By Sean Mulpeter, Mobile Mortgage Manager, Bank of Ireland
Buying a house?
Don’t let costly surprises get in the way.
When you’re looking at house prices, and working out what mortgage payments you can comfortably meet, it’s easy to forget about additional costs you may encounter when buying a home – legal fees, stamp duty, a valuation survey and insurance, as well as the cost of renovating and furnishing. That’s where Bank of Ireland can help.
Knowledge is the key
Knowing what’s ahead of you allows you to prepare for it. That’s why we recommend that you get advice from someone who knows their way through the entire house-buying process and what the costs are likely to be. Talking to a Bank of Ireland Mortgage Advisor now could save you from costly surprises further down the road.
Working out the stamp duty payable is a simple calculation. It’s 1% of the selling price up to €1million, and 2% on the portion of the price that’s over €1million, if there is any. First-time buyers should be aware that stamp duty cannot be included as part of the mortgage.
As a house buyer, you’ll need the services of a solicitor to manage the conveyancing, which is the legal process involved in a property transaction, and includes research, documenting and legally transferring ownership. Fees vary from one solicitor to another, with some charging a flat fee and others a percentage of the purchase price. So, shop around. But remember, choosing your solicitor on price alone could prove to be a false economy. It’s far better to spend a little bit more on someone you trust completely.
Valuers and surveyors provide a range of services including estimating the value of your home and calculating what it would cost to rebuild it, if necessary. These figures help to determine the amount of home insurance cover needed. Before mortgage approval can be occur, Bank of Ireland, and other lenders, require a valuation report. Your Bank of Ireland Mortgage Advisor will give you the details of approved valuers in your area.
Mortgage protection insurance
The aim of mortgage protection is to cover the balance of your mortgage if you die before the loan is fully repaid. Banks are legally obliged to make sure you have mortgage protection in place when you take out a mortgage. The cost of this protection will depend on how much you borrow. You can find out more about this here.
Like other lenders, we also insist that mortgage holders have their home insured, as a protection against fire or other damage, Again, the value of the property will be a factor in what this costs. Bank of Ireland offers competitive deals on Home Insurance.
Making yourself at home
And, of course, you should also have some money put by to make the house you’re buying a home. Depending on the property, what needs to be done and what you already own, this could mean major renovations, a quick lick of paint, a new kitchen or just a new washing machine.
2% Mortgage Cash Back Offer
As you can see there are a lot of additional costs when moving house. At Bank of Ireland, we are giving you 2% of your mortgage back as cash 45 days after you draw down. This will take the pressure off those additional expenses as well as maybe getting you a well-deserved treat!
For example; if you were to draw down a mortgage of €350,000, you would get €7,000 back. This cash back offer is available for those who draw down between 3rd of June to 31st of December 2015. The Bank reserves the right to seek refund of the payment from the customer if the mortgage is paid back within 5 years. Offer is not available with any other offer. For more information on this Mortgage Offer, Click Here.
For more information about these additional costs or your mortgage planning, talk to a Bank of Ireland Mortgage Advisor.
The maximum mortgage is generally 3.5 times your gross annual income and 80% of the property value (90% of the property value up to €220,000 for First Time Buyers, 70% of the full property value for Buy to Let) but these limits may vary.
A typical variable rate mortgage of €100,000 over 20 years costs €623.20 per month at Annual Percentage Rate (APR) 4.4%. A 1% interest rate rise will increase this repayment by €54.35 per month (APR 5.4%). The cost of your monthly repayments may increase.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
Lending criteria and terms and conditions apply. Security and insurance required.
Bank of Ireland Insurance Services Limited is regulated by the Central Bank of Ireland. Bank of Ireland Home Insurance is underwritten by RSA Insurance Ireland Limited. Bank of Ireland Insurance Services Limited is tied to RSA Insurance Ireland Limited for the purpose of selling Home Insurance. RSA Insurance Ireland Limited is regulated by the Central Bank of Ireland.
Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages and The Mortgage Store is regulated by the Central Bank of Ireland.