It was late 2018 when I felt the first “I need to buy a house” solo pang. That sudden bolt of realisation was triggered by news that a family friend in her 50s had been evicted from her accommodation of 10 years after her landlord decided to cut ties with the Irish rental market. Life flashing before my eyes, the concept of a stable home for life suddenly became an overnight necessity.
I was in my early 30s and working in radio, with zero savings, prospect of marriage or kids on the horizon. So I set myself the daunting task of meeting a mortgage adviser to investigate the possibility of solo home ownership.
“Only a €105,000 mortgage?”
I gasped. “Where do people get the rest of the money?” I asked, grand plans going up in smoke.
“Sometimes they get gifted by their parents or save it themselves. I am not saying it’s impossible, but getting a sizeable mortgage can be significantly more challenging for a single applicant.”
I found myself in a precarious position. Sure, I could afford a garden shed but would I ever be able to buy a house? Should I simply abandon ship and rent to break free from the family home? As someone new to the property sphere, I was in disbelief at how little I could borrow at 3½ times salary, the lending cap imposed by the Central Bank.
Frustrated, I set about buying books written by financial advisers and reading scores of articles about mortgages. Shortly afterwards I changed careers, entering the realm of communications, where pay packets would be higher and an increased level of savings possible. I was fortunate enough that my parents were agreeable to me remaining in the family home for that challenging three-year period.
I faced an even bigger obstacle, which was finding somewhere liveable, affordable and within comfortable travelling distance of my family and friends
I drew up a detailed plan and set myself strict financial targets. I also made a salary review a condition of my new job as higher earnings would equate to a larger mortgage. I began analysing the property market in detail, scouring through home buyers’ websites and examining the Property Price Register to identify what was and was not achievable.
As a single applicant on a tight budget, location and price were key. Unfortunately for me, growing up in one of Ireland’s priciest suburbs, Dún Laoghaire, meant I faced an even bigger obstacle: finding somewhere liveable, affordable and within comfortable travelling distance of family and friends.
As a sole applicant I automatically found myself priced out of the housing market in my area. Government schemes such as Help to Buy apply to new builds only (a fruitful option if living with your other half) and I was just above the earnings threshold for Rebuilding Ireland. I eventually concluded I could probably afford a second- hand two-bed apartment, something my inexperience led me to believe would be a quick and easy purchase. How naive I was.
Applying for a mortgage is nothing like the TV ads where you see people testing their taste buds with new ice-cream flavours. To me, the often headache-inducing experience bore more resemblance to scoffing down a 99 before it melts or, worse, drops off the cone altogether.
By September 2020 I had finally achieved my 10 per cent deposit and a little bit extra to cover legal fees, surveyor costs and stamp duty. I initially spoke to a mortgage broker and two banks, each of whom informed me what the process would entail. I familiarised myself with mortgage “lingo” from AIP (approval in principle) to APR (annual percentage rate) to closing costs, to closing disclosure, fixed and variable rates.
Inflation in mind (recent figures from myhome.ie revealed price increases of 6.3 per cent nationwide in January this year), I was keen to find the right property sooner rather than later.
With mortgage approval in principle being the first step, I decided to explore my options. I spoke to a mortgage adviser (who was chargeable) while also applying to Ulster Bank and EBS. I decided to complete my applications myself, which proved a task and a half.
I compiled a minimum of 16 documents, from payslips, salary certs, bank statements and credit card bills to an employment detail summary. In addition to this, there were Covid-19 challenges – both banks requested letters from my workplace stating I wasn’t availing of the wage subsidy scheme. I also hit a wall at one point when I couldn’t get hold of the official company stamp.
Speaking to the banks as a sole applicant was an intimidating, time-consuming process. The only upside was that I had zero other considerations, such as spouse’s documents or childcare costs that can reduce the mortgage amount by several thousand euro. I eventually settled on EBS. It was the positive demeanour of the mortgage manager that won me over.
Luckily for me, I was granted my approval in principle within just two weeks. Which meant my search for “the one” could begin in earnest.
Rebecca Lee is a freelance writer and broadcaster
