When you decide to buy a new house or a new apartment for you and your family, chances are big you don’t have the money for it at the moment. The average house price for a house in Northern Ireland is over 160 GBP or more than 200 USD. Who has this kind of money to spend at once?
Almost no one, right? Everyone needs to get a loan and put a mortgage on the place until it is fully paid off.
Before getting a loan and start dealing with the mortgage, you need to be aware of some things that will keep you off problems later in life. In this article, you can read about some of the most important things you have to know before actually getting one.
Make sure you have enough income
To get a loan, you need to have enough income. This is not just for your safety, but for the safety of the lender. Most people get a loan from banks and they have this 28/36 rule that every applicant must meet. Learn more about this rule on the link.
What is this rule? It means that the total income of the applicant can’t exceed more than 28% for standard household needs and no more than 36% on all the debts and expenses it has. If the number is higher than this, chances are big that the bank won’t allow giving the credit.
Knowing this, it will be best if you do a good calculation before even going to the banks and wasting precious time and resources. You’ll have to settle either for a smaller line of credit or find a solution for some of the expenses.
Be clear of any additional debts
With what we just said above it’s clear that you have to be free of any additional debts. This is important not just for the lenders but for you too. If you have to spend a lot of money on things you don’t see anything good from, how are you going to live your life?
Make sure you find a way to close some of the gaps and fix the debt problems you have. This way you’ll be both eligible for the banks and you’ll be able to live a more relaxed life while still have the loan under your name.
Ask for professional advice before you make a choice
There a lot of mortgage brokers in Northern Ireland that know what they are talking about. Make sure you ask for advice from them because they do this kind of work every day. They know what is going on in the market and they’ll give you advice that can be very valuable.
Also, they are aware of the bank situations, rates that they are offering, and they know what the best way to invest your money is. You don’t need to take their advice but it’s good to hear someone else’s opinion on what is the best place to make collaboration with.
Understand the seriousness of the situation
When you get the loan, don’t think that you’ve made a life situation disappear. On the contrary, you need to understand that this is a serious thing and you can’t relax thinking you’ll always have money for it.
A mortgage is a serious issue and you need to pay maximum attention to it. Expecting that the problem will be solved by itself all the time is wrong. You have to be always alerted that you can’t miss a monthly payment because the banks are ruthless and they’ll get their share without a doubt.
Since the real estate and bank crises in 2007, banks are approaching the credits with a lot more attention than before. They don’t like to risk and they’ll do everything in their power to protect their money. Learn more about the global real estate problem on this link: https://en.wikipedia.org/wiki/United_States_housing_bubble.
These are the top things every person asking for a mortgage loan in Northern Ireland should know about. Without this information, no one should get into the business with money lending. This is a serious issue and needs to be understood like one.