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Applying for mortgage 2018

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  • 22-02-2017 10:27am
    #1
    missie1968
    Registered Users Posts: 13 ✭


    I have a credit union loan of 6000 I am currently paying back 40 a week should I be paying more in order to get my mortgage? Currently saving 1000 a month thanks


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    #2
    ILikeBoats
    Registered Users Posts: 2,525 ✭✭✭ILikeBoats


    I think it would depend on your income as a whole and what disposable income you have left over.

    I got my mortgage with an outstanding loan so it does happen, but I could prove I was paying back double the necessary while also having plenty of income leftover.


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    #3
    grahamor
    Registered Users Posts: 872 ✭✭✭grahamor


    You could continue saving @650 a month and put the remainder into clearing that loan in less than a year (the remaining 350 + 160 already paying off)

    Then increase saving back to 1000. Use a broker when applying and then will explain what you did to repay the loan and it shouldn't be an issue.


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    #4
    witchgirl26
    Registered Users Posts: 2,146 ✭✭✭witchgirl26


    I would try to repay the loan over the saving. I chatted to a broker last year when I had a small loan & he plugged some figures in for applying for a mortgage with the loan outstanding and with it paid off. I must say I was really surprised at the difference in the amount I qualified for by paying off the loan. His advice was that if a bank asks & you show you reduced savings to clear a debt, then it will be seen in a positive light as opposed to anything else. He also said that sometimes there can be questions raised if you have a large amount of savings that would cover paying off the loan and a loan outstanding.


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    #5
    BBMcQ
    Registered Users Posts: 1,324 ✭✭✭BBMcQ


    The bank will take a rounded look at your finance. You are financially better off paying high interest loans rather than keeping money for low interest savings.


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    #6
    Avatar MIA
    Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    Just to add...

    Clear the loan. :cool:


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