AIB Mortgages for Young Professionals

Professional people often purchase their homes later than most, and AIB mortgages for young professionals are arranged with a degree of flexibility that offers them several options. The cost of repaying student loans after several years of earning nothing puts them in a situation that few non-professional people, who have not gone through several years of further education, have to handle.

There is a balance to reach between the lenders need to receive repayments, and the borrowers financial situation.  Young professionals start off with very little spare cash, but expect their earning to increase fairly quickly - quicker than the average non-professional. Doctors, lawyers and scientists all have a bright future ahead of them, but many are also saddled with debt before they even start work.

AIB Mortgages for Young Professionals offer several benefits to help them with their initial payments. Thus, they can opt to pay interest only for up to five years.  This helps by forgoing the principal repayment until you have had time to earn more through five years of salary increments and increases. If you have been saddled with a student loan to repay, then that will be a very welcome option that is available to you.

If you choose not to take this option, and would rather pay nothing for a while, you have the alternative of three months deferred start. That means that you pay nothing for three months. This is not completely free, however, and the interest that you would have paid for those three months is added to your mortgage.

What you cannot do with an AIB mortgage deal is to take both options: you can either defer your payments for three months, or pay interest only for five years, but you are not allowed both. So which is best for you?

If you have a student loan to pay off, and the interest free period of five years would be a help to you, then it makes sense to go for that option. If you don't have a loan, on the other hand, but could do with a bit of cash after buying your house to furnish and decorate it, three months without paying anything sounds very attractive. It's a pity you cannot have an element of each, but you can't so you have to make a choice. You are not obliged to go for any of these, of course, because they both cost you in one way or another, but many find them a great help in the early days of home ownership.

AIB Mortgages for Young Professionals offer more than just reduced payments, of course. Because the bank knows that your job is a bit more secure than average and that your income is going to rise faster than the average, you will be offered up to 100% mortgages. That in itself is extremely useful to you, because students have few opportunities to save up for a deposit.

Without the need for a deposit you will be able to purchase a larger home at competitive interest rates. You will also be given the opportunity of long loan periods. The average mortgage is offered over 20 - 25 years, but young professionals can pay over 35 years with AIB. Keep in mind, though, that although you pay less each month with a longer term mortgage, you will ultimately pay more in interest.

A lot depends on which is more important to you:  lower monthly payments or paying less overall. For most, the lower payments will probably win the vote, because most young professionals start off as students, many of whom have very little money when they pass their exams and qualify. A lower payment makes more sense in such cases.

AIB offers young professionals more than just a good mortgage deal, however, because there are other costs involved in purchasing your first home. All lenders will insist on you having buildings insurance and life insurance. In fact, you can't sign the contract without a life insurance enough to cover your loan. AIB offer first time buyers (which most young professionals are) a 20% discount on home insurance, and also a free consultation with an AIB professional financial advisor to discuss the options available to you for life insurance. You would also be offered a Masterplan Account that enables you to manage your monthly bills more easily.

As with any concessionary arrangements, it is important that you understand that any deviation from a standard mortgage can have an impact on the total sum that you eventually pay to clear your mortgage, but AIB mortgages for young professionals are designed so that you can pay less when you have least money and make that up when you are earning professional salaries.