Looking to borrow €40k

golfdiva

Hi All

Just wondering where would be the best place to borrow €40k. I'm looking to put the money towards an investment property.


Would somewhere like a credit union give loans for that purpose.

Thanks

notharrypotter

golfdiva wrote: »

Hi All

Just wondering where would be the best place to borrow €40k. I'm looking to put the money towards an investment property.


Would somewhere like a credit union give loans for that purpose.

Thanks

Out of curiosity how would you plan to fund the balance of finance on the investment property?

gogo

golfdiva wrote: »

Hi All

Just wondering where would be the best place to borrow €40k. I'm looking to put the money towards an investment property.


Would somewhere like a credit union give loans for that purpose.

Thanks

Yep, Credit union prob would. Cheapest way would be a personal loan for 40k. A bank will prob advise you to do a mortgage to avail of a better rate, but a mortgage for an investment property requires panel solicitors, 3 way closing.. etc.. you’d end up paying what you saved on the rate in fees. So cheaper option would be a personal loan anywhere will do it once you advise them why you don’t want to go down a mortgage route. Negative is that a personal loan will more than likely have a shorter term attached to it. Approx five years so you’d have to have affordability for it over that term.
Mortgage can be pushed out longer, pros and cons to both.

golfdiva

notharrypotter wrote: »

Out of curiosity how would you plan to fund the balance of finance on the investment property?

By selling another property , just short the difference in price between them.

golfdiva

gogo wrote: »

Yep, Credit union prob would. Cheapest way would be a personal loan for 40k. A bank will prob advise you to do a mortgage to avail of a better rate, but a mortgage for an investment property requires panel solicitors, 3 way closing.. etc.. you’d end up paying what you saved on the rate in fees. So cheaper option would be a personal loan anywhere will do it once you advise them why you don’t want to go down a mortgage route. Negative is that a personal loan will more than likely have a shorter term attached to it. Approx five years so you’d have to have affordability for it over that term.
Mortgage can be pushed out longer, pros and cons to both.

Exactly why I was trying to avoid another mortgage , bank said I would have to pay their solictor :eek: and get an engineer. I was hoping to avoid those extra costs .

The rate will probably be higher for a loan but looks a better option in my case.

gogo

golfdiva wrote: »

Exactly why I was trying to avoid another mortgage , bank said I would have to pay their solictor :eek: and get an engineer. I was hoping to avoid those extra costs .

The rate will probably be higher for a loan but looks a better option in my case.

Defiantly be higher and shorter term.. on the plus side you walk away in 5yrs and the loan is gone.

Purpose will be the hard one, bank might you advise you mortgage is the best route.. just remember when applying, a personal loan can be for anything

Also ‘their’ solicitor is actually an independent solicitor.. they always say it that way to customers for some reason, but it’s actually an independent one, not the banks at all. They just make sure everything is in order.. it’s called a three way closing.

golfdiva

gogo wrote: »

Defiantly be higher and shorter term.. on the plus side you walk away in 5yrs and the loan is gone.

Purpose will be the hard one, bank might you advise you mortgage is the best route.. just remember when applying, a personal loan can be for anything

Also ‘their’ solicitor is actually an independent solicitor.. they always say it that way to customers for some reason, but it’s actually an independent one, not the banks at all. They just make sure everything is in order.. it’s called a three way closing.

Is that normally something they ask ... where the money is going ?

My guess is it would have to be something tangible for €40k .. like for instance I need "home improvements" then they will be looking for invoices etc. I'm probably stuck to give the reason why I need the money :pac:

notharrypotter

golfdiva wrote: »

By selling another property , just short the difference in price between them.

If you are selling another property then you will have retained a solid for that.

surely there would not be a huge extra cost for using them if you were to get another mortgage?
Then overpay as quickly as possible?