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27th Jan 2021

Getting 2021 mortgage ready: Saving advice from the experts

Brian Dillon

Getting 2021 mortgage ready: Saving advice from the experts

We talked to experts on all things mortgages, including the best saving advice.

Getting mortgage-ready can be a scary concept. What documents do I need? How much can I borrow? How much will I have to have saved before going to the bank?

Luckily, we have teamed up with AIB since 2018 to bring you Livin Dublin. Our aim is to help you along your journey to becoming a home-owner with advice, tips and invaluable insights from the experts.

So, we thought we would compile a list of just that for anyone who is thinking about starting their journey in 2021. Here are some saving tips from property experts.

Talk early

The reason we love having Orla Gleeson, Head of Homes AIB Dublin West, at our events is that she calms a lot of our fears and debunks a lot of myths around what’s involved in the mortgage process.

Orla explains how meeting a mortgage advisor early in the process is one of the best ways to get an idea of how much you need and how much you already have:

“I get to talk them through, give them the advice, hints and tips for them to be ready in the six or twelve month time frame they’re aiming for. I think it’s so good to meet with the bank early. We meet a lot of people who realise they’re doing better than they thought.”

Sometimes, we might think we’ll be instantly turned away from the bank due to our spending habits. If I get a takeaway coffee every day, am I going to be rejected from the bank? Orla put our minds at ease:

“Something I notice a lot is that people try to over save. So you’re trying to put aside huge amounts and you’re not getting to the end of the month without needing your savings back. You probably didn’t need to be saving at that level to show the bank what we needed to see. When you get chatting to someone in the bank and they talk to you about what level your salary would allow you to borrow and talk you through what that mortgage repayment would be, then you know what you need to be saving. It gives you knowledge and knowledge is power. It helps you to know what to save.

“It can be really daunting to even know where to start. If you’re looking at property prices, you’re kind of starting two steps ahead. The easiest thing to do to is finding out how much you can borrow first and know where to go from there in terms of saving.”

Previous loans

Clearing off previous loans is an obvious one, but it’s still worth pointing out as Orla does:

“The only time loans will go against you when you’re looking to get a mortgage is if you’re looking to keep them because it will reduce the level you have free to pay the mortgage. When I meet customers very early on, I would likely advise that they prioritise clearing that debt to free up your cash flow for the mortgage payments.”

Consider other factors and costs

When saving, it’s essential to factor in every potential cost that may arise to give you a clearer goal to work towards. Estate agent Owen Reilly explains, “We would regularly see buyers underestimating the cost of renovation on properties that require upgrading.”

Looking for more tips and advice when it comes to your first-time buyer journey? make sure to check out our bespoke Livin Dublin hub.

Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank u.c. in relation to the origination and servicing of mortgage loans and mortgages.

Allied Irish Banks, p.l.c. and AIB Mortgage Bank u.c. are regulated by the Central Bank of Ireland.