Re loan needed for a deposit

[No.1 Fan]

I hope you can help me

I need to get a loan to use for a deposit for a home I am buying abroad, if I am applying for the loan (about 10-14K) do I have to tell the bank what it is for ? I have an account with AIB and have had it for about 2.5 years, if I go with them for the loan do I have to be specific in saying what the loan is for. Also can you advise me what banks have the best terms for such loans over 3-5 years.

Many thanks

No.1 Fan

 

[Thrifty1]

Hi as far as i know, you have to clear outstanding loans in order to get a mortgage (we did in any case).

Most people get the deposit from the credit union as most of them are not registered with the ICB so the bank cannot check to see if you have any outstanding loan with them.

If you go that route make sure you do not have a DD coming from you bank acc as this will indicate a loan to them and they can ask you to clear it.

You can find out which CU register loans with the ICB as yours may, perhaps someone else can direct you to the website that gives this information.

 

[CCOVICH]

Most loan application forms will ask you what the borrowing is to be used for-is there any reason you wouldn't want to tell the bank?

You only have to clear outstanding loans before you get a mortgage if the lender feels that you will not be able to make repayments on the loan and mortgage-this will not be the case for all individuals.

Some lenders offer bridging finance on the basis that it is cleared with the proceeds of the mortgage cheque.

One of the most competitive rates in the market at the moment is offered by Tesco-but as usual, you should shop around. You will need a loan that offers you the flexibility to repay early-so be wary of fixed rate loans.

 

[setemupjoe]

Tell them your thinking of getting new windows in your house ,get a quote from a window company to the value of what you want there abouts ,wouldnt mention a single thing about foreign property,i think it would be frowned uppon . make sure you factor your repayments into your property plan ,i believe you should go out to the location as a tourist at least twice in the one year and still ask yourself if its what you really want to buy there,but thats another topic ! good luck.