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Mortgage Deposit blunder

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  • 09-07-2008 2:17pm
    #1
    sham69
    Registered Users Posts: 2,321 ✭✭✭


    I feel so so stupid.
    Decided it was time to look into buying a house instead of renting forever.
    Got in touch with a broker who told me I will need to have 20k for a deposit.
    Property that I am interested in is worth 200k ( I also have a current loan of 7k that needs to be cleared). Myself and the missus are renting for the last few years and have no savings (our own fault). I had an idea where I asked the missus to try her credit union for a loan of the deposit on the strength that we will pay it back once the mortgage was passed. I forgot the idea of what a DEPOSIT is for and thought that the bank would give us the full amount that I could borrow and that we could just give back the 20k once the bank saw that we actually have the deposit.
    I rang the broker and felt like such an idiot.
    He suggested that we take the 20k lodge some if into a different existing credit union account and borrow more than the 20k (40k), pay back 20k to the credit union and we will be left with a mortgage of 200k plus the 20k loan from the credit union.
    I know most of you reading this will laugh but I have no clue about mortgages and obviously the basic principals of a deposit.
    We are now trying to think of any way we can work around this but I guess the easiest way would be to save.


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    #2
    jon1981
    Registered Users Posts: 4,359 ✭✭✭jon1981


    seriously the banks have alot to answer for, they have created this culture were people do not believe they have to save for a deposit. Go back 10 years and this was the norm, there was no such thing as getting a mortgage without a deposit...the banks have created this mess!!! Its actually in everyones benefit to put as much as you can towards the cost of the house but i never heard the banks telling people this when times were good...



    :mad:


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    #3
    Meathlass
    Registered Users Posts: 3,023 ✭✭✭Meathlass


    sham69 wrote: »
    I feel so so stupid.
    Decided it was time to look into buying a house instead of renting forever.
    Got in touch with a broker who told me I will need to have 20k for a deposit.
    Property that I am interested in is worth 200k ( I also have a current loan of 7k that needs to be cleared). Myself and the missus are renting for the last few years and have no savings (our own fault). I had an idea where I asked the missus to try her credit union for a loan of the deposit on the strength that we will pay it back once the mortgage was passed. I forgot the idea of what a DEPOSIT is for and thought that the bank would give us the full amount that I could borrow and that we could just give back the 20k once the bank saw that we actually have the deposit.
    I rang the broker and felt like such an idiot.
    He suggested that we take the 20k lodge some if into a different existing credit union account and borrow more than the 20k (40k), pay back 20k to the credit union and we will be left with a mortgage of 200k plus the 20k loan from the credit union.
    I know most of you reading this will laugh but I have no clue about mortgages and obviously the basic principals of a deposit.
    We are now trying to think of any way we can work around this but I guess the easiest way would be to save.

    Why the sudden mad rush to buy a house. Relax, get a budget organised and start saving and doing research. Have a look again at the market in a year.


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    #4
    sham69
    Registered Users Posts: 2,321 ✭✭✭sham69


    Thanks for the replies.
    Time to get the head down and start saving, finding it difficult as my salary is not the best plus i find it really hard to save anything while renting and paying bills.
    Going to have to make some cutbacks , like the government


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    #5
    astrofool
    Registered Users Posts: 16,654 ✭✭✭✭astrofool


    The bank will do a credit trace on you and find out that you have the outstanding loans with the credit union and reduce the amount you can borrow accordingly.

    You were looking for a 100% mortgage really, and these aren't on the market anymore really, at best you'll need to clear your loan, save 10,000, and get a 95% loan(though prices will probably have dropped more by then, esp. if it's an apartment you're buying).


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    #6
    punchestown
    Registered Users Posts: 660 ✭✭✭punchestown


    astrofool wrote: »
    The bank will do a credit trace on you and find out that you have the outstanding loans with the credit union and reduce the amount you can borrow accordingly.

    Not all credit unions provide details to the ICB but its not a path the OP should go down.


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    #7
    Victor
    Registered Users Posts: 78,399 ✭✭✭✭Victor


    sham69 wrote: »
    Time to get the head down and start saving, finding it difficult as my salary is not the best plus i find it really hard to save anything while renting and paying bills.
    The you really have to ask if you can afford a mortgage + bills. Note teh bills get bigger with a mortgage.


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    #8
    sham69
    Registered Users Posts: 2,321 ✭✭✭sham69


    I can afford the mortgage alright if I can just manage to curb my gadget buying and living beyond my means. I know what I have to do so its time to stop spending and start saving.
    Thanks again for the advice all.


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