Best way to borrow money

elderlymum

Hi a friend of ours loaned us €75,000 to help build our house a number of years ago. It was given to us in cash at the time. Now, they want it back. And we need to get a loan for this amount. We are a married couple in our early fifties and are mortgage free. We have a car loan outstanding but are both working and earning okay.
We could easily afford the repayments but have virtually no savings as we put everything we had into our house. Where is the best place to go? I'm not sure we'd qualify for a mortgage type loan because we own our house.
Any advice greatly appreciated.

3DataModem

elderlymum wrote: »

Hi a friend of ours loaned us €75,000 to help build our house a number of years ago. It was given to us in cash at the time. Now, they want it back. And we need to get a loan for this amount. We are a married couple in our early fifties and are mortgage free. We have a car loan outstanding but are both working and earning okay.
We could easily afford the repayments but have virtually no savings as we put everything we had into our house. Where is the best place to go? I'm not sure we'd qualify for a mortgage type loan because we own our house.
Any advice greatly appreciated.

You can apply for a mortgage on your house, totally normal thing to do, and should be OK as long as you can well afford repayments and your house is worth a bit more than 75k. Talk to your bank, or a local mortgage broker:

Trish56

I don't think it will be as simple as you say. If you have no mortgage on your house you will need to inform lender why you want to borrow 75k and if the money was lent to you in cash you could have a money laundering problem as bank will want to see a paper trail of the loan you got coming out of a bank account and going into your bank account.

3DataModem wrote: »

You can apply for a mortgage on your house, totally normal thing to do, and should be OK as long as you can well afford repayments and your house is worth a bit more than 75k. Talk to your bank, or a local mortgage broker:

NIMAN

Trish56 wrote: »

I don't think it will be as simple as you say. If you have no mortgage on your house you will need to inform lender why you want to borrow 75k and if the money was lent to you in cash you could have a money laundering problem as bank will want to see a paper trail of the loan you got coming out of a bank account and going into your bank account.

May not be as simple.

A friend was able to hand you €75,000 in cash:eek: Just like that?

They are obviously very trusting of you as well since there is no paper trail, and if you never repaid it, they could do little about it.

Applying for a mortgage is fine, but the bank will obviously ask what you intend to do with the €75k they are lending you. If you say its to pay back a friend who gave you 75k cash, alarm bells might start ringing.

Maybe speak to a professional advisor on this one?

JTMan

You might be best getting a personal loan for 75k (tell the bank it is for renovations) but the interest rate will be high.

Alternatively, you could gradually pay the guy back. Perhaps, 1k per month etc.

Credit union loan?

The short time to repay before you reach retirement age and the relatively small amount make a mortgage less likely.

Maybe talk to a mortgage broker to get a better idea.

elderlymum

Thanks for all the replies. I think the credit union is the way to go. I can't see us getting a mortgage as we were already refused a mortgage on our property as the bank (AIB) didn't do that....a few years ago.