Borrowing the deposit: Don't seek approval from one lender and then borrow the deposit from another, warns Mr Ronan Mackey of NC Mortgage Brokers. "When you need to draw down the mortgage, the lender might do another credit check." If it discovers the loan, it might reduce or withdraw its offer.
Being sucked in by special offer rates: Pick a lender based on long-term value, not short-term discounts, says broker Mr Liam Ferguson. "Many lenders advertise short-term discounted variable rates as low as 2.49 per cent which may seem attractive at first glance," he says. But the discount often reverts to an unattractive default rate once it has expired.
Forgetting about stamp duty: Stamp duty on second-hand properties kicks in once they exceed €190,000 in value. Buyers sometimes think the duty only applies to the proportion of the price over €190,000, when it is actually payable on the full amount, says mortgage adviser Ms Sarah Wellband.
Buying the extras from the lender: You are not obliged to purchase life assurance (mortgage protection) or home insurance from your mortgage lender and it is illegal for a lender to insist that you buy the insurance from it.But you are required to get cover from somewhere, so shop around for the cheapest quotes.
Leaving life cover to the last minute: It may take a while to get mortgage protection cover, especially if you have a medical condition, as insurers will want to contact your doctor and may do their own tests.This could delay the drawing down of the mortgage and you could lose out on the property you were hoping to buy.
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