permanent tsb Mortgages

Transcription

1 permanent tsb Mortgages The easy guide for First Time Buyers

2 permanent tsb permanent tsb p.l.c. is regulated by the Central Bank of Ireland. Home Insurance options are arranged by permanest tsb p.l.c and underwritten by Allianz plc. permanent tsb is appointed as a Single Agency Intermediary of Allianz plc for Home Insurance. Allianz plc (trading as Allianz) is regulated by the Central Bank of Ireland. permanent tsb is a tied life assurance agent with Irish Life Assurance plc (Irish Life). Irish Life Assurance plc is regulated by the Central Bank of Ireland. permanent tsb has appointed Irish Life Financial Services Limited (ILFS) to provide the financial advice process. Irish Life Financial Services Limited is regulated by the Central Bank of Ireland. We follow the European Voluntary Code of Conduct on Home Loans. You can get a copy of the code from any branch of permanent tsb. If you have had a problem with any product or facility we provide, please let us know. We want to put it right as quickly as we can. Simply contact your permanent tsb branch or the area concerned. Or, you can write to our Customer Relations Department at: Customer Relations Department, permanent tsb, Churchyard Lane, Douglas, Cork. To help improve our service to you, we may monitor or record calls. All information in this booklet is correct as at 09/02/2015. We've included lots of useful information on our mortgage process and the features of our mortgages. Most of the practical information has been gathered by us over the years based on our experiences. We ve made every effort to ensure the correctness of the rest of the information. However, permanent tsb can t be held responsible for the accuracy of this information and we would advise you to get professional or specialist advice where you think you need it. permanent tsb or its agents do not accept any responsibility for loss or damage suffered as a result of any material contained in this booklet.

3 CONTENTS 1. Buying a Home 2. Beginning your Adventure Saving for your deposit Approval in Principle in 15 minutes Important terms explained How much is it going to cost me? Home hunting 3. Taking the Leap Make an offer Choose a solicitor Find a Valuer Self-Build Information 4. The Final Hurdles Finalising your mortgage application Letter of Approval Exchange of contracts Home insurance and life assurance Completing payment 5. Home Sweet Home Making the move Fixtures and fittings Finding builders and avoiding cowboys! Home-buying toolkit 6. Useful Information What happens if my Mortgage Application is declined? Local Property Tax Stamp Duty Useful contacts Important notices 7. Simply Jargon A straightforward guide to banking and legal terms

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5 Your first home The important thing to keep in mind when you re buying your first home is that it should be an exciting adventure. However, as most people discover, it can also be a bit of a daunting and, at times, overwhelming experience. Did I make the right choice? What do all these Terms and Conditions mean? Why didn't I pay more attention in maths class? The first thing to do is relax. You've already done the right thing by contacting us and we're going to do our absolute best to help you. First Time Buyers' guide is here to give you a quick rundown of the key steps required to buy your first home. We ll suggest some tips, skills and insights that will hopefully make the process easier and also save you from making expensive mistakes. If you want to talk to an expert, drop into your local branch Or, simply call us direct on and we can set up an appointment at your local branch and talk through your options. Our mortgage advisors will work with you to help you find the right mortgage for you. Our lines are open 8am to 10pm Monday to Friday, 10am to 5pm Saturdays and Sundays (excluding Bank Holidays). 4

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7 Saving for your deposit At this stage you've probably already got your deposit together or have started saving. If not, don t panic. It s never too late to start. It s easier to get your deposit together and have a contingency fund in place if you start saving regularly. You don t have to do it but it s always nice to have a bit of spare cash in reserve in case you need to fix up a second hand property or if you just want to throw a housewarming party! A lot of people receive money gifts from their parents to help them purchase their first homes. Don't be worried if we ask who donated the gift. We're not trying to catch anyone for tax evasion! It's just quite common for us to establish the identity of the donor(s) in order to waive any claim regarding the property you are buying. It can be a bit awkward discussing the terms of the gift with the donors but it makes it easier to establish if they expect anything in return or if they expect you to pay some or all of it back! You should consult a tax adviser for guidance on any gift you receive. It s never too late to start saving 6

8 Approval in Principle in 15 minutes There are many things you can do in 15 minutes. Watch an American sitcom, make an easy meal or you could get Approval in Principle from permanent tsb! Mortgage Approval in Principle is an understanding between you and the bank, based on information you have provided. It outlines how much we could lend to you, but of course it will be subject to a full credit and suitability assessment. It is not legally binding. Drop into your local branch and we'll bring you through an Approval in Principle meeting in just 15 mins You don t need to bring anything with you for this meeting it s simply a chat to talk through your finances; 1. We ll ask you about what you earn, what other loans you have and the type of mortgage you are requesting. 2. This will give us an indication of how much we d be willing to lend you (based on what we think you could afford) and the term you can borrow this over. 3. The amount is approved in principle so this means that it s based on the information you ve told us. When you are ready to proceed with the full application, we ll then need you to bring in evidence of your earnings and commitments (payslips, statements etc) if these all match the information you ve provided and the ICB (Irish Credit Bureau) check we run comes back okay, your full approval shouldn t differ from the amount we approve in principle. Important terms explained The next section provides simple, straightforward descriptions for Loan to Value (LTV), Loan to Income (LTI) and explains what the different types of rates are! Okay, so what is the LTV? It may sound like a TV channel but it s just the amount you are borrowing relative to the value of the property you re buying. The maximum LTV for first time buyers depends on the value of the property being purchased: 90% for property's with a purchase price of up to 220,000 90% for the first 220,000 of a property s purchase price, with a maximum LTV of 80% for all amounts greater than this. Please see the example on the next page: 7

9 Purchase Price 300,000 Deposit required 38,000 Mortgage (max available) 262,000 LTV 87% Deposit calculation 10% of 220k 22,000 20% of 80k (difference between purchase price & 220k) 16,000 Deposit required 38,000 This would result in a deposit requirement on this property of approximately 12.7%. The minimum term is five years and maximum term you can avail of is 35 years. The minimum loan amount is 40,000. The loans referred to in this guide are available for home purchase only. If you are looking to get a loan for an investment property, the process is slightly different. We offer an annuity mortgage which means that your repayments depend on the actual amount you borrow (capital) and the interest that will be charged on this capital. WARNING: If you do not keep up your repayments you may lose your home. WARNING: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future. What is the Loan to Income (LTI) ratio? All first time buyer mortgages are subject to a borrowing limit of 3.5 times gross LTI for either single or combined incomes 8

10 The two types of interest rate: Fixed versus Variable Fixed interest rate It sounds complicated but it's actually pretty simple - with a fixed rate mortgage your interest rate and monthly repayments are fixed for a set time as agreed between us and you. Although a fixed rate means your repayments can t increase for a set period of time, your repayments will also not fall during the fixed rate period. As a result, you could miss out on lower interest rates and lower repayments. Fixed rates may cost more in the long run but they offer peace of mind as you know exactly how much you are going to pay each month during the fixed rate period. If your rate is fixed and you want to switch to another lender, move to a variable rate, re-mortgage or pay off all or part of your mortgage, you would face breakage fees. Make sure you re aware of these conditions before you sign up to, or decide to exit, a fixed-rate contract. WARNING: You may have to pay charges if you pay off a fixed-rate loan early Variable interest rates Variable interest rates offer the most flexibility in terms of repayment. They allow you to increase your repayments, use a lump sum to pay off all or part of your mortgage or re-mortgage without having to pay any fixed-rate breakage fees. However, because variable rates can rise and fall, your mortgage repayments can go up or down during the term of your loan. At permanent tsb our variable rates (known as Managed Variable Rates (MVRs)) are based on your loan to value (LTV). This means that the interest rate is related to the amount of your mortgage compared to the value of your home. We'll base this on the valuation that you give us of your new home but remember changes in the LTV of your mortgage during its term will not impact on the rate. The higher your LTV, the higher the MVR applying to you. Even though the MVRs are not linked to the European Central Bank rate, they are variable rates so they can still go up or down during the term of your loan. WARNING: The cost of your monthly repayments may increase 9

11 Whoo, that s quite a mouthful. Okay, here s the simple version. A fixed rate means your repayment amount is fixed for a set period of time, which you and your lender agree on. A variable rate, and the clue is in the name, can rise or fall because the rate varies depending on other factors. The good thing with a variable rate is that if you win the lottery or find a pot of gold at the end of a rainbow you can pay off your entire mortgage in one fell swoop. Both rates have pros and cons so weigh it all up before you make a decision. Our Simply Jargon section is at the back of this booklet! 10

12 How much is it going to cost me? The costs associated with buying your home The truth is there are typically lots of costs involved in buying a home, over and above the price you pay to buy it. Keep that in mind when you re hunting for your new home. Stamp duty This is a tax the Government charge when you buy a property. As always it is a good idea to contact the Revenue service if you have any queries. To calculate the Stamp Duty you will pay see page 31. Our Stamp Duty rates table and sample rate are on page 31 of this booklet. 11

13 Legal fees Everyone needs a solicitor to act on their behalf when they re buying their property. There is no set fee for handling the purchase of a property - check out the professional fees and property registration fees applicable with your Solicitor. The Law Society ( is a useful resource for details about solicitors near you. Surveyor s report If it s a second-hand home, an independent surveyor can carry out a structural survey and reveal any structural problems with the building. They can also give a rough estimate of how much renovation work and/or repairs will cost you. Besides, the 3 little pigs swear by them after some bad experiences they had in the past. Life Assurance You must have an insurance policy which provides enough funds to pay off the mortgage in the event of your death. Don t be afraid to ask one of our advisors about our mortgage protection plans. Home insurance Insurance covers rebuilding costs and can also include the replacing of home contents (depending on the level of cover chosen and the type of property being bought). In an apartment, a block policy should be organised by the property management company. However, if you like your stuff and want to protect it then you might want to get contents-only insurance. We offer a premium reduction to new customers and another premium reduction in the second year. Ask us today for more information. Ask us today for more information on our Home Insurance offers. 12

14 Local Property Tax Local Property Tax (LPT) is charged on all residential properties in the State and comes into effect from 1st July It s a bit annoying but it s mandatory a bit like watching people sing off-key on weekend television. It is administered and managed by the Revenue, is based on the market value of the property on 1st May 2013 and is subject to change. As the charge is only being introduced in July, a half year charge applies in What's the story with the LPT? In simple terms owners of a residential property, including rental properties, are liable to pay the tax. The only exemptions to this are: Properties purchased by a first time buyer between 1st January 2013 and 31st December 2013 are exempt until the end of 2016 if used as the person s sole or main residence Housing provided by local authorities, social housing the local authority or housing organisations are liable Houses in certain unfinished developments are also exempt New and previously unused properties that are bought from a builder or developer between 1st January 2013 and 31st October 2016 exempt until end 2016 The Revenue wrote to residential property owners in March 2013 outlining how much they believe each property is worth and therefore, how much LPT is owed. How do I calculate how much I will have to pay? You can work out the LPT on your chosen house using one of several readily available apps see or Alternatively, if you re a fan of doing things yourself without digital assistance you can find out how much your Local Property Tax will be using the table and sample guide on pg 30 of this booklet. Local Property Tax table and sample guide are on page 30 of this booklet. 13

15 Where can I find more information? The Revenue ( has lots of information on LPT (including the different charges according to the property value), some really useful FAQs and an online calculator. You can also find more helpful information on the property register ( it shows how much properties have recently sold for and will help you understand property values in the area where you re house hunting. Unfortunately, the costs don't just end when you pay for the property. You might also have to pay for: Connection fees for electricity, gas, phone, TV or cable Moving expenses Decorating Furnishings Appliances Christmas lights The miniature Stonehenge in your garden When you re working out how much you can afford to pay for your first home don t forget to keep an eye on these other costs. A typical breakdown for costs might look like this (keeping in mind that your Solicitor will have arranged several of these on your behalf): Stamp 1% (sale price of 250,000) Registration of deed Registration of mortgage Commissioner for Oaths Copy folio Law searches Structural survey Typical legal fee This is a guide only. - 2, to

16 Home hunting There are lots of ways to find the property that suits you. Websites, daily newspapers, local estate agents in areas you like or even just driving around looking for a for sale sign. Although there s a fine line between looking like a home hunter and looking like a robber casing the house. Try not to be suspicious! In truth, some properties may not even have a for sale sign as the owners may not want their neighbours to know the property is for sale. These properties are usually only advertised discreetly through a local estate agent. Research matters When you find a property that appeals to you, it's a good idea to visit the area at different times (midday, nighttime, rush hour etc) and take a walk around. Use common sense though. Chat to locals and get an idea of the services on offer in the area and whether any developments are coming up (fields, parks, gentleman s clubs etc). Local people may also be able to tell you about recent planning permission applications and grants and whether there have been any extensions or alterations to the property. The local county council offices are also great for viewing maps of proposed future development. 15

17 Chat to locals and get an idea of the services on offer in the area Your new home - what s most important to you? We re all a bit like Goldilocks in the fairy tale. Some houses are too big and some are too small. It really is tricky to find the property that s just right! With that in mind you should size up every property you see in order of what s important to you: The size of the property and the number of bedrooms. There s no point living in a 16 bedroom mansion if it s just you and your cat Geoffrey. Amenities/facilities you would like to have close at hand. Transport needs for work, rush hour traffic levels, schools, catchment areas. A 20 mile commute will sap your energy if you re cycling. Gardens or lack thereof. Especially if you want to give Geoffrey some space to roam. Is it an old or new property? How close you are geographically to family and friends and how much will you want to get away from those family and friends when you need your own space? Storage space and living space in general. Geoffrey likes to wander. The cost and time needed to carry out any essential decorations and renovations. The quality of construction can you hear the neighbours next door? Are the neighbours friendly, tidy, noisy? Do they enjoy practicing staring competitions or Mongolian throat singing? Could you build an extension later on if needed? How easy will it be to sell in the future? 16

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19 Make an offer Buying a newly built home is pretty straightforward. You make an offer. When they accept, you pay a booking deposit to the estate agent. Then you can arrange your valuations and surveys. Be sure to get a receipt in writing to say that the booking deposit is fully refundable subject to the results of your survey. That way you won t get stung for the deposit while the house you have your eye on collapses in front of you. Buying an older home is more complicated as you may be competing against other buyers. There are three accepted ways to buy an older home; a verbal offer, a sealed bid or an auction. There are three accepted ways to buy an older home; a verbal offer, a sealed bid or an auction. When you re making a verbal offer, either to the estate agent or owner (private treaty), the highest bid usually wins. In a sealed bid, anyone who is interested sends the price they are willing to pay to the estate agent. All offers are opened together, with the highest bid winning. 18

20 Tips on sealed bids: If you are bidding on a property, make sure you offer an uneven number as an offer of 200,001 will beat an offer of 200,000. Clever eh? It's a bit like playing a 1980s TV gameshow! For both verbal and sealed bids, once your offer has been accepted, you must pay a booking deposit to seal the deal. However, until formal contracts are exchanged between solicitors, you are not legally bound to go ahead. Bidding at auction In contrast, if you are bidding at auction and your offer on a property is accepted, you are legally bound to go ahead and must provide a 10% deposit there and then. So, make sure that you're careful with your offer and that you don't accidentally buy a house by waving to your friends! If you are buying at auction, it is vitally important to have a property survey carried out beforehand. There is no going back after your bid has been accepted. It is also very important that you have received your letter of offer from us before you bid. Go to page 22 to find out what you need to do before we can give you a formal loan offer. In the case of an auction bid, decide your absolute upper limit on the amount that you can afford and stick to it! Don't get dragged into a bidding war against a bored millionaire! Some people send a family member along to bid on their behalf as they are a little less emotionally involved with the property and they won t get carried away and bid over what you had originally planned. It s the same reason why it s easier for your friend to talk to that person you fancy! 19

21 Choose a solicitor We ve taken a pretty lighthearted approach to this guide but keep in mind that buying a home is a big financial decision and making sure that everything is done properly will give you real peace of mind. To make sure that it s completed professionally, you must employ a solicitor. Your solicitor will look after all the legal work involved in buying your home and will let you know the likely timeframe involved. You can easily shop around for the best deal on your solicitor s fees. Find a valuer Once you ve decided to go ahead, and before you do anything else, you will need to employ a member of the Bank s panel of valuers to complete a valuation of the property. This is to make sure that the property is worth at least the amount that you hope to borrow. A subsequent valuation will be required at the borrowers expense where a mortgage issues at any time greater than 2 months after the original valuation. You can get more details on valuations from any permanent tsb branch or by calling us on (lines are open Monday to Friday from 8am to 10pm, 10am to 5pm on Saturdays and Sundays excluding Bank Holidays). We can arrange a property valuation for you if you want Self Build Information Maybe you re a person who prefers a more eclectic, less standard sort of home or if you re not a big fan of other people s designs then this section is for you. Firstly you'll probably need payment at different stages of the build - we can definitely help you through our self build mortgage. Applying for a self build mortgage is exactly like applying for a normal mortgage. We ll ask you for some additional information but apart from that the process is entirely the same. Remember, to make sure that your transaction is completed professionally, you must employ a solicitor. 20

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23 Okay, you're nearly there. You've found the house of your dreams, Geoffrey s in his cat box and you're eager to move in and start a new chapter in your life. There are only 5 steps left to take. 1. Finalise your mortgage application Now that you are seriously interested in buying a property, it s time to focus on the finer details of the mortgage. See your permanent tsb mortgage advisor they ll answer any outstanding questions, agree your repayment options and finalise the details. We need the following documents before we can give you a formal loan offer; If you are an employee Your P60 and two of your last three payslips A salary certificate (ask us for the certificate for your employer to fill in) Your personal bank account statements for the past six months If you are self-employed, Three years up-to-date audited or certified accounts Confirmation that your tax affairs are up to date and in order Six months recent bank statements from your main business and personal current accounts 22

24 To meet Regulatory requirements, we also need you to provide proof of name and proof of your address. Photo Identification Unfortunately we can t accept that faded photograph you took of yourself back in 1993 when your hair looked amazing. We can accept one original of the following documents: Your current national passport or Your current valid Irish, UK or European drivers licence (with photo) or Your EU National Identity Card (EU country) Also, all of the above need to be in your own name. Otherwise they re just pictures of other people! Proof of address You can use any of the following; A utility bill (dated within the last 6 months) A bank or building society statement issued in the last 3 months Your Determination of Tax Credits for the current year Your original household/health or motor insurance documents (less than 12 months old) Make sure the name and address on your proof of address matches the details on your new account. Note: If you can't provide any of these pieces of identification, please ask us in branch. 23

25 2. Letter of Approval If you meet all of our lending conditions and we receive a satisfactory property valuation, we ll send you a letter of approval. Read through this with your solicitor, sign your acceptance and then return it to us. The loan offer lasts for 6 months; so if there s a delay in completing the sale, please make sure you keep in touch with us as you will need to re-apply. Also, the rates may change from the time you apply to the actual day you drawn down the loan cheque. 3. Exchange of contracts Once you have your letter of approval, you know that you ve got the financial backing to sign the contract for the purchase of your new home. Read the contracts fully. Your solicitor will also go through them as it is very important to make sure you re happy with the contract and because solicitors love contracts! After that, simply make sure you ve provided anything outstanding on the loan offer conditions and you ll be in your new home in no time. At this stage your solicitor will make the relevant legal searches to confirm the property details, such as deeds of ownership. The seller s solicitor will draw up a contract, which your solicitor will examine we told you they love contracts! 4. Home insurance and life assurance Almost there. Now that you have your mortgage finalised, you ll need to take out insurance for your new home. You must have a mortgage protection plan and permanent tsb offer a whole range of flexible Home Insurance and Life Assurance products to suit your needs. Taking out a policy couldn t be easier so please feel free to ask your mortgage advisor and they ll help arrange your cover. 5. Completing payment The last step of all is to arrange a date and time for completion. That sounds complicated but, again, is actually pretty straightforward. It happens when your solicitor pays the rest of the money you owe to the seller with a cheque from us. Once payment takes place, your solicitor will arrange a time for you to collect the keys. Congratulations, you now own your first home. Now comes the fun part - moving in! 24

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27 Making the move Don't worry if the task seems a bit overwhelming at the beginning. That's completely normal. Here are a few tips to help make the process smoother: With one month before the big move: If you are in rented accommodation, you will need to give your landlord notice that you are leaving. If you are moving yourself, hire a large vehicle. Or, contact a removals company and tell them the dates you are moving. Check that your building and contents insurance is in place. This is important in case of damages or loss while you're moving. Collect large boxes if you are moving yourself and label them as you pack. Make sure you pack the boxes well, and use paper or bubble wrap to protect glass or precious items. Make sure that your valuables and important documents are in a safe place. Cool people collect boxes. Let your energy supplier know you are moving and arrange for them to disconnect your current supply and connect you in your new home. If you are moving into an older home, make sure you read the meter the day before the owners move out so that you don t get left with a bill for their electricity. Contact your phone company and let them know about your move. Ask about the possibility of using your old phone number. With only a week left to go: Organise parking for the moving van at your current home and at your new home. If you have young children or pets, make arrangements for somebody to mind them for the day. Label all your keys (both old and new). 26

28 Fixtures and fittings You probably have an image in your head of how your perfect home looks. Maybe coving in the ceilings and a rich mahogany book case within reach of your vintage armchair or a minimalist marvel with black marble counter tops in the kitchen and a hanging fireplace suspended in the middle of the room. The reality is that it can take months or years to make your house perfect and that it will cost you money to some degree. Some people will have saved ahead for this exact eventuality and will already have the money earmarked for how it's going to be spent. These people can be deservedly smug. The rest of us will be moving into an empty house with a limited budget for furnishings and decorations. Don't let this get you down. It's the reality for most people and just requires some clever thinking. Firstly, focus on the rooms where you will be spending the majority of your time. In most cases these would be the kitchen, sitting room, bedrooms and toilet so concentrate on these at the start. Don't be shy about accepting second hand furniture and fittings from friends and family (at least in the beginning). Old tables and chairs can look like new tables and chairs with a lick of paint. Recycling websites are also a great resource for temporary furniture. You can always exchange these or replace them later on. Social media outlets such as Facebook or twitter are great for letting people know what you re looking for as well as a great way to check out what your ex is up to! Finding builders, avoiding cowboys! Look long and hard before you finally agree to pick trades people, solicitors, surveyors, architects or anyone else you ll be giving your hard earned cash to. There are many ways to find professional tradespeople (websites, recommendations from family and friends, trade shows and exhibitions) but whoever you pick don t be afraid to ask to see some of their previous work or speak to someone they work for before you agree to hire them. And, in true Monty Python style, don t be afraid to haggle. What do you mean you don't haggle? Haggling is expected in the building trade. The tradespeople and builders will haggle with their suppliers so you should really haggle with them. Don t accept their first offer. You re the employer now so you have to decide what you feel is reasonable to pay your employee. Ask what their best price is and then see if you can reach some sort of agreement. Alternatively, you can always ask them if they will knock something off the price if you agree to use them. 27

29 Home-buying toolkit It's a good idea to bring some essentials with you when you're going home hunting: Keep a folder Great for keeping all your research, flyers, photos, maps, telephone numbers, addresses in one place. Just like with boxes, cool people keep folders. Tape measure A tape measure is always handy to have when you view properties. Any size will do but a bigger tape measure is always easier to use especially when measuring gardens, sitting rooms, ceiling heights and when you get bored, your cat Geoffrey. Camera Bring your camera with you to viewings as it will help jog your memory when you go back to choose a home or pick furnishings. Also, take plenty of photos in case you want to describe a fixture or fitting to someone later. Patience No, not the kind you find in a hospital but the virtue of being able to wait. Finding the right home, making big decisions and investing your life savings can be stressful. Stick with it! 28

30 What happens if my Mortgage Application is declined? If your mortgage application is declined, we will be up front and tell you why it was declined. We re not out to punish anyone so we ll provide as much help as we possibly can to give you the best chance of getting your Mortgage application approved next time around. Typically, these changes might include: 1. Demonstrate a better savings record 2. Extend your time in permanent employment 3. Wait until you are in a permanent position, i.e. re-apply after the end of your probationary period. 29

31 Find out how much the Local Property Tax will be on the property you ve chosen to buy using the table below. The amount you'll have to pay in Local Property Tax will depend on the market value of your residential property on 1st May For the purposes of calculating LPT, property values have been organised into market value bands: Where the property is valued at 1m or lower, the tax will be based on the mid-point of the relevant band at a rate of 0.18%. For properties valued over 1 million the tax will be charged at 0.18% on the first 1million of value and 0.25% on any balance in excess of 1 million. Here are some sample amounts for As you are buying the house, you can easily calculate your LPT. Market Value Local Property Tax to 100, ,001 to 150, ,001 to 200, ,001 to 250, ,001 to 300, Properties with a higher market value will pay a higher Local Property Tax. For example if your property has a market value of 1,500,000 you will pay 3,050 in

32 While we re on the subject of maths and calculations, here s the table for Stamp Duty calculations: Current stamp duty rates Cost of property Rate of duty Example: First 1,000,000 1% Cost of property: Rate Breakdown: 350,000 1% Excess 1,000,000 2% Total Duty Payable: 3,500 Useful contacts Here are just a few common numbers that might come in handy. permanent tsb Electric Ireland Bord Gais (Energy) Airtricity UPC Eircom (Sales) Sky Revenue (for questions on stamp duty, TRS etc). The number is dependant on where you live Dublin City & County Clare, Cork, Kerry & Limerick Cavan, Donegal, Galway, Leitrim, Longford, Louth, Mayo, Monaghan, Offaly, Roscommon, Sligo and Westmeath Carlow, Kildare, Kilkenny, Laois, Meath, Tipperary, Waterford, Wexford and Wicklow

33 Important notices Lending terms, conditions and other restrictions apply. Security and insurance are required. normally subject to other lending criteria and assessment. For First Time Buyers a maximum LTV of 90% will apply for the first 220,000 of a property s purchase price, with a maximum LTV of 80% for all amounts greater than this. Lending levels are subject to a total monthly repayment commitment of around 35% of disposable income; however this percentage will vary depending on the individual circumstances. The monthly repayment on a 20 year Loan to Value Managed Variable Rate >80% LTV and </= 90% mortgage of 100,000 (Annual Percentage Rate of 4.28%) is If interest rates increase by 1% an additional would be payable per month. Variable rates may be adjusted by permanent tsb from time to time. Rates correct as of date 09/02/2015 but are subject to change. Fixed Rate Loans Whenever (i) repayment of a loan in full or in part is made or (ii) with the agreement of permanent tsb, the loan is switched to a variable rate loan or other fixed rate loan, before expiry of the Fixed Rate period (hereinafter called the Early Termination ), the applicant shall, in addition to all other sums payable as a condition of and at the time of the Early Termination, pay a sum equal to the permanent tsb s estimate of the loss (if any) arising from the Early Termination. In the calculation of the said loss, permanent tsb shall endeavour to apply in so far as it is fair and practicable, the formula C=(I-S) x R x (M-T) where C is the charge to compensate for the loss (if greater than 0), I is the swap/market fixed interest rate for the term of the Fixed Rate Period at the date of its commencement, S is the swap/market interest rate for the remaining fixed period, R is the amount of the Fixed Rate loan balance paid or switched at the date of Early Termination, M is the fixed Rate Period and T is the time expired of the Fixed Rate Period at the date of Early Termination. Arrears Interest will be applied to the outstanding balance of the loan. This balance includes any element of unpaid interest and charges which will accrue interest and be capitalised to the account. Home Insurance and Life Assurance Home Insurance: Standard acceptance criteria, terms and conditions apply. Minimum premiums of 140 for Buildings Only, 100 for Contents Only and 220 for Buildings and Contents. Life assurance: Acceptance is subject to underwriting. Terms and conditions apply. WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT. Variable Rate Loans WARNING: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME. 32

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35 A straightforward guide to banking and legal terms Advance: the amount of your mortgage. Annuity mortgage: a mortgage where you repay interest and part of the loan each month. APR: an abbreviation for Annual Percentage Rate. An APR (Annual Percentage Rate) is an interest rate calculation designed to reflect the total cost of the credit over the whole term of your mortgage. Collateral: the title deeds of your new property given as security against you repaying the mortgage. Completion: the final legal transfer of the property, where you pay the rest of what you owe to the seller and you receive the keys of the property. Contract: the written legal agreement between you and the seller for the property. Conveyancing: the legal work involved between you (the buyer) and the seller. Deeds: legal documents showing who owns the legal entitlement to the property. Deposit: the amount of money you must pay when the contracts are exchanged. Equity: The difference between the value of the property and the amount of any loans secured against it. Exchange of contracts: when both you, the buyer, and the seller is legally bound to the transaction. Freehold: owning the property and the land it stands on. Ground rent: annual rent (usually low) you pay each year on a leasehold property. Land Registry fee: a fee you pay to register your ownership of the property. Leasehold: a form of property ownership, where the property is leased by the owner to a leaseholder or tenant for a fixed number of years. Lessee: the person to whom a lease is granted. Lessor: the person who grants a lease. Mortgage: a loan made using property as security. Mortgagee: a bank, building society or other lender who lends the money for the mortgage. Mortgagor: the person who borrows money and who uses the property as security for the loan. Mortgage protection: life assurance cover designed to pay off what you have borrowed if you die. Negative equity: the value of the property is less than the total loan amount Principal: the amount of the mortgage on which we work out interest. Redemption: paying off the mortgage loan in full. Search: a legal investigation to see if there are any legal rights over a property and to see if it is affected by planning applications and so on. Stamp duty: a government tax. Subject to contract: This happens when the sale of the property has been provisionally agreed. It allows you or the seller to withdraw without paying any penalty. Structural survey: a detailed inspection of a property to check that it is structurally sound. Term: the period of time (years) over which you repay a mortgage. Title: who owns the property. Transfer: a deed which transfers ownership of a property. Valuation: an inspection of a property to decide its market value. Vendor: the person selling the property. 34

36 BMK2505 (Rev01/15) Please call us direct on