Hi All,
I wonder if anybody can help in generating ideas re the best mortgage to go for given our situation.
We are both in our early 20’s and earn €66k (between us L ! ) per annum and are looking at buying our first home together (probably a 2 bed second hand apartment) in Dublin. Due to personal circumstances we really would prefer to do this in the next couple of months which obviously causes a lot of problems re raising deposits etc.
We have gotten approval in principle from various different lenders for both 100% mortgages & have had a good offer from ESB for a 95% mortgage of € 350K (although we only intend spending up to €320k). The 100% mortgage offers were for quite low amounts due to two new car loans we have taken out earlier this year for €15k & € 18K each (repayments are €296 & € 270 respectively per month).
We are faced with choosing from one of the following options & I would appreciate any opinions that anybody may have or ideas re. further options for us:
1. If we sell one of our cars (as my partner also has a company van) we can clear the €18K loan & avail of a 100% mortgage of € 324K however we are quite reluctant to do this as we only have them such a short while & it will be quite difficult & time consuming to sell them privately due to the value of them (my father has a merc, in immaculate condition, lovely car etc worth approx. €15K sitting in the front garden for months now, nobody wants to spend so much on a private sale for obvious reasons!)
2. A mortgage advisor has suggested we get a family member to clear one car loan so that we can avail of €324K 100% mortgage & after we draw down the mortgage to re-apply for the loan & pay back that family member. However, what is the likelihood that we are refused this loan due to our new mortgage commitment? Making monthly repayments on both car loans & a mortgage is not that big an issue as we both have the option to do nixers & “off the books” overtime etc but the bank will obviously not recognise this when deciding whether or not to grant a loan.
3. We could avail of the 95% mortgage but will need to raise a deposit of €16K. We both have credit union accounts with very little in them at the moment but we will have approx €4K that we can lodge into them in the coming two months & use this to avail of a loan for €16K ( I have spoken with my CU & they seem to think €2500 will be enough to raise €16K finance). However, this will leave us in a situation were we are repaying two car loans, a mortgage & a credit union loan which would be a bit of a burden!! We would probably need to consider a top up mortgage in a year to clear the CU loan (which would really make our mortgage close to 100% anyway but we keep both cars & don’t need to approach family members for a loan as described in no.2 above) but with the uncertainty within the market at the moment this may not be a wise decision as we don’t intend staying in the apartment long term anyway (3-5yrs) as we will see significant rises in our salary in 2-3 years time.
Any thoughts would be greatly appreciated as my head is just fried at this stage!!!!
Thanks a million!
B
I wonder if anybody can help in generating ideas re the best mortgage to go for given our situation.
We are both in our early 20’s and earn €66k (between us L ! ) per annum and are looking at buying our first home together (probably a 2 bed second hand apartment) in Dublin. Due to personal circumstances we really would prefer to do this in the next couple of months which obviously causes a lot of problems re raising deposits etc.
We have gotten approval in principle from various different lenders for both 100% mortgages & have had a good offer from ESB for a 95% mortgage of € 350K (although we only intend spending up to €320k). The 100% mortgage offers were for quite low amounts due to two new car loans we have taken out earlier this year for €15k & € 18K each (repayments are €296 & € 270 respectively per month).
We are faced with choosing from one of the following options & I would appreciate any opinions that anybody may have or ideas re. further options for us:
1. If we sell one of our cars (as my partner also has a company van) we can clear the €18K loan & avail of a 100% mortgage of € 324K however we are quite reluctant to do this as we only have them such a short while & it will be quite difficult & time consuming to sell them privately due to the value of them (my father has a merc, in immaculate condition, lovely car etc worth approx. €15K sitting in the front garden for months now, nobody wants to spend so much on a private sale for obvious reasons!)
2. A mortgage advisor has suggested we get a family member to clear one car loan so that we can avail of €324K 100% mortgage & after we draw down the mortgage to re-apply for the loan & pay back that family member. However, what is the likelihood that we are refused this loan due to our new mortgage commitment? Making monthly repayments on both car loans & a mortgage is not that big an issue as we both have the option to do nixers & “off the books” overtime etc but the bank will obviously not recognise this when deciding whether or not to grant a loan.
3. We could avail of the 95% mortgage but will need to raise a deposit of €16K. We both have credit union accounts with very little in them at the moment but we will have approx €4K that we can lodge into them in the coming two months & use this to avail of a loan for €16K ( I have spoken with my CU & they seem to think €2500 will be enough to raise €16K finance). However, this will leave us in a situation were we are repaying two car loans, a mortgage & a credit union loan which would be a bit of a burden!! We would probably need to consider a top up mortgage in a year to clear the CU loan (which would really make our mortgage close to 100% anyway but we keep both cars & don’t need to approach family members for a loan as described in no.2 above) but with the uncertainty within the market at the moment this may not be a wise decision as we don’t intend staying in the apartment long term anyway (3-5yrs) as we will see significant rises in our salary in 2-3 years time.
Any thoughts would be greatly appreciated as my head is just fried at this stage!!!!
Thanks a million!
B
On the basis of the sums above €1700/month equates to €20400 per annum. That's a significant chunk out of your gross income, not including utilities, furniture and having a life! If I were you I'd start putting that much away between you on a monthly basis and bide my time. Best of luck.