First Credit Mortgages

ClubMan said:

Is this programme a feature length advertisement for the company or something? I've never watched it myself...

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Personal Debt is one of the major factors affecting the amount people can borrow. Don’t be afraid to refinance personal debt over a longer term to reduce your loan repayments (which allows you borrow more. For example; A Couple who have a car loan of €480 per month with a balance of €7500 owed can borrow only €271000 on a 100% mortgage. However if they refinance the personal loan over 6 years reducing the loan repayment to €129.00 per month they can borrow €353000.00. This mortgage amount of 30% more. This can be the difference between being getting on the property ladder and loosing out. It is important to note that the figures given above the monthly repayments including the personal loans are no more than 35% of monthly net take home pay. However in all cases make sure that you are comfortable with the loan repayments before taking out a mortgage.

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To fix or not to fix

Currently we are advising almost all customers to Fix, however it is important to check the value of the fixed rate versus the lowest tracker rate ( and then speak to someone who can advise you on how many interest rate rises are expected over the term. For example currently there are 3 year fixed rates of 4.65%to 5.09% and higher available. When you consider that tracker rates for First time buyers are around 4.85% and there is at least one more interest rate rise due (and possible more) it makes absolute sense to fix. In all cases you need to speak to a good broker who can advise you on all of your options.

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