Good afternoon <<First Name>>!
Welcome to the first monthly ezine in a while...hope you are doing well.. I have been busy...and I am not going to bore you with Budget 2019 details - you know them already plus a synopsis will be in the new edition of Money Doctor 2019 for those who may have missed it - out mid December in all good shops.
Switching mortgages certainly seems to be in the air currently. The average standard variable rate in Ireland is 3.25% while in Europe it is 1.78%. So first thing is check what rate you are currently enjoying ... then there are 3 steps to consider before you embark on that switch...
1. Loan to value ... your mortgage should be less than 80% of the value of your home ( if you are in negative equity, you may STILL be able to move your mortgage to a preferred home but only through your OWN lender )..if separating, you may be able to obtain 90% ... email me for details
2. Income ... all lending is based on your ability to repay. 10 years ago you may have justified your mortgage with your two incomes. Lenders were more generous then plus you may not be on the same income now. The parameters are
- 3.5 times your joint annual incomes
Lenders are allowed some leeway but that discretion is all used at the start of the year.. again email me for details
3. Credit history ... if you have had a tough time over the last 10 years it may appear on the Irish Credit Bureau ( Clonskeagh Dublin 14 ) where one missed payment is like a beacon for 5 years.. a judgement is there for life ! You need a really good story to get past a credit committee if you are highlighted in the ICB. The new government Credit Agency is also setting up currently and will be doing the same job.
Once you satisfy these 3 conditions, and if you are paying a high standard variable rate, then you are free to switch. Some lenders will even pay your legal fees to switch ! Worth doing....