How to get loan 4 remaindr of mortgage deposit

miguel42

Anyone know the best way to get a loan to pay off the remainder of a mortgage deposit?
I need to get €25,000, but I hear banks won't go near you if they think you're using the loan to pay off a mortgage deposit..

What has anyone else done? I have no savings and getting a loan from family is not possible..

Needs to be a loan repayable over 7 years!!

What can I say its for?

I need some ideas before I approach the banks with the wrong lines..

l3rian

Credit unions are best for mortgage deposit loans as they dont share info with the banks.

Did you say you need 25k or the remainder of 25k?

miguel42

Yeah it is the whole €25,000 that I need!!!

Don't think the Credit Union is the answer for me though... I opened an account a year ago but have only made one deposit(€50). From next week I'm starting to make monthly deposits but I need the loan in the next 6 - 8 weeks so I definitely need another otpion..

l3rian

You dont want to borrow 25k from anyone but banks and CUs. I think renting would your best option. Rent, and join the rest of us praying for that 1980's english style house price crash.

spongebob

The market is finely balanced in certain areas with supply and demand being equal. Those areas will be the first to experiene any 'softness' as the supply exceeds demand. They will be the remote suburbs (like Clonee and Clondalkin) and the pokier inner city flats.

Good areas wil drop less and more slowly in such a a scenario. Always remember that if you are not mad about an area then nobody else is either . Also consider buying in an owners area not in an area infested by the investor (buy to let) mob.

I agree with the last poster, the market cannot continue to rise uniformly.

My prediction is that the market will be soft in 2004 and 2005, in 2005 your SSIA should be nearing encashment (you ARE pumping the full amount in ??? ) and you can then borrow on favourable terms against the SSIA in a softer market.

Buying now strikes me as a bit previous.

M

IgnatiusJRiley

Originally posted by l3rian
You dont want to borrow 25k from anyone but banks and CUs. I think renting would your best option. Rent, and join the rest of us praying for that 1980's english style house price crash.

Nooooooooooooooooooooooooooooooooooooooo. Don't say it's so. I've just bought my house.

As for the original post I reckon you're better off trying to save a few grand first.

PhilipMarlowe

So you've got €50 savings and let me guess, you are buying a €300-325,000 house and effectively want a 100% mortgage?
How were you going to pay to furnish the house btw?

The 25k loan will cost you another €375 p.m. on top of the mortgage over 7 years at current rates.

As the others have said, the only way is the hard way... build up your own equity through savings.

Our man in Havana

Originally posted by l3rian
You dont want to borrow 25k from anyone but banks and CUs. I think renting would your best option. Rent, and join the rest of us praying for that 1980's english style house price crash.

Just waiting for Mr. Duisenburg to get nervous and to raise interest rates. Then i will buy

miguel42

Well doesn't sound very hopeful for me then I guess..

The deal is I have the mortgage approved, & the 25,000 I need includes 10,000 for furniture & lawyer's fee.

Apartment is already purchased... due to be ready in January!

Guess I'll just have to apply for a 15,000 personal loan... & leave the furniture til later on..

Just thought someone might have had some luck approaching the banks for a similar amount. Was more looking for what I could pretend its for, since I can't really apply for a home improvement loan since I haven't moved in yet

ur mentor

Best of luck with ur purchase
Cheap furniture can be found- although if there is a partenr to be satisfied (woa steady on there) on the scene may be difficult.
I remember getting a whole house of furniture from a German guy who had sold his house and couldn't find a new 'home' for the furniture and didn't wish to give it to new owner! Keep asking - begging--u will be surprised at stuff being thrown out simply because of lack of room etc.
Watch solicitors fees. There are some that work for a straight amount like €1,000 or so rather than the more usual 1 or 2 %
Shop around. check todays ITimes (or was it yesterday)
Getting married of course is a great trick as it gets plenty of furniture! not a good reason to do so though!!!!!!!!
u have until January which means there is christmas coming up- make sure u ask for very specific gifts from santa.
No point in getting coffee table books if u need an oven.
Get a tenant also if u can for spare room. U can earnup to 6k tax free. Banks lik ethis when giving out loans
If there is a partner/ friend get them to pay rent- they get allowance from PAYE- u get tax free money

spongebob

I did all me kitchen appliances in one weekend in Dubin thru buy and sell. Needed another €20 for a seal on the washing machine and the total came to about €500 for hob/single oven/fridge freezer/washing machine. All ovens and washing machines are a standard size, not sure about hobs but fridges are variable width and height ! That is a good skelp of your budget there head.

The catch is you need a van for that weekend and a friend with a garage to store the stuff till the gaff is ready. Windsor motors fo long wheel base Trannys or nissans (BIG VANS) for about €120 a day incl VAT and their insurance, two runs would fill a flat so if you leave bits of furniture around town you can collect them in one round trip. If you get the van on the day the buynsell comes out you only pay a day hire. If the weekend you can use it as a store overnight after collecting stuff.

Buying on the never never is a false economy, pure second hand gear saves lots of money and is usually fine.

It woulda cost me €2000 to buy the stuff new. I put €500 in a slush fund (later on) to replace them as they died but only the fridge needed replacement as it happens .

If u signed the contract on the gaff pre budget 2002 (3/12/02) and are looking at the deadline for first time buyers then I have good news. Some builders dragged out completion hoping the sales would fall thru and that they could esell for more. If you ring the FTB grant people in Ballina they will give you an informal extension of a month or two with a good sob story about the scum builder. The paperwork , form and such , should go in this month and ring them afterwards to put a note on your file.

If you signed the contract after that date above you are not entitled to the 4.3k FTB grant , sorry.

Find a lawyer who charges a flat fee as the man said, not a percentage. €1000 is possible in Dublin nowadays.

HTH

M

commuterised

well it can be done.
we had to do a bit of financial rejigging but managed to get a loan from Permanent TSB, mortgage from First Active and AIB day to day banking accounts.

Said to TSB that it was for home improvements.

uzami

if first active run an a credit bureau check before they issue the mortgage cheque, they will see the ptsb loan and can withdraw the mortgage approval or insist on ptsb being redeemed prior to draw down.

The reason people use the credit union is because those loans don't appear on the credit bureau.

sixtysix

by the way does anyone know what percentage of nett income is considered reasonable, by banks, to cover all repayments?

shoegirl

I'm very surprised that you managed to get a morgage without having the deposit?

How did you manage this? Surely the banks/building societies need to know your real financial picture before loaning you money?

Good luck anyway.

As for the question on percentage of net income I think its around 30 to 33%.

Ironically no landlord will ever limit his/her rent demands to 30% of your income. This is why lots of people who cannot afford a morgage end up actually spending more on rent than they would for buying the property. There is no restriction on a tenants ability to pay . . . sad fact but true.

uzami

Actually it is between 40 & 50% of your net disposable depending on the lender, the loan to value, your career etc.