Mortgage

afee_wils2011

Hi, does anyone have any dealings with KBC Bank? Need some advice. We can't afford the full amount and they are trying to force us extend our term by 13 years until my husband is 70. They will make roughly 80k extra off us doing this. They are saying that this is the only option available to us. It only cuts the mortgage to 830 which still isn't affordable. They go by their list of reasonable living expenses and say we can afford it. AIBs reasonable living expenses allow us nearly an extra grand a month!!!! How can they vary so much. If we just stop paying them and just pay them what we can afford maybe 700 what happens?? Would the courts side with us or the banks?? We have tried everything with them

themoneyguy

This is slightly tough because you seem to want it both ways - A lower repayment and for it not to cost you anything at all.

Forbearance on mortgage debt is usually seen as a temporary measure ( extending your loan with a view to your financial situation improving and you being able to afford to pay the repayments on the original mortgage term eventually)

Would you have a problem if the bank extended your loan by 20 years if it reduced the repayments to €700 a month?

Banks will be a bit tougher with forbearance in the future. The economy is improving, unemployment is down wages are starting to increase. Banks expect more money in your pocket over the next few years and want you to start paying your mortgage with it.

Would the courts be on your side? Possibly not..... it sounds like the Bank are trying to find some resolution with you.

Barneyc

Hi I need some advice I will be returning home from oz in a couple of months with about 35k, I would like to get a mortgage of around 250k realising that 35k ain't 25 percent if I got a site off my parents would the banks see that as equity and that that into consideration.?

Thanks

themoneyguy

Currently banks are offering up to 92% loan to value although the average is 90%. This means you will have to have a 8% to 10% deposit. This will change if the new Central Bank rules come into force....but no sign of that yet.

Are you building a house?

Banks would usually include the site that the house is built on as equity as it forms part of the security. Banks do differ for self build mortgages though.....
For example AIB -
"For mortgages up to €400,000, you can borrow up to 92%of the site, plus total build cost or up to 85% for mortgages
over €400,000."

mrolaf

just pay what you can afford e.g. 600 better than nothing and that looks better to the courts

Barneyc

themoneyguy wrote: »

Currently banks are offering up to 92% loan to value although the average is 90%. This means you will have to have a 8% to 10% deposit. This will change if the new Central Bank rules come into force....but no sign of that yet.

Are you building a house?

Banks would usually include the site that the house is built on as equity as it forms part of the security. Banks do differ for self build mortgages though.....
For example AIB -
"For mortgages up to €400,000, you can borrow up to 92%of the site, plus total build cost or up to 85% for mortgages
over €400,000."

Thanks money guy sorry I never explained fully I would like to buy an investment property, so I was wondering would the banks see the equity in the site even if no house was built.?

Trish56

Barneyc wrote: »

Hi I need some advice I will be returning home from oz in a couple of months with about 35k, I would like to get a mortgage of around 250k realising that 35k ain't 25 percent if I got a site off my parents would the banks see that as equity and that that into consideration.?

Thanks

Hi Barneyc,
You will not get a mortgage unless you are in permanent employment for 6 months to 1 year.

ShowMeTheCash

Just to add to this, bank will not just give you money if you land in with a big deposit.

You need to be in full time employment or if self employed they tend to look into that with more detail.

Usually they like to see savings on the current income, evidence that you can payback the mortgage amount.

In my case they wanted 6 months savings / paying rent.

Rent can also be used being if you purchase a house then this amount is freed up every month.

ShowMeTheCash

Barneyc wrote: »

Thanks money guy sorry I never explained fully I would like to buy an investment property, so I was wondering would the banks see the equity in the site even if no house was built.?

Just to add again to this my brother in law was in the same boat.

He works away, different gigs different times, kind of goes where he gets the work. Canada, Denmark, Sweeden etc etc....

He has savings and a site bank has refused him a mortgage multiple times as his contracts where temporary.