Frequently Asked Questions

First of all, you need to think about where you want to live and how much space you need. At the same time, you should have a fair idea of how much you can potentially borrow and how much you are prepared to repay (i.e., your monthly repayments). You can do this by getting mortgage quote (approval in principle) from us. You should also start getting together documents that you will need to support your mortgage application, such as your last P60, bank statements and recent playslips. For a more comprehensive list of documentation that you need to assemble, click here.

This is the same as a variable rate mortgage. With this type of mortgage the interest rate is adjusted on a periodic basis according to an index.

This is the entire amount of the loan that you get.

This is the Annual Percentage Rate of Charge (i.e. the yearly cost of the mortgage). It enables you to compare the cost of borrowing from different financial institutions.

This is a temporary loan which allows you to buy a new house before selling your old one. The sum of the loan must be repaid as soon as the old house is sold.

A capped rate loan has a fixed ceiling on the interest rate for a period of time, above which your rate will not go. However, if the base ratefalls, your rate can still fall with it.

The final arrangements for transferring ownership of property.

This is the security for a loan. In the case of a mortgage, the property is considered collateral and can be revoked in the event of non-payment.

This is the person who agrees to repay a mortgage if you can't. With some lending institutions you can borrow more if you have a guarantor.

When the seller accepts a higher offer from one buyer having already accepted an offer from another buyer.

Home Bond
This is available on most new homes. It protects you in case the builder goes bankrupt and also against structural faults for 10 years.

Indemnity Bond
This protects the lender against you defaulting on your loan. It is charged by most lenders if you borrow more than 70-80% of the value of the property.

This is a clause in the mortgage agreement which stipulates that the borrower cannot repay a loan prior to a specified date.

This is when the actual market value of the property decreases to a value of less than the remaining balance of the mortgage repayments.

This is a charge when you pay off your mortgage before the end of the mortgage term and you are on a fixed interest rate.

This is done by a surveyor on a new home to ensure that any problems with the property have been resolved before the sale is complete.

This is the type of ownership of property. For example, freehold or leasehold.

A mortgage is loan taken out to buy a property or home.

The amount your mortgage provider will lend you is based on your salary, bonuses and commissions. Each lender will have its own formula for calculating how much they will lend to you.

Typically the maximum amount you can borrow is 92% of either the property value or the purchase price - whichever is the lower. Repayment terms vary between 5 years and 35 years depending on your age.

To find out how much you can borrow click here.

Tax Relief for home mortgage interest is now available "at source". This means that the tax relief element on the mortgage interest will be "built into" your monthly mortgage repayment and will no longer be given through the tax system. The onus is on the lending institution to make the return on your behalf.

Any future adjustments in the tax relief (for example, arising from changes in interest rates) will be made automatically by the lender. It will not be necessary to claim relief in the annual tax return or to contact your tax office.

Usually, it takes around 24-48 hours. However, based on your circumstances you may require up to 3-4 days for your loan approval.

This is where a borrower has completed a loan application, providing the required financial information for credit worthiness assessment and has been pre-approved by a lending institution.

This is a tax relief you are entitled to on mortgage interest payments. It's a great bonus if you are buying for the first time, since you are entitled to the highest amount of relief.

All lending institutions will require you to take out buildings insurance on the home you are buying. A buildings insurance policy covers you in the case of damage being caused to the structure of your home i.e. through fire, natural disasters etc. Different buildings insurance policies offer different types of cover and different costs of cover.

It is prudent to take out contents insurance as well, so your contents are protected as well as your buildings. The cost of home insurance varies depending on the insurer. Just Mortgages Limited will negotiate with all leading insurance companies to source you the best deal possible for building only and combined building and content cover.

Life assurance is a legal requirement by the lender when you take out a mortgage.

There are two types of Life assurances:

• Mortgage Protection Assurance
  Mortgage Protection assurance is a very cost-effective way to arrange life assurance. There is no savings element and the cove reduces in line with the gradual repayment of your mortgage. For these reasons we are able to offer you cover at very attractive low rates by searching the market for you.
• Level Term Assurance
  Term Assurance is a life insurance policy which covers the life of a person in monetary terms in return for a payment, usually monthly, and known as a premium. (is the amount payable for an insurance policy and is usually monthly).
  
  Term assurance is the cheapest and simplest form of life cover, providing life assurance for a fixed term only. The sum assured is payable only if the life assured dies within that term.
  
  Because of this many lenders insist you obtain life cover (also referred to as "term assurance" or "life insurance") when you take out your mortgage. You may also want to consider taking out critical illness cover, which would pay off your mortgage if you suffer an illness which would affect your earning power, such as a stroke or cancer.

The "Rent A Room Scheme" was introduced by the Finance Act 2001. Its main aim was to increase the availability of rented residential accommodation and permitted a person to let a room (or rooms) in their principal residence. Gross annual rental income of up to €10,000 is exempt from tax. Visit Revenue website for more details: http://www.revenue.ie/leaflets/it70.pdf

To assess the value of the property a registered valuer must complete a valuation report on your property. This is a prerequisite for all lending institutions before they issue a loan offer. The cost of this valuation depends on the value of the property and the minimum costs you can hope to incur will be €127 plus VAT @ 21%.

It is mandatory to take out both buildings cover on the property you intend buying and life cover on your own life.

This is a tax payable to the government when you buy a new or second-hand home. However, in certain circumstances, you might not have to pay it depending on the property size and value, whether or not the property is new-build or second-hand, and your status as investor/owner occupier and as first time buyer/trading up.

Yes. Just Mortgages will help you to find the mortgage that suits you before you have found a property, and then to get an Approval in Principal from a lender. An approval in principle can be helpful in getting the mortgage process underway, but the lender won't make a formal mortgage offer until a valuation has been carried out on the property you wish to buy.

This very much depends on your own time frame. At Just Mortgages Limited we will work around the clock to make sure your loan cheque is issued with expedience. To get started, simply call us on 01 205 1750.

Variable interest rate

With variable interest rate loans, the amount of your repayment will increase and decrease depending on changes in the base interest rates set by the European Central Bank. In other words if European rates go down and this decrease is passed on by the lender, you will benefit through lower monthly repayments. If on the other hand rates go up, and again this is passed on by the lender, your monthly repayment will also increase.

Fixed interest rate

With fixed rate loans your mortgage repayments remains constant for a set period of time. This can vary from 1 year to 10 years. Fixed rates offer greater security to borrowers, certainly in the early stages of a mortgage. However there is a caveat. If you have a fixed rate loan, and you decide to pay your loan back early or change to a different interest rate offer, you will have to pay an "early redemption fee" for terminating your fixed rate agreement. This redemption fee can be substantial.

Split Rate

A split rate is where a portion of your mortgage is on a fixed rate and the other portion is on a variable rate.

Discount Rate

This type of loan helps reduce your expenses in the early years of the mortgage by setting your interest rate at a few points below the lender's standard variable rate. Your interest payments may still fluctuate, but the differential between your rate and the lender's standard variable rate remains constant.

There are a wide range of different kinds of mortgage you can opt for: Repayment, Endowment, Pension and Interest-only are just some of the wide range of mortgages available in Ireland.

Repayment Mortgage

This is the most popular mortgage and is also known as an annuity mortgage. Your monthly repayments are made up of both interest and principle i.e. the interest due on the borrowings plus a portion of the actual amount borrowed i.e. the principle. In the early years of a mortgage, borrowers tend to pay back more interest than principle. However this trend is reversed in the second half of the mortgage life, where more principle than interest is paid off.

Endowment Mortgage

This is an interest-only mortgage. The principle (the original sum borrowed), is repaid by taking out a policy with an insurance company. Each month, you will make two payments - one to cover the interest on the loan, the second to cover the premiums on the insurance policy. Endowment mortgages do attract their sceptics. With volatility in equity markets in the past, there have been a number of cases both in Ireland and the UK where the value of the policy on maturity was less than the original principle borrowed. In this case the customer has to make up the shortfall - through their own savings or through borrowing.

Pension Mortgage

This is an interest-only mortgage, with the principal being paid off through a pension plan. A pension mortgage only an option for someone who is either self employed or in non-pensionable employment. A personal pension plan is designed to pay a tax-free lump sum on retirement in addition to a monthly pension income. It is the lump sum that is used to repay the mortgage debt. The advantage of this type of repayment method is that the pension contributions attract tax relief at the saver's highest rate of tax.

Fixed Rate Mortgage

This is where the interest rate does not change on the mortgage for the life of the loan or for a fixed period.

Variable Rate Mortgage

With this type of mortgage, the interest rate is adjusted periodically based on an index.

Just Mortgages Limited shop around to find you the lowest possible mortgage deal. We will negotiate with the different financial institutions to source you the most competitive mortgage to suit your needs. To find out roughly how much you can expect to pay back each month click on the calculator.