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Mortgages

What is a mortgage? -
A mortgage is the name given to a loan secured on property. It is usually used to buy the home although it is becoming more popular to consider a new mortgage, where the property is already owned, to access a more competitive mortgage product or to raise capital for other purposes, such as school fees or business investment.

A mortgage is a long-term loan and has traditionally run for a fixed period, typically 25 years. However, most mortgages are flexible enough to allow for early repayment or, if your circumstances dictate, the term can be extended beyond the original loan period.

Mortgages were once the preserve of building societies and the high street banks, however recently far more competition has entered the market and there is now a number of lenders offering mortgage loans on residential property.

What different types are there

Annuity -
Also known as a Repayment or Capital & Interest mortgage. Your repayments pay off the interest and part of the capital borrowed each month. There is a set term in which you will clear the entire mortgage amount.

Interest only -
Your repayments only repay the interest on your mortgage. You are responsible for the repayment of the capital when the mortgage reaches the end of the term.

Fixed Rate -
The rate of interest on your mortgage is fixed for a set period of time at the beginning of your mortgage. Fixed rate mortgages are suitable for those who want to budget and prefer to know exactly what their monthly outgoings will be. If interest rates increase the fixed rate will remain the same and if the interest rates increase you are in the knowledge of not worrying about your repayments going up during the period of the fixed rate. An Early Repayment Charge may apply if the mortgage is repaid during the fixed period.

Flexible -
This type of mortgage is designed to accommodate your changing financial needs. It may allow you to overpay, underpay or even take payment holidays. You may also be able to make penalty free lump sum repayments

First Time Buyer Options

Buying your first home will be one of the biggest and most exciting decisions you’ll ever make. Rising house prices have made this process a daunting prospect for many First Time Buyers, but there are a range of mortgage products available in today’s market:

Joint Applicants -
Well over half of all First Time Buyers purchase their property with a partner, friend or family member. .

Guarantors -
Nearly one third of First Time Buyers receive financial help from family members, mainly parents. Lenders will consider a guarantor for a loan in order to make up a shortfall.

Thinking of Moving House

No matter how long you have been on the property ladder, moving house can be a stressful time for anyone. Let us help by making sure you get the best mortgage deal available for you.

Call us today to discuss the options you would like to consider.

Building Your Own Home

Building your dream home from scratch? The mortgage package you require will vary considerably from the standard homeowner or homebuyer loan. You will need the flexibility to access your money in stages, rather than receiving the lump sum up front. In this way, you are only paying interest on the portion of mortgage that you are actually using.

More of our customers are now looking at the option of building their own home. At The Mortgage Shop we can search through the full range of self-build mortgages available in the Irish market to find the best possible deal for your specific needs.