Credit Union - Mortgage Deposit

DrBass

Hi

I know this may sound like a very 2004 thing to do...but

We have found our dream house, and want to get a Mortgage approved. We hope to buy a 4bed detached house for 242k (Down from 399k)

Im assuming we need in the region of 25k-29k (Depending on the lender) for deposit/fees/stamp duty which we have both have saved 18k

Trouble is we are shy 10k-ish, however, a family member owes me 10k lump sum, but will not have this available for at least six months.

We have no other means to fast tracking this money.


Thing is, we really want to move on this asap as we are starting a family and are already paying 12k a year on rent.

Does anybody know if getting a loan from a Credit Union to cover the 10k gap would work and could be payed back within months of drawing down the Mortgage

(I have savings already with the CU for the last fews years)

Just trying to look at every angle

Mr. Presentable

Borrowing money to borrow money, eh?

Wait the six months for the loan to be repaid. Property price will probably have dropped another 10k by then also.

Did this one not work out? The site as collateral

DrBass wrote: »

TBH its what I am thinking too, It's basically my last throw of the dice to get the mortgage

I have the required deposit already saved for the house, its just I never factored in that banks would not allow for furnishings to be included in that

Oh well, Ive emailed by advisor, so i'll see next week what the outcome is, not holding my breath tho

ps anyone got a short term loan of 10k ??

DrBass

Agreed, it sounds quite strange, and agree that the 6months wait is the easy option, but we really like this house, its perfect for us, and fear that it will be sold in that time frame.

Plus Mortgage Relief dissolves at the start of next year also

dory

Yes, I agree. Why not wait for the property to come into your price range? This exact property might be gone but there is so much available right now.

But to answer your question, no I don't think the bank will like you borrowing to borrow.

dory

Yes, I agree. Why not wait for the property to come into your price range? This exact property might be gone but there is so much available right now.

But to answer your question, no I don't think the bank will like you borrowing to borrow.

DrBass

Mr. Presentable wrote: »

Did this one not work out? The site as collateral

Non runner, besides, this house is much better, and its got furniture innit

quozl

DrBass wrote: »

Thing is, we really want to move on this asap as we are starting a family and are already paying 12k a year on rent.

Are you sure that's not just a self-justification?

I've 2 kids and pay 18k a year in rent, and I am so glad that I have rented instead of buying the last few years. I don't intend to stop renting any time soon and I think my kids will be fine

The bank will want to know where the deposit came from especially if 10K of it just appears in your account history - you could lie, and it might well work but it seems a bad idea to me. Of course, I have my own biases as shown by the fact that I'm a happy renter

DrBass

quozl wrote: »

Are you sure that's not just a self-justification?

Perhaps, but its what I have worked hard (and played hard) for, now is my time

quozl wrote: »

The bank will want to know where the deposit came from especially if 10K of it just appears in your account history - you could lie, and it might well work but it seems a bad idea to me. Of course, I have my own biases as shown by the fact that I'm a happy renter

Lender agrees that family gift will be fine.

the groutch

this won't work, having the credit union loan will mean that the bank won't be prepared to loan you as much, because your disposable income is now reduced.

serenity13

hi there,

as far as i am aware, credit union loans do not show on ICB system so it would not be seen in a credit check. however, its so much harder now to get a credit union loan now than it was before. plus, paying a mortgage (esp with interest rates going up) and that high loan, it would be painful..

perhaps the family member who owes you 10k could write a letter saying the will give you a gift of 10k, and it will be signed by them so they have no right to the home- that would depend really on the time frame the owners wanted to sell their home and move (takes soooo long-even quick sales..) and if you can rely on the 10k for definate.. your rent is a good record that you can save and manage money,particularly if you never missed any direct debits.

personally, i think the best thing for you to do is to go to a good broker and see how much you can borrow (some may lend you a couple grand more than first approved for). then offer 218k or so for the house and maybe then round it at 225k (if you are determined to buy it this year) i recently bought a house and got 45k knocked off the asking price (had already reduced a lot before that) yet its still marked as sold on the estate agents website at the advertised price. if the vendor just wants it gone quickly, they may be willing to drop 10k or more on the price and that will help you greatly.

best of luck its very draining, wish you all the best.

The_Conductor

There are very few credit unions left in the country that do not comply fully with normal ICB reporting. It is not the wild west anymore- where you could borrow your deposit from the credit union, and not tell your mortgage lender about it- this simply does not happen......

OP- property prices are falling between 11 and 15% year on year at the moment- significantly more than the 12k a year rent you're paying, and far greater than any mortgage interest relief you may be entitled to.

You cannot afford to get emotionally attached to a property- its the biggest mistake you can make- and the one that will hang you..........

skippy15

serenity13 wrote: »

hi there,

as far as i am aware, credit union loans do not show on ICB system so it would not be seen in a credit check. however, its so much harder now to get a credit union loan now than it was before. plus, paying a mortgage (esp with interest rates going up) and that high loan, it would be painful..

perhaps the family member who owes you 10k could write a letter saying the will give you a gift of 10k, and it will be signed by them so they have no right to the home- that would depend really on the time frame the owners wanted to sell their home and move (takes soooo long-even quick sales..) and if you can rely on the 10k for definate.. your rent is a good record that you can save and manage money,particularly if you never missed any direct debits.

personally, i think the best thing for you to do is to go to a good broker and see how much you can borrow (some may lend you a couple grand more than first approved for). then offer 218k or so for the house and maybe then round it at 225k (if you are determined to buy it this year) i recently bought a house and got 45k knocked off the asking price (had already reduced a lot before that) yet its still marked as sold on the estate agents website at the advertised price. if the vendor just wants it gone quickly, they may be willing to drop 10k or more on the price and that will help you greatly.

best of luck its very draining, wish you all the best.

Could advise trying this approach in bold, have seen it done 2/3 times...
Also, while waiting may seem like a good idea it is all relevant- if teh right house is there and the time is right for you family wise a house makes more sense, houses will prob continue to drop for the next 5 years....so by that logic should we all wait 5 years to buy our houses for 25k less?take the risk and go for it as that "perfect" house can be impossible to find:pac:

the_syco

DrBass wrote: »

Trouble is we are shy 10k-ish, however, a family member owes me 10k lump sum, but will not have this available for at least six months.

I don't see why the family member shouldn't get a loan in the credit union, and give you the 10k that they owe you? It gets you your 10k, and the money they owe is no longer your problem.

Oh, and what does the contract say will come with the house? Unless it's on the contract, the sellers can take it with them. And no, just because something is nailed to the wall doesn't mena they can't take it with them Have read many times people assuming they'll have X or Y in the house when they move in, only to find that the sellers took it, and half the kitchen when they moved.

The_Conductor

Sorry I had to laugh- I've fond memories of one sale where the seller even removed the light fittings..........

Get absolutely everything in writing.......

Raskolnikov

If I was you, I would just hang off for another 6 months on this. At this stage, your finances just look that bit too tight to be able to buy this house comfortably. Remember, not only do you need money for the deposit, solicitor and stamp duty, but you'll want to buy furniture, fixtures, fittings, furnishings, etc. Realistically, you're looking at trying to come up with another €10k minimum.

If you really, really want to go through with this, some lenders are still providing 92% mortgages. I have to say though, that in a falling market, you're a little crazy to consider such a high LTV on your mortgage, the chance are you'll be trapped and in negative equity within the year.

http://personalbanking.bankofireland.com/mortgages/first-time-buyers-package
http://www.nationalirishbank.ie

DrBass

the_syco wrote: »

I don't see why the family member shouldn't get a loan in the credit union, and give you the 10k that they owe you? It gets you your 10k, and the money they owe is no longer your problem.

Oh, and what does the contract say will come with the house? Unless it's on the contract, the sellers can take it with them. And no, just because something is nailed to the wall doesn't mena they can't take it with them Have read many times people assuming they'll have X or Y in the house when they move in, only to find that the sellers took it, and half the kitchen when they moved.

Its very complected with the family member, they have just sold their house, and have remortgaged to finish off building a second house, so I'm last on the list to be payed unfortunately, I know the reasons why, and its understandable, but not ideal for me obviously

BTW all contents come with the house minus 3 beds haha, nice reminder also to get this in writing, thanks

Rachiee

I actually did this myself, just got away with it with the bank, cos it was small enough that I lied pretended I would of had enough without it ( I wouldnt have) but they didnt bother doing the math, I got 6k that I was short I too had someone who owed me 2k lump and was banking on getting that only a few months after I took the loan

I dont regret doing this but... I didn't get the 2k back and the repayment is huge when added onto the mortgage it really increases the overall cost of the mortgage so do think carefully about it.

Victor

DrBass wrote: »

Its very complected with the family member, they have just sold their house, and have remortgaged to finish off building a second house, so I'm last on the list to be payed unfortunately, I know the reasons why, and its understandable, but not ideal for me obviously

You can't rely on this money in the immediate term.

You can't afford the property.