Mortgages and Grants in Ireland

Mortgage Information

It is conventional to make a down payment of 10% of the house price. A mortgage scheme is usually used to pay the remaining 90%. Traditionally, banks or building societies offered mortgage loans totalling 2 and 1/2 times a family's main income plus 1 times the second income. For example, a house costing €100,000 required a mortgage total of €90,000 - after the 10% deposit - meaning that the family income would need to be approximately €36,000 per annum.

In 1999 First Active, the nation's third largest mortgage lender, proposed jumping mortgage lending to 3 times the earnings of borrowers. Within days the Central Bank came down heavily on their heads, saying that policy has not changed and that Ireland does not want to get into an over-extended situation like Britain in the late '80's or Boston in the early '80's. There was dithering and then it turned out the Central Bank had no enforcement powers at all, at all.

Most mortgage lenders now view even the 3 times rule as very old fashioned indeed. 100% and even 120% mortgages have become available. There are six banks offering 100% mortgages to first time buyers. The rules seem to be semi-liquid. Each bank sets its own and varies them based on their measure of your ability to pay. The average in 2004 reportedly was between 4 and 5 times earnings. In 2005, the nation's credit binge increased and mortgage lenders were happy to oblige. Every month that passed in 2006 seemed to set new records of credit creation. In old fashioned words - debt.

In 2007, mortgage loans five and six times annual earnings are common and reportedly, there was even one offer of a loan 8 times the applicant's annual income. Madness.

Family help has become important for first time buyers and 25 and 30 year mortgages are now standard. The latest wrinkle has been 40 year loans. Previous to this, 15 year mortgages were standard.

Or, you can move out, outward, out beyond the back of beyonds.

Current Mortgage Information

For more information about mortgages and rates, and even some online mortgage calculators, order the Full Site. There is hard learned advice on conveyancing from site subscribers and links to mortgage specialists. Advice on building in the Gaeltachts and various government grant schemes are outlined. The Full Site also contains information about stamp duty, grants and government tax breaks for home builders. Some of the tax breaks are not means tested - your income does not matter.