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MOVING HOME

Looking for a smooth transition from your existing home to your new one?
Our professional Mortgage Brokers are here to help.

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Helping you move house

Ok, so you have decided it is time to move home. A moving home mortgage (or second time buyer mortgage) is a mortgage that provides the required funds you need to buy a home that meets your changing circumstances.

The new mortgage will also need to be affordable. You have been through the mortgage process before but would like help getting the best mortgage deal. MortgageLine is here to help you.

Whether you’re moving up the ladder or downsizing, you’re likely to have a larger deposit than a first time buyer. With a larger deposit available this means that you are more attractive to mortgage lenders and you should therefore have more options to choose from.

How much can you borrow?

Finding out how much you can borrow is the first step in obtaining the moving home mortgage that’s right for you. Once you know what your repayments will be and what you can afford then you can start your house hunting. Especially if you’re hoping to buy a larger and more expensive property then it is really important to know where you stand and what your borrowing ability is.

You might have built up equity in your existing home and be pleasantly surprised at the kind of property you can afford. On the other hand you may not have too much equity in your existing home. Here at MortgageLine we will try and find the most suitable mortgage to meet your circumstances and help you to navigate any restrictions that may apply to your new mortgage.

Mortgage Timeline

Get Mortgage Ready:
Get your bank accounts and savings in order 6 months before applying.
Pay your rent in a regular monthly transfer to your landlord.
Build Savings in a separate dedicated mortgage savings account
Make sure you have no missed payments or irregular bank transactions

Apply Online and Talk with a MortgageLine Advise:
When you are ready speak to us and we will give you an idea how much you can borrow and get started on your mortgage application and approval. You can complete the mortgage application details in your own time with our handy and secure Online Mortgage Application Portal.
Get Mortgage Approval in Principle

Get a Recommendation:
Once you have your deposit and have given us your information then we will recommend the best mortgage lender for you and apply for approval. Once approved then you can go house hunting. Most mortgage approvals are valid for up to 6 months and can be extended up to 12 months.

Go Sale Agreed:
Once you find a suitable property then we can progress your application to a full Formal Loan Offer. This is the document your solicitor will need before you can sign contracts and drawdown the new mortgage.

MortgageLine will help you with the important decisions like choosing the best Mortgage Interest rate, Mortgage Protection/Life Insurance and Home Insurance.

Mortgage Completion:
This is the exciting part when you get your keys. When the sellers and your solicitor are both ready they will agree on a closing date. Then you drawdown the mortgage and get your keys. Yay! Now go make that place a home.

Checking your affordability

Your MortgageLine Adviser will help.

review your finances with an experienced adviser before getting moving home mortgages

It is very important to review your finances with an experienced adviser who will let you know where you stand. Your circumstances may have changed since you took out your original mortgage. You will need to be fully assessed by potential mortgage lenders to make sure you meet their criteria.

The affordability assessment is in two parts. First, the lender will want to see proof of income such as a letter from your employer and payslips. Check with your mortgage adviser what other sources of income can be counted towards your affordability.

Next, your mortgage lender will need to see what your outgoings and expenses are. That could include short term debts such as credit card and loans. Other expenses may be, childcare, gym memberships, school fees, mobile phone contracts and other monthly bills. Your mortgage lender then deducts your expenses from your income and will attempt to Stress Test your vulnerability to mortgage rate rises.

The mortgage lender will also want to see proof of your repayment capacity. The mortgage lender will look at payments that you are currently making and that you will not have to make after the new mortgage is in place. For example you may be paying an existing mortgage that will be cleared and you are also building up savings or perhaps paying rent. All these things count towards what the bank calls your repayment capacity.

You can also expect your lender to examine your current lifestyle and include your monthly spend on items such as groceries, holidays and entertainment in the calculations. This helps them to understand the financial impact of any change in your finances. Some lenders can also be selective with regard to the properties against which they’re prepared to offer a mortgage, including one bed apartments or older buildings that need essential repairs.

MortgageLine can advise you which lenders are likely to accept you based upon your circumstances and the property you’re interested in purchasing.

Mortgage Lending Limits

When considering moving home and securing a mortgage in Ireland, it’s essential to understand the lending limits set by the Central Bank of Ireland. These limits are designed to ensure responsible lending and borrowing practices. Here’s what you need to know:

Loan-to-Income (LTI) Limit

Typically, banks can lend up to 3.5 times your gross annual income. This means if you’re looking to move home, the total amount you can borrow is capped at 3.5 times the annual income for you (and your partner, if applicable). However, lenders have a small degree of flexibility to offer higher ratios to a limited number of customers.

Loan-to-Value (LTV) Limit

For those moving home, the maximum loan-to-value ratio is usually 80%. This means you’ll need to have at least a 20% deposit of the property’s purchase price. First-time buyers have a slightly higher allowance, with up to 90% LTV available, highlighting the need for a 10% deposit.

Lender Flexibility on Limits

It’s important to note that lenders are afforded a certain level of discretion when it comes to these limits. For example, banks are allowed to exceed the LTI limit for up to 20% of the value of all new lending to primary dwelling homes within a calendar year. For LTV ratios, a specific proportion of lending is also permitted above the standard thresholds, providing a degree of flexibility to accommodate buyers with sound financial standing but unique circumstances.

Step-by-Step Moving House

Deciding to sell your house and move to a new home is a significant life choice that requires careful consideration. In Ireland’s current real estate market, the limited number of houses combined with high demand can make moving quite challenging. However, despite these difficulties, you should not let them deter you from pursuing your dreams of finding a new home.

To simplify the moving process, there are several essential guidelines to follow:

  • Thoroughly assess the advantages and disadvantages of relocating. Each factor plays a critical role in deciding whether moving is beneficial for you.
  • Whether you’re looking to move into a bigger home or a smaller one, the location of your new residence should be a key factor in your decision-making process.
  • Secure mortgage approval well before you begin searching for a new home. This step ensures that you are ready to make an offer when you find the right property.
  • If you are facing uncertainties about future income, job stability, or health, it’s crucial to consider these aspects carefully before deciding to move.
  • Consider downsizing if you have substantial home equity but find that your financial resources need to be improved for a comfortable lifestyle.

Frequently Asked Questions

What is a Moving Home Mortgage, and How Does It Work?

A moving home mortgage, often called a second-time buyer mortgage, is specifically designed for individuals looking to relocate from their current residence to a new one that better suits their changing needs. This type of mortgage provides the financial means necessary to purchase your next home while ensuring the terms remain affordable based on your financial status. The process involves assessing your current equity, determining how much you can borrow, and securing a deal that aligns with your financial capabilities. The advantage for second-time buyers typically includes a larger deposit, which makes them more appealing to lenders and potentially offers more favourable borrowing terms.

How Do I Determine How Much I Can Borrow for My New Home?

Determining your borrowing limit is crucial in the moving home mortgage process. MortgageLine advisors start by assessing the equity in your existing home and your current financial situation. Based on this information, they provide an estimation of how much you could potentially borrow. This step is vital, especially if you aim to upgrade to a larger or more expensive property. It helps set realistic expectations for your house hunting and ensures that the properties you consider are within your financial reach.

What Steps Should I Take to Prepare to Apply for a Moving Home Mortgage?

Preparing for a moving home mortgage involves several key steps to ensure you are in the best financial position possible when you apply. Firstly, organise your finances, including bank accounts and savings, at least six months in advance. Regularly pay your rent through monthly transfers and avoid any missed payments. Build up your savings in a dedicated account to demonstrate financial stability. Once these steps are in place, you can begin the application process, starting with an initial consultation with a MortgageLine advisor to get an idea of your borrowing capacity.

What is the Mortgage Approval Process Like?

Once you’re financially prepared, the mortgage approval process begins. Initially, you will receive a ‘Mortgage Approval in Principle,’ which gives you an idea of the amount you can borrow. This approval is typically valid for six months and can be extended if needed. After securing this preliminary approval, MortgageLine will recommend the best lender based on your financial profile and apply for a formal loan approval. Once you find a property and go on sale, your application progresses to a full Formal Loan Offer, which is necessary for contract signing and finalising your new home purchase.

How Do I Check My Affordability for a New Mortgage?

Checking your affordability involves a thorough review with a MortgageLine adviser. They will examine your current financial circumstances, which may have changed since your last mortgage. The review includes your income verification, monthly expenses, and other financial obligations to determine your net income and calculate your repayment capacity. This comprehensive assessment ensures that the proposed mortgage payments are manageable and that you meet the lender’s criteria, helping to secure the most favourable mortgage terms tailored to your financial situation.