What does a bank look for in a mortgage application?

The bank is keen to see that you can afford to take on a mortgage and still have enough money left each month to enjoy your new home.

Here are some of the things the bank will take into consideration as part of your application:

• Your savings - It is useful to set up a regular savings account to save your deposit. This has the added benefit of showing your ability to save money each month. Open a MortgageSaver and we’ll top up your savings with bonus interest of €2,000 (less DIRT) when you draw down your first time buyer mortgage (Terms and Conditions apply).
• Your day-to-day finances - Make sure you manage your accounts so that you don’t go over your credit limit – banks like to see that you have been managing your finances effectively for a period of time before you apply for your mortgage.
• Your other borrowings - It’s a good idea to pay down credit cards and personal loans, if you have any, as much as possible, as additional borrowing could affect the amount you can borrow for your mortgage.
• Additional costs – You will need to show how you can cover additional costs such as stamp duty, legal fees and any additional expenses that might be required to make your new property habitable.