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Mortgage
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Housing loan lenders require legal security for loans advances i.e. a legal mortgage. The lender will take a legal mortgage over the property in question, which gives the lender the legal power to repossess the property, sell it and pay off the loan in the event of the borrower defaulting on the loan. Any surplus left over on such a sale is payable to the property owner.
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Terms of the mortgage
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Details of the lending institution and the borrower
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Description of the property
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Amount of the loan and term of repayment
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Rate of interest
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Fees payable
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Interest penalties for late payment
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Repayment capacity
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The prime consideration in assessing a housing loan application is the income capacity of the borrower to fund future loan repayments. Typically a limit of 35-40% of net monthly income as the maximum the borrower can afford to commit to all loan repayments in determining the maximum level of loan they are prepared to advance to applicant.
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What documents you need for your mortgage:
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Photographic ID i.e. passport or driver’s licence
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Proof of address i.e. Utility bill, original bank statement etc. (no older than 3 months)
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Proof of savings or equity if available (this strengthens your application)
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Bank Statements/ credit card statement for the most recent six months
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Mortgage statement from previous lender if applicable (this should be received in January/February of current year)
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Statement (minimum 6 months) for all current borrowings from relevant Financial Institutions.
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P60
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Three recent monthly payslips
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Completed Salary Certificate (for completion by your employer)
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Estimates for any works to be completed on the property
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Valuation Fee will be applicable at a later stage
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Completed Mortgage Application form
