Broker reccomendation

G

grapefruit

Registered User
Messages
27
Hi,
Hoping to be in a position to apply for a mortgage towards the end of the year. We are first time buyers, husband is 48, so obviously our term Loan will be quite short. We have an existing long term car loan,( had to be purchased) good savings, good ICB report & rent payments, my concern is that the car loan will go against us, so looking for a good broker who will put up a really good case for us, & also one who deals with Banks that allow mortgage up to age 70, PTSB as far as I know. Any help much appreciated.
 
A car loan won't stop you getting a mortgage, it will just reduce the amount you can get as you have an existing financial commitment. Have you looked at paying off the car loan? That will increase the amount you can borrow.


Steven
www.bluewaterfp.ie
 
Hi Steven,
Many Thanks for reply.
Car is brand new, so clearing a substantial loan is not really an option at present as it would take all our savings, so plan is to hopefully get mortgage first then concentrate on clearing car loan down the line. We are managing loan, savings,rent & all other bills etc, so hopefully it will work out!!
 
Hi Steven,
Many Thanks for reply.
Car is brand new, so clearing a substantial loan is not really an option at present as it would take all our savings, so plan is to hopefully get mortgage first then concentrate on clearing car loan down the line. We are managing loan, savings,rent & all other bills etc, so hopefully it will work out!!
 
Gordon Gekko said:
Just out of curiosity, why did you buy a new car and take out a "substantial loan"?
Click to expand...

We were forking out money constantly trying to keep old car going, felt it made more sense to purchase a new car than risk buying second hand & it causing trouble & end up back to square one.
 
A broker won't be able to "magic away" the car loan. It will come up on your ICB record anyway, so it is one of the first things a bank will see. Your net disposable income after paying off all your financial commitments will have a big bearing on the amount you can get.


Steven
www.bluewaterfp.ie
 
Op: when you say long term and substantial, what do you mean?
Is it some sort of a lease payment plan or so other risky dink finance scheme which means you can't refinance it without some penalty or is a straight up term loan?

grapefruit said:
Car is brand new, so clearing a substantial loan is not really an option at present as it would take all our savings,
Click to expand...

So if you did repay the car loan does this leave you in trouble for the 20% deposit?.

To repeat what SB says, this has to work financially, regardless of any broker involvement: the days of broker sponsored loan applications showing the renting of the 4th bedroom in a 3 bed semi are well gone.
 
SBarrett said:
A broker won't be able to "magic away" the car loan. It will come up on your ICB record anyway, so it is one of the first things a bank will see. Your net disposable income after paying off all your financial commitments will have a big bearing on the amount you can get.


Steven
www.bluewaterfp.ie
Click to expand...
Hi Steven,
Sorry probably wasn't clear, I know the loan will be visible & have no problem with that, my concern was that a bank would look at us unfavourably having an existing loan, even though repayments are not an issue.

We planned to go with a broker due to our age really as we would hope to be successful on first application & hoped a broker would guide us to the
more receptive banks I suppose given our situation.
 
Branz said:
Op: when you say long term and substantial, what do you mean?
Is it some sort of a lease payment plan or so other risky dink finance scheme which means you can't refinance it without some penalty or is a straight up term loan?



So if you did repay the car loan does this leave you in trouble for the 20% deposit?.

To repeat what SB says, this has to work financially, regardless of any broker involvement: the days of broker sponsored loan applications showing the renting of the 4th bedroom in a 3 bed semi are well gone.
Click to expand...

Hi Branz,

Yes, the car is financed through the dealer, interest rates better than the banks at the time.
Like I said above we felt a broker might work in our favour given age and loan etc, we feel ourselves that we would be able to manage loan, daily living & mortgage repayment( we hope to look for property max of 180,000). First time buyers so would be 10% deposit.
 
Branz said:
Op: when you say long term and substantial, what do you mean?
Is it some sort of a lease payment plan or so other risky dink finance scheme which means you can't refinance it without some penalty or is a straight up term loan?



So if you did repay the car loan does this leave you in trouble for the 20% deposit?.

To repeat what SB says, this has to work financially, regardless of any broker involvement: the days of broker sponsored loan applications showing the renting of the 4th bedroom in a 3 bed semi are well gone.
Click to expand...


Branz,

The repayments plan is monthly repayments for 3 years then final larger payment, so yeah paying it off early now would eat into our deposit.
Would this be a big issue with banks even if financially there are no struggles??
 
The bank determines what it considers a struggle, not what you feel you can afford. Most banks have rules regarding the percentage of monthly net income that can be paid out on loans, years ago it was 35%, it may be different now. That means that whatever 35% (or whatever relevant present day amount is) of your monthly income is all that can be going on debt repayments. That will be the total of stress tested mortgage repayments plus your car loan. If that is over whatever percentage the bank use then you have a problem.

In other words if your existing car loan and your mortgage are 50% of your net monthly income then the fact that there is only 3 yrs on it or that you feel you can afford it means nothing to the bank, they have to stick within their rules at this point in time.
 
Getting to the question....Try chrome capital broker merrion square area. You will find them on the net..
 
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