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Using an inheritance to get a personal loan

  • 10-01-2024 12:54pm
    #1
    Claymation
    Registered Users, Registered Users 2 Posts: 15 ✭


    Hi there

    I need to get some home improvements done due to a leaking roof, which will cost about €40-50k but I need to get a loan as I don't have that in savings at the moment. I have just started out as a sole trader, cash is pretty tight and I feel I am unlikely to get approved if I just apply for a loan online in the usual way. However, I am due to receive an inheritance over the next year or so depending on how long probate takes. This will more than enable me to pay off the loan, but I'm not sure how to even approach a bank to see if they will accept this. I am highly secure financially in that we own our home with no mortgage and have no real debts to speak of. Will a bank entertain this and if not, who else is likely to offer a loan in such circumstances?

    Thanks for any advice in advance



Comments

  • #2
    frank730
    Registered Users, Registered Users 2 Posts: 153 ✭✭frank730


    best chance is to talk to your local credit union, they all do home improvement loans and are more understanding and listen to your situation. Banks won't want to hear from you.



  • #3
    Claymation
    Registered Users, Registered Users 2 Posts: 15 ✭Claymation


    Thanks for that. Hadn't considered them.



  • #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,606 Mod ✭✭✭✭Jim2007


    The thing is you don't have a right to an inheritance, there is no guarantee that you will anything like the sum you expect and you can't assign the right to anyone else. So you can't offer any comfort to a financial institution that they have an iron clad way of getting their money back if you don't pay.

    Of course you can try the banks and credit unions and you might well find someone who would be willing to take a chance on you, but I'd say you need a better plan. Depending on who the executors of the will are, maybe you could come to some kind of a family arrangement...



  • #5
    martco
    Registered Users, Registered Users 2 Posts: 459 ✭✭martco


    as already mentioned try the Credit Union

    not sure about how the inheritance would affect things one way or other but they're my go to for "small" loans, had 2 now no issues and low hassle

    last time I looked into a traditional bank the numbers looked very grim and they wanted chapter and verse of my life...on such a small amount I laughed....also I actually think they have a dislike of self employed people

    one other alternative tho I've not yet had experience of is Revolut



  • #6
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    That you have just started out as a sole trader may be an obstacle, depending on the business.

    If the inheritance you are due to receive is largely down to a formality, they may lend against a % of it, but not against all of it. So, if you are getting a million and want €50,000, not so much of a problem. If you are getting €50,000 and want €50,000, then problem.

    Re-mortgaging the house might be an option, but paperwork intensive for a middling amount.



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  • #7
    dxhound2005
    Registered Users, Registered Users 2 Posts: 21,865 ✭✭✭✭dxhound2005


    A lifetime ago I took out a top up mortgage loan to build an extension. My main mortgage had run for a few years. Back in the good old days when only Building Societies offered mortgages, and the interest rates were double digits. I can't remember whether any alternatives were available at the time.

    I know the mortgage has been paid off by the OP, but assuming a good payment record an approach to that lender could be possible. Everyone is different but a homeowner with no mortage would normally be considered a good risk. Any lender would require full disclosure including what "no real debts to speak of" actually means.

    Post edited by dxhound2005 on


  • #8
    AndrewJRenko
    Registered Users, Registered Users 2 Posts: 30,282 ✭✭✭✭AndrewJRenko


    At risk of being slightly ghoulish, how certain is the inheritance? Is the person actually deceased now? Will the executor of the will be happy to give you written statement of what you will be entitled to?



  • #9
    Ronney
    Registered Users, Registered Users 2 Posts: 857 ✭✭✭Ronney


    Have you checked if your home insurance will cover any of the damage..?



  • #10
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,606 Mod ✭✭✭✭Jim2007


    https://www.boards.ie/discussion/comment/121602878#Comment_121602878

    Well it would be unusual, but not unheard of for an estate evaporated. I encountered two cases back in the late 80s. In both cases the deceased had committed tax and social welfare fraud and when it was all paid down plus penalties and interest there was not much left. But I think now a days they have tightened up a lot of that stuff.



  • #11
    Claymation
    Registered Users, Registered Users 2 Posts: 15 ✭Claymation


    https://www.boards.ie/discussion/comment/121602878#Comment_121602878

    Yes, the person is deceased now and the probate should be pretty straightforward. I don't think getting a written statement of what I will be entitled to will be an issue either.



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  • #12
    Claymation
    Registered Users, Registered Users 2 Posts: 15 ✭Claymation


    https://www.boards.ie/discussion/comment/121602913#Comment_121602913

    I've had a quick look at what the norm is and I don't think I will be covered. Damage is from a velux window that has allowed water in and is weakening the roof and, if it goes unchecked, potentially the walls.



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