Mortgage ltv

Jessica86

Hi,

I have a question:

I live in Ireland for 2 years now with my man, we have 2 dogs. Atm I rent a duplex house, however since we have our pets we need something with a garden, last 3 months I have called mailed everything on DAFT that was close enough to work to drive ( radios of 30 km) Also we don't want to spend more then 1k a month.

Now I got denied everywhere....

Now we thought of buying, maybe that would be a better option, so I started looking around, and now I found out that banks in Ireland have a 10 % LTV, first of all I had no clue what it was since I am not from Ireland. But I found out to be able to buy a house you need a large amount of cash... We are new to the country, new to the job, I dont have 15k lying around.. So we are a bit stuck.. I called some mortage people and they said they dont even want to help us since we have no potential.. so whatever that means...

I am looking for help.. Anyone know if there is a way around that LTV? Like a personal loan first and then a mortage? We earn enough, ( 2 people 50k a year)

It is just that this house is so expensive we don't really save up as we never needed to before

Thanks !

Jessica

Jessica86

Nobody at all that has any clue

Jessica86

Would it be possible to have 15k as a gift from my parants, get a mortage and immediately pay that money back from that mortage?

roro2

The maximum LTV at the moment is 92%. So, for a property valued at €100k you will need €8k in cash. A €200k mortgage, €16k in cash, etc.

A bank will not lend you the 8% equity as this would then effectively be a 100% mortgage, but with 8% unsecured (unless you can get a loan from a bank outside the country without the mortgage lender knowing).

You could get a gift from your parents for the 8%, but the bank will need to see evidence that this is a non-refundable gift. How could you pay back this gift (loan) from the mortgage as the full mortgage proceeds will be needed to buy the house? Aside from this, the bank will also like to see a savings record. At the moment it sounds like you spend all of your income - a negative from the bank's perspective as building savings is sound financial management and it will also need to be satisfied that you will be able to meet the mortgage repayments even if interest rates rise.

This is also before the bank assessing your ability to pay, job security, etc, and banks aren't exactly lending freely at the moment. It sounds like your first priority is to get saving!

Jessica86

Thank you Roro for replying and taking the time to.
I have no idea how we would repay the deposit money, but if we could get a loan in another country the Irish banks would know about it right?

We are spending all our money because the house we rent now costs so much, I can;t believe mortgage would ever exceed that amount.

Stheno

Jessica86 wrote: »

Thank you Roro for replying and taking the time to.
I have no idea how we would repay the deposit money, but if we could get a loan in another country the Irish banks would know about it right?

We are spending all our money because the house we rent now costs so much, I can;t believe mortgage would ever exceed that amount.

The banks would want to see a record of savings from you or confirmation that the money from your parents wouldn't have to be repaid.

Your only option is to try and rent a cheaper house, and save. Look at what you are spending your money on now and maybe work out a budget to allow you to save?

Jessica86

The problem now is we can;t really rent a house. I have been trying for months now. I emailed and called hundreds of people on DAFT in a circle of 40 KM from Leixlip. I cant find a single place that allows me to have my 2 dogs.

I know giving them up is easy to say, but they are my family...

Stheno

Jessica86 wrote: »

The problem now is we can;t really rent a house. I have been trying for months now. I emailed and called hundreds of people on DAFT in a circle of 40 KM from Leixlip. I cant find a single place that allows me to have my 2 dogs.

I know giving them up is easy to say, but they are my family...

36 houses on daft in Kildare for less than 1000e a month that allow pets when I did a search just there, quite a few of them outside towns with a bit of space.

Jessica86

basically out of that search we got
http://www.daft.ie/searchrental.daft?id=1240844

Because if I go too far the gasscosts and the rent will exceed the budget we even have for a house. And for this one I already called.

I have about 12 more I called today.