Guide to getting First Time Buyers - DOWN
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First Time Buyers
Guide to getting
‘mortgage ready’.
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Contents
01 Introduction
02 Step by step guide to getting a mortgage
04 Saving for your first home
06 Insurance advice
08 What to look for when house hunting
10 Moving into your first home
12 Frequently asked questions about mortgages
16 A to Z guide – a jargon buster to help you
18 Your mortgage checklist
AIB | Mortgages | First Time Buyers 2
Get ‘mortgage ready’
with AIB.
An easy guide to help you get your first mortgage.
Buying your first home is exciting but a huge This guide will help you plan ahead and may
decision, but that doesn’t mean it has to be speed up the whole mortgage process. If
difficult. Just speak to us in AIB and we’ll help you’ve any questions, just drop in to your local
you through every step of the process. By AIB branch and talk to one of our Mortgage
working together, we can make the big move Advisors. The first step towards your new
run smoothly. home is right here. Let’s get started and get
you ‘mortgage ready’.
We know you’ll have lots of questions so just ask, call us
on 1890 724 724 or click on www.aib.ie/mortgages
Call us 1890 724 724 Click on www.aib.ie/mortgages 1
Step by step guide to
getting a mortgage.
Before you draw
These steps down
will give your
you mortgage,
all the you must
information have
you need
adequate
to set you Life Assurance
on the road to and
buyingHome
yourInsurance in place.
first home.
If you’re thinking about a new home, then you need to be thinking about a mortgage.
You’ll find all the information you need to get ‘mortgage ready’ right here.
Step 1 Find out how much you can borrow
With our new Online eMortgages Calculator, it couldn’t be easier. You can also
now apply for your mortgage fully on line with our Online Application process.
Go to www.aib.ie/mortgages and find out exactly how much you could borrow.
Step 2 Talking to an AIB Mortgage Advisor
Drop in or make an appointment with your Mortgage Advisor. They’ll make
sure you’re on the right track from the very start.
Step 3 Saving for your deposit
As a First Time Buyer you will require a deposit of at least 10%. AIB can offer
90% Loan to Value up to €220,000 and over this amount 80% Loan to Value is
available, with 75% maximum for a one-bedroom apartment. Start saving today.
View our range of savings accounts at www.aib.ie/savings
Step 4 Getting everything in order
The most important part of your application is proving you can repay the
mortgage loan. Your Mortgage Advisor will tell you exactly what you need to
provide, such as payslips, bank statements, credit card bills or other documents.
Step 5 A Sanction in Principle
Once your deposit is in place you can apply for a Sanction in Principle. This is when
your bank agrees, in principle, to give you a mortgage, based on the information
you’ve provided. You will then know exactly how much you have to spend on your
new home.
AIB | Mortgages | First Time Buyers 2
Step 6 Looking for and making an offer on a home
This is the exciting bit – looking for your new home. Once you’ve found it, you put
in an offer. If it’s accepted, it’s back to us.
Step 7 Once your offer is accepted
Let us know you’ve made an offer and now want to go ahead and apply for a
mortgage. You will need to provide details of the property and your solicitor before
we send you our mortgage offer.
Step 8 Appointing your solicitor
You can appoint a solicitor before starting your search or after you’ve made an
offer and received approval.
Step 9 The Contract for Sale
The Contract for Sale is an agreement between you and the Seller. It sets out the
agreed price and planned completion date, but it’s dependent on checks and
searches that your solicitor will carry out for you.
Step 10 The loan funds
A few days before completion, your solicitor will request the loan funds from the
lender and arrange the transaction.
Step 11 A final note
The final stages of the mortgage process may seem complex but don’t worry –
AIB are here to help you through it.
Call us 1890 724 724 Click on www.aib.ie/mortgages 3
Saving for your
first home.
These days we all know the importance of putting away
money for a rainy day, but did you know that it can be just as
important to put money away to help buy your first home?
As a First Time Buyer you need to aim to handy when it’s time to start decorating
have a deposit of at least 10%. AIB can offer your new home.
90% Loan to Value up to €220,000, over this
amount 80% Loan to Value is available with
How will I save?
75% maximum for one bedroom apartment.
There are loads of ways to save with AIB.
If you have saved enough already, then great, Start by doing a budget with your weekly
you can proceed to the next stage. Otherwise outgoings and checking how much you can
you need to think about a savings plan. afford to save.
Regular savings are the key, and AIB will help
you set this up.
How much will I need?
This depends on the price of your new home.
Our table below will give you an idea of what Check out our online savings
is required. calculator and start planning
Saving as soon as possible is a good idea, at www.aib.ie/savings
because any leftover savings will come in
House Mortgage Minimum Saving per month Saving per month
Price amount Deposit over 24 months to over 12 months to
required obtain deposit obtain deposit
€150,000.00 €135,000.00 10%= €15,000.00 €625.00 €1,250.00
€200,000.00 €180,000.00 10%= €20,000.00 €833.30 €1666.70
€250,000.00 €222,000.00 11%= €28,000.00 €1,167.00 €2,334.00
€300,000.00 €262,000.00 13%= €38,000.00 €1,584.00 €3,167.00
Calculations exclude Deposit Interest. Including Deposit Interest will help you to achieve your savings target faster.
AIB | Mortgages | First Time Buyers 4
Branch Savings Online Savings
Just pop into one of our branches and talk to If you are already an AIB Phone and Internet
our staff to help you decide on the regular Banking customer and prefer the ease and
savings account that best suits your needs. For convenience of saving online, we have a range
example, the AIB Saver is designed especially of online savings accounts to help you reach
for regular savers, allowing you to save what that all important savings goal. The Online
you want, when you want and how you want. Saver, for example, lets you manage your
So if flexibility is important to you, then this account and keep track of your regular savings
account definitely fits the bill. The AIB Saver is at a time that suits you. The Online Saver
available to personal customers who have an is available to customers who have an AIB
AIB Demand Deposit or AIB Current Account. Demand Deposit or AIB Current Account.
To view our full range of savings accounts go to
www.aib.ie/savings or call 1890 724 724.
Terms and Conditions apply. Start saving today.
AIB Internet, Mobile &
Phone Banking
✓ Register for AIB Internet, Mobile and ✓ Benefit from services like e-Statements,
Phone Banking to get instant information eFees and eDrafts
on your account balances and transactions ✓ Set up and manage your standing orders
✓ Pay bills, transfer money, change your ✓ AIB Mobile Banking is an easy and
personal details or top up your phone on convenient way to manage your money
the go while on the move
✓ Stay on top of your finances with visibility ✓ Download the App directly from the
and control day and night Apple App store, Google Play store and
m.aib.ie
Terms and conditions apply
Registered? Log onto www.aib.ie/internetbanking or
call us on 0818 724 724 (or +353 1 771 2424).
To register, contact us on 0818 724 020.
Call us 1890 724 724 Click on www.aib.ie/mortgages 5
Insurance Advice.
Before you draw down your mortgage, you need adequate
Life Assurance and Home Insurance in place.
Life Assurance to cover your Home Insurance
mortgage Home Insurance shouldn’t just be about
The type of Life Assurance you need getting the minimum protection for your bricks
depends on the amount, term and type of and mortar. Your policy should be designed
borrowing. Please note that Life Assurance around you, reflecting the things you value
Cover should also take account of flexible most. So that’s what we do at AIB.
repayment options such as Interest Only,
Home Insurance from AIB offers a range of
Deferred Start/Moratorium or Payment
benefits including:
Holidays. We strongly recommend that you
get advice on your protection needs. At AIB, ✓ 30% discount if you’re a first time buyer or
we have the specialist staff to help you. Your have been claims-free for 3 years
Mortgage Advisor will be happy to arrange
✓ Mortgage Customers get a 10% discount
a consultation with an AIB Financial Adviser off AIB Home Insurance
to discuss your life and/or illness cover and
income protection options. ✓ 24- Hour Claims Helpline based in Ireland
✓ Emergency Home Assist included as
standard
✓ Pay by monthly Direct Debit at no
additional cost to your premium
✓ ‘Contents only’ policies available for
apartment owners with existing Block
Policy Buildings cover.
Discounts are applied on a reducing balance
and a minimum premium amount of €157.50
applies.
If you wish you may arrange either life
assurance or home insurance through another
provider/intermediary.
AIB | Mortgages | First Time Buyers 6The right cover in 3 simple steps
Step 1
Choose the level of buildings cover you need
Step 2 Add the value of all your contents (that’s curtains, carpets and
everything that would fall out if you turned your house upside down)
Step 3 Remember to add extra cover for items you take outside
your home (like your engagement ring, watch, camera or golf clubs)
Ask for a quote in any AIB branch or call 1850 27 26 25
(Mon-Fri 8am-8pm, Sat 10am-2pm), or buy online at a
time that suits you at www.aib.ie/home insurance
Call us 1890 724 724 Click on www.aib.ie/mortgages 7What to look for when
house hunting.
Write a checklist of what you expect from your first home and
bring it with you every time you view a property. Here are some
things you should keep in mind during your hunt.
Before you set out When you get inside
Save yourself a lot of time and effort Use your nose. Can you smell any
by arranging viewings as close together dampness or rot when you enter the
as possible. It’s much easier to make property?
comparisons that way.
If the property has been freshly painted,
make sure it’s not hiding something such
First impressions count as cracks in the plaster work
Before you go in to a house, study the Check the quality of the window frames –
outside. Does it look as if the current they can be expensive to repair
owners have taken good care of it?
Tap the walls, especially in older properties.
Check which direction it faces. That will If you hear a hollow sound, it could mean
tell you when you’ll have sunlight during
that the plaster has come loose
the day
Open every window and door and make
Go across the road and check out the
sure that they’re not warped or stuck
condition of the roof. Look for broken tiles,
or large patches of moss or weeds growing Test the floorboards to check they’re not
in the gutters. These can all be clues about springing up and down and the floor is in
how well the house has been looked after good condition
Look out for any cracks in the outer walls Look out for any stains or signs of
Will you have your own parking space, or is dampness. Damp stains in downstairs
there shared parking? rooms could mean there’s a plumbing
problem in the bathroom, while damp
Has the property got security and fire stains in an upstairs room could mean a
alarms? problem with the roof
Is it on a busy road – and would children The carpets and curtains may be exactly
be safe playing outside?
to your taste – but are you sure they’re
Revisit the neighbourhood in the evenings included in the sale price? Don’t be afraid
and weekends to ensure it still seems safe to ask!
and peaceful.
AIB | Mortgages | First Time Buyers 8Check the age of the boiler and whether it runs on oil or gas Check when it was last rewired (especially in older houses) as this can be expensive Take a measuring tape with you and check that all your furniture is going to fit List anything which needs to be repaired Check the plumbing as much as you can by turning on all taps, flushing all toilets, trying all showers etc. Don’t be shy about checking – you don’t want any nasty surprises after you move in. Extra tips for apartments & townhouses Make sure you find out what the annual service charge is for the upkeep of common areas like gardens, lifts, painting the exterior of the building etc. Check if a parking space comes as standard or if you have to pay extra Is any storage provided for items like bikes? It can be very inconvenient to have to park them on the balcony of an apartment, for example If you’ve got a pet, make sure they’re not excluded by the management company Is there a washing line or laundry facility in the building, or will you have to run up a higher electricity bill by tumble drying all your clothes? Many showhomes or apartments create the illusion of space by fitting them out with smaller than normal furniture. Lie on the beds and sit on the couch to check if they’re standard size. Call us 1890 724 724 Click on www.aib.ie/mortgages 9
Moving into your
first home.
At last, the paperwork has all been processed. You’re now
a step closer to moving into your new home. But there’s
still a little bit of work to be done.
You might be currently living at home, or perhaps renting. Either way, your move will be
far smoother if you carry out the following actions.
Six Weeks Before
As a First Time Buyer there’s a chance you don’t own much furniture. So it’s time to go shopping
If you do have furniture, get a floor plan of your new home and work out where everything is
going to go
Get friends and family involved to help you move. Or hire a removals company
If you’re renting, don’t forget to contact your landlord to tell them you’re moving out.
Four Weeks Before
Start packing. Make sure you label each box clearly
You’ll have important documents that you definitely don’t want to go missing in the move.
So keep them in a file and a safe place
If you’re leaving a rented home, contact your gas, electric, oil, phone and broadband suppliers
and let them know
Contact your home insurance company and let them know about the move, and arrange
any new cover that you may need.
AIB | Mortgages | First Time Buyers 10Two Weeks Before Confirm the date with your removals company, if you are using one, and make sure they have directions Let everyone who may want to contact you know about your move e.g. friends, family, your bank, your health insurance company, your car insurer Pack first-night items such as sheets, towels, toiletries, kettle, alarm clock, a change of clothes etc. If you’re doing some or all of the removals yourself, get large sturdy cardboard boxes, bubble wrap and lots of sticky tape. On Moving Day Stay in touch with your removal company to make sure there are no misunderstandings Record all meter readings, such as gas and electricity Stay until the removals firm has finished and don’t sign their inventory sheet until you’ve gone through it thoroughly Keep a copy of it until all your possessions are delivered and unpacked, the charges have been paid and any claims are settled Be careful lifting heavy furniture or white goods. Recruit a few friends to help with the heavy lifting. Call us 1890 724 724 Click on www.aib.ie/mortgages 11
Frequently asked
questions about
mortgages.
We know you will have questions and if they are not covered by
the answers below, please contact us on 1890 724 724
Q1. How does AIB work out how Remember that your outgoings may
much I can borrow? increase in more ways than just the
monthly mortgage repayment. There’s the
This really depends on how much you can
cost of life assurance and home insurance
afford comfortably in monthly repayments.
to consider.
This is for the length of your mortgage, which
may be up to 35 years, depending on your age.
We look at the detail of your overall financial
situation – including income, outgoings, Kick start your savings now.
savings and other loan repayments. Then we
calculate the monthly mortgage amount that
Buying your first home may be
you can afford to repay. one of the most exciting things
You’ve probably already worked this out
you do and there is a lot to think
yourself, but it’s important to remember a few about and organise. One of the
key points: important things the bank looks
Most importantly, only reliable income at is your savings track record, so
should be included in your calculations. why not start now?
By this we mean guaranteed income –
bonuses and one-off payments shouldn’t
be included
For your main residence, as a First Time Q2. What proof of income is
Buyer you will require a deposit of at least required?
10%. AIB can offer 90% Loan to Value up As a mortgage is a long-term commitment,
to €220,000, over this amount 80% Loan AIB can only include your sustainable income
to Value is available. when calculating the amount you can borrow,
For one bedroom apartments, the not bonuses or other one-off payments. To
most you can borrow is 75% of the show your sustainable income you will need to:
purchase price
AIB | Mortgages | First Time Buyers 12Provide 3 months’ payslips Q4. I am self-employed/a company
Have an AIB Salary Certificate signed and director. Can I get a mortgage?
stamped by your employer – you can pick Yes – provided your income is sufficient and
up this certificate in your branch. you provide documents to support your
application. If you’re self-employed, we’ll need
to see:
Q3. I am a First Time Buyer. What
documentation do I need to supply 3 years’ financial accounts certified by
with my mortgage application? your accountant
We need to see records of your bank accounts, Confirmation that your tax affairs are
savings and debt. Of course, we will have up-to-date and in order
access to any AIB records, but for any non-AIB
accounts you will need to supply copies of 6 months’ account statements, including
statements. one original statement, for any non-AIB
accounts.
The Mortgage Advisor at your local AIB branch
can explain everything you need and there is For self-employed customers we need to see
a Mortgage Checklist in this pack. But, at the 3 years’ Revenue Notices of Assessment and
very least, all customers need to supply: Tax Clearance confirmation.
6 months’ bank statements for any
non-AIB accounts (including one original Q5. I am planning to build my own
statement) home. Can I get a mortgage?
Yes, mortgages are available for Self-Build
Proof of savings and any funds you will
customers, provided you meet all the usual
be putting towards the purchase of your
criteria, that is:
home (again, only if these savings are not
held with AIB) You can afford the mortgage repayments
6 months’ statements for all non-AIB Your basic income is sustainable
borrowings e.g. credit cards, car/personal
As a First Time Buyer you will require a
loans and mortgages.
deposit of at least 10%. AIB can offer
You will also need to supply evidence of your 90% Loan to Value up to €220,000,
employment and income. over this amount 80% Loan to Value is
available.
For PAYE employees, this includes:
You will need to supply particular documents
3 months’ payslips
relating to the size, cost and value of your
Your P60 Self-Build, as well as a copy of the planning
permission.
An AIB Salary Certificate signed and
stamped by your employer. Your AIB Mortgage Advisor can give you all
the detail on this, and you can refer to the
Having all these documents ready when you
Mortgage Checklist included in this pack.
apply will speed up your application.
Call us 1890 724 724 Click on www.aib.ie/mortgages 13Q6. What kind of Insurance do I Surveyors Fees
need to take out with a mortgage? For your own peace of mind, you may want
to organise a structural survey. It’s not a bank
You need to have Life Assurance and Home
requirement, but will ensure that there are no
Insurance in place before you can draw down
faults that may affect your property’s value.
your mortgage. Your AIB Mortgage
Advisor can arrange a quote for you.
Q9. What Interest Rate options does
Q7. What is the difference between AIB offer?
the Interest Rate and the APR? Your AIB Mortgage Advisor can tell you exactly
The Interest Rate is the actual rate at which what our current rates are and how they
interest is charged on the amount you borrow. translate into monthly repayments, but this is
AIB calculates this on a daily basis. how they work.
APR stands for Annual Percentage Rate (APR), With a Variable Rate
which is the total cost of your mortgage over Your monthly repayments may rise and fall
its term, taking into account both interest rate as market interest rates change
charged and other fees.
You can make early or lump sum
repayments to reduce the overall cost of
Q8. What other costs may be your mortgage and pay the loan off early
associated with purchasing a
You can also switch to a Fixed Rate any
property?
time you want.
You should remember to budget for all the
costs associated with buying a new property, With a Fixed Rate
which may include: A fixed rate mortgage means that your
rate and repayments will stay the same
Legal Fees for a specific period of time, even when
When you find the house you want and we market rates change
have approved your mortgage, you need to
choose a solicitor to act on your behalf. It is A fixed rate also protects you from interest
worth shopping around to get the best quote rate increases but you will not benefit if
available. interest rates fall during the fixed period
Valuation A breakage cost may be incurred if you
You’ll need a Valuation Report, completed by wish to pay off a lump sum during the
an approved valuer from the AIB Residential fixed rate term, or switch to a variable rate.
Mortgage Valuers’ panel, a list of which is
With a Split Rate
available from your Mortgage Advisor or from
The Split Rate option lets you split your loan
www.aib.ie. The valuation report must be
between Variable Rate and Fixed Rate, in
dated within two months of the date of the
whatever proportion you choose. This gives
drawdown of funds, otherwise you maybe
you peace of mind on part of your mortgage
required to obtain a new valuation.
repayments, but still gives you the flexibility
that a variable rate mortgage can provide.
AIB | Mortgages | First Time Buyers 14Call us 1890 724 724 Click on www.aib.ie/mortgages 15
Mortgage Glossary.
Annual Percentage Rate (APR). The yearly cost of Equity. The difference between a home’s value and
your borrowing. It takes into account the interest the outstanding mortgage debt.
rate charged and any other fees.
First Time Buyer. A first time buyer is someone
Arrears. Mortgage repayments that haven’t been who has never borrowed money before that was
made. secured on residential property or land (where they
had an intention to build a dwelling) in or outside
Building Energy Rating (BER). A Building Energy
the State. Where there is more than one borrower
Rating or BER is an energy label with accompanying
on a mortgage application and a housing loan
advisory report for homes. The rating is a simple
has previously been advanced to any one of the
A to G scale. A-rated homes are the most energy
borrowers, none of the borrowers will be considered
efficient and will tend to have the lowest energy
a first time buyer.
bills.
Fixed Interest Rate. The rate on a mortgage loan,
Broker. Your advisor on mortgage deals available
which doesn’t change for a specified period, known
from various lenders.
as the fixed period.
Capital. The amount you owe excluding costs and
Freehold or Leasehold. A freehold title gives the
interest. Also known as the principal of the loan.
holder ownership of the land and buildings for an
Collateral. Security offered against the value of the indefinite period. A leasehold title gives the holder
loan. a right to use and occupy land and buildings for a
defined period of time.
Cost of Credit. Cost of Credit is the difference
between the amount you borrow and the total you Guarantor. Somebody, other than you, who can
repay by the end of the loan period. guarantee your mortgage loan repayments.
Deeds. Official documents of ownership. Home Insurance. You need a Home Insurance
policy in place before you can draw down your
Deposit. An initial sum paid to the seller for
mortgage. To get a quote today, simply drop into
purchase of a property. The buyer could forfeit this if
your local branch, call us on 1890 724 724 or click
they don’t complete the transaction.
on aib.ie to ensure you’re protected.
Direct Debit Mandate. By signing a Direct Debit
Interest Rates. You can choose between our fixed,
Mandate (DDM) you authorise AIB Mortgage Bank
variable or split interest rates. Fixed makes it easy
to send instructions to your Bank to debit your
to budget because you know what your repayments
account in accordance with the instruction received.
will be. Variable lets you make early or lump sum
This enables you to pay your monthly mortgage
repayments. And Split Rate lets you split your
repayment amount from a current account. If
mortgage loan between variable and fixed rates,
your repayment amount increases or decreases
in whatever proportion you choose.
as a result of interest changes then this will
automatically be reflected in the amount debited
from your account.
AIB | Mortgages | First Time Buyers 16Judgement. Judging the right location, size and Principal private residence, Home, PDH (Private
style of home is very important. You also need to Dwelling House). A person’s primary residence, or
consider its resale value in case you want to move main residence is the dwelling where they usually
in future. live with in the state. A person can only have one
primary residence at any given time.
Letter of Loan Offer. Once a mortgage application
is approved, you’ll receive a formal letter setting Sanction in Principle. A Sanction in Principle (SiP)
out the conditions of the loan. This includes the is provisional approval for a mortgage loan amount
requirement of a valuation report. This valuation and term subject to evidence of income and
report must be dated within two months of the date employment, proven repayment capacity and any
of the drawdown of funds otherwise you may be other special conditions the Bank may issue.
required to obtain a new valuation Your solicitor will It is not a legally binding agreement.
also get a copy.
A SiP is invaluable in giving you the confidence
Loan to Value (LTV). These are percentages to go out into the market knowing, in most cases,
representing the difference between your mortgage your mortgage will be approved. In addition, Estate
loan and the value of your property. For example, Agents and Vendors will be more comfortable
a mortgage of €90,000 on a property valued at proceeding knowing you have a Sanction in Principle
€100,000 would be shown as 90% Loan to Value. in place.
Maturity Date. The last day of the mortgage Standard Variable Rate. A standard variable rate
agreement – the day the mortgage loan must be is a rate set by the lender, which may change when
paid in full or the agreement renewed. necessary.
Moratorium. A Moratorium is a payment holiday Terms and Conditions (T&C’s). Remember all loans
that allows you to take a break from your mortgage will have different terms and conditions, ensure you
or reduce your payments up to a maximum of are familiar with your loans T&C’s.
3 months. This is taken at the beginning of your
mortgage. The Mortgage term will remain the same Tracker Retention Interest Rates. If you are eligible
however your repayment amounts will be adjusted. for our Tracker Interest Rate Retention, the Tracker
Interest Rate will be made up of two parts:
This option affects the repayment amount and /
or the term of the mortgage. Flexible repayment (a) the European Central Bank’s main refinancing
options are subject to approval. operations minimum bid rate (the “ECB rate”)
which is variable; and
Mortgage Loan. A long-term loan, usually 20
to 35 years, secured by a mortgage against the (b) the Margin/Adjustment above the ECB rate, this
borrower’s property. will stay static throughout the life of the loan.
Payment Protection Insurance. This is an optional Valuation. This report, carried out by a professional
product designed to protect your mortgage valuer, gauges the market value of your property.
repayments should your circumstances change. It is important to remember that this report is
This can cover your payments for up to 12 months different to a structural or planning survey.
in the event of an accident, sickness, involuntary
unemployment, business failure or critical illness.
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and
servicing of mortgage loans and mortgages. AIB Mortgage Bank and Allied Irish Banks, p.l.c. are regulated by
the Central Bank of Ireland.
Call us 1890 724 724 Click on www.aib.ie/mortgages 17Your Mortgage
Checklist.
Things you’ll need when meeting your
AIB Mortgage Advisor.
AIB | Mortgages | First Time Buyers 181st Applicant 2nd Applicant For Employees 3 months’ up-to-date consecutive payslips are needed to confirm your basic salary AIB Salary Certificate (available in all branches) completed by your employer confirming permanency and basic salary Your P60 can be provided as well as payslips, but this includes all income (including bonus/overtime etc.), so 3 months’ payslips are still needed to confirm your basic salary 6 months’ statements are required for any savings or investments not with AIB 6 months’ statements are required for any borrowings not held with AIB For Self-Employed/ Sole Trader/ Director of a Company 3 years audited/trading accounts (certified by your accountant) Confirmation of tax position from your accountant Minimum 6 months’ recent bank statements not held with AIB Minimum 6 months’ statements for any borrowings not held with AIB 3 years Revenue Notice of Assessment Call us 1890 724 724 Click on www.aib.ie/mortgages 19
1st Applicant 2nd Applicant
Equity input for Purchase
If you have been given funds to help with your mortgage, we
need confirmation of it in writing and confirmation that it is
non repayable.
Proof of the funds, in the donor’s name, may also be required.
For Non-AIB Customers
You’ll need to provide suitable proof of identity and residential
address – a current passport or driver’s licence and a current
utility bill or bank statement
6 months’ recent bank statements (including 1 original)
If your current mortgage isn’t with AIB, we need 6 months’
recent mortgage statements (including 1 original)
If you live abroad or bank abroad, a foreign credit check
will be required.
For Self-Builds
Planning Permission and details of proposed size of the
property (square feet/metres)
(A) Copy of your fixed price contract or (B) if you are building
by direct labour, a detailed schedule of build costs from your
qualified architect, engineer or building surveyor
Completed Valuation Report*, explaining the cost and
estimated market value of the completed property
*Valuation Report: You will need a Valuation Report completed by an approved valuer from the AIB Residential
Mortgage Valuers’ panel, a list of which is available from your AIB Mortgage Advisor or from www.aib.ie.
This needs to be completed before your Letter of Loan Offer can be issued, but you shouldn’t arrange the
valuation until your application has been approved in principle.
The final valuation report must be dated within two months of the date of the drawdown of funds otherwise
you maybe required to obtain a new valuation.
AIB | Mortgages | First Time Buyers 201st Applicant 2nd Applicant
For New Houses
If the house is part of an estate development, the Structural
Guarantee Certificate (which the builder will provide)
If the house is being built on your own site by direct labour, a letter
from a qualified architect or civil engineer confirming that he/she:
•˜˛˜ Believes the resources are available to complete the building
to a good standard
• Will supervise the construction throughout
• Will provide a Certificate of Completion, confirming that the
building was constructed in accordance with its planning
permissions and best practices
If the house is being built on your own site by fixed-price contract,
a copy of the contract – plus the original Structural Guarantee
Certificate. Or a letter from a qualified architect or civil engineer
confirming the contract price and the cover under the Structural
Guarantee and stating that he or she will supervise the building
construction through all stages.
Call us 1890 724 724 Click on www.aib.ie/mortgages 21Home Mortgage Regulatory Information. Warning: You may have to pay charges if you pay off a fixed-rate loan early. Warning: If you do not keep up your repayments you may lose your home. Warning: The cost of your monthly repayments may increase. Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period. Warning: If you do not meet the repayments on your credit agreement, your account will go into arrears, this may effect your credit rating, which may limit your ability to access credit in the future. WARNING: IF YOU CANCEL OR MAKE A CLAIM FOR REIMBURSEMENT OF A DIRECT DEBIT REPAYING YOUR MORTGAGE ACCOUNT, AND FAIL TO MAKE ALTERNATIVE ARRANGEMENTS FOR PAYMENT, YOUR ACCOUNT WILL GO INTO ARREARS. WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT. THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME. Note: The above notice in respect of adjustments to repayment rates will not apply during any period when the loan is at a fixed rate. If you or your dependants intend to use the property as a principal place of residence, you must show evidence of mortgage protection insurance, unless you are exempt under the Consumer Credit Act 1995 (you can seek this insurance through us or from other sources). Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc. for life and pensions business. Maximum loan to value of Owner Occupier Residential Properties – 90% of purchase price or valuation whichever is lower. Lending levels are subject to monthly repayment burden, typically not exceeding c. 35% of borrowers disposable income and will vary according to individual circumstances. Loan requests considered on the basis of proof of income, financial status and demonstrated AIB | Mortgages | First Time Buyers 22
repayment capacity (including capacity to repay at higher interest rates). Loans not available to people under 18. Mortgage loans require to be secured by a mortgage and charge on the subject property. A typical €100,000 20 year Variable interest rate mortgage for an Owner Occupier Residential Property with LTV greater than 80% will have monthly repayments of €605.28 APR 4.07%. If the APR does not vary during the term of the mortgage, the total cost of credit i.e. total amount repayable less the amount of the mortgage, would be €45,268. The effect of a 1% increase in interest rates for such a mortgage will add €53.53 to monthly repayments. Surcharge Interest Arrears attract surcharge interest at 6% per annum in addition to the interest rate that applies to the loan. Surcharge can be avoided by making all repayments when due. Execution and registration of the mortgage deed will involve payment by you of your solicitor’s fees, outlays and registration fees. The amount of solicitor’s fees can be determined by negotiation with your solicitor, who will also inform you of the amount of the outlays and registration fees. We will charge you €60 for executing a discharge, release or vacate of a mortgage. The following is applicable only where the interest rate is FIXED for a period of at least one year: During any period when a fixed interest rate applies, the Lender may agree: (i) to allow full or partial out of course repayment (“prepayments”), or (ii) to convert the facility to a variable interest rate or to an alternative fixed interest rate (“conversions”). Prepayments, conversions and early repayment following demand by the Lender will be subject to the payment by you of an early breakage cost calculated using the following formula: Early breakage cost = AxUxD%, where “A” is the amount of the prepayment or early repayment following demand by the Lender, or the amount of the conversion, and “U” is the unexpired term of the fixed interest rate period, and “D” is the difference between the fixed interest rate applying to the facility and the fixed interest rate which would then apply to the facility for the amount of ”A” for the term of “U”. E.G. €100k @ 7% for 60 months, full repayment after 36 months, current prevailing rate for 24 months = 5% early breakage cost €4,000 (€100k X 24/12 X 2% = €4,000) Lending criteria, terms and conditions apply. AIB Home Insurance is exclusively underwritten by AXA Insurance Ltd. Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. AIB Insurance Services Limited is regulated by the Central Bank of Ireland. Irish Life Assurance plc is regulated by the Central Bank of Ireland. Allied Irish Banks, p.l.c. and AIB Mortgage Bank subscribes to the Voluntary Code of Conduct on pre-contractual information for home loans. A copy of the Code is available on request. Allied Irish Banks, p.l.c. is an agent of AIB Insurance Services Limited in relation to provision of general insurance products. Allied Irish Banks, p.l.c. is a tied agent of Irish Life Assurance plc for life and pensions business. Call us 1890 724 724 Click on www.aib.ie/mortgages 23
Summary.
As an AIB Mortgage Customer you’ll get access to:
✓ A Mortgage Advisor to guide you through the process.
✓ Competitive rates including Variable (relative to your Loan to Value)
and Fixed.
✓ As First Time Buyer you will require a deposit of at least 10%.
AIB can offer 90% Loan to Value up to €220,000, over this amount 80%
Loan to Value is available 75% for one bed apartments.
✓ No Fees - When you drawdown a new mortgage with us, we’ll waive the
maintenance and transaction fees on the current account you use to pay
your mortgage *
✓ Home Insurance from AIB: 30% discount if you’re a first time buyer or have
been claim free for 3 years**.
✓ 3 months’ deferred start option available, subject to approval.
✓ Repayment terms of up to 35 years.
✓
Mortgage customers get a 10% discount off AIB Home Insurance from AIB*.
✓ C
onsultation with an AIB financial adviser, which includes an assessment of
your life insurance, specified illness and income protection options.
* This offer is limited to the AIB personal current account used to setup the direct debit
repayment instruction for an AIB mortgage on a principal private dwelling house.
The direct debit must be setup within 12 months of mortgage drawdown. For more
information please refer to the Mortgage Benefit: ‘No Maintenance or Transaction Fees’
- Terms and Conditions that are available on www.aib.ie
** Discounts are applied on a reducing balance and a minimum premium amount of
€157.50 applies.
AIB | Mortgages | First Time Buyers 24Notes.
What to remember and what to do next...
Call us 1890 724 724 Click on www.aib.ie/mortgages 25In Branch. On the phone. Online.
1890 724 724 • www.aib.ie/mortgages
AIBM/FTBPACK 08/15 AIB101R00431BRA5You can also read
