The current economic collapse has made borrowing difficult, but the deflation of housing prices is a positive boon for Ireland’s first time homebuyers. Though the Irish market isn’t as flooded with unwanted housing as is America or the United Kingdom, Ireland is still home to a large number of properties that have languished on the market and had their prices significantly cut. However, the economic retraction is not a complete boon to those who wish to purchase their first home. The Irish economy’s retraction has made borrowing difficult, especially as most of the Euros in the EU are tied up in government debt and grant programs. This does not mean, however, that it is impossible to obtain a first time buyer mortgage. It simply means that it is more difficult, and that Irish banks will be more hesitant to lend out money.

Despite the collapsed economy, persons with a history of employment, a good credit rating, and the ability to make a large down payment are still able to get a first time buyer mortgage with relative ease. While Irish banks are skittish when it comes to lending, they still have a strong desire to make money were possible, and many Irish persons with exceptional credit are desirable bets for them to make. Working professionals in secure careers, such as law, medicine, banking and accountancy are sure to continue being employed even in the current economic slump, as well as having a large enough income to where they can pay for more of a modest house on their own. Persons who are older in age, namely their late 20s and early 30s, are also more likely to receive a loan since they are more likely to retain employment.

However, not everyone looking for a first time buyer mortgage will meet such stringent requirements. In fact, most first-time homebuyers have modest credit and are in their early-to-mid 20s, hoping to get a house big enough to put their family in. Because these people may be a bit of a credit risk, banks are skittish to lend to them, and they must prove that they are a good risk for the bank before they will get a loan. In general, the best way for people in such circumstances to improve their chances is to pick a small, less expensive house and try to get a large down payment, 30% of the closing price or more. This may require the potential borrower to sell investments, ask for help from family members, or simply hold off on buying a house for a few years. However, banks are much more likely to lend out smaller amounts of money, since there is less for them to lose, and so a big down payment is the best way to help encourage a home loan.

The Irish government has also stepped in to try and help out first time homebuyers thought a series of grants, guaranteed loan programs, and other means of assistance. As this sort of assistance tends to vary from town to town, it is a good idea to check in with a local magistrate before purchasing a home. Many charity organizations, run both by the government and by the church, have the sole purpose of helping people get the money and loans they need in order to buy a home. Since this money is often given away in terms of down payment assistance, reduced loan rates, or tax credits, it’s important for first time borrowers to ask for all the help they can get, since it will help them save a great deal in the long run.

Mortgage Ireland offers tax relief to borrowers. Rates apply for the first 7 years then gradually decrease thereafter. The amount of relief depends on whether you’re a first time buyer mortgage, married, single, or widowed.
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Let’s face it, mortgages are a daunting subject. For many they are a proverbial “ball and chain”, destined to be repaid for the next few millennia, with no discernable end to the misery of seeing your monthly pay packet decimated by that merciless Direct Debit payment.

But, joy of joys, when you reach your 105th year, you repay it and; (like the salmon leaping out of the swollen river after the epic slog against the current) that blissful moment of realisation arrives: you own your own house!

At that moment you are aware of your wealth. You have money, money to be spent on… frivolous trinkets, a motorbike, rhinoplasty: whatever takes your fancy: you are free!

So, here are some tips to help shrink that balance and restore you your freedom:

Do you have savings which aren’t earning you a lot (quite possible at the moment!)? Why not consider an Offset mortgage? An Offset mortgage is where you can use your savings to reduce (offset) how much mortgage interest you pay. The great thing is that your savings remain separate to your mortgage, so your money is available to you if you need it.

For example: your mortgage balance is £100,000 (boo!), but you have £10,000 in savings (yay!). You don’t want to pay £10,000 off your mortgage as you’d like to have that money just in case. However, you don’t like earning 0.00000000001% interest from your bank so you take out an Offset mortgage. The mortgage interest rate is 4%, which could be as much as £4,000 interest a year. But with your £10,000 offset against this, you would only pay interest on £90,000, which would be £3,600- a saving of £400 a year. If you then overpaid as well, you would shrink your mortgage balance at an even faster rate (see below for tips on overpaying)!

If you kept your money in a savings account, you would need to earn at least 5% to earn the equivalent of £400 in interest (as the taxman has to have his cut. If you are a Higher Rate Taxpayer you would need to earn at least 6.7% interest!). Bear in mind that an Offset mortgage is only worth it if you can’t get a better Net savings rate elsewhere. If you can get a better savings rate than the rate that is charged on your mortgage, you wouldn’t save as much money as you could earn by having a normal savings account.

Thou shalt overpay, part I. This really should be the commandment for anyone with a mortgage, who can afford to commit a bit extra each month to their payment. By overpaying a little each month, you can shrink your mortgage balance that much quicker (and save ££££s in interest).

Here’s a top tip: if you are coming to the end of your fixed or tracker rate deal, chances are you will be moving onto your lender’s Standard Variable Rate which, in the current climate, may well be lower than the rate you are currently paying. So when you reach the end of your introductory rate, maintain your payment at what you are currently paying each month, you won’t notice any difference; but boy your mortgage balance will! A word of warning though, sometimes your lender will charge you an Early Repayment Charge if overpayments exceed a certain level. Always check that a) you can overpay, and b) the amount which you can overpay up to.

Thou shalt overpay, part II. Similar to making a regular monthly overpayment, your lender will often allow you to make a lump sum overpayment (the same warning as above applies- this will usually be to an agreed level: so always check!). If you come into money: maybe a bonus, an inheritance, lottery-win or compensation for an accident that wasn’t your fault; you might want to consider paying this into your mortgage. Think carefully about this though, as if you need access to your money, you may not necessarily be able to “borrow back” your cash later on (if your lender allows you to borrow back at all, this will usually be subject to their discretion, – check first before committing your money if you think this maybe a problem for you). Alternatively, you could always place this money into a Savings Account or why not look at an Offset Mortgage?

All too often the rate you are getting may not be the one that will allow you to pay off your mortgage the quickest. If you think you are getting a bum deal try shopping around, but be mindful of fees and costs you will need to pay; they may outweigh the benefits of moving at all! Use a mortgage search and Best Buy tablesto see what you could be paying and consider employing the services of a whole-of-market mortgage broker who will be able to assess your situation and advise you where a cost saving can be made.

Moneyfacts.co.uk is the leading independent financial information provider in the UK. Since 1988, we’ve been providing impartial information to financial services professionals which has helped thousands of customers get the best deal on their mortgages, savings accounts, credit cards, loans and other personal finance products.www.moneyfacts.co.uk Limited is authorised and regulated by the Financial Services Authority (FSA).
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To understand the system of mortgage lead generation, we should first understand what a lead generation system is. For steady growth of any business, there should be a continuous widening of existing customer base. An enterprise can hardly flourish, if it relies only on the demand of its existing customer which reaches a saturation point at some stage. The lead generation system brings to an existing business more potential customers. Despite the fact that a fraction of the new customers are drawn towards the product or services of the business, the sales turn over increases. For mortgage lead generation, a company generates potential customers who may get interested in the parent mortgage company.

Potential prospects can be generated for the mortgage market if the company sends direct mail to the companies listed in its database. It will announce incentives to its existing customers who may refer them to their acquaintances. It can possibly take help of the advertising world of print, T.V, radio or online targeted advertising. A typical mortgage lead generation system however, is to purchase carefully chosen lists of potential customers from an agency, specialized in lead generations. The lead system may cost higher than advertising, but in the lead system, your service or product should be targeted for select customers who may be interested to buy your product.

It’s obvious that every inquisitive mind will try to find an answer to the question as to how does a mortgage leads generation agency work and how are leads collected? The answer is that there are many methods by which lead banks can be established. The leads can be taken from public databases and also from persons who are willing to enlist their names to a database of potential customers. Depending on the lead generation system, lead data can be current or hopelessly outdated. An outdated list may, hopefully, produce some customers, but a brief list of prospective leads would surely fetch more customers than the outdated list.

When you are choosing a lead generation agency, you should opt for an agency that is familiar to your business. For mortgage lead generation company one should select from agencies that deal with mortgage. One example is, if you engage a lead agency which specializes in car insurance, you may not get the best leads. The means in which a mortgage lead generation agency builds up its information base is also important. If leads are connected through voluntary methods they are expected to be more reliable.

You need something that’s going to work. Regardless of what method of marketing you choose, the bottom line is that you need a set of guiding principles that will help your mortgage lead generation campaigns produce results, instead of disappointment.
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