Will having a credit union loan affect a mortgage application?

coltrain

Just about to apply for a mortgage with my girlfriend but have a lone of 5700 with the credit union and 3700 in shares. Do you guys think it would be best to clear that lone before the application or would it matter? This is our only lone, no credit cards or overdrafts and with a decent amount of savings done in the last 6 months.

coylemj

Only because you managed to misspell it four times.... the word is 'LOAN'

The bank will ask you to outline your current outgoings, including monthly payments for outstanding loans. If you satisfy them that you can handle the mortgage repayments and the existing loan repayments, there shouldn't be an issue.

BuffyBot

I'm unaware that you've been appointed boards.ie's official spell checker, coylemj. Play nice.

coltrain

coylemj wrote: »

Only because you managed to misspell it four times.... the word is 'LOAN'

The bank will ask you to outline your current outgoings, including monthly payments for outstanding loans. If you satisfy them that you can handle the mortgage repayments and the existing loan repayments, there shouldn't be an issue.

Oh yeah haha, my Spelling's getting worse, thanks for the reply!

SBarrett

A mortgage lender will take the repayments into consideration when deciding how much they will lend you. I had a case last week and she had a €340 a month car loan. If she cleared the loan, she could get another €48,000 for her mortgage.

But then, if you clear the loan, you will have less for your deposit. 92% loan is the most you will get. Plus you need to pay for stamp duty, solicitor etc


Steven

coltrain

SBarrett wrote: »

A mortgage lender will take the repayments into consideration when deciding how much they will lend you. I had a case last week and she had a €340 a month car loan. If she cleared the loan, she could get another €48,000 for her mortgage.

But then, if you clear the loan, you will have less for your deposit. 92% loan is the most you will get. Plus you need to pay for stamp duty, solicitor etc


We are looking for 200,000 and have 10% deposit with a few grand for solicitor's fees/stamp duty, just don't want to risk rejection for the sake of a small loan with the credit union.

SBarrett

Let me know your repayments and I'll run calculations in the morning.

What age are you and what term are you looking for?


Just realised, I have no details of your salary! Can't run any quotes for you without that!

coltrain

SBarrett wrote: »

Let me know your repayments and I'll run calculations in the morning.

What age are you and what term are you looking for?


Just realised, I have no details of your salary! Can't run any quotes for you without that!

I'm 28 and my girlfriend is 24, she gets 24,000 and I get 36,000 a year, would be looking for a 35 year term if possible, if not a 30 year term.


Oh forgot to add, the repayments on the loan are 50 per week with 10 going into my shares and ten for interest on the loan, so 70 comes directly out of my wages every week and has done for a few years.

SBarrett

Hi Coltrain

Going on the information you gave me, you are alright for €200k as long as you meet the ability to repay requirement.

The current repayments will be about €940 but you have to show that you are able to repay €1,200.

You can prove ability to repay by showing them current savings, rent or other outgoings that will cease.

steven

coltrain

SBarrett wrote: »

Hi Coltrain

Going on the information you gave me, you are alright for €200k as long as you meet the ability to repay requirement.

The current repayments will be about €940 but you have to show that you are able to repay €1,200.

You can prove ability to repay by showing them current savings, rent or other outgoings that will cease.

steven

That's brilliant thanks very much for your help.

SBarrett

Your welcome


Steven

lostsoul01

Hi All
I need some advise on getting a mortgage.. I am 3-5K shy of 10% deposit if I want to go for house at 120K
( Have 9K saved but cannot find a property for anything less than 120K.. Credit union will give me 90% mortgage, I have no loans or credit cards, do you think a small personal loan for the 3-5K would have an effect on my application?

ELM327

lostsoul01 wrote: »

Hi All
I need some advise on getting a mortgage.. I am 3-5K shy of 10% deposit if I want to go for house at 120K
( Have 9K saved but cannot find a property for anything less than 120K.. Credit union will give me 90% mortgage, I have no loans or credit cards, do you think a small personal loan for the 3-5K would have an effect on my application?

You won't be allowed to borrow the deposit.

Trish56

Can you get a gift ??