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Mortgage Approval: When you’re ready to apply, we’re with you every step of the way

23 October 2020


We’re here to support you at every stage of your home buying journey from understanding the process and what you need to do at every stage, to helping you with the paperwork. When you’re ready to apply for your mortgage, come and talk to us and our mortgage team can help you with the application. Just book a Mortgage Appointment and we can work with you to help you complete the application form and understand everything you’ll need to do along the way.

Paperwork

When you’re ready to apply, we will work with you on your application and help you understand the supporting documentation you need to gather. These documents are outlined here and we’d usually suggest allowing 1-2 weeks to gather them all together ahead of submitting your application. Should you require any help with these documents, our mortgage team will guide you through the process during your appointment and talk you through every step of the paperwork. Here’s a list of what you’ll need so you can start getting organised;

If you are an employee

  • Signed and stamped salary certificate(60KB)
  • Your Employment Detail Summary (P60) and 2 of your last 3 payslips
  • Your bank account statements for the past 6 months

Depending on your employment type or mortgage application type, there may be some extra documents required. Your mortgage advisor will take you through these during your initial chat and you can find a more detailed overview of these required documents here.

In addition we also need you to provide proof of name, address and PPSN (Personal Public Service Number) to meet our regulatory requirements;

  • Photo Identification
    • Your current national passport or
    • Your current valid Irish, UK or European drivers licence (with photo)
  • Proof of address
    • A utility bill (dated within the last 6 months)
    • A bank or building society statement issued in the last 6 months
    • Your Determination of Tax Credits for the current year
    • Your original household/health or motor insurance documents (less than 12 months old)
  • Proof of PPSN
    • Correspondence from the Department of Social Protection or the Revenue Commissioners showing your PPSN
    • Payslip, Employment Detail Summary (P60)/P45, Statement of Liability (P21), Tax Assessment or Notice of Tax Credits
    • Medical Card/Drug Payment Scheme (DPS) Card

Mortgage Credit Approval in 72 hours

The application process can seem quite document heavy but we want you to know that we’re here to support you through it all. Our mortgage team can work with you on your application to help explain all the required documents, forms and process. When we receive your application, we will let you know if any documentation is missing or if we require any further information and keep you posted.

Once we’ve reviewed and submitted your completed application, we can give you Mortgage Credit Approval in 72 hours so you won’t have to wait too long before making that dream home a reality.

Typical Lending Criteria for a Mortgage

Every lender will look at various criteria before deciding whether to approve a mortgage. In all cases the primary focus is on your ability to repay the mortgage but we’ve outlined some of the main factors that are also taken into account below so you can start thinking about these ahead of your application to get prepared.

  • A good credit history (meeting repayments on loans, not missing any Direct Debit payments etc)
  • Being aged 18 or over
  • Ability to repay - as a guide mortgage repayments on all loans including your mortgage should account for around 35% of your net income (not exceeding 50%) so it’s good to aim to save this in the run up to your application where possible
  • Secure employment and income
  • Continuous employment for a minimum of 6 months
  • Good savings history
  • Good bank account management

Getting Application Ready

Even if you’re not ready to apply just yet, there are things you can be doing in the background to help with your mortgage application down the line.

Locate your bank statements and all the other documentation

If you can get the application done right the first time round with all of the necessary documents, you’ll be in good shape for a quick decision. Take a look at the required documents outlined above and start locating your bank statements ahead of time, find out who you need to contact to get a copy of your Employment Detail Summary or get your Salary Cert stamped. Make sure you have a recent bill/letter as Proof of Address. If you take some time to get organised with the paperwork ahead of applying, you’ll find it helps when it comes down to gathering everything together. Find a full list here

Figure out how much your repayments will be

You must show a Proven Repayment Ability (PRA) of at least 85% of your new mortgage repayment for the previous six months leading up to your application date, so do your sums and figure it all out. This proof can be in the form of rent payments, savings or any loan repayments that will be replaced by the mortgage repayment when it kicks in.

For example, if your new mortgage repayment will be €1,000 a month, you’ll need to show you have the ability to repay at least €850 every month. (No idea what your repayments might be? Try this mortgage calculator.

Have a credit card or overdraft?

Many people think that a loan or credit card is going to automatically disqualify them from getting a mortgage. That’s not the case, but you do need to be on your best behaviour ensuring that you’re meeting minimum repayments and following the rules.

As long as things like loans and PCPs (Personal Contract Plan) are manageable, and you can show this in your repayment history, that’s fine. Similarly, with overdrafts and credit cards, if you are using them within their T&Cs, that’s fine too. One thing you should avoid though if possible is missed payments which have led to unpaid or referral fees, try to stay on top of all your outgoing payments.

Get organised

Contrary to popular belief, banks aren’t looking at where you spend your money or which treats you’re indulging in. All they need to see is that you have a float at the end of the month to show you can manage your spending.

That said, presenting an application that’s as clearly organised as possible will help speed things along. Try to ensure that all your regular payments are easy to identify on your bank statements. For example, title them as ‘Rent,’ ‘Savings’ or ‘Car Loan’, where possible so that they’re easy to spot in the application. 

Don’t forget the extra costs

Yes, you might have your 10% deposit ready to go, but there are other costs like stamp duty and legal fees that will be unavoidable as the home-buying process rolls on – and your mortgage consultant is well aware of this. You can find a good overview of these extra expenses in our blog “All those extra bits and pieces you’ll need to save for”.

Wherever you are on your home buying journey we’re here to support you along the way so book an appointment to start your journey home with us today or find out more over on our Mortgage Section on our website.

72 hours starts once your application is completed and submitted for credit assessment during business hours. Excludes weekends. If any documentation is missing or additional information is required to reach a credit decision, we will notify you which may impact the decision time. Calculator results do not constitute an offer of a mortgage loan, nor is it legally binding and is for illustrative purposes only. Product eligibility criteria applies. Lending criteria, terms and conditions apply. Security and Insurance required. permanent tsb p.l.c is regulated by the Central Bank of Ireland.


The content of this blog does not constitute advice and is for general information purposes only. Readers should always seek professional advice before relying on anything stated in the blog. Some of the links above bring you to external websites. Your use of an external website is subject to the terms of that site.


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