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An indication of the likely outcome of a loan application. This is not a formal
offer but includes an assessment of your ability to repay the loan amount requested
based on the information you have provided.
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Annual Percentage Rate. A standard way to present interest rates on an annual
basis. |
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A mortgage used to buy an investment property to be rented out to a third party.
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There are 2 ways of repaying a mortgage - capital and repayment/annuity or interest
only payments. With a repayment mortgage, the capital and interest elements
of the loan are paid off with each monthly instalment so that the balance reduces
over time. At the end of the mortgage term the balance will be nil. |
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A tax levied by the Revenue Commissioners, currently at the rate of 20%, on gains
made from the sale of most assets, including property. Your PPR is exempt
from CGT. |
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The legal process involved when buying or selling property.
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The amount that you provide to purchase your property that does not come from mortgage
loan proceeds. |
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The rate of interest which is lower than that normally charged for a mortgage.
After an introductory period, the discount rate expires and the normal mortgage
rate is applied. |
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A charge payable of some mortgages to cover administration costs in the event of
a loan being repaid before the due date. |
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The value of your home minus any outstanding loan. |
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A customer buying their first residential property, usually for their own use.
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A mortgage rate where the interest rate is agreed at the outset and will not change
during the term of the fixed rate. Normally the interest rate will revert
to a variable rate after the fixed rate period has expired. |
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Freehold means that you own the property and the land it is situated on. |
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A secured loan to release equity in your property for any purpose. |
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The charges that banks make on a loan, calculated as a percentage of the amount
borrowed |
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There are 2 ways of repaying a mortgage - capital and interest payments or interest
only payments. With an interest only mortgage, the monthly instalment consists
only of interest, so you are not reducing the amount of the mortgage with each payment.
Usually, the mortgage will revert to a capital and interest mortgage after a pre-arranged
period.
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The fees charged by a solicitor to carry out the legal work associated with buying
your property.
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Loan to Value or LTV refers to the amount of the mortgage compared to the value/purchase
price of the property in question. For example, a €100,000 mortgage on a
house worth €200,000 would have an LTV of 50%. |
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A loan made against the security of a property. |
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Tax relief granted by the Revenue Commissioners in respect of mortgage interest
payable on your Principal Primary Residence (PPR). This is usually deducted
from your mortgage payment directly by the lender under the Tax Relief at Source
(TRS) system. Click here for more details. |
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If you own a property and you use it exclusively for residential purposes for you
and your family, this is usually your PPR. At present, PPRs are exempt from
capital gains tax. Also known as PDH (Private dwelling house) |
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Moving mortgage from one lender to another without moving house. |
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A charge levied by the government on residential property transactions. It
is payable by the buyer. Click here to see the rates applicable.
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The interest rate which a lender quotes as its normal variable rate for lending
to residential owner occupiers. |
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An investigation carried out by a a qualified surveyor to establish if there are
any structural problems that need to be rectified. Click here for a list of quantity surveyors. |
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A mortgage loan where the interest rate is tied to the European Central Bank (ECB)
rate, plus a margin. |
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The length of time over which you agree to repay your mortgage. |
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An independent assessment of the value of a property carried out by an approved
valuer for the lending instiution. |
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The interest rate on your mortgage loan which can change periodically in line with
market movements.
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