Loans after mortgage

Leddy2688

Looking for some help....
We are first time buyers, got a mortgage, were sale agreed for months only to be told the house was sold to someone else, picked another house and had to go back to the bank for more money. The deposit is higher meaning we have little or no money left to finish this house. We are looking to borrow money now to finish the house. Anyone know the best way to go about this? Don't have credit union account. Will the bank laugh at us looking for a loan after drawing down mortgage?(it's not drawn down yet)

Any advice is greatly appreciated

dudara

Moved to A&P

dudara

Samuel T. Cogley

Certainly don't do it until you're in the house. You may have to inform the bank of any new loans before you're in the door.

Many of us hadn't a pot to pee in (well okay we did it came with the house) when we moved in. It might be worth getting what you can very cheaply (charity shops, adverts.ie) and bearing with that for a while until you can afford to furnish the place, but it's your business at the end of the day. I'm sure Hire Purchase wouldn't have an issue with you. DFS do 3 years 'interest free'*.

*Its not really it's just built into the purchase price.

listermint

Will be looking for loan for getting windows done and some other bits. Interesting question OP I've done homework and could pay loan and be extremely comfortable. But good to get other thoughts and experiences. Haven't moved in yet.

dudara

I'd personally be very reluctant to take on another loan so soon. Do you really have to do stuff in the house (i.e. essentials) or are these things that could wait a little while?

listermint

dudara wrote: »

I'd personally be very reluctant to take on another loan so soon. Do you really have to do stuff in the house (i.e. essentials) or are these things that could wait a little while?

What's the difference though taking a loan now or say in 3 years when he'd have the loan paid off ?

Not much I would have thought.

Samuel T. Cogley

listermint wrote: »

What's the difference though taking a loan now or say in 3 years when he'd have the loan paid off ?

Not much I would have thought.

In three years you've saved the money and you don't pay interest on the loan. Your way is just as valid but sends some us folks who have now gone through two or three major recessions running...

The issue during the last crunch is people were servicing unsecured debt before servicing mortgages - but I'm meandering off the topic now.

Leddy2688

listermint wrote: »

What's the difference though taking a loan now or say in 3 years when he'd have the loan paid off ?

Not much I would have thought.

My thoughts exactly. The thing is my mortgage is working out cheaper than the rent I currently pay so financially I'm going to be better off and more than capable of paying it back, I just wanted to get it done asap rather than be saving for weeks to get it finished

davindub

It would be common to borrow just after getting a mortgage if people can could do it but you need to allow a lot of room for your mortgage rates to increase which they are sure to do shortly. You will find it hard to get banks to offer you loans anyway.

Then also if you were successful you could be a pay check or two from real trouble. It happens a lot to people who felt secure enough to borrow at the time....

meeeeh

You will be also liable for insurance, tax and all other unforseen costs that renter isn't. At list wait long enough to know the electrics, plumbing and similar is sound before you spend loan on cosmetic improvements. We are still doing up things 8 years after moving in.

For me it makes sense to take out a loan to replace draughty windows, a little bit less to buy a sofa.

listermint

meeeeh wrote: »

You will be also liable for insurance, tax and all other unforseen costs that renter isn't. At list wait long enough to know the electrics, plumbing and similar is sound before you spend loan on cosmetic improvements. We are still doing up things 8 years after moving in.

For me it makes sense to take out a loan to replace draughty windows, a little bit less to buy a sofa.

This exactly. Windows and insulation is my focus. And enough Headroom to cover the loan and changes in circumstance or interest rate change

Leddy2688

And it's a new build so we could avail of the help to buy scheme but the contractor has said he won't register for it. That money would have finished it

Yourself isit

davindub wrote: »

It would be common to borrow just after getting a mortgage if people can could do it but you need to allow a lot of room for your mortgage rates to increase which they are sure to do shortly. You will find it hard to get banks to offer you loans anyway.

Then also if you were successful you could be a pay check or two from real trouble. It happens a lot to people who felt secure enough to borrow at the time....

Don't think that's sure at all.

davindub

Yourself isit wrote: »

davindub wrote: »

It would be common to borrow just after getting a mortgage if people can could do it but you need to allow a lot of room for your mortgage rates to increase which they are sure to do shortly. You will find it hard to get banks to offer you loans anyway.

Then also if you were successful you could be a pay check or two from real trouble. It happens a lot to people who felt secure enough to borrow at the time....

Don't think that's sure at all.

It absolutely is. The current low rates were to stimulate the economy. ECB stated its time to increase again.

beechwood55

Leddy2688 wrote: »

And it's a new build so we could avail of the help to buy scheme but the contractor has said he won't register for it. That money would have finished it

If it's a new build how come you are looking for a loan to do the windows and insulation? Is it built to current regulations? And in what way is a newly built house not finished?

Leddy2688

beechwood55 wrote: »

If it's a new build how come you are looking for a loan to do the windows and insulation? Is it built to current regulations? And in what way is a newly built house not finished?

It is finished, literally needs floors, paint, tiles,blinds, curtains, appliances etc, every penny I have is going on the deposit and solicitor fees just wanted to get all this done and get in asap

beechwood55

Leddy2688 wrote: »

It is finished, literally needs floors, paint, tiles,blinds, curtains, appliances etc, every penny I have is going on the deposit and solicitor fees just wanted to get all this done and get in asap

Maybe focus on a couple of rooms to start with - kitchen and bedroom. Also check sites like jumbletown.ie and donedeal.

Zulu

listermint wrote: »

...I've done homework and could pay loan and be extremely comfortable. But good to get other thoughts and experiences. Haven't moved in yet.

Not being smart, but if you would be "extremely comfortable" the bank wouldn't care less and give you the money. They're only interested in ability to repay.

...however, if you have the ability to repay, you also have the ability to save. Consider living "extremely frugally" instead. Save. Provide a buffer for yourself in case of unforeseen circumstance in the first year. Then all going well, you might be able to pay outright yourself or drawn down a much smaller loan. All the while protecting yourself.

I believe; my advice: Loading debt onto yourself in the first year should be avoided.

Samuel T. Cogley

Samuel T. Cogley wrote: »

In three years you've saved the money and you don't pay interest on the loan. Your way is just as valid but sends some us folks who have now gone through two or three major recessions running...

The issue during the last crunch is people were servicing unsecured debt before servicing mortgages - but I'm meandering off the topic now.

You also spend three years living in a place you aren't fully happy with which isn't good enough for many people. Some would say why spend all that money buying a house and then spend years living in it and not being pleased with it.

Slightly different but I'd have intentions of buying a new or nearly new car straight after getting a mortgage. I can afford it but using some savings for a deposit and the repayment reducing how much I can borrow and save would count against me in the mortgage application so holding off.

davindub wrote: »

It absolutely is. The current low rates were to stimulate the economy. ECB stated its time to increase again.

Rates haven't even stopped falling we are a long way from any meaningful increase.

thierry14

Leddy2688 wrote: »

My thoughts exactly. The thing is my mortgage is working out cheaper than the rent I currently pay so financially I'm going to be better off and more than capable of paying it back, I just wanted to get it done asap rather than be saving for weeks to get it finished

Many don't want to believe this but it's not cheaper to buy then rent.

Your always doing something to your house, especially in the beginning.

House is a money pit the first few years with all the little improvements, furnishing etc

When you rent you don't spend a cent on those things

Simple life is over for while when you buy

I wouldn't take a loan if I didn't have a large amount of savings to fall on

On a new build you shouldn't have to buy much

Find your feet first OP

Owning your home is difficult for first years, unnecessary debt is a no no for me anyway

Zulu

thierry14 wrote: »

Many don't want to believe this but it's not cheaper to buy then rent.

Presently, that is more often not true than true.

Your always doing something to your house, especially in the beginning.

Perhaps.

House is a money pit the first few years with all the little improvements, furnishing etc

True.

When you rent you don't spend a cent on those things

False.
Look, many don't want to believe that renting is far from ideal in Ireland, but the reality is very different for different people.
For my family rent is "dead money". Rent is more expensive than a mortgage. Rent is causing us headaches with applying to get a child into school. Renting means a single glazed house with storage heaters that can't all be switched on at the same time. Rent means a house that the landlord doesn't give a tupenny about. Rent means us constantly doing little things to the house to try and make it more a home, but never being able to address the real problems as its not our property...

Renting is NOT a home that runs perfectly, and is all taken care of by an amazing landlord whose primary concern is providing a gold plated service to you.

Find your feet first OP
Owning your home is difficult for first years, unnecessary debt is a no no for me anyway

This is good advice imo.

thierry14

thierry14 wrote: »

Many don't want to believe this but it's not cheaper to buy then rent.

They don't believe it because its not true. Rents are significantly more than mortgages on equivalent properties more often than not at the moment particularly for those who bought when prices were at the bottom. The difference between the mortgage and rent for one month would cover the likes of insurance, property tax etc for many people. Other costs like replacing an appliance the cost is spread over many years etc and big problems like damage and big repairs are more often than not covered by insurance.

There is costs associated with owning no doubt but many are also choice like doing something up, repainting, buying new furniture and even after that averaged out over a few years renting would still cost more.

On top of that a good portion of you mortgage payment is actually going against your capital so if you were to sell you would get it back or after x number of years the house is yours and your payments stop. So even if renting and paying a mortgage are on the surface working out at a similar outgoing under the surface there is a big big difference.

davindub

Zachary Full Bayonet wrote: »

davindub wrote: »

It absolutely is. The current low rates were to stimulate the economy. ECB stated its time to increase again.

Rates haven't even stopped falling we are a long way from any meaningful increase.

No I would say we will see increases this year. When the ECB say they will increase the rate, they will. How that translates to variable rates is up to the bank.

the_syco

Leddy2688 wrote: »

And it's a new build so we could avail of the help to buy scheme but the contractor has said he won't register for it. That money would have finished it

Why not?

thierry14 wrote: »

Many don't want to believe this but it's not cheaper to buy then rent.

Short term, maybe it's cheaper to rent, but long term, it is cheaper to buy. Especially when you consider the bills that you have to pay because your landlord is cheap, with single pane windows, and non-existent insulation. This sort of thing can take a toll on your health, which can be costly to fix.

meeeeh

My point regarding rent vs mortgage repayments was just to point out that there is other cost that has to be taken into account when you calculate the ability to repay the loan.

Leddy2688

the_syco wrote: »

Why not?

He just doesn't want to. Said this is the last housing development he is selling as he is moving onto civil works. I know he is fully tax compliant as he does a lot of work for the government, he even put the water mains in the town I'm moving to. It's so frustrating because if we had of signed contracts last December(when we were supposed to) the money would have been put straight into our accounts. Rules only changed Jan 1st that the builder has to register too.

Leddy2688

meeeeh wrote: »

My point regarding rent vs mortgage repayments was just to point out that there is other cost that has to be taken into account when you calculate the ability to repay the loan.

I get what your saying, but after including all costs, mortgage, insurance and assurance, mortgage protection and bins (the only thing I don't have to pay for in my rented accommodation) the payments are still cheaper than the rent I pay!

Dave147

Leddy2688 wrote:

He just doesn't want to. Said this is the last housing development he is selling as he is moving onto civil works. I know he is fully tax compliant as he does a lot of work for the government, he even put the water mains in the town I'm moving to. It's so frustrating because if we had of signed contracts last December(when we were supposed to) the money would have been put straight into our accounts. Rules only changed Jan 1st that the builder has to register too.

I'd be paying him the full amount minus what rebate you would've got in that case.

athtrasna

Mod note

Can we get back to the OP's topic ie loans to finish /furnish the house and take the renting v owning debate elsewhere please.

gmisk

athtrasna wrote: »

Mod note

Can we get back to the OP's topic ie loans to finish /furnish the house and take the renting v owning debate elsewhere please.

I got a 10k home improvement loan from ptsb about a month after mortgage no issues

Leddy2688

Dave147 wrote: »

I'd be paying him the full amount minus what rebate you would've got in that case.

I did actually think about doing this I just thought he would tell me to F off and not sell me the house. As I said before that money would finish the house