A Mortgage is a loan for a property which becomes void once the loan has been repaid in full.
Approval in Principle
This is a letter which is issued by a Mortgage Lender and details how much they are going to lend you. This letter often contains a list of criteria which must be met.
A Formal Loan offer is issued by the Mortgage Lender which outlines all the Terms and Conditions of the contract. At this stage the buyer’s solicitor also receives all documentation from the Lender.
Variable Interest Rate
A Variable Interest rate means that that interest rates are subject to change during the course of the Mortgage, the rates reflect any changes in the ECB (European Central Bank) rates. This means that your monthly payments can go up or down.
Fixed Interest Rate
You can choose a fixed rate for a certain period of time (2-7 years). By using a fixed rate you are guaranteed that your monthly repayments will remain the same regardless if interest rates are to rise or fall..