100% Mortgage

G

Gus2008

Registered User
Messages
75
Greetings

My sister and her partner have been approved for a 100% mortgage for €375,000. They have a reasonable income (approx. €75,000 between them before tax) and no other debts.

I am trying to advise them against accepting this offer in view of the current economic decline, and the cost associated with repaying the amount. However, my words of caution are falling on deaf ears. I can't help but think that the mortgage provider (well known and established company) are being irresponsible in offering such a substantial amount.

Any obs?
 
you're in the wrong place, dierct them towrads this site

this is askaboutmoney but they don't let you ask about the biggest monetary decision you'll ever face.
 
If they can afford the repayments what’s the problem.
At the end of the day, as long as you can meet your repayments and are happy with the price, what does it matter what is going on in a broader sense.

Your financial decisions should be based off your finances and potential, and not what the papers say.

And directing them where you say is not going to get them impartial advice either.
 
So youve given them your tuppenceworth and they are deaf to it -thats their choice! People have to be responsible for themselves and the decisions they make, youve done all you can i.e., given them info and advice, if they dont want to hear it thats their business.
 
cancan said:
If they can afford the repayments what’s the problem.
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The problem is that with house prices falling daily
1) they can't move if their family circumstances change
2) they're straight into negative equity
 
cancan said:
If they can afford the repayments what’s the problem.
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what CJH said.

affordability is the most pointless VI sponsored word ever in terms of the Irish property market.

As someone said to me before, I could afford to pay €10 for a carton of milk but there's no way i would
 
eileen alana said:
I thought 100% mortgages were consigned to history:confused:
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Me too. I wonder if the 100% approval is just in principle and subject to change? Have they been in contact with the lender lately?

Just curious - why would you not let your (presumably adult?) sister and partner make their own financial decisions? And mistakes if that's what happens?
 
OP, you are 100% correct in your advice to your sister in my opinion. They are being leant 5x their joint income, which is above historical norms, and the property they are about to buy will almost certainly be cheaper in a years time.
 
I guess it all comes back to personal responsibilty, if they choose to take the 100% mortgage they will have taken a major decision as is their right, it might not make sense to the majority of us but that doesn't necessarily makes us right and them wrong.
 
true, but I find it rather odd that the couple concerned are earning 75K odd and are not putting a penny deposit towards the mortgage.
 
Gus2008 said:
Greetings

My sister and her partner have been approved for a 100% mortgage for €375,000. They have a reasonable income (approx. €75,000 between them before tax) and no other debts.

I am trying to advise them against accepting this offer in view of the current economic decline..

Any obs?
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Will your parents be in a situation to bail them out of financial difficulty down the road ? If not you should try enlist them on your side to make that very clear now..
 
The boom mongers were boring people to tears on the upmarket.
Now the doom mongers are doing the same in reverse.

Bit of rationality wouldn't go astray lads.

Last year the papers were telling people we were the richest country in the world.
Now we're heading back to the 80's in style.

Calm down
 
eileen alana said:
true, but I find it rather odd that the couple concerned are earning 75K odd and are not putting a penny deposit towards the mortgage.
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It could be a case that they don't have any money to put as a deposit or alternatively that they have decided to invest their savings elsewhere and avail of a mortgage. They are the only ones who know what their current financial position is (well hopefully the bank has checked it too!) and therefore it is really up to them to decide whether to go for it.
 
Up to last year I was sick to death of smug people going on about the 'ladder', 'dead money', etc. The boom mongers are actually far worse now. You can't even get on with your life and buy a place now without some smart alec telling you how far up to your neckn sh1t you'll be by this time next year.

It's pointless speculating on where the market will be in a years time, you'll get pages and pages of crap from know- it- alls who should be out putting their money where their mouths are if they feel so strongly about it
 
I'd grab the mortgage - credit's getting hard to get.
I wouldn't buy property with it though...
 
eileen alana said:
I thought 100% mortgages were consigned to history:confused:
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i tought so too, im a nurse and i was told that i could get more than the 92 percent theyre offering everyone else, they didnt specify but im fairly sure ill be able to get atleast 94/95 which is what i want.
 
cancan said:
The boom mongers were boring people to tears on the upmarket.
Now the doom mongers are doing the same in reverse.

Bit of rationality wouldn't go astray lads.

Last year the papers were telling people we were the richest country in the world.
Now we're heading back to the 80's in style.

Calm down
Click to expand...

maybe they were wrong on both counts
 
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