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Personal loan for small mortgage

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  • 04-11-2014 8:58pm
    #1
    jaffa20
    Registered Users Posts: 4,536 ✭✭✭


    Hi all,

    Just wondering if banks consider personal loans for small mortgages for eg 40-60k.

    What is the criteria for assessing how much you can borrow. I know its based on your ability to repay but if you are showing that you pay a certain rent each month and the repayments on a small loan over 5 years are the same as your monthly rent, is it likely you could get a personal loan approval on that basis.

    Would collateral help in this case. eg a small plot of land which the person owns.

    Thanks in advance


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    #2
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,505 Mod ✭✭✭✭johnnyskeleton


    Would collateral help in this case. eg a small plot of land which the person owns.

    That sounds like a mortgage. A personal loan is unsecured so you would pay a higher interest rate.

    But yes, if you earn enough they would in principle give you a personal loan for any amount


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    #3
    Victor
    Registered Users Posts: 78,423 ✭✭✭✭Victor


    Note that you could be paying 10% on a personal loan.

    I understand the banks tend not to give mortgages on amounts under €50,000.

    So look at the numbers carefully.


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    I guess wondering why you want a loan over a mortgage? Rates could be 3 times for a loan than a mortgage. Get a variable rate mortgage and can pay off as quickly as you want with no penalties.


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