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mortgage advice

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  • 10-02-2009 11:35pm
    #1
    dbeermat93
    Closed Accounts Posts: 40 ✭


    Hi

    Myself and my brother have received outline planning for two houses on our own land.I spoke with a mortgage adviser from my local bank (permanet tsb0 and he outlined that I would be able to get 200,000 euros on income alone.
    I would like some information on the following.
    If the house would cost 300,000 euros to be built all in for arguments sake,Then I am short 100,000 euros to make up the difference.

    Would the ltv criteria come into play here to make up the difference?

    If not,whta are my alternatives?

    Regards.:confused:


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    #2
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    Not sure what your asking, the bank have said they will give you 200k based on your earning, this is all you are being offered?

    LTV, loan to value criteria? what do you mean?

    Are you building 1 or 2 houses? why are you building now, are they for investment or as PPR for you and your brother?


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    #3
    dbeermat93
    Closed Accounts Posts: 40 ✭dbeermat93


    1


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    #4
    dats_right
    Registered Users Posts: 1,168 ✭✭✭dats_right


    200K is the max the bank are willing to lend you, it wouldn't matter if the house were valued at 500,000 as in the banks view the max you can afford to pay back is based on a 200k mortgage.


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    #5
    astrofool
    Registered Users Posts: 16,650 ✭✭✭✭astrofool


    Banks will usually lend a bit more if the LTV ratio is quite good, e.g. they will be quicker to lend you 200k secured on a €1m asset than 100k on a 100k asset. They still take in your ability to pay it back, as they really don't want to go down the road of having to force an asset sale (and they are having to give 12 months grace to homeowners due to the bailout as well).


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