Recent research conducted by Bank of Ireland revealed that 38% of potential First Time Buyers are considering buying a home in the next 18 months. Rnnie O'driscoll, Manager of Bank of Ireland Blackpool, has formukated the following guide.

Decide how much you can borrow

This is the most important question; it's vital to know how much you an realistically afford. A Bank of Ireland mortgage advisor can help-based on your earnings, current financial commitments and any savings you have. If you are borrowing with someone else, the amount will be based on our combined income and outgoings.

Work out what you can afford to repay

To find out roughly how much you can afford in monthly repayments, you need to compare your incoming salary with your outgoing expenses. Your income is your monthly salary and any other regular income you and/or your partner receive. Your expenses will include all your outgoings, things like, personal loan repayments, utility bills, phone bills, food, school fees, car costs, going out etc. The figure you get when you subtract all of your expenses from your income is your disposable income, or what you can afford to repay each month, you should ensure this is sufficient to meet all your requirements.

Some good news is that as a First Time Buyer you will be eligible for Mortgage Interest Relief. Mortgage Interest Relief or Tax Relief at Source (TRS) is tax relief that you can claim on the interest you pay on your mortgage. Once you've applied for it from the Revenue, it will be lodged into the account you nominated each month. Under the supplementary budget in April 2009 First Time Buyers can claim Mortgage Interest Relief for up to 7 years. Up-to-date details can be found on www.revenue.ie.

Determine how much savings you need for the total cost of buying the property

Bank of Ireland will lend up to 92% of the property value or price depending on your circumstances and the particular property. This means that you will need to have a minimum of 8% of the property value or price saved for your deposit.

In addition to a deposit, your budget should include some initial costs like: legal fees, the valuation report or surveyors report, taxes, home insurance and your mortgage protection policy. You may also need to include a budget for furniture and appliances.

Choose what professional services you will need

Solicitors perform conveyancing which involves researching, documenting and legally transferring property ownership. Fees vary and should be agreed before you purchase.

You will also need a valuation report and/or a surveyor’s report. A valuation report will be one of the conditions of loan approval and a satisfactory valuation report is needed by Bank of Ireland to proceed with your mortgage. In some cases we may also request a Surveyor’s report particularly if the property you are buying is older. It is worth considering getting a surveyors report completed on any property you are buying, as it's more detailed and may spot faults that aren't easy to see.

Decide on the type of mortgage to suit you

Mortgages come in many shapes and sizes and your Mortgage Advisor will help you chose the type that best suits you. Generally speaking you can choose from fixed, variable or split rate loans.