offer advice at every step of the way on what mortgage loan may be available to you as a personal customer. We can discuss the options to getting you ‘mortgage ready’.

Requirements for Buy To Let Mortgages:

The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%). Most buy to let mortgages are interest-only. This means you pay the interest each month, but not the capital amount. At the end of the mortgage term, you repay the original loan in full.

Why choose Mortgage Buddy for your Buy to Let Mortgages?

  • We’ll help you with the paperwork and the background work  so you can turn your attention towards finding the right property.
  • As our Mortgage customer you’ll benefit from expert and impartial advice, as we are an independent mortgage brokers. This will ensure you will get the best deal as we are not tied to any financial institution.
  • Repayment terms of up 25 years (considered where appropriate).
  • A Mortgage Advisor to guide you through the process.
  • Additional Service You can Avail of for free
  • We will set up a consultation for you with one of our financial advisers, and they will assess your life insurance, specified illness and income protection options to see are you getting the best available deals. Also, you can find out more about these options if you are not covered

Check out our quick and easy to use mortgage calculator to see how much you can apply for.  

Home Movers Mortgage

Are you buying a new home? There is a lot to do – between selling your existing home to finding a good moving van! Our Home Movers Mortgage has been designed for people like you.

Read on to discover how to start your home movers’ mortgage application and get the ball rolling. Moving to a new house can be an exciting but stressful time. It is a life-changing decision, and whether you’re moving to your dream home or downsizing, it’s important to get the right mortgage. But even though you’ve already gone through the process of finding a mortgage when you bought your first home, it doesn’t necessarily mean it will be any easier this time around. Applying for a mortgage shouldn’t be hard and it isn’t with the help of our team at Mortgage Buddy. We’re here every step of the way to help you get into your new dream home. Call our mortgage team at 051 843684 (9am to 5.30pm Monday to Friday).

We take you through all the steps involved in moving home. From the simple things like changing your postal address to how to switch your electricity bill over to your new home. We cover in detail the steps involved in the mortgage process when you are moving home. What you need to look out for and the best guidelines to follow. This is why you should always contact an independent financial adviser before making your final decision in relation to a mortgage. We can guarantee you that we can find you the best deal to suit your particular needs as we know the pitfalls and traps to look for.

To see how much you can qualify for, use our quick and easy mortgage calculator to find out.

Common mortgage questions

What are the common first time mortgage questions that you should have answers to before thinking about buying your first home?

Common Mortgage Questions
  • How do you qualify for a loan?
  • Can you get a mortgage without a credit score? …
  • What’s the difference between being prequalified and pre-approved?
  • How much home can you afford?
  • How much should you save for a down payment?
  • How do you know which home mortgage option is right for you?

How much can I borrow? How can I apply and does it cost to do so? Do I have to have to pick out a property before I apply and what else is involved in the process? These are the first time mortgage questions you should be asking when you are trying to get onto the property ladder.

This has to be one of the most important first time mortgage questions. It is important that your financial advisor is up to date with all the latest rules and regulations. The property market in Ireland is a landscape that is constantly changing.  New regulations by the Central Bank apply proportionate limits to mortgage lending by regulated financial services providers in the Irish market. The rules outlined by the Bank limit the LTV (loan to value) and LTI (Loan to Income) measures for 1st time buyers, people moving home and investors.

First Time Buyers

You can borrow up to 90% of the value of a home. There is a Loan to Income limit of 3.5, which means you can can get a loan of up to 3.5 times your gross annual income. Also you can combine your gross income with your partners when applying for a loan.

How long does the mortgage approval take?

Applying for a mortgage is FREE. You can fill in our online application to get ‘approval in principle’ in less than 3 working days! You can also use our mortgage calculators to estimate how much you will be able to borrow.  Based on what you fill in we will be able to tell you if you qualify for a mortgage. We can also tell you how much we think you will able to borrow. After we receive the application, one of our financial advisors will contact you. We will then set up a meeting with you to discuss the various options you have. We will guide you through the whole process from start to finish and make sure you get the best deal.

What comes next in the mortgage process?

Once you have acquired loan approval we set out to find you the best deal for your particular needs. Mortgage Buddy is an impartial advisor which means we have access to all the major mortgage lenders in Ireland. The provider we recommend is based on how suitable we judge the mortgage product to be in relation to your needs.

Then you are ready to choose your new home!

Should I Switch Mortgages?

Should I switch mortgages? It’s an important question to ask yourself. Most people are concerned with buying the home rather than shopping around to get the best deal when it comes to their first mortgage. Does this sound familiar? You should probably look into your current mortgage situation. You could be losing out on potential saving!

Are you suitable to switch mortgages?

As a rule of thumb, you need to be in a permanent job for 1 year or self employed for 2/3 years before you look into switching mortgages. You need your Loan To Value to be less than 90%. Then you will be in a position to compare your current mortgage with the alternatives on the market. Switching mortgages is something you should definitely consider. Even a 0.4% or 0.5% reduction could save you a lot of money every month and over the course of a mortgage, it could save you thousands! .

Deal with a Mortgage Broker

Mortgage brokers, like The Mortgage Buddy, have access to the following financial institutions: PTSB, KBC, Haven(AIB) and Dilosk/ICS Mortgages. Mortgage brokers help you get the best deal. More often than not, people end up meeting a financial advisor that is attached to a certain financial institution. This isn’t ideal for a number of reasons. Mainly in that it means that they might not in fact be getting the best deal. They might save money on their current mortgage but they could still be losing out on potential savings because they don’t have access to the entire market.

What costs are involved in switching mortgages?

Sometimes, you could be charged for switching mortgages by your current lender. Go to your lender and ask them for an account statement. In this you can see how much you still owe and how much it will cost you to switch. There could be interest charges and administration charges involved in switching also so be sure to ask your provider about any of these hidden costs.