Frequently Asked Questions

• Where do I start to look for my new home ?
• What is the most important thing to bear in mind ?
• What else should I consider ?
• What about the property itself ?
• How much should I spend ?
• How much will I need up front ?
• What are the ongoing costs ?
• How much can I borrow ?
• Which is better, Repayment or Endowment ?
• Which is better, variable or fixed rate ?
• What loan term should I choose ?
• What other entitlements can I benefit from ?
• How much can I afford ?
• Is there anything else I should do ?

Where do I start to look for my new home ?
The following are the main sources of information:-

• Estate Agents - Talk to different Estate Agents, and give them an idea of the sort of home you have in mind. Ask to be put on their mailing list, check their window displays for homes coming on the market and pick up a copy of their free property sheets which are usually updated every week.
• Newspapers - Look through the small ads in the newspapers and the extensive property listings published in national, provincial and local newspapers. They will also give you a good idea of price ranges in various locations.
• Local Authorities - Developers' applications for planning permission can give you useful information on planned developments in various areas.
• Other Media - Property is increasingly being advertised on the Internet and on RTE's Aertel.

It's a good idea to drive around the area you are interested in, watching out for "For Sale" signs! You can then contact the relevant estate agents directly.

What is the most important thing to bear in mind ?

It is often said that the three most important factors when buying a house are location, location and location. When choosing your home you should consider market trends within the area, how long you think you will be living there and choosing the best mortgage for the long term.

What else should I consider ?
As well as location, you should also consider:-

• Transport - is the area serviced with enough buses and trains ?
• Services - such as shops, churches, cinemas, sports areas, creches, schools, petrol stations, chemists, pubs and other social amenities.
• Hazards and nuisances - such as ESB pylons, factories, dumps, airports, plans for future developments (contact Local Authorities), traffic congestion, and anything else you might consider a nuisance.

What about the property itself ?
Before you decide on the actual property, consider:-

• Future Additions, such as adding a conservatory or a garage.
• The Builder, take a look at previous developments the builder was involved in.
• Orientation, south or north facing properties.
• The Plans, especially when buying from drawings.
• Standard Features, and optional extras on your new home.
• The Site Map, and don't be afraid to ask questions. e.g. Are there any plans to add additional phases to the site ? What access roads will be used for further building phases ? etc...
• Surveyors' Reports, for older houses and an estimate of any work needed.
• The 10 most important features in your ideal home to help assess a property.

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How much should I spend ?
Buying your own home may make a lot of sense, but be careful. Don't commit to something too quickly:-

• Work out how much you can afford to repay every month and, therefore, how much you can afford to borrow, using the Budget Calculator
• If the property you have in mind needs renovation, how much will it cost ?
• Are you a first time buyer ? Do you have enough furniture, or will you need to buy more, together with carpets, curtains, beds, lighting, electrical appliances, etc. ? Are some of these items included in the price ?
• Finally, remember that interest rates can go up as well as down, so keep repayments and affordability in mind. See Repayments Calculator.

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How much will I need up front ?

As a guideline, you will need 10% of the purchase price. The amount you can borrow will depend on your salary and the purchase price/valuation of the property you decide to buy. Irish Permanent will lend 2.5 times one salary plus once the second salary (in the case of joint mortgages) or 92% of the purchase price/valuation, whichever is the lower (subject to current lending criteria).

• Valuation - The property will need a valuation to ascertain its current market value. If the home is not yet fully built, a final valuation will also be necessary. Irish Permanent has a comprehensive panel of valuers countrywide and we will appoint one to value your property and then send you a copy of their report.
• Indemnity Bond - If your loan exceeds 75% of the purchase price/valuation, you will need to pay an Indemnity Bond on the amount over the 75% threshold. Details of the exact costs are available by contacting us here.
• Legal Costs - Your legal costs consist of your Solicitor's professional fees and the `outlay' which is the amount he or she spends on your behalf. The outlay can include Stamp Duties, Land Registry Fees, Search Fees, etc., but remember to shop around as legal fees can vary. You should request a breakdown of all costs in writing before committing yourself.

What are the ongoing costs ?
Your Home Loan repayment is just one of your monthly outgoings. Here are some others you should keep in mind:

• Life Assurance - When you take out your Mortgage, you must also take out a Mortgage Protection Policy.
• Home Insurance - You must also insure your home against fire and you should also cover your contents.
• Payments Protection Policy - Covers your repayments for 12 months in case of accident, illness or redundancy. In the case of the self-employed, the cover relates to accident and illness only.
• Service Charges - Check for Local Authority charges and Management Fees if your chosen property is in an estate or an apartment building.

How much can I borrow ?

You can borrow 2.5 times the main annual salary plus once the second annual salary, (in the case of joint mortgages) or 92% of the purchase price, whichever is lower. Contact us to arrange your entire Mortgage process.

Which is better, Repayment or Endowment ?
It depends entirely on your personal preference, but talk to us and we will help you to decide on the best option for you:-

• With a Repayment Mortgage, (also called an Annuity Mortgage), you repay interest and a part of the capital every month
• With an Endowment Mortgage*, interest on the Mortgage is paid each month and the Mortgage itself is repaid from the proceeds of an Endowment Policy. This does however depend on the performance of the endowment fund which is essentially a long-term investment plan. Contact us for details.

*WARNING: There is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan in full when it becomes due for repaymemt. The early surrender of the insurance policy in respect of your Endowment Loan may result in a return to you which would be less than you have paid in premia and other charges.

Which is better, variable or fixed rate ?
Both Repayment and Endowment Mortgages can have either a Variable or a Fixed Rate of interest. Again, it is a matter of personal preference:-

• A Variable Rate Mortgage means that your instalment may go up or down as interest rates change.
• A Fixed Rate allows you to plan ahead because your repayments are set at a fixed amount for the period that you choose.

What loan term should I choose ?
While the average mortgage term is 20 years, with Irish Permanent you can choose to pay off your mortgage over any period from 5 to 35 years. The longer the term, the greater the interest you will have to pay overall. You need to consider your future plans, as well as affordability.

What other entitlements can I benefit from ?

• If you are a first time buyer, and you are purchasing a new property (with a floor area of less than 1346 sq. feet), you are entitled to a £3,000 First Time Buyers Grant. Bear in mind though that it will take up to 4 months for your grant cheque to be issued by the Department of the Environment. However, we can provide you with a Bridging Loan facility which means you can benefit from this grant when your loan comes through - which may be when you need it most.
• You may be able to claim Mortgage Interest Relief on some of the interest you pay over the year. Talk to your local tax office in relation to your specific entitlements.

Is there anything else I should do ?

So now you have bought your own home. But before you move in, here are a few tips:-

• If you are moving from rented accommodation, give your landlord plenty of notice.
• Give your removal firm as much notice as you can. Before fixing a date, decide if you need access to the house first, perhaps to clean it or have carpets laid before furniture arrives. Also check the insurance position with the removal company and on the removal day itself, make sure that everything has been unloaded safely.
• Inform your local Post Office of your change of address and arrange to have any further mail redirected to your new home.
• Arrange with Telecom, Bord Gas and ESB to have your meters and telephone disconnected and reconnected to your new home on your moving date. It is also important to notify these companies of your change of address.
• If you are moving into a new house, fill in an ESB application form and enclose an electrical completion certificate, which you can obtain from your builder. It takes about a week for the connection to a new property and around three days for a reconnection to an older property. Telephone installation may take about four weeks or approximately one week for reconnection. Be sure to tell your insurance company that you are moving to a new address, and ensure that your insurance cover is valid.
• You should advise your bankers, insurers, car insurers, motor taxation office and any other company who may be in correspondence with you of your new address.