The Irish Banking Federation (IBF) has launched a consumer booklet to guide first-time buyers through the mortgage application process. According to the latest IBF data, first-time buyers are currently the most active segment of the mortgage market. The latest profile from the IBF and PricewaterhouseCoopers showed that 7,261 new mortgages worth €1.24 billion were issued during the third quarter of last year. While new lending was down by 40 per cent on last year, first-time buyers have continued to increase their share of the overall market, with almost 46 per cent of the market.

The guide for this growing part of the mortgage market is in four sections, a description of the typical mortgage application, an explanation of what you need to know before you apply for a mortgage, a check list for your application and a glossary of useful terms.

The guide explains that first time buyers who apply for a mortgage will receive approval in principle if they satisfy a credit check but that they must submit documentary proof of earnings, savings and so on to secure a formal offer. It recommends that first time buyers examine their monthly outgoings before they apply for a mortgage. This includes spending on rent, groceries, bills, clothing, travel, entertainment, childcare and loan or credit card repayments. "Take account of major irregular expenses such as insurance or holiday expenses" the guide advises.

The importance of adequate savings is also stressed in the guide. "Savings are important to pay for a deposit and additional expenses, including legal costs involved in buying a property" it said.

"Lenders will also take into account whether applicants can show the ability to manage money and save".

The guide highlights that the more borrowing you already have, the lower the mortgage you will be granted. Before you begin applying for a mortgage, the guide recommends that you gather together the necessary paperwork, including proof of identity, proof of address and proof of income. Your lender will typically require a current valid passport or driving licence, a household bill in your name, your latest P60 and at least three recent salary slips.

The glossary of mortgage related terms explains phrases such as repayment term, annual percentage rate (APR) and load-to-value (LTV).