Factors lenders consider for mortgage approval
We work with nine lenders in Ireland. While lenders may have some differences in how they do business, they all consider the same factors when deciding on mortgage applications.
In general, these considerations are:
● Your income - lenders will want to see regular income. Bonus and overtime income may be taken into account too, but the real focus will be on your monthly consistent income.
● Your age - lenders will calculate how many years you have to work until you retire.
● Monthly outgoings - lenders will evaluate your financial commitments to calculate whether you can afford mortgage costs.
● Outstanding loans - clear as much of your debt as possible before applying for a mortgage.
● Savings/deposit - showing you have the ability to save strengthens your application and reassures lenders that you are a good credit risk.
● Credit record - keeping repayments up to date on any debt you owe strengthens your credit profile and lenders look at this.
● Borrow amount - the amount you are requesting to borrow is evaluated by lenders.
● Single or joint application - lenders also look into the finances of each person on the mortgage application.