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Applying for mortgage with outstanding loan debt

  • 22-11-2017 12:08pm
    #1
    Shurwhynot
    Registered Users, Registered Users 2 Posts: 561 ✭✭✭


    My other half and I are looking into applying for a mortgage (first time buyers, not married).

    I have a decent amount of savings, whereas she doesn't have a whole pile, and has a loan of approx 6k outstanding. Her Dad has said he is going to lend her some money to go towards the deposit. Would the bank take all variables into account when calculating what we could borrow - ie my savings, plus her savings + lump sum payment from her father, less her outstanding loan? Or would it be frowned upon that her father was contributing, as opposed to her having her own savings built up?


Comments

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


    Hard to answer as would need more details. Depending on your income, the monthly repayments on the loan and your savings it may we wiser to pay off the short term loan if she is getting a gift rather than a loan from her Dad. As first time buyers you can borrow up to 90% of the purchase price subject to 3.5 times joint gross income. Therefore you need 10% of the purchase price plus 1% stamp duty and approx. €2500 for legal fees as savings - this can be a combination of savings and gift but not a loan.

    I would also recommend you apply to www.icb.ie for credit reports before applying.


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