Best First Time Buyer Mortgages in Ireland
Who is a first time buyer in Ireland? Revenue.ie describes a first-time buyer is an individual who, at the time of the Help to buy claim has not: either individually, or jointly with another person, previously purchased or built, directly or indirectly, on his or her own behalf, a dwelling in Ireland or abroad. Some banks have their own internal classification of who a first time buyer is. For joint applications both applicants must be first time buyers for the mortgage to be classified as a first time mortgage.
Types of First Time Buyer Mortgages in Ireland
Fixed rate mortgages: The interest rates are fixed for a particular period, not the term of the mortgage. Interest rates can be fixed for 1 to 10 years. Some lenders offer 15, 20 and 30 year fixed rates. At the end of the fixed rate deal you’ll automatically move on to the lender’s variable rate, or you may decide to remortgage to a new mortgage deal.
Variable rate mortgages: With a variable rate mortgage, interest rate can rise or fall as determined by your lender. The positive about a variable rate mortgage is that it offers you the flexibility to overpay or redeem your mortgage at any time without penalty.
Tracker mortgages: A tracker mortgage is a type of home loan where the interest rate charged on the loan tracks that of another publicly available rate, typically the interest rate set by the European Central Bank. As the ECB base rate rises or fall, the interest rate on a tracker mortgage will usually rise or fall which will directly affect your monthly repayments with it. The rate you pay is usually a set percentage higher than the base rate.
>> Read More: Best Credit Union Mortgages
First Time Buyer Mortgage Rates: Fixed Rate vs Variable Rate
This is depending on the personal circumstance of the first time buyer. As a first time buyer, with little or no experience in home buying, a fixed rate mortgage is the better choice because of the stability it brings to you and helps you stick to a budget. A variable mortgage gives you the flexibility to make lump sum payments on your mortgage. They are better when interest rates are low or expected to go down but it doesn’t provide unexperienced first time buyers peace of mind.
Best fixed rate mortgages for first time buyers
Higher or over 80% loan to value mortgages are usually the better choice for first time buyers, but lower loan to value mortgages offer better rates. You can take advantage of first time buyer schemes to help you with deposit for your house. The below comparison table shows a list of mortgages, LTV and interest rate with varied mortgage loan amount.
Best 1-year fixed rate mortgage deals for up to 60% LTV
Best 1-year fixed rate mortgage deals for 60% to 80% LTV
Best 1-year fixed rate mortgage deals for 80% LTV
Best 2-year fixed rate mortgage deals for up to 60% LTV
Best 2-year fixed rate mortgage deals for 60% to 80% LTV
Best 2-year fixed rate mortgage deals for 80% LTV
Best 3-year fixed rate mortgage deals for up to 60% LTV
Best 3-year fixed rate mortgage deals for 60% to 80% LTV
Best 3-year fixed rate mortgage deals for 80% LTV
Best 4-year fixed rate mortgage deals for up to 60% LTV
Best 4-year fixed rate mortgage deals for 60% to 80% LTV
Best 4-year fixed rate mortgage deals for 80% LTV
Best 5-year fixed rate mortgage deals for up to 60% LTV
Best 5-year fixed rate mortgage deals for 60% to 80% LTV
Best 5-year fixed rate mortgage deals for 80% LTV
Best 7-year fixed rate mortgage deals for up to 60% LTV
Best 7-year fixed rate mortgage deals for 60% to 80% LTV
Best 7-year fixed rate mortgage deals for 80% LTV
Best 10-year fixed rate mortgage deals for up to 60% LTV
Best 10-year fixed rate mortgage deals for 60% to 80% LTV
Best 10-year fixed rate mortgage deals for 80% LTV
How to choose the best mortgage deals?
When you decide to buy a home, you need to educate yourself on the home buying process and shop around and see what lenders are offering. Here is a list of things you need to do choose the right mortgage.
- Work out how much you can afford
- Have a settings goal for home deposit and other costs.
- Decide which type of mortgage right for you
- Educate how mortgage interest rates work
- Consider the length of the mortgage
- Begin to shop around for mortgage.
>> Read More: Best Mortgage Rates in Ireland
What first time buyer schemes are available?
Help to buy scheme: The Help to Buy (HTB) scheme is an incentive for first-time buyers that will help you with the deposit you need to purchase or self-build a new house or apartment. It only applies to properties that cost €500,000 or less which you must live in as your home. The Help to Buy Scheme gives a refund of the income tax and Deposit Interest Retention Tax (DIRT) you have paid in Ireland for the 4 years before the year you apply.
First home scheme: The First Home Scheme (FHS) is an affordable housing scheme, which supports you to buy a new home or to build your first home. The FHS is a shared equity scheme. This means that the government and participating banks pay up to 30% of the cost of your new home in return for a stake in the home. If you want, you can buy back the stake at any time, but you don’t have to.
Local Authority Affordable Purchase Scheme: This scheme helps people on moderate incomes to buy new homes at reduced prices. New homes under this scheme are located in areas with the greatest housing need and where affordability is an issue. The local authority takes a percentage stake in your home that covers the reduction in price. So, if you buy the home at a 20% discount, the local authority will have a 20% stake in your home.
