Is taking out a personal loan for house deposit a good idea?

miss no stars

ted1 wrote: »

exactly, you tailor it to the age of the house. Miss No Stars was implying that it should be standard.

Lots of people always go for the unnecessary upsale like Currys extended warranty etc

Read what I just wrote. House built in 2010. Serious problems with the drains. No problems with the house, no reports of problems from the owners with the drains, nothing to hint that anything might be amiss but serious damage all the same that will cause problems down the line.

userod

miss no stars wrote: »

wtf is that about?


There is a real need to do a CCTV check on the drains. They're buried, you can't see them, you can't check them in any other way. There is literally no other way of knowing - whatsoever - what's down there. Did one on a house just last week, next to no problems with the house, recent build, drains were fecked and it's gonna cost a bit to put it right. I'd want to know if there'll be sewage flowing onto my lawn sometime soon, wouldn't you? If there's a serious blockage the pipes can become damaged and need repair. That's a hell of a big job. If you can't afford €250 to make sure that one of the most important services to the house is at least in working order you can't afford the house you're buying.

CCTV checking the drains on a house is overkill.

Perhaps we should also invite a team of tree surgeons to see how finely the wood in the house is ageing.

miss no stars

userod wrote: »

CCTV checking the drains on a house is overkill.

Perhaps we should also invite a team of tree surgeons to see how finely the wood in the house is ageing.

Is that in your professional opinion or personal opinion?

ted1

miss no stars wrote: »

Is that in your professional opinion or personal opinion?

A tree surgeons professional opinion would recommend that the trees should be checked.

The problem with professional opinions is that they are the ones with a vested interest.

miss no stars

ted1 wrote: »

A tree surgeons professional opinion would recommend that the trees should be checked.

The problem with professional opinions is that they are the ones with a vested interest.

Yup, and I don't carry out CCTV surveys for a living so I don't have any vested interest. My interest lies in making sure the prospective purchaser knows what they're buying and is made aware of any issues, including issues with the drainage (or at least made aware that they should get a CCTV survey done to check for issues).


The thing is, people are now really acutely aware that there can be problems with modern-builds. There's been enough crap structure, poor detailing, poor soundproofing and then massive pyrites problems that people seem to be aware that not every building is going to be okay. But why would you limit that to above ground parts of the property? Why would one assume that everything below ground has been constructed perfectly and maintained perfectly by the current owners and then in the same breath hire someone to check the above ground works?

cpoh1

userod wrote: »

CCTV checking the drains on a house is overkill.

Perhaps we should also invite a team of tree surgeons to see how finely the wood in the house is ageing.

The main reason people end up with "subsidence" problems in Ireland is because of issues with damaged drains leaking fluids into the surrounding soil, softening it up and causing reduction in the shear strength weakening foundations and causing cracks in the structure of the house (usually the last and most expensive symptom to fix). Old style clay pipes are normally the root cause, in areas of limestone, any flex or movement in the pipes leads to them breaking and combined with shallow foundations on older houses the chain reaction sets off. In newer builds during celtic tiger times excavation areas werent allowed to settle leading to damage pvc pipes also, its more common than you think. So yeah a survey on your pipework is pretty important.

When I bought my house early last year I had a damp/wood expert in to inspect the attic wood and basement, the house was built in the 50's and although all looked good I wanted to make sure it would be ok for another 50 years after we moved in. He found some early woodworm infestations in obscure locations in the attic which I treated once we bought.

But sure €150 will cover all you need, because houses are a small investment after all. You'd spend more than that on a mechanic looking over a car :rolleyes:

cpoh1

ted1 wrote: »

the OP is looking for a mortgage of 130,000 (@100% mortgage)that's about €650 a month, they are currently paying 450 in rent.

So they cant manage to save any money at all with their current scenario yet you are ok with them not only

1. getting a loan for a deposit they cant save increasing monthly outgoings
2. Increasing their monthly payments for accomodation by 33%

They have no disposable income at all for savings yet you think they should add a loan and higher mortgage repayments compared to their current rent to the mix. And that is with variable rates as low as they are about to go and with no security for any changes in the future.

I just cant make my mind up if you are serious (and deluded) or a very good wind-up merchant (in which case I tip my hat in your direction good sir).

nick 56

Do you ever wonder where all the talk of repossession, negative equity etc that has been in the papers over the last few years came from.

When i was working as a plumber i was freaked by the number of people who would get 4 or so years old bathrooms ripped out and replaced with the latest fashion.

Extensions, new windows, bigger houses etc. Often this would be financed not by the "evil" banks but by the local credit union.

Yes its hard to realise you should have started on the house buying / money road earlier but you will have to start now!

Save up. , preferably with the bank that you will approach for the mortgage. If you change your mind you can always have a spree.

Reading back on my text i sound like a pompous prat but dont make the mistake i made , it took me years to recover .

The_Morrigan

Folks can you cut out the squabbling and get back on topic.

dockleaf

Land registry fees alone on the purchase:

1. Transfer fee €600
2. Fee to register mortgage €175
3. Fee to obtain folio on completion €5.

Total (bare minimum) €680.

OP will also have to pay search fees of somewhere between €75 to €150 depending on title, commissioner for oaths fees for swearing documentation approx €40. If they want a planning search somewhere between €150 to €200. Total outlays alone, excluding solicitors fees coming in about €1000 give or take a bit and these are bare minimum assuming title in order. Solicitors fees are probably going to be somewhere between €950 to €1500 plus VAT at 23% depending on where you go. Might even be able to get solicitors fees for less but always wise to go for someone recommended if possible.

cpoh1

dockleaf wrote: »

Land registry fees alone on the purchase:

1. Transfer fee €600
2. Fee to register mortgage €175
3. Fee to obtain folio on completion €5.

Total (bare minimum) €680.

OP will also have to pay search fees of somewhere between €75 to €150 depending on title, commissioner for oaths fees for swearing documentation approx €40. If they want a planning search somewhere between €150 to €200. Total outlays alone, excluding solicitors fees coming in about €1000 give or take a bit and these are bare minimum assuming title in order. Solicitors fees are probably going to be somewhere between €950 to €1500 plus VAT at 23% depending on where you go. Might even be able to get solicitors fees for less but always wise to go for someone recommended if possible.

So about €1000 so for the whole lot is what we are saying yeah

kellygav

Using the best quote I got in the market for a solicitor:

Professional fee (Solicitor Fee): €900
Plus VAT: €207

Land Registry fees for registration of Lease / Transfer: €700
Land Registry fees for registration of mortgage deed (if applicable): €175
Land Registry fee for obtaining copy folio and map: €5

Fees to law searchers: €65
Commissioners fees (if applicable): €20

Stamp duty @ 1% (The house mentioned was €130K): €1,300

Total Price approx: €3,372

ted1

kellygav wrote: »

Using the best quote I got in the market for a solicitor:

Professional fee (Solicitor Fee): €900
Plus VAT: €207

Land Registry fees for registration of Lease / Transfer: €700
Land Registry fees for registration of mortgage deed (if applicable): €175
Land Registry fee for obtaining copy folio and map: €5

Fees to law searchers: €65
Commissioners fees (if applicable): €20

Stamp duty @ 1% (The house mentioned was €130K): €1,300

Total Price approx: €3,372

Which is much closer to my €2450 as oppose to mousetails "at least 5k"

HeyArnold320

Does anyone know how the banks would look on say, 15k saved up through your banks savings and 15k you have inherrited from a family member for a 30k deposit. Would they accept this or would you need to save up the 30k yourself?

miss no stars

ted1 wrote: »

Which is much closer to my €2450 as oppose to mousetails "at least 5k"

Actually it's closer to the 5k once you add in the survey costs.

NewCorkLad

HeyArnold320 wrote: »

Does anyone know how the banks would look on say, 15k saved up through your banks savings and 15k you have inherrited from a family member for a 30k deposit. Would they accept this or would you need to save up the 30k yourself?

That shouldn't matter as long as you can meet the repayments with the usual stress testing taken into account.

As regards the OPs question I would say no that is not a good idea.

MrDerp

HeyArnold320 wrote: »

Does anyone know how the banks would look on say, 15k saved up through your banks savings and 15k you have inherrited from a family member for a 30k deposit. Would they accept this or would you need to save up the 30k yourself?

I had no problem with inheritance that had been sitting in my account for some time. You need to show recent evidence of savings - 6 months worth - that's the most important part. You're deposit could be 20k gift and 10k savings as long as the savings is recent and verifiable, and you have a good reason for getting the 20k. Typically the bank look for a letter from your parents or whoever that the money is a gift with no recourse.

L1011

HeyArnold320 wrote: »

Does anyone know how the banks would look on say, 15k saved up through your banks savings and 15k you have inherrited from a family member for a 30k deposit. Would they accept this or would you need to save up the 30k yourself?

You may be asked to show the documents relating to the inheritance but once your savings per month plus rent, if paid meet the requirements it won't be an issue. Their concern is ensuring that there's no repayments or partial ownership grants required on any part of the deposit.

bluemartin

I recently got the following bill from my solicitor, it was for an old house costing 60,000

Legal services 1000 inc vat

stamp duty 600

Registry of deeds 50

Land registry on first registration 130

copy of folio and map 6.00

Law searches fees 530.90

Can anyone tell me why the law searches fees were so high

Big Cheese

That will have a negative impact on the approval chances of your mortgage. it is much better for you if you can save the money first-hard I know- as then you will have a history of being able to save something. A mortgage is a big step, don't tie more debt than absolutely necessary around your neck. However, in saying that you may want to do some calculations as to whether the amount of interest you will pay on the loan over a period is going to be more or less than the rate of increases in property prices. By the time you save 10k the house prices may have gone up 30k on average.

messrs

I took out a credit union loan of 8k to go along with my savings to pay my deposit - told my CU the loan was for a car, and got it no probs, I told my mortgage broker I had a CU loan out of a car and it was no probs, I had 5k in savings and then I told them the 8k was a gift from a family member. I had no problems making the repayments at all, CU loan now fully paid

Eldarion

messrs wrote: »

I took out a credit union loan of 8k to go along with my savings to pay my deposit - told my CU the loan was for a car, and got it no probs, I told my mortgage broker I had a CU loan out of a car and it was no probs, I had 5k in savings and then I told them the 8k was a gift from a family member. I had no problems making the repayments at all, CU loan now fully paid

Yay for Mortgage Fraud.

Ends do not justify the means.

messrs

Eldarion wrote: »

Yay for Mortgage Fraud.

Ends do not justify the means.

how is that mortgage fraud? i have always met my payments on time & never had any issues at all making my repayments

The_Morrigan

messrs wrote: »

how is that mortgage fraud? i have always met my payments on time & never had any issues at all making my repayments

You lied on the application.

Alter_Ego

What about taking a loan of 10k to supplement 20k of savings just to speed things up? We're paying e1250 in rent and saving between 250-750 per month.

Looking to buy a house up to 240k so between the deposit, legal and other fees and stamp duty we're circa 10k short.

Averaging 500 per month in savings, it will take another 20 months to save up 10k.

Instead of paying 1250 in rent, I could be paying 1000 mortgage, and paying off the 10k loan over 4 years @ 250 per month, still having buffer of average of 500 euro per month.

Is there any point even talking to a bank about it?

riclad

You Have 15K, and 15k inheritence ,
save x amount per week, in a bank account ,
just in case they want to inspect your savings history.
I dont think the bank will have a problem with this ,
as long as you can afford to pay the mortgage.
MY friend borrowed 10k from the cu to get a mortgage deposit ,
in 2005.
To borrow 10k from cu,you need about 3200 savings in the cu.
You,ll have to state what is the loan for .

NIMAN

Buying a house and taking on a mortgage for 25 years is a huge commitment. A commitment that many Irish people took too lightly over recent years.

It will likely stretch you financially, and that's the reason banks insist you have a decent deposit. It shows you are financially capable and are serious.

To be honest if you need to borrow 10k for a deposit, you simply cannot afford that property. Harsh but true.

gaius c

2.3% deposit? Can't see any problems with that at all...

The answer is no btw.