Home Equity Loan

B

Bob Hara

Registered User
Messages
4
Hi Guys,

Need some advice on how best to raise between 70-100K.

We own a house worth approx 350K in Dublin.
Currently wife lives/works in Northern Ireland and I live/work in Dublin. My wife will be moving to Dublin with me in the next few years when a job opens up.

Technically we own the 350K house outright but to buy it my wife took out a personal loan of 30K. I also received a 40K loan from my father. This loan was informal and I don't pay any interest on it.

Details
Ages: Both 26
Kids: 0

Income net after tax:
Wife 3300 per month (secure, full time public sector working in Northern Ireland).
Me 1800 per month (Income ends in June - will be unemployed, starting a higher paying job in the Autumn - my 1800 in wages was a training allowance for my future job).

Savings/Investments: 5K

Loan sought (70-100k)
My brother is now looking to buy a house and could use my dad's 40K plus some help from me.
I'd like to consolidate my wife's personal loan (30K), payback my father (40K) and if possible have another 30K to give to my brother.

I'm not worried about tax issues, trust issues or being able to afford the repayments.

I doubt I could get a mortgage on the house given my present circumstances but could my wife considering she is in full time employment? Would the fact her job is in NI stop her?

Anybody have any other advice on how I could get the money?

Thanks for reading!

Bob
 
You will need to be a bit more specific.

Value of house €350k

Mortgage €280k which bank, term remaining
Loan from father €40k
Wife's loan €30k with which bank, term remaining.

Monthly repayments?

Equity 0

You might be able to refinance but to what level is the question. If you are asking can you get 100% of the value to pay back your father and your wife's loan I'd imagine the answer is no.
 
Joe_90 said:
You will need to be a bit more specific.

Value of house €350k

Mortgage €280k which bank, term remaining
Loan from father €40k
Wife's loan €30k with which bank, term remaining.

Monthly repayments?

Equity 0

You might be able to refinance but to what level is the question. If you are asking can you get 100% of the value to pay back your father and your wife's loan I'd imagine the answer is no.
Click to expand...

I don't think OP has a mortgage at all but owns the house outright, only borrowings are the two loans of 40K and 30K which are both not secured to the property.

@Bob Hara: it will potentially be difficult in general to get an equity release mortgage, and even more so if your job situation not settled.
Here's some useful info, also with regards to risk.

Your wife working but more so living abroad means it is probably impossible to take her income into account for any mortgage purposes.

An less desirable option might be to sell the house, pay back the 70K and outright buy a different property for what's left (or less).
 
Joe_90 said:
You will need to be a bit more specific.

Value of house €350k

Mortgage €280k which bank, term remaining
Loan from father €40k
Wife's loan €30k with which bank, term remaining.

Monthly repayments?

Equity 0

You might be able to refinance but to what level is the question. If you are asking can you get 100% of the value to pay back your father and your wife's loan I'd imagine the answer is no.
Click to expand...

Hi Joe, sorry for not being more clear originally:

There is currently no mortgage on the house, we bought it for cash using a 40k loan from father and 30k personal loan taken out by wife.

Wife's loan is with Santander, term remaining approx 4 years. Not sure of her monthly repayments, it's on the order of 100 GBP a week or 130ish euro.

Thanks
 
Given your circumstances Bob there is currently no scope for mortgage approval. as per post by newirishman. When your wife obtains a job here position will change.
 

Thanks newirishman,

We bought the house like this without a mortgage as the vendor was only interested in cash bids. I find much of the information relating to "remortgaging" or "equity release" in Ireland confusing. Remortgaging because we have never had a mortgage and equity release because most of it seems to be aimed at older people while we are both 26.

Bob
 
Bob Hara said:
Thanks newirishman,

We bought the house like this without a mortgage as the vendor was only interested in cash bids. I find much of the information relating to "remortgaging" or "equity release" in Ireland confusing. Remortgaging because we have never had a mortgage and equity release because most of it seems to be aimed at older people while we are both 26.

Bob
Click to expand...

Interesting that the vendor was only looking at cash bids.
As a first step therefore it might be worth getting a solicitor on board to check if you can actually get a mortgage on the property, i.e. is the title sound, is it inline with planning permission and building regulations, any boundary disputes or right-of-way, etc.
Maybe the reason for cash bid was that it would be difficult to get a mortgage on it.

Reg. your comment on "aimed at older people" - it is probably rather unusual that a 26 year old couples owns a 350K property with no loans secured on it, but wouldn't be too bothered about it.

Your own job situation, as well as your wife living and working in Ireland, needs to be sorted out first in any case I would say if you want to stand a chance getting a mortgage of any kind.
 
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