Category: Uncategorised

Why Switch Your Mortgage?

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After pensions, I believe mortgages are the next big financial product which people struggle to fully comprehend. I feel you should look at your mortgage every 3 to 5 years to ensure you are getting the best rate possible. I always build this into the financial review. At SYS Mortgages we research the marketplace to secure the cheapest and most suitable mortgage for our clients.  We have knowledge of the most competitive rates available, and the financial incentives being offered to mortgage switching clients.

The Central Bank conducted a survey in 2015:

“Based on the analysis of over half a million mortgages, up to 21% of borrowers could save money by switching.  Of those mortgages that could save money by switching, approximately 16,000 could save over €1,000 in the first 12 months, and around 27,000 switchers have the potential to save in excess of €10,000 over the lifetime of the mortgage.”

These are the questions I ask my clients to ascertain if it is worth their while changing:

  • Which type of interest rate are you on: Fixed, Variable, Tracker, Interest only?
  • What is your interest rate and term?
  • Loan to Value (LTV) = Outstanding mortgage balance versus the current value of the property.
  • Have you any additional top up loans?
  • Do you need a second mortgage, aka a Top Up/home improvement loan to do an extension or work on the house or grounds?
  • Do you have any Education loans or family members participating in 3rd or 4th level courses?

Fixed Rate:

From the 01/01/2019, the Central Bank introduced new rules to make it easier to switch mortgage providers.
I suggest that you order a redemption figure from the lender to confirm what the penalty may be.

When you come off a fixed interest rate you will default to the lenders variable rate unless you opt to enter a new fixed term agreement.  If you are on a variable rate there will not be any penalties for redeeming the mortgage. At SYS we will be recommending that they shop around at this point.

Interest Rate and Term:

Anything over 2.7% is a sign you should investigate the possibility of changing provider.

Are you happy with the term is another question that I ask my clients? I regularly hear people saying they want to retire at 60 but their mortgage term brings them to 65. We need to factor this into your financial goals.

Loan to Value (LTV):

Loan to Value ratio helps loan providers determine the amount of risk they are exposed to. The higher the loan ratio is, the higher interest rate you pay. If the value of your property has increased, and you have paid a sizeable amount off your mortgage, this then reduces the LTV and is another sign savings could be made. (The Mortgage provider will need an official valuation of your property).

Education:

Although this may not be advisable to everyone, you can release equity from your home to help with 3rd and 4th level expenses. Like home improvements, current education loans can be merged into a new mortgage with certain lenders.

Second Mortgage/Home Improvement loans:

A second mortgage is also commonly known as a ‘Top up Mortgage’ for something like of an extension or work on your property. These smaller loans are sometimes at a much higher rate and can be merged into one new loan at a lower rate.

Cost of Switching:

Associated costs would be legal fees, valuation fee & broker fee – typically the financial incentive offered to switchers will cover this cost plus you may avail of lower interest rates which will save you money over the long term.

Thanks for reading! If you have any questions or would like to get more information, please feel free to contact me. You can find me on LinkedIn https://www.linkedin.com/in/paul-heverin-79853872/ or you can email me at paul@sysgroup.ie

Mortgage Protection – Why Shopping Around Can Pay!

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Unfortunately (or fortunately depending on your prerogative!) this blog isn’t going to have any reference to A list actor’s speeches or analogies about golf caddies and financial advisors!! Alternatively, I felt it was an apt time to delve into some of the product offerings that SYS Group offer and where better a space to start than Mortgage Protection. Property has been to the forefront of Irish Politics and public conversation for a long period of time now and owning property is something the Irish people have a real love affair with. You may or may not be aware, but any mortgage draws down requires a Mortgage Protection policy to be in place to cover the financial liability of the loan in the event of your death. As a result, it’s a product for which much of the population will take out at some point of their lives. As a result, I think it’s important to shine a light on some details about the product itself.

What is Mortgage Protection Insurance?

Mortgage Protection is a life insurance policy which pays off your mortgage should a life assured die during the term of the mortgage. The term of the mortgage protection policy coincides with the term of your mortgage. So, if you take out a mortgage over a 30-year term, your mortgage protection policy must also be in place for 30 years.

Why should you get it?

Your mortgage lender requires a mortgage protection insurance policy in place, before they will allow you to drawdown your mortgage. The Mortgage Protection policy will be ‘assigned’ to the mortgage lender. This means that in the event of a claim, the benefit will be payable to them for the purpose of clearing the mortgage.

When should you get your Mortgage Protection Insurance?

It is important that you give yourself plenty of time in order to apply for Mortgage Protection cover. If all lives assured proposed on the policy are in good health and have a good health history, the policy could be accepted within days. However, if there are any health issues or a history of health issues, the Life Company may request further information which will inevitably delay the process.

How does it work?

Mortgage protection cover reduces over time, as the amount you owe on your mortgage reduces. At the end of your mortgage term the cover will have reduced to zero as the mortgage will have been fully repaid, assuming all repayments have been made on time. The sum assured is based on an assumed interest rate of 6%. You should be aware that if the average interest rate over the term of the loan exceeds this rate, there may be a potential shortfall between the benefit paid out on a claim and the outstanding mortgage. Your interest rate could be lower than 6%, however the life companies assume a rate of 6% to ensure you remain covered should interest rates rise during the term of the policy.

What are the benefits?

The benefit is something nobody ever wants to benefit from should the truth be told, but in the event of one of the policy holders dying during the term of the mortgage, the insurance company pays the policy benefit direct to your mortgage lender. The mortgage lender will allocate the amount needed to clear the mortgage and if there is an amount left over, they will pass it to your estate. If the cover is not enough to pay off the mortgage in full, the remaining part of the mortgage will need to be repaid.

Where to go for Mortgage Protection Insurance?

Most mortgage lenders offer to arrange mortgage protection insurance for you when you apply for a mortgage. This however can be a flawed approach, as many of the lenders have preferred providers and as a result you most likely won’t be getting the best value on the market.  As a result, you do not have to take out your policy with the mortgage lender. You are free to shop around for a suitable policy. Lenders cannot refuse you a mortgage should you decide to source your policy elsewhere. A broker like SYS Group will research the market on your behalf and advise you of the best option available to you.

At present the providers in the market are offering various benefits on mortgage protection policies, none more so than Royal London. The current offering from Royal London is as follows:

  • Price Match the Irish Market – They will price match the market and will not be beaten on premium.
  • First Months Premium is free – The first month of your new policy is free and premiums will be collected from month two.
  • Access to Helping Hand benefit – If you ever suffer a serious illness, injury, or bereavement, it provides you with the additional support you might need beyond a financial pay out.

If you have read this and it sparks your attention and you would like to find out more on the topic, or if you would like to requote to see if there is cheaper premium available, I can offer a couple of options! Firstly, you can contact me directly at daniel@syswealth.ie. You can contact me on LinkedIn https://www.linkedin.com/in/daniel-nagle-b551a6129

Alternatively, you can continue to follow these series of blogs that will be on the SYS platform on a regular basis and hopefully we can continue to help our clients and potential clients.

Seize the Day and Put Money Away

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As promised, I will continue on from my previous blog, covering the topic of cash flow forecasting and the value of software systems such as Voyant in modern day financial planning. Over the past year, it has been undoubtedly difficult to plan what you will do at the weekend, never mind planning the monthly and annual cash flow for you and your family.

I for one was always a firm believer in the theory that you are what you are today because of how you reacted or adjusted from something that happened in the past. My belief in this theory has been slightly skewed from a recent podcast I listened to with the Ex-England World Cup winning hero, Johnny Wilkinson on The High-Performance Podcast. Wilkinson remarked on how he changed his thinking from the same theory I had and flipped it on its head, with his career and performances taking a sharp upward trajectory. He felt every day gave him the opportunity to be better and he never looked back. Always looking forward and seeing life (rugby specifically) as an opportunity to be better rather than an opportunity to just learn a lesson.

This thought process struck a chord with me both personally and in a professional context. On umpteen occasions I have discussed the financial situations of clients and been overwhelmed by how bogged down they are with bad habits and their guilt for the mistakes they have made in the past. To apply Wilkinson’s logic, why not forget the past decisions and instead control the controllable? Why not see here and now as an opportunity to get better. You don’t need initially to be great, but you can always strive to be better. So, if you can seize the moment and decide to be better with your finances, you probably start to wonder, “Where do I start?”

If you’re at this point you can rest assured, you are on the right path. In my honest opinion the fundamental step you then need to take on this path is to contact a Qualified Financial Advisor (My details are attached ?). An advisor will and should sit down with you to gather as much information as possible on you and your family’s financial needs, wants and most importantly goals. Its paramount that you, the client, engage with the process and as a result your advisor will be able to make recommendation’s as to how to get you further down the path on financial security and efficiency. This will give you a financial plan for you and your family and should be flexible but also achievable.

The above image is from a recent client meeting. The black line is the “Total Need” amount. Based on the image above for this year, the clients have an excess of almost €50,000 before tax. How bad your probably thinking, €20,000 “ish” left over to play around with, how bad? Imagine I told you these clients couldn’t believe they have this much excess annual cash and had a credit card that was almost at capacity and an interest only mortgage repayment structure in place? How bad now? People are often fooled into thinking if you earn the €X salary a year and you have a nice new house that “Jesus the Jones’s are well off aren’t they”. Unfortunately, the keeping up with the Jones’s mentality is foiled on many levels. Without a plan and an understanding of what you have and what you spend, your financial journey is like driving on black ice.

To finish (At last you must be thinking), if you are unsure why you can’t get a hold of your finances and you are worried by habits of days gone by, please reach out to an SYS Financial Advisor and before you know it you will be on the road to Financial Freedom. I hope you will continue to follow these series of blogs that will be on the SYS platform on a regular basis and hopefully we can continue to help you along your financial journey.

Daniel Nagle QFA

Financial Consultant

SYS Wealth & Financial Planners

+35385 8203811 daniel@syswealth.ie

What Do We Do & Why Do We Do It?

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What do I do? What does SYS do? What do Financial Advisors do? If I had a euro for every time, I got asked these questions its safe to say I’d be living closer to the Caribbean than Castletroy!

All joking aside, I feel it’s really important for people to understand the function of a Financial Advisor in a person’s life. I’ve coined the phrase “Life Gets in the Way” when speaking to clients as a means of understanding why they haven’t got around to accessing their personal finances, and I honestly believe it. Day to day living takes up a lot of your time! Prioritising a review of you Protection, Pension, Investment and other policies can be hard to muster after a long week of minding your kids or navigating the month-end at work. This is where we, Financial Advisors (SYS in particular), come in. Our role is to relieve the pressure of monitoring your personal finances. I like to describe it as; we add value by giving you back your time. As a colleague of mine said to me lately, “we look after today, so they can look forward to tomorrow”. For the golf fans among you, we are a financial caddie!

Moving on abruptly from that left field analogy, I would like to delve deeper into what we at SYS do specifically and illustrate this to you, using my usual “go to” representation.

To summarize the image, we forensically examine your current situation; we access what has changed in your life since the policies/plans were taken out and present a recommendation on areas; where appropriate, that require attention and possibly change. As the image above outlines, we carry out our assessment based on 8 fundamental pillars. This allows us to achieve the highest standard of analysis which gives us and the client full confidence that what we present is 100% accurate.

As usual, if you’ve been able to suffer through reading this blog and have any queries, I would be delighted to hear from you and to help in any way possible. There has never been a better opportunity than today to schedule time for yourself and let a Financial Advisor guide you on the road to financial security and efficiency. You can contact me directly at daniel@syswealth.ie. Alternatively, you can contact me on LinkedIn @danielnagle or by calling our office on +3536757057.

I hope you will continue to follow these series of blogs that will be on the SYS platform on a regular basis and hopefully we can continue to help you on your financial journey.

Daniel Nagle QFA

Financial Consultant

SYS Wealth & Financial Planners

+35385 8203811

daniel@syswealth.ie

To Buy or Not to Buy

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To Buy or Not to Buy – is now the right time?

When Covid hit in March 2020 and catapulted us into lockdown it was assumed that our demand for houses would decrease and prices drop as a result. This was a logical thought when we were restricted both economically and socially and with thousands of people unemployed – but how wrong we were!

House prices did drop during our first and most severe lockdown.  However, prices recovered and have increased since then.   Year on year Dublin prices have increased by 6.9%, Limerick city by 7%, Tipperary by 4.9%.  The most substantial growth has been in Leinster where prices are up by 18% in Kilkenny and by 14.3% in Wexford (figures as per Daft report).  Waterford house prices have increased by 12% and Cork city prices have increased by 11.6%

Why are house prices increasing when we’re in a lockdown?

I think there are a few reasons for this 

  • Remote working – people moving from the cities to more rural locations.  For the last year there are thousands of people working from home, they no longer need to suffer long commutes into city locations to work.  When working from home they have no commuting costs or no take away coffee / lunch costs etc.  Some employers are now offering the opportunity to WFH to their employees on a long term basis which means these employees are seeking to purchase a home away from the cities.  And why not – wouldn’t we all prefer to buy a house with a garden in the fresh air in preference to a one bed apartment in a built up area? 
  • Huge increase in savings – Every day I’m talking to people who are saving a couple of thousand euro month on month.  It has been widely reported that we had an increase of an extra 14.2billion on deposit in 2020.   Some of this money is being used as a deposit for a new home be it their main residence or an investment property.     People want an option for their cash where it’ll potentially grow and not be at risk of losing value if the funds are held on deposit.
  • During each lockdown we’ve seen multiple sectors out of work, this year alone     construction was partly shut down for approx. 3 months.   Automatically this means that new homes are not being built and in turn this is having a negative effect on our supply of houses.  We have very few houses being built but then we have the Help to Buy scheme which is incentivising first time buyers to purchase new homes in preference to second hand homes.  And why not if you can get up to €30k from this government backed scheme.   Also impacting the cost of housing is the significant increase in the cost of building materials.   Part of the reason for the increase in building materials costs is the reduced manufacturing capacity and higher demand.

Supply & demand – we all learned in school that if there’s a shortage of supply and strong demand this will immediately impact on the price.   This has most definitely happened with our housing situation.

Based on data from property websites My Home and DAFT, these companies estimate that as of February this year there were only 15,500 second hand houses for sale in comparison to 20350 in the same period in 2020 – down 24% in the 12 month period.

  • 2020 also saw some Irish people return from abroad during the pandemic, these people are now also looking to buy a new home.   I’ve mortgage applicants whose employer is abroad and they are working remotely on an international basis.

Because of the shortage of houses I sense that there is an urgency to buy a house and to buy it asap before they take another price hike.  But is it a good time to purchase?

Due to government level 5 guidelines a home buyer can only view a house when a contract is drawn up.  This means that you cannot physically view the house you wish to purchase until you have sale agreed / deposit paid.   Auctioneers are now offering virtual viewings of houses up for sale (OMG hasn’t covid significantly heightened our level of technology!)  I’m hearing different views on virtual viewings – auctioneers say it’s fantastic and unforgiving as it’s 3D and you can view all corners of every room in preference to just walking through each room.  Some viewers then say that the wide lenses being used make the room look bigger than it actually is and then when you physically see the rooms they are smaller than expected.  

Personally, I find it difficult to buy shoes online not to mind buying a house!  

We’re now also reading reports where global investment funds are buying up entire estates with the intention of renting out these houses, this is also raising concerns about the already constrained supply of houses for personal buyers.  Hopefully the government will introduce laws to de-incentivise these purchases.

I’m sensing some panic in potential house buyers with whom I speak on a daily basis, I feel that people are getting caught up in a frenzy to purchase – does this sound like history repeating itself – I hope not.   

So should you buy a house now or should you wait – that is the question!   

Are housing prices going to continue to rise due to lack of supply / pent up demand and increasing cost of construction?   Or when restrictions lift will there be a build-up of vendors who are happy to allow potential buyers walk through their home with the prospect of a profitable sale?

There are a lot of house hunters with mortgage funds approved but will they find their new home before the approval expires? Only yesterday a customer of mine enquired about getting mortgage approval and is planning on buy a house in a new development in Cork – they’ll be ready between May & October 2022! Their loan offer will be well expired by that time.   Conversation for another day is the cost of these houses – 3 bed semi d (1267 sq. feet or 117.8 sq. metres) is costing €335k – for a couple earning average wages of €40k pa they currently can borrow a max of €280k – it’s easy to see how first time buyers need the HTB funds to include as their deposit.

I’ll leave it up to you, the readers of this blog, to decide if you would buy a house now or if you’d wait and hope that prices will decrease in the next year or so.

The Central Bank specified a need for 34,000 houses to be built every year for a decade from 2020 – CSO figure for new houses built in 2020 was only 20,676.

Yes, prices are crazy at this time but I’m not sure they’re going to decrease any time soon.

If you need any more information please give Helen a call on 067 57059 / or email helen@sysmortgages.ie

Setting Goals to achieve Financial Freedom

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Life is a series of daily choices.

How we manage those choices determines the outcome of our life. We all want financial freedom as early as possible in life, but how will we achieve it? Financial goal setting is the key to building wealth.

There always bumps in the road on every journey, so it’s essential to be flexible enough to adjust your plans when the unexpected happens. Your wealth creation objectives need to be able to adapt to whatever’s going on in your life.

Creating and maintaining the right investment strategy plays a vital role in helping to secure your financial future. Whether you are looking to invest for income in retirement, we can provide bespoke advice to help you achieve your financial goals. So, what do you need to consider?

Set a goal and start early

Short term goals are generally easy to achieve as they don’t really involve any planning, but longer-term goals require you to plan to achieve the goal. Remember, wealth creation is about creating a lifestyle of your choosing, and the earlier you start to invest, the sooner you can enjoy the benefits of compound growth working for you to build value and make your money work harder for you.

By taking the time to step into your future through cash-flow modelling, you can look back and visualise what needs to happen today for you to enjoy the lifestyle you want tomorrow. Ask yourself these three questions to help you visualise your future needs:

What do I have?

What do I want?

When do I want it?

Develop an investment habit

If you think that investing a few hundred euro every month will offer little in return, think again. To start your investment strategy, you should adopt a stable and organised investment routine.

Compound interest is the central pillar of investing and is why investing works so well over the long term.

The more you invest and the earlier you start will mean your investments have more time and potential to grow. By investing early and staying invested, you’ll also be able to take advantage of compound earnings. Making money on your money is the concept behind compounding – when the money you earn from your investments is reinvested for the opportunity to earn even more. However, keep in mind that while compounding can make an impact over many years, there may be periods where your money won’t grow.

Be consistent

Many people stop their investment planning particularly during market downturns, as we’ve seen recently. By doing this, they can miss out on opportunities to invest at lower prices. If you keep to your investment strategy and keep moving ahead consistently, this helps spread risk and enables you to grow your wealth for the long term through unit-cost averaging and careful asset allocation.

It’s important to remember that investing is an ongoing process. The right way to begin your investment strategy is by establishing goals that need to be achieved over the short, medium and long term. Secondly, assess your current position in the financial lifecycle. Thirdly, ascertain your risk profile, as that decides how much risk you should take while investing. This is important as different financial objectives require different investments approaches.

Maintain a well-diversified portfolio with regular reviews

Regular reviews of your portfolio enable you to adjust your portfolio to meet your changing needs and risk appetite at different stages of your life and in different market conditions. This helps you keep up your investing momentum towards achieving your long-term financial goals. It’s also important not to put all your investment eggs into one basket e.g. during The Global Financial Crisis in 2008/09 a lot of Irish people were heavily invested in Bank shares.

Investing randomly into different asset classes without ascertaining their asset allocation, not following a disciplined approach to investing, exiting abruptly from an asset class and investing without a clear time horizon, are some of the most apparent inconsistencies in any investment process.

At SYS Wealth & Financial Planners we take our clients on their financial journey through holistic financial planning, as we understand that choosing how to invest your money can be overwhelming.

If you wish to contact me you can email me at jack@syswealth.ie or ring me on 0872802933

3 areas to cover off to demonstrate that you are “Mortgage Ready”

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Considering applying for a mortgage?

Evidence of ability to repay This is also known as showing the repayment capacity to repay a mortgage. Basically you need to show, for at least the previous 6 months before applying for a mortgage, that you have proven ability to pay the proposed mortgage repayments. Evidence of your monthly rent repayment and/or evidence of a regular monthly savings amount are two of the main ways of showing the ability to repay. Another way would be, if you have just cleared a personal loan or if an existing loan will be cleared in full prior to drawing down your mortgage, the monthly repayment on this loan would show more repayment capacity. Furthermore, if you have a consistent build up in your current account balance, an average of this monthly increase can be taken into account also.

Main point here is to be able to show from bank statements, that you have the proven ability to pay a minimum of the proposed monthly mortgage repayment

Proof of Deposit

If you are a first time buyer you will have to pay 10% of the purchase price of the property from your own funds or from funds received as a gift.

If you are a mover you will have to pay 20% deposit and if it is an investment property you will have to pay 30% Deposit or this could be higher depending om property location.

Before approval of any mortgage application you must provide evidence of the necessary deposit funds. This can be way of funds you have in your name in your bank accounts or in investment or savings plans. You can also be in receipt of a non refundable gift, say from a parent, as part of your deposit.

Documentation gathering

This is the part of the process that can sometimes frustrate applicants and can be viewed as a lot of hassle!!! We in SYS mortgages look to make it as painless as possible for you!

Break it down into 3 sections ID requirements

Photo ID (passport / driving licence) and proof of address ( bank statement / Utility bill) and proof of PPSN number ( payslip)

Income Documents

Payslips – (minimum of last 4 consecutive recent payslips) Salary cert (provided by SYS Mortgages) to be completed and signed off by employer Employment Detail Summary from revenue website (old P60)

If you are self employed or a company director you will need to provide at least 2 years audited accounts and various revenue documents. Statements

Last 6 months statements of your current accounts, loan/mortgage accounts and savings or investment accounts. Make sure they are statements showing your name and address and account details. (Itemised transaction listings will not suffice.)

If you have the above 3 areas covered off you are well on your way to submitting your application. We in SYS Mortgages will do the rest for you by processing your application and keeping you updated along the journey.

Any enquiries can be sent to Donagh@sysmortgages.ie or give Donagh a ring on 0868358961.

Without Voyant, whats the Po-yant?

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If your reading this, thank you for persevering beyond the title in what can only be described a pathetic play on words! For those of you who have read my last few blogs, you are probably aware that the memo is for there to be some insight into the Financial Planning industry while not over loading on traditional jargon or heavy content. I hope this will be no different.

As a self-appointed twenty first century Financial Advisor, nothing gives me more satisfaction than to see the stereotypical image of our profession disassembled, almost brick by brick. The days of a brown mahogany brief case and a fist full of fund sheets are slowly becoming a thing of the past. Thankfully! Instead we are moving to a new age of financial planning, where simplicity and client education is the order of the day. Leading this charge is the cash flow forecasting tool that is Voyant.

For those unfamiliar with Voyant, please see the image above. Voyant is a software that allows for a visual presentation of an individual or family’s financial situation. Apologies for the throwback to the old adage, but “A picture paints a thousand words”. Thankfully the days of isolated selling and product pushing, is in the rear view mirror in the majority and instead there has been a significant shift in the past decade towards financial planning and a holistic view on personal finance. No tool better equips clients and advisors alike to move to this age better than Voyant.

I have attached a link below to a whistle stop tour as to the benefits of Voyant and why I feel everyone with a financial conscience should have a Voyant financial plan in their lives. If a picture paints a thousand words, well then a video….

We at SYS Financial Planners are always looking for ways to improve and to help our clients and we believe Voyant is one of the most important ways. I speak for all the team when I say that educating our clients and helping them to understand the financial journey they are on is one of our major goals. This may be the straw that breaks the camels back but…. As the saying goes “ give a man a fish and hell eat for a day, teach a man to fish and hell never be hungry”. A client that knows and understands their plan and their journey to retirement is the client who wont listen to market noise and who will know that sticking to the plan is the way to financial independence and success.

If you have been able to suffer reading this blog and have any queries, I would be delighted to hear from you and to help in any way possible. You can contact me directly at daniel@syswealth.ie. Alternatively you can contact me on linked in @danielnagle or by calling our office on +3536757057.

I hope you will continue to follow these series of blogs that will be on the SYS platform on a regular basis and hopefully we can continue to help you financial journey.

Daniel Nagle QFA

Financial Consultant

SYS Wealth & Financial Planners

+35385 8203811 daniel@syswealth.ie

35 Tips – Self Build Mortgages Explained

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If you are applying for a mortgage to build your new home you will need all the usual financial documentation plus you will need to supply specific documentation in relation to the site & the build

General documents required –

  1. Identification – valid passport or Irish / UK driving license

2. Address Verification – Original bank / Credit Union statement or original utility bill i.e electricity bill or house phone bill.

3. PPSN verification – payslip

4. Marriage certificate if any documentation provided for the application is in applicant’s maiden name

5. Separation agreement or maintenance agreement if applicable.

6. Signed gift letter if funds are being gifted towards house deposit

7. Experian credit check if applicant(s) has resided in a foreign country within the last 3 years or where the applicant(s) holds a foreign property and / or bank accounts

8. Financials – 6 months statements for all bank / credit union / post office / mortgage / loan accounts / Revolut accounts / Creation Finance accounts held

9. Your last 3 months of credit card statements if applicable.

10. Lease or rental agreement if rent being paid or received is not visible on your bank statements

Self Build documentation required –

11. Cost of construction form as completed by your architect / engineer or surveyor & purchase price of site if applicable.

12. Confirmation of planning permission – we will need “notification of decision to grant planning” for the initial application. However, subject to approval of your application we will require a copy of full grant of planning.

13. House plans & specification and site maps.

14. When you are building a house the site can be used as your deposit / part of your deposit. If the site has been gifted we may need a signed gift letter confirming same.

15. You can apply for a joint mortgage if the site is in sole name only – joint mortgage / sole title application. This is quite common where a site is gifted from one applicant’s parents / family member, advice on this can be sought from your solicitor.

16. We will need to be able to prove that you can repay the monthly mortgage commitment to the lender. This can be evidenced by demonstrated consistent savings, evidenced rent or through current loan repayments where the loan will be repaid in full prior to drawing down the mortgage.

17. If you are paying for any self build costs EG engineers fees / planning fees I recommend that you have a narrative on your bank statement re same. These costs can be included as your contribution to the mortgage.

Stage Payments –

There are generally 5 or 6 stage payments for a self build

18. Foundation stage

19. Wall plate

20. Roof on and windows & doors fitted

21. First / second fix

22. Completion

23. At each stage your engineer will complete a stage payment request form, this is sent to the lender and they then will release funds to your solicitors account.

There are generally 3 valuations to be done during the course of the build –

24. Prior to start of build / foundation stage

25. When house is sealed IE roof on and windows / doors fitted

26. Completion of house – Lender will retain last drawdown until they have confirmation from the valuation report that the house is completed.

27. It’s very important to have sufficient funds available to complete your house. Lenders will include a contingency fund of 10% / 15% to allow for over runs. I think including a contingency fund is so important for those building a house. You don’t need to drawdown all the approved funds but to have additional funds available if needs be. If your new home is completed with less funds than you were approved for you can send a signed letter to the lender stating that you don’t need to drawdown the remainder of approved funds. Once the lender has this letter and the completed valuation report the mortgage can then be concluded.

28. However, if you don’t have enough funds to complete the house the lender will not release the final drawdown of funds.

29. You only pay the mortgage as you draw down the funds. Hence, you only pay back for what funds you have received, monthly repayment increases as you draw down mortgage.

30. My advice is to get approved for more funds than you think you’ll need! You don’t need the stress of not having sufficient funds to complete your new home or you don’t need the hassle and cost of applying for a top up!

31. You will need to have sufficient mortgage protection for the full amount being applied for but otherwise there’s no extra cost to you.

Help to Buy –

32. If you are first time buyers and buying / building your new home you can apply to revenue for the Help to Buy funds. Full details on http://www.revenue.ie

33. We will need to have your application reference and your access code for your mortgage application.

34. Insurance

35. Some lenders will require that you have ‘course of construction building insurance’. If you have a contract for the build of your house check what insurance your contractor has. Then you can obtain quotes for insurance available – an insurance broker will be able to advise you on this.

If you need any help or advice please reach out to Helen on helen@sysmortgages.ie

or

ring us Today on 06757059

If you are undecided on whether to go direct or go to to a mortgage broke. Have a read of this article and this will help you make up your mind (click the link) https://syswealth.ie/why-use-a-broker-for-your-mortgage/

Why You Need a Financial Planner In Your Life?

Posted on by sys_admin

I often wonder what or who makes the perfect financial planner or advisor. Is it someone with a straight moral compass and QFA designation. Is it the stereotypical brown leather briefcase and a couple of decades of experience in the industry?

In the coming weeks I am going to run a series on what you should look for in a financial advisor and why they can add value to you and your family.

A financial advisor is your financial planning partner.

To accomplish your goals, you may need a skilled professional with the right licenses to help make these plans a reality; this is where a financial advisor comes in.

Together, you and your advisor will cover many topics, including the amount of money you should save, the kinds of insurance you should have (including long-term care, term life, disability, etc.), and estate and tax planning.

The financial advisor is also an educator. Part of the advisor’s task is to help you understand what is involved in meeting your future goals. The education process may include detailed help with financial topics. At the beginning of your relationship, those topics may include budgeting and saving. As you advance in your knowledge, the advisor will assist you in understanding complex investment, insurance, and tax matters.

Step one in the financial advisory process is understanding your financial health. You can’t properly plan for the future without knowing where you stand today. Typically, you will be asked to complete a detailed written questionnaire. Your answers help the advisor understand your situation and make certain you don’t overlook any important information.

Creating The Financial Plan:

The financial advisor gathers your personal information at the initial meeting, commonly known as “Fact Finding”. All of this initial information is used to build a comprehensive financial plan that will serve as a roadmap for your financial future. It begins with a summary of the key findings from your initial fact finding and summarizes your current financial situation, including net worth, assets, liabilities, and liquid or working capital. The financial plan also recaps the goals you and the advisor discussed.

The analysis section of this plan will provide more information about several topics, including your risk tolerance, your need for insurance, be it Life, Serious Illness, Mortgage Protection as well as Pensions and Investments.

Based upon your expected net worth and future income at retirement, the plan will create of potential best and worst case retirement scenarios, including the scary possibility of outliving your money. In this case, steps can be taken to prevent this situation transpiring. Additionally, if you are married or in a long-term partnership, the plan will consider survivorship issues and financial scenarios for the surviving partner, with tax efficiencies being of utmost importance.

Union Budget 2019 Highlights: Financial Express Online is bringing the comprehensive details and nitty-gritty of the Modi government’s Budget 2019 Highlights

Helping You Reach Your Goals:

Financial advisors can assist you with investing and reaching your long-term goals in many ways. The key to achieving such goals is discipline and time. When a plan is put in place to achieve X,Y and Z, you must have the discipline to stick to it. The second being time, this is any investors greatest asset, as discussed on my previous blog, its “time in the market not timing the market”

Expertise:

Financial advisors know more about investing and managing money than most people. They can guide you to better choices than you might make on your own. In a world where answers are at the tip of your fingers with the internet, the value of having a qualified financial advisor cannot be denied. For context, Financial Advisors play a similar role to Personal trainers. Yes, the answers are available on the internet, however the value of having someone to take the pressure away from financial planning and holding you accountable is invaluable for your financial future and well being.

Accountability:

Financial advisors help keep you on track by talking you out of making emotional decisions about your money. For example, buying a stock that’s been skyrocketing or selling all your stock funds when the market plummets. Just think back to those friends who thought buying Pfizer was the investment opportunity of the decade ….

Advice:

It’s in the name, Financial advisors can make suggestions about the best strategies to implement to improve your finances. This can include everything from what investments to make to what insurance to take out.

Evolution:

As your life circumstances change, a financial advisor can help you adjust your financial plan so that it always fits your current situation. The greatest tool in modern day financial planning is the cash flow forecasting model, for example Voyant (see below)

Action:

Many people don’t take the steps they should manage their finances because they’re too busy or too uncertain about what to do. Working with a financial advisor means someone else can handle what you don’t have time for and make sure your money is being deployed in the best way.

If you have read this and it sparks your attention and you would like to find out more on the topic, I can offer two options! Firstly you can contact me directly at daniel@syswealth.ie. Alternatively you can continue to follow these series of blogs that will be on the SYS platform on a regular basis and hopefully we can continue to help our clients and potential clients.

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