20k Mortgage for 1st time buyer

country_lad

Hi all,

Just a quick enquiry into obtaining a 20k mortgage as a first time buyer. I have savings of approximately 20k and looking into buying a 1/2 bed apartment in the locality for approximately 30/35k (yes there are still some of these available!) as an investment. My gross salary is 28k.

Just wondering if banks offer such small amounts (20k) as a mortgage? I will be meeting with my local bank in the next few weeks but just want to gauge peoples opinion on the matter

Cheers

handlemaster

I Dont think so. That's more personal loan territory.

okiss

I would give you the following advice.

I would not buy a 1/2 bed room apartment for investment reasons.
I know that you are not planning to borrow much to do this but what happens if you can't rent out the place you buy?
Are you aware the cost of management fees on apartments along with the tax you pay on rental income?
Also do you understand how the prtb works and all the costs you have with renting out a place? Do you want calls any time of the day or night when there is a problem with apartment?

What happens if you get the renters from hell? I know one man who this happened to. It cost him thousands to repair and replace the damage done to his house along with the mortgage payments as his renters stopped paying rent soon after they moved in.

How would you manage if you need this money quickly at a later date and you can't sell this apartment. How would you feel taking a loss if you sold this apartment in a few years time after you take into consideration what you spent on it.

At the moment you may not want to own your own home but this may change in a few years time. Meanwhile your savings are invested in a property you may not be able to sell. If you have savings at that stage you won't be able to borrow as much for the house you want due to having an investment mortgage.

If you are buying an apartment for €30/€35K you will be waiting a long time to get a return on this. I don't think the banks will lend on €20k on a buy to let mortgage. If they do they will charge a higher interest rate which they can put up at any time.

handlemaster

Okiss while I agree with some of your text the OP seems to have their minds made up to buy and aren't asking what life like a landlord or indeed if their choice is a good one.

drunkmonkey

I think they give 50% mortgages on small properties, so if it's 30k they'll lend you 15.
If they don't, you could always take out a 15k car loan and just buy the apartment with the money, they don't look for evidence of purchase.

Rebel1977

Get a personal loan it be easier and cheaper if you go the mortgge route you will have extra costs such as solicitors and auctioneers fees etc

chris85

Rebel1977 wrote: »

Get a personal loan it be easier and cheaper if you go the mortgge route you will have extra costs such as solicitors and auctioneers fees etc

Will still have solicitors fees and auctioneers fees if you buy with a personal loan still. Also dont forget stamp duty. Makes more financial sense to get a mortgage if possible as rates will be half that of a personal loan.

country_lad

Thanks all for the replies. I've arranged a meeting with my local bank to see what I can/cannot get. On a side note I having savings of approx 10k and it is basically sitting in an account not making a penny. I'm looking into trying to make some dosh on this and hence the apartment. It seems like investing in some shares might be a more logical way to invest