Does anyone know if the banks have geographic restrictions on where a house should be located when considering a mortgage application? My wife and I currently live in D12 and we work in D4 & D24. However, due to the lack of supply and prices of houses in south Dublin we are considering moving out to Meath, to get more value for money and also to be closer to friends.
Would this be a negative factor for a mortgage application (i.e. distance between the house and work locations)? Any relevant info would be most welcome.
the bank wouldn’t careless about them commute between Meath and Dublin, it’s nothing exceptional.
What the banks will care about are:
- Ability to pay back the mortgage - stress tested assuming rising interest rates
- Ability to save - as in where is your disposable income now going
- Value of property and LTV ratio
- Security of your employment
Thanks for the reply Tfp.
We are pretty confident of passing in terms of the other criteria. We were sale agreed on a house in D12 over the summer, but the sellers subsequently pulled out of the sale. As part of that sale our contact in the bank was extremely confident of our application being successful. He said at the time that based on our circumstances we could borrow up to 20% more than we required for that property, but we are keen to keep our mortgage repayments to be as close to our current rent outlay.
The only thing that would have changed between that application and now would be where we are looking to buy, so we are hoping that the new location would not count against us.
Only issue I can think of would be possibly more difficulty valuing a property if it’s near any ghost estate or a load of empties. The bank may also take a more pessimistic view of its future value if it’s outside the major urban areas?
The properties that we are looking at seemed to be fairly reasonably valued, especially when you compare similar houses in and around the M50. There also seems to be a low volume of activity on the PPR in the area, so we would hope that the vendors may be more open to lower offers.
The bank did previously say they wouldn’t lend for apartments outside of the major cities. It is possible they are also being picky about houses outside of these areas too. Many reports of it being cash only outside the cities.