
Posted on 22 June 2021
Ask The Mortgage Advisor - Meet Sam Mulholland one of the founders of Crawford Mulholland
I am moving to a more permanent job with a higher salary, will this affect my mortgage application?

If you are moving job to one with a higher salary, that is okay. Most banks will use a copy of your contract or a letter from your manager confirming what the higher salary will be. Other banks will wait until you get your first moths pay cheque on that salary.

2. Can you get a mortgage to cover the cost of land as well as a new build?

Yes, there are few lenders who will help finance the purchase of a site. They typically require about 40-50% of the site value as deposit. AIB and Danske are pretty good lenders for this type of thing.

3. What are the best 5-year fixed rate mortgages now?

This really depends on your deposit but here are some examples – 10% deposit - 3.09%, 20% deposit - 2.11%, 30% deposit - 1.40%, 40% deposit - 1.14%

4. I am a single person buying my first-time house. Do you have any tips for planning/getting on the property ladder?

Tips for getting on the property ladder – three things:

- Check your credit score – you can do this online. Having a good credit score is crucial to being able to get a mortgage. Some websites include Experian, Equifax, check my file are all very good.
- Second speak to a mortgage broker, they will check out your affordability, see how much you can borrow, what monthly payments look like and cover what fees you need to consider for surveys and solicitors etc.
- Lastly, get preapproved so that is called a mortgage in principal or a mortgage promise. Estate agents will want to see this when you go to bid on a property. So, it is good practise to have one.

5. What are the additional costs associated with a second mortgage property?

Additional costs for when you buy a second property, the main one is stamp duty. If you are keeping your existing property, the stamp duty will be higher. An easy example is a property of £125,000, you would normally pay no stamp duty but if it is a second property you would pay £3,750. You also would have survey fees and legal fees on top of this too, but these fees will be the same if you are buying your second or third property.

6. If you have just moved to NI can banks, take your credit from the Republic of Ireland into account?

Some lenders will only consider your UK credit score which might be quite low due the short amount of time here. However, some lenders like Progressive or AIB will request a copy of your ROI credit report. we have had plenty of client relocate from down south and getting a mortgage was not a problem.

7. Once I get an offer on a house, what are my next steps?

Once you offer on a property and your offer has been accepted, your next step is going back to your broker and submitting the full mortgage application. This involves sending in your pay slips, bank statements and the bank doing the valuation. The average timeline for the application would be approximately 2-3 weeks. When it is offered that will be sent to yourselves, solicitor, and your mortgage broker. The solicitor will then do their part, the typical house buying journey can take anywhere from between 2-3 months on average.

8. Do you recommend a buy to let/Air Bnb?

Yes, for the right person. There are plenty of benefits of Buy to lets such as additional income, capital growth etc.

9. What is the process for overseas buyers?

There are Mortgages for overseas buyers some just have additional criteria. For example, HSBC require you to have 25% deposit and earn the equivalent of £75,000.

10. Are there any low interest rate 10% mortgages available for first time buyers?

The 10% deals are not just as good as they were Pre Covid but are getting back on track. Currently the lowest 10% interest rate is 2.79% for a 2-year fixed deal.