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Question re mortgages and existing loans

  • 30-09-2005 1:21pm
    #1
    Scruff
    Registered Users, Registered Users 2 Posts: 4,222 ✭✭✭


    I have a car loan that i'm paying off at €200p.m. Got a provisional estimate off a mortgage advisor as to what i'd be able to borrow and he said if i could clear the loan before applying for the mortgage i could borrow up to €45k more. I was abit surprised at this but realise that they probably take into account that if ye have a car loan now ye probably will have one again for the next car.

    Anywho, did a bit of juggling with figures and i'm thinking i could payoff the car loan now. this would enable me to get a higher mortgage (if needs be) but would mean i would have to take out a loan to cover the cost (or part of the cost) of furnishing the gaff.

    So i suppose the question is would i be better paying off the outstanding loan now and taking the hit on the furniture later? or is there any benefit to maybe keep paying the loan and use the money for a higher deposit or no furniture loan?:confused:


Comments

  • #2
    nesf
    Registered Users, Registered Users 2 Posts: 27,644 ✭✭✭✭nesf


    Well, what interest rate are you paying back the car loan at? If you can get a home loan for a lower interest rate or over a better term then it could make sense.

    Or you could furnish the house over time. Ie do the basics first and slowly furnish the rest of the place over the years.


  • #3
    JackieChan
    Closed Accounts Posts: 1,829 ✭✭✭JackieChan


    A car loan I had of 5K(350/mth) with 18 mths left reduced the max mortgage I could get from 320 to 255!!!.
    I suppose there looking at the bottom line...how much you have per month to service the mortgage.I think it would have made more sense for them to offer to take on the loan over 2 to 5 years and offer an amount close to 300.
    Although this would have cost more in the form of interest this would easily be negated by not wasting any more money renting.


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