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Application Process

St Colmcille’s (Kells) Credit Union has been serving the community since May 1961.The Mission of the Credit Union is to promote the financial wellbeing of its members. To achieve this purpose the Credit Union is committed to providing a broad range of innovative financial products supported by the excellent service of our dedicated, well-trained staff. These programs will be administered in accordance with sound management practices to maintain the financial strength of the Credit union. The Board of Directors, Management and Staff of the Credit Union hereby affirm that the efforts of the Credit Union will be consistently and professionally dedicated to the accomplishment of this mission.

 Enquiry – whether you are ready to apply for a mortgage now, or are just looking for advice on how to save for a deposit, our staff are happy to sit down with you to talk you through the process.

 Application – we will provide you with an Application Pack together with a number of documents for you to fill in. Please pay attention to the checklist at the front of the Application Form as it will speed up the process if you bring all the necessary documentation with you.

 Approval in Principle – when you first enquire about a mortgage with us, we will conduct a very basic assessment of the amount you could, in principle, borrow. This does not mean that we are offering to lend that amount but if you are looking to buy a home, it allows you to get started with house hunting.

 Underwriting – this is where we review and assess your application. We will look at all of the documents submitted and will also conduct other standard checks, like obtaining an independent valuation of the property and conducting credit history checks.

 Full Approval – once we have reviewed your application and are happy to proceed, a letter of offer will issue. This may contain a number of conditions and you should pay close attention to these as it will not be possible to draw down funds until those conditions are met. From here you should keep in close contact with your solicitor who will work with the solicitor of the person selling the property to ensure that the sale goes smoothly. We will also provide you with a European Standard Information Sheet (ESIS) that will provide specific details regarding your mortgage.

The Mortgage Product

We offer a variable rate mortgage; this is where the rate charged may rise or fall over the lifetime of the loan. Any change to interest rates will be communicated to borrowers in writing and in good time before the change takes effect.

Mortgages are offered for the following purposes;

• Buying a house – Principle Private Residence
• Self-Build– Principle Private Residence
• Switching Mortgage Provider – Principle Private Residence
• Renovating a house – Principle Private Residence

The current standard variable rate is 4.5%. The European Standard Information Sheet and the Letter of Offer will clearly display the applicable rate.

Example of Cost of Mortgage

 Amount Borrowed €100,000

 Term 25 years

 Interest Rate 4.5% (Annual Percentage Rate of Charge – 4.59%)

 Monthly repayment: €555.83.

 Total cost of credit: €66,697.16

In addition to the above costs, you will need to factor in the additional costs of insurances, an independent property valuation and legal fees. Your solicitor will advise you of the legal costs involved, including Property Registration Authority fees and Stamp Duty.

Maximum Loan Values

The Credit Union offers mortgages up to €200,000 over a maximum term of 35 years.

The maximum Loan to Value (‘LTV’) is 90% for first time buyers and 80% for non-

first-time buyers.

This means that the total amount of credit offered can be no more than 90% of the value of the property as appearing in the independent property valuation. The maximum Loan to Income (‘LTI’) is 3.5 times your gross basic annual income

General Mortgage Conditions

The Credit Union makes the following stipulations for mortgages. This list is a guide only and a comprehensive list of conditions is contained in the ‘Mortgage Terms and Conditions’ document.

1. The mortgage will be secured on the property being financed by way of first charge. We may seek additional security such as a guarantee, but if we do, this will be discussed with you in advance.
2. We will accept monthly loan repayments only.
3. There is no charge for early repayment of a variable rate loan.
4. As the property is your main home or ‘principle private residence’, you are required to obtain Mortgage Protection Insurance to cover the full outstanding mortgage balance in the event of death. This policy must be assigned to the Credit Union.
5. The Credit Union requires buildings and contents insurance to be obtained for all mortgaged properties. This insurance must be maintained for the full duration of the mortgage.
6. An independent valuation of the property is required for the Credit Union to assess the application. The Credit Union will arrange for the valuation to be carried out by a member of their panel of local property valuers. The cost of this will be paid for by St Colmcille’s ( Kells) Credit Union Ltd

Helping members in Financial Difficulty

Mortgage Arrears Resolution Process

Mortgage Privacy Notice

Standard Financial Statement

Consumers Guide to Completing SFS

Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future

Warning : If you do not Keep up your repayments you may lose your home

Warning : The cost of your monthly repayment may increase