Hi, I require a mortgage or loan of €42000 over 5 years, for the purpose of improving my house, badly needed presently, before I seek same I would like to know would I be eligible and if there is any advice offered, finance as follows:
Assets: House €475000. Business premises: €140000. Credit Union €2800
Liabilities: Credit Card debt of €5900, currently repaying at €90 PM by arrangement with Cabot debt collectors acting for AIB.
This debt is listed on the Irish Credit Bureau and their "Scheduled Removal Date" is on 13th December 2017.
I am self-employed and have an after tax income of €2450 PM
Less outgoings of €2050 PM
Surplus of €400 PM, I have saved this in a Credit Union since May 2017, total €2800
I would propose to finance this by the surplus of €400 PM above and "Rent a Room" *2 rooms which should generate an income of €620 PM after expenses like extra heating, electricity, TV and broadband etc. this assumes both rooms rented for an average of 10 months PA. The area I am living is in demand (like most) and rent a room should be easy. Total disposable income of €1040 PM.
The Mortgage or Loan repayments should be between €775 to €830 PM.
I would be willing to offer the business premises as security.
Is this likely to satisfy a financial institution?
I recently phoned my Credit Union and they advised that I should make a formal application but said that as this would be my first loan and quite a big one that they would retain 20% of the loan amount so out of €42000 I would receive only €33600! I have not applied.
I did approach AIB over a year ago and their response was " I would have to wait 5 years after the credit card debt was cleared before they would consider a loan" and " we couldn't possibly loan on the basis of rental income"
Assets: House €475000. Business premises: €140000. Credit Union €2800
Liabilities: Credit Card debt of €5900, currently repaying at €90 PM by arrangement with Cabot debt collectors acting for AIB.
This debt is listed on the Irish Credit Bureau and their "Scheduled Removal Date" is on 13th December 2017.
I am self-employed and have an after tax income of €2450 PM
Less outgoings of €2050 PM
Surplus of €400 PM, I have saved this in a Credit Union since May 2017, total €2800
I would propose to finance this by the surplus of €400 PM above and "Rent a Room" *2 rooms which should generate an income of €620 PM after expenses like extra heating, electricity, TV and broadband etc. this assumes both rooms rented for an average of 10 months PA. The area I am living is in demand (like most) and rent a room should be easy. Total disposable income of €1040 PM.
The Mortgage or Loan repayments should be between €775 to €830 PM.
I would be willing to offer the business premises as security.
Is this likely to satisfy a financial institution?
I recently phoned my Credit Union and they advised that I should make a formal application but said that as this would be my first loan and quite a big one that they would retain 20% of the loan amount so out of €42000 I would receive only €33600! I have not applied.
I did approach AIB over a year ago and their response was " I would have to wait 5 years after the credit card debt was cleared before they would consider a loan" and " we couldn't possibly loan on the basis of rental income"