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Question for knowlegeable posters re: mortgages

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Comments

  • #32
    zenith
    Registered Users, Registered Users 2 Posts: 785 ✭✭✭zenith


    1. Should be possible for friend to let couple in house on caretaker's agreement and agreement to buy by x date.
    2. Will give them time to resolve mortgage issues by being in situ.
    3. If a 'rent' or nominal rent needs to be paid, that can be reflected in agreed purchase price or actually paid; their choice.
    4. If it all goes pearshaped; no work, etc, change of circumstances, it can be unwound quickly with no major outlay.
    IMHO.


  • #33
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You do not have to prove your ability to save to the lender but prove affordability and as majority of people are paying rent way above mortgage repayments this is acceptable. I stated 'there is no problem witha lender accepting a gift as part of the deposit' I did not state entire deposit.

    ....... wrote: »
    Not strictly true.

    I had to prove that savings were not a gift because they showed my ability to save.

    I was told that the bank would not allow the entire deposit to come from a gift as that was not showing any ability to save.


  • #34
    .......
    Closed Accounts Posts: 9,057 ✭✭✭.......


    This post has been deleted.


  • #35
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    We are discussing a totally different scenario so, the OP states they are first time buyers, are currently renting, paying off loans and saving & all that will be taken into consideration when assessing a mortgage under affordability.

    Indeed figures issued for mortgages completed for the past number of years show that both First time Buyers and Investors drew down the most mortgages.
    I don't understand if you were a switcher how you had to prove your large deposit was not a gift....what deposit?? You should not need a deposit to switch a mortgage or indeed show you have savings for 6 months your mortgage repayments should suffice however having savings and saving regularly would indeed make your case stronger.

    ....... wrote: »
    This post has been deleted.


  • #36
    .......
    Closed Accounts Posts: 9,057 ✭✭✭.......


    This post has been deleted.


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  • #37
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    I'm afraid you are providing incorrect information you just mentioned that you were a switcher " I wasn't paying rent, I was paying a mortgage"
    so you are confusing people with the information you are providing.

    I am in the mortgage business for over 40 years so the information I provided is correct and factual and is as per lenders current policy and criteria. You are getting confused between proven ability to PAY and proven ability to SAVE. Proven ability to pay can include savings, rent and loans recently completed.

    There are a huge amount of First Time Buyers getting substantial gifts from parents in order to purchase their first home especially in Dublin and this is totally acceptable by the lenders once the applicants can prove they can afford the repayments by evidencing savings, rent and monthly repayments on loans recently completed over a 6 month period. Receiving a gift has always been acceptable towards the deposit and of course regular savings is also required.

    I wont be making any further comments on this post so will leave you with the last word as I'm confident I've given the correct response to the OP's question.



    ....... wrote: »
    The banks were applying standard rules (or so they told me). You have to prove ability to save regardless of being a first time buyer. I wasn't a switcher. I'm just pointing out that the banks want proof large cash deposits are not gifts and they want to see proven ability to save. You're muddying the OPs query here in a desire to be right.

    Banks distinguish between "life long savings" (which may be matured investments or indeed gifts) and regular savings. But you have to be able to show the regular savings and a gift as deposit will not cut the mustard.


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