The word 'mortgage' has been putting the fear of God into people for years now. A plethora of disinformation surrounding the 'm' word has made it a daunting topic, whether you're a first-time buyer, looking to move house or switch banks.
Applying for a mortgage is a tedious task; going from bank to bank, filling out forms, fine print, and jargon can be overwhelming for applicants. Like The Mortgage Architect in Carrigaline, mortgage brokers act as the go-between. It's widely believed that brokers are add-ons; that they require more paperwork and more money.
"This is not the case," Rob of the Mortgage Architect explained, “we provide our clients with seven potential lending options and compare and contrast to see which bank would best suit the individual(s), and when the mortgage is subsequently drawdown, we'll receive a fee from the bank and not from the individual. Some people believe that brokers receive a higher fee from certain lenders, and that's why we promote certain banks. That's not true, no matter what lender a broker works with on a clients behalf, they will be paid the exact same fee.”
Rob's colleague Dan explained that you don't have to visit a broker at a particular step of your mortgage journey. Some will inquire with 6-12 months to go before they start looking for a lender; others will inquire when they are about to start looking for a property, "People provide us with their earnings and current savings patterns, and we provide them with a specific plan. Based on their earnings and the potential house price, we help them to be mortgage ready for when they’re looking to move to the next stage. When they’re looking to move to the application stage, we would advise them on which lender to go with, depending on what they’re looking for from a mortgage perspective. Everyone is different."
There is no "one size fits all" when it comes to lenders. Different banks have different requirements from applicants. "People have come to us and said a certain bank has refused us, so we'll be refused by every bank. That's where we come in." Acting as a matchmaker, taking variables into account, the broker will pair the client with the bank that best suits them.
Both, with a background in banking, they discussed the importance of a personal approach to their work. The Mortgage Architect team consists of four members and offers a "buddy system" when needed. "Every time a client comes in, they'll speak to the same team member; if that person is away, the other staff will be fully briefed on your application."
"In Ireland, mortgage approval could be affected by your credit report," Rob advised that a credit report shows that individuals previous and existing credit facilities. The report runs off personal details like name, date of birth, and PPSN. It shows who the loan is with, for how much, for how long, and if they’re has been any missed payment on facilities. While having a well-run credit report makes a broker's life easier, they advised that they have had success with applicants who might have had previous credit issues. Again, depending on the particular lender, some lenders are more open to others when it comes to having previous credit issues.
Providing lenders with consistency and transparency is key to mortgage approval. Rob and Danny advised that if you do pay rent with cash, that you should clearly state on your account that the money is for rent and it is withdrawn on the same day of each month. A written agreement from your Landlord citing the terms will limit potential queries from the lender. Depositing savings or paying rent from your account on a fixed date each month shows the lenders demonstrated affordability for a potential mortgage which is a key part to obtaining approval.
"There's a misconception that when you're saving for a mortgage, you have to put your life on hold. You don't,” Rob explained. "Once you have good account conduct to show that you can save and pay a mortgage, you’re going a long way to getting approved." His colleague Danny advised setting up a separate savings account where money is put aside regularly for the mortgage and separate social and miscellaneous account so when holidays and car issues arise, you're not dipping in and out of your savings, "people tend to dip into their savings for the likes of holidays and Christmas and put it back after” When we’re looking to prove demonstrated affordability to the lender, having a full 6 months uninterrupted savings pattern on your mortgage savings account is key.
When it comes to paperwork, the mortgage architect likes to work according to their motto and make things simple. They provide step-by-step tutorial pdf's on how to help clients upload documents to their online portal. When you provide The Mortgage Architect with the one set of documents, this will give you access to all the lenders they work with.
Based on my conversation with Rob & Danny from The Mortgage Architect and having reviewed the 200 5 star reviews they’ve received from their previous clients, I don’t think people should fear the mortgage process as much as they do.
To find out more you can visit their website www.mortgagearchitect.ie, on Instagram @the.mortgage.architect, and find them at Unit 1 Main Steet, Carrigaline, Co Cork.
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