The minimum deposit a second time buyer has to have is 10% of the purchase price. In general however, second and subsequent buyers will have equity from the sale of their current home to go toward.
Equity is the difference between the value of your home and the mortgage balance remaining.
If you have savings and equity to get you to a 20% deposit or more then you should be eligible for a better rate.
Lenders in Ireland generally offer different rates based on –
- Loan to value – lenders tier their rates by loan to value, in general these are <60% loan to value (40% deposit), 60-80% (20- less than 40% deposit) and >80% (less than 80% deposit). In general, the lower your loan to value the lower the rate
- Mortgage level – if your new mortgage is €250,000 or more some lenders offer lower rates for this mortgage level, classed as a high value mortgage rate
- Building Energy Rating (BER) – some lenders offer lower rates to those with more energy efficient homes. These ‘Green’ rates are available where the BER of a home is A or B and with rates starting from 3% they are some of the lowest rates in the market.
Mortgage interest rates range from 3% right up to 6.15% choosing the best rate for you is really important to ensuring you don’t pay more than you need to on your mortgage.
If you have a strong deposit it is more important than ever to ensure you capitalise on it to secure a low rate.
For mortgage and rate advice be sure to contact our team at www.doddl.ie its what we do!
