Before You Buy (Requirements)

Mortgage Eligibility

You qualify for a Abbey Mortgage Bank Plc mortgage if you:

  • meet certain eligibility requirements;
  • are financially capable of servicing your mortgage
  • (ideally repayments cannot exceed 33% of borrower’s earnings);
  • are credit worthy with no history of bad debts;
  • can provide adequate security for the loan;

Eligibility

Prospective borrowers will be assessed for their eligibility to apply for their preferred product:

  • Age: Prospective applicants must be at least eighteen years and no more than 65.
    The maturity of the mortgage should not extend beyond the applicant’s retirement age.
  • Purpose of the Loan: The mortgage must be used to either
    - finance the acquisition of a home
    - or develop or renovate a property.

Financial Ability

  • Income Qualification:
    Applicants must provide proof of their gross monthly income and allowances by way of an employment contract, tax returns, and most recent pay slips. Variable income such as overtime and bonuses are usually not considered as part of gross income. Applicants who are self-employed shall need to provide an income statement prepared by a qualified accountant. This should be supported by historical information on bank accounts to prove the income declared;
  • Income Security: Applicants must be able to provide evidence of employment for a period of at least three years. Applicants who are not in formal employment should provide satisfactory evidence of their ability to sustain the declared level of income;
  • Deposit: Applicants must be able to provide evidence of employment for a period of at least three years. Applicants who are not in formal employment should provide satisfactory evidence of their ability to sustain the declared level of income;
  • Credit Worthiness: Applicants must be able to provide evidence of employment for a period of at least three years. Applicants who are not in formal employment should provide satisfactory evidence of their ability to sustain the declared level of income;

Quality of Security

  • Duration of the Mortgage: Abbey Mortgage Bank Plc maximum duration of the mortgage loan is 10 years. Borrowers may choose to pre-pay their mortgages, an option which may attract a small penalty;
  • Instrument of Security: Most mortgage facilities must be secured by a legal first mortgage on the land and building, life insurance and fire insurance assigned to the Mortgagee;
  • Life Insurance: Abbey Mortgage Bank Plc requires life insurance coverage for the duration of the mortgage covering the loan amount. This insurance serves as additional security for Abbey Mortgage Bank Plc but it is also recommended as it provides additional security for mortgagors in the event of death. That is, if the mortgagor should die during the term of the loan, the proceeds of the life policy would be used to pay off the mortgage therefore the family would not be left with the outstanding debt;
  • Comprehensive Property Insurance Cover: The borrower shall be required to maintain a comprehensive all-risk insurance coverage for the replacement value of the mortgaged property. Both life insurance (if required) and comprehensive insurance must be assigned to Abbey Mortgage Bank Plc during the term of the mortgage.