If you’re trying to buy a property in Northern Ireland, then it’s almost a given that you’re looking into mortgage options. Demand for housing in Northern Ireland has been steadily rising.
But is it as easy as it sounds? How do Northern Ireland’s mortgages differ from those in the rest of the UK? And what options do you have when it comes to lenders?
We’ll answer all these questions and more in today’s guide. So, let’s begin then!
Table of Contents
- How Are Mortgage In Northern Ireland Different?
- How Different Is Stamp Duty In Northern Ireland?
- Eligibility Conditions And Deposits
- How Much Can I Borrow In Northern Ireland?
- Mortgage Affordability Calculator
- Some Mortgage Lenders Operating In Northern Ireland
- What Government Schemes Are Available In Northern Ireland?
- Frequently Asked Questions (FAQs)
How Are Mortgage In Northern Ireland Different?
There’s not much difference between products and rates between Northern Ireland and England.
The only significant difference is that you’ll have to choose from a smaller pool of lenders than the rest of the UK.
Some lenders have postcode restrictions in Northern Ireland or don’t lend in Northern Ireland at all, which can be a hindrance.
For these reasons, it’s best to partner with a mortgage broker specialising in Northern Ireland mortgages to get the best deals.
How Different Is Stamp Duty In Northern Ireland?
Northern Ireland has the same stamp duty rates as mainland England unless you’re a first-time buyer.
For first-time buyers, there’s no need to pay any stamp duty for a property valuation of up to £425,000 and a 5% duty for any value between £425,000 and £625,000 (this is for both England & Northern Ireland).
Please refer to the following table for non-first-time buyer stamp duty rates per property value.
| Property value | Stamp duty rate |
| Up to £250,000 | 0% |
| Between £250,001 to £925,000 | 5% |
| Between £925,000 to £1.5 million | 10% |
| Anything above £1.5 million | 12% |
Eligibility Conditions And Deposits
As with anywhere else in the UK, or for that matter, the rest of the world, you’ll need to meet the lender’s eligibility criteria to get your mortgage approved.
For mortgages in Northern Ireland, the following are essential criteria you need to fulfil.
1. Deposit Amount
Usually, lenders ask for a 10% deposit, but some lenders also agree to a 5% deposit. We recommend putting down as large a deposit as possible, as this enhances your LTV ratio and helps you get better rates. This means lower interest payments in the long run.
2. Age Limit
You must be at least 18 years old to get a mortgage in most countries, and the same applies to Northern Ireland.
The maximum age for getting a mortgage is often capped at 70, though some lenders offer senior citizen mortgages for those aged 70 and above or will use applicants earned income to a later retirement age.
3. Credit Records
A clean and good credit history will always work in your favour and might even help you get better offers. However, a patchy credit history doesn’t always mean you can’t get a mortgage. It all depends on the seriousness of the issue and whether your lender is willing to look past it.
4. Income Sources
Lenders in Northern Ireland sometimes differentiate between different income sources when approving loan applications. For example, while your salary is considered a steady income source, bonuses and commissions are not. So, it might be a little tricky to calculate your total income if these make up a large part of your income.
How Much Can I Borrow In Northern Ireland?
Usually, you can borrow up to 4-4.5 times your annual income, but this is not fixed, and you can get offers that provide anywhere between 5-6 times your income with certain lenders.
A mortgage advisor who knows the Irish mortgage market well can help get the best deals available to your circumstances.
The lender will also want to assess whether you can afford the loan and pay it back. For this reason, they might ask you to undergo an affordability assessment to gauge your repayment ability.
You can do this using a mortgage affordability calculator.
Mortgage Affordability Calculator
Some Mortgage Lenders Operating In Northern Ireland
Northern Ireland has both high-street and specialist lenders offering mortgages. Here’s a list of some of them.
- Virgin Money
- NatWest
- Barclays
- Kensington
- Progressive Building Society
- Central Trust Limited
What Government Schemes Are Available In Northern Ireland?
The Northern Ireland government offers several schemes to help citizens buy property, some of which are listed below.
1. Rent To Own
The Rent-To-Own scheme is supported by the government co-ownership scheme and allows eligible candidates to rent a new property with the option to buy it later. The candidate has to either buy the property within three years of renting it or move out.
2. Government Co-ownership Scheme
This scheme allows eligible buyers to purchase a share of a property while renting the remainder. This translates to lower deposits and reduced monthly repayments. This is the basis for the Rent To Own scheme explained above.
3. Right To Buy
This scheme is for people living in a rented council home for over five years. If you’re eligible, you can purchase the property at a discount. The maximum discount is around 60% of the property valuation and is based on how long you have lived in council property.
To determine which scheme best suits your unique situation, we recommend talking with an experienced mortgage broker who can explain the pros and cons of each.
Frequently Asked Questions (FAQs)
1. Is it possible to get a 100% mortgage?
No, you can’t get a 100% mortgage anymore. The most you can manage is a 95% mortgage. There are rare scenarios where on shared ownership purchases you can mortgage 100% of the share you are looking to purchase.
2. Is it possible to get a first-time buyer mortgage in Northern Ireland?
Yes absolutely! As long as you meet the lending criteria, a first-time buyer mortgage is very much possible in Northern Ireland.
3. Do lenders in Northern Ireland offer self-build mortgages?
Of course! These mortgages are potentially more suitable than regular mortgages if you’re constructing your house or property. Such mortgages allow you to access the funds as and when required at certain stages of the build.
4. Does Northern Ireland have the concept of Guarantor Mortgages?
Yes, it does. If you’re struggling to pay the deposit on your salary, getting a guarantor mortgage is an available option. However, be very careful and approach this type of mortgage cautiously, as it puts the onus of repayment on the guarantor if you can’t keep up with the repayments.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.
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