Bridging Loan for House Deposit in advance of SSIA Maturity

[TheSphinx]

Hi there

I am currently putting the max away on the SSIA which doesn't mature until April 2007. I am currently approved of a max of 195,000 house purchase based on a 92% mortgage. My bank is willing to over me a bridging loan for the deposit of the house, and when my ssia matures I can pay the whole thing back, which means my ssia would essentially be gone. Is this a bad idea? or should I wait until next year to buy a house when my ssia account matures?

Thanks in advance for your help

 

[Sarah W]

I thought the SSIA rules prohibited loans being made with the funds as security??

On the wider question - are you ready to buy now or would you prefer to wait?

Sarah

www.rea.ie

 

[Cati76]

Could you apply for a 100% mortgage? the Bank will advance the deposit, you'll only have to pay interest on that "bridging loan" until the mortgage is withdrawn.

 

[TheSphinx]

I am not sure I am ready to buy now as I still have to pay the €250 a month along with my mortgage - I am just weary of the fact I may not be able to afford to buy a house next year. The bank I was with doesn't offer 100% mortgages, but when I asked Permanant TSB for a quote they offered me €120,000 i was totally insulted.

 

[AKA]

but when I asked Permanant TSB for a quote they offered me €120,000 i was totally insulted.

I'd recommend trying a broker if you are purchasing by yourself.
I was in a similar position, went to BOI and they practically laughed saying even if I had the deposit, got a 25% increase in wages by December that they still would lend me 150K. Now if I could get a gift from my parents that would be a different story. Found the broker more more approachable and a house a few months later.

Best of luck.