I want to borrow the deposit for house from CU (€10000) House won't be ready until early next year, and we have being approved for a 100% mortgage - are they likely to approve?
A financial advisor told me of this before. Its just a way of getting 2 loans for the one thing. I backed out of the idea as it sounded messy. But I beleive it is very possible.
Is there any chance you can drawdown the deposit from the mortgage? Have you approached the lender to see it this is possible (it isn't in all cases, but I have herad of exceptions). Or ask for a bridging loan?
if you have been approved for 100% mortgage contact your mortgage lender as they will be able to provide the deposit by way of a personal loan until the mortgage issues. The mortgage cheque repays the deposit.
The deposit is likely to be required at signing of contracts, typically 21 days after payment of booking deposit, so they will have to fund this deposit shortly... not as you have stated in a year.
Our bank let us drawdown part of our mortgage as our deposit after we had paid our booking deposit . We did not have to get a personal loan from them, so maybe this will be possible for you. We will now pay back 10% of what will be our regular mortgage repayments each month until closing (providing vendor signs..)
thanks for the replys. Do need the money now to sign the contracts so decided to go with the CU but didn't tell them it was for house deposit. Going to plough money into the loan and can pay off the rest when we get the cheque back from the solicitor.