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Buying A House Without A Deposit

By : acelegal, March 12, 2018

It can seem almost impossible to get on the property ladder and own your own home for the first time, and it is true that the whole process is made much easier if you have been able to save up a substantial deposit. However, if you do not have a big deposit, you may still have options available to you, and you should consider the following carefully.

Here at Irwin, Kilculllen & Co Solicitors, we specialise in property law and will be pleased to help you with the purchase or sale of your home. We recognise that every situation is different, and we tailor our advice and our service to suit each client. Doing plenty of research before you begin to look at houses is the best way to prepare yourself for the purchase of your first home, and you should take advice from a Financial Adviser as well as an experienced Solicitor before committing to a legal contract.

How Can I Buy My First Home?

Buying without a deposit

• With a 10% deposit. Recent legal changes in Ireland mean that all first time buyers can borrow up to 90% of the total value of a property, so they will need a minimum deposit of 10%. Loans are usually restricted to 3.5 times the total of the annual gross income of the applicants, so the amount you can borrow will depend upon your salary and your deposit.

• With a longer term mortgage. Your mortgage repayments will be much higher if you choose to take a short term mortgage loan than if you spread your payments over a longer time period, but you will pay more interest on a long term loan. Many people choose the longest term available to them to keep repayments low initially, and later increase their repayments or switch mortgage providers to reduce the overall interest over time.

• Help to buy scheme. In January 2016, the Help to Buy scheme was introduced in Ireland, helping first-time buyers to raise the deposit they need to buy or build a new home. This scheme applies only to new builds, and only to homes that are occupied for at least five years from the date the property becomes habitable. This HTB scheme works by refunding income tax or Deposit Interest Retention Tax (DIRT) on bank savings paid in the four years prior to the application. This rebate can be up to €20,000, or 5% of the purchase price of a new home, and can only be used to buy a first home in Ireland. Applicants must take out a mortgage of at least 70% of the purchase price of the property with a qualifying lender, and most applicants will take out a 90% mortgage, reducing their required deposit to 5%. You will need a conveyancing solicitor to help you with the HTB scheme, so call us today to discuss your options.

Find Property Solicitors in Cork

Do you want to buy your first home? You can talk to us at Irwin, Kilcullen & Co Solicitors for advice and to find out how we can help. We specialise in conveyancing and property law, and we understand how best to assist you. Simply contact us online or call us today on +021 4270934 to see how we can help.