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I need €80k, but the banks won't give it to me. Any ideas??

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  • 28-08-2008 12:06pm
    #1
    horseflesh
    Registered Users Posts: 379 ✭✭


    To cut a long story short, our house is not 100% sound and is due to be "fixed" by the builders in the next couple of months. When that work is being done we want to build an extension (no point in the house being ripped asunder twice).
    The problem is, because the house is not 100% the banks won't loan us the money (because their valuers won't put a value on it). We have more than enough to cover the cost, but it's in Irish Life and there's an outrageous €14 penalty to access it.

    Anyone got any ideas how we can get €80,000, and quickly!!! :D


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    #2
    Orobhsa
    Registered Users Posts: 297 ✭✭Orobhsa


    If a bank won't give you the money you are pretty much stuck. You could try remortgaging but most lenders may not want to know under the circumstances.
    horseflesh wrote: »
    ...there's an outrageous €14 penalty to access it.
    :D

    14 quid is hardly the end of the world.


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    #3
    horseflesh
    Registered Users Posts: 379 ✭✭horseflesh


    Orobhsa wrote: »
    If a bank won't give you the money you are pretty much stuck. You could try remortgaging but most lenders may not want to know under the circumstances.



    14 quid is hardly the end of the world.

    €14,000 :D €14 would have been managable.
    It would have been the remortgage route (we have no mortgage at the moment), but they won't bite because the house has "no" value.


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    #4
    [Deleted User]
    Posts: 281 ✭✭ [Deleted User]


    Have you asked the bank to take the the policy/bond as collateral for the money you want to borrow?. You would have to assign the policy to them. They may not give it to you as a 'mortgage' but you may be able to get a term loan.

    Seeing as the 'nominal' value of the policy is greater than or equal to the amount you want to borrow, it should be a viable transaction. Negotiate hard on the interest rate on the loan and try a few lenders. PTSB might do it seeing as the policy/bond is with Irish Life.

    It may be a stop gap solution, not as cost effective as a mortgage, but worth a try.


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    #5
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    horseflesh wrote: »
    €14,000 :D €14 would have been managable.
    It would have been the remortgage route (we have no mortgage at the moment), but they won't bite because the house has "no" value.

    They're charging you a €14,000 penalty to access the funds???????????:eek::eek::eek:

    What sort of account/policy have you got?


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    #6
    horseflesh
    Registered Users Posts: 379 ✭✭horseflesh


    Toots85 wrote: »
    They're charging you a €14,000 penalty to access the funds???????????:eek::eek::eek:

    What sort of account/policy have you got?

    I got that wrong, it's not a "penalty" at all.
    Basically we invested €97k in one of their plans, it was meant to be a mid/long term thing for us. The invested sum is guaranteed after 5 years, but if you want access to it before then that guarantee is voided. Because it's underperformed, it's now only worth €83k, hence the 14k "loss" to access the money now.


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    #7
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Ah, I was wondering if that was what you were talking about. If I were you I'd leave it in unless you really have no other option. That fund will probably make up the loss again, but it'll need time for the markets to pick back up again.


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    #8
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    I think you're a bit screwed TBh. Even if the bank could take your policy as security, it's risky security in the sence that it's less secure than most other assets..

    TBH I would just borrow what you need to put the house right and put the extension on hold. Then go back get a value and remortgage. It looks like the only way out of this mess.


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    #9
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    horseflesh wrote: »
    To cut a long story short, our house is not 100% sound and is due to be "fixed" by the builders in the next couple of months. When that work is being done we want to build an extension (no point in the house being ripped asunder twice).
    The problem is, because the house is not 100% the banks won't loan us the money (because their valuers won't put a value on it). We have more than enough to cover the cost, but it's in Irish Life and there's an outrageous €14 penalty to access it.

    Anyone got any ideas how we can get €80,000, and quickly!!! :D

    I don't get why the valuers can not put a value on the house when the extension is done. People get valuations done all the time on houses that are not even built, i did too.

    AS for the investment you have, most of them are not alowd to be taken as security on a loan. I would have thought the bank you did the investment with would have sorted you out with a loan all things considered. Not everyone has that kind of cash to invest so I would assume your a good customer of that bank. Have you asked and it was rejected out right from the start? Did they contact there underwriters and run it past them?


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