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Mortgage question on inherited property

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  • 27-07-2020 4:51pm
    #1
    nedkelly123
    Registered Users Posts: 100 ✭✭


    My brother and sister and me have inherited a house from our late mother
    at a share of 33% each ..

    what are my options when it comes to buying them out re mortgage
    the house is worth approx 450k

    would i have to apply for a mortgage of 300 k
    or would i have to have 20% of the purchase price in cash ?
    how would a mortgage work in this case ?
    thanks


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    #2
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    nedkelly123 wrote: »
    My brother and sister and me have inherited a house from our late mother
    at a share of 33% each ..

    what are my options when it comes to buying them out re mortgage
    the house is worth approx 450k

    would i have to apply for a mortgage of 300 k
    or would i have to have 20% of the purchase price in cash ?
    how would a mortgage work in this case ?
    thanks

    Yes 300k mortgage, the 20% cash wouldnt be needed as its within the loan to value which is300/450 or 67%
    You could get either an owner occupier mortgage at around 2.4% average or a investor loan at 4.8%
    Alternatively you could if a bank is currently unwilling to lend due to the pandemic draw up an agreement to repay the loan to your family at an agreed rate until they are.
    The bank will look at if your income is sufficient to pay the loan so you would need to be on 86k euros a year (300/3.5) with an investor loan they will look at the rent and maybe at your income


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