is mortgage or loan from bank best to buy out house

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canthinkname

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a family member has died recently and the family home has been left between all of the siblings in different poportions.

One of the siblings has agreed to buy out the other siblings and buy the house for their own use.

They are a first time buyer so I believe that they will have no stamp duty liabilities.

The rest of the family is agreed that one sibling can buy out the others and price has already been agreed, pending probate being finalised.

This sibling will only need either a loan or a mortgage of approximately €30k to do use to buy out the property, do the property up and also have savings available should they need them for emergencies etc

The question is, do the banks give out mortgages for such small amounts. Would this person be better getting a loan for €30k rather than a mortgage.

Would a bank/credit union give this much money for repair works etc.
Has anyone any advice.
thanks
 
banks will probably suggest mortgage and take the property deeds as security...does the 30k buy out all other siblings or is buyer using different fund? Interest rate for mortgage would be lower so probably best way to go.
 
€30k would be all the extra that would be needed to buy out all the other siblings and put money aside for doing up the house as well as having some savings for just in case.
 
canthinkname said:
€30k ... to buy out all the other siblings and put money aside for doing up the house as well as having some savings for just in case.
Click to expand...
I can't see a bank offering a mortgage (or any other loan) for a potential decoration fund, emergencies and savings.

How much is actually need to buy the house?
 
Banks should have no problem at all lending you money to buy out your siblings. It sounds like the loan value would be much smaller than the value of the house so they should throw thr money at you. Shop around a bit as well as mortgage rates vary quite a lot. A personal loan would result in a much higher interest rate.

You should mortgage the €30,000 and say it is required to buy out your siblings. Savings can then be used for the repairs
 
True, the borrower should demonstrate an ability to be able to repay the loan. I assumed that this would be a formality for a mortgage of €30,000, possibly spread over 20+ years.

Maybe "throwing money" was the wrong expression to use but I really can't see any bank turning down a loan like this regardless of the current economic situation.
 
thanks for replies
buyer is in a lucky position that they have a lot of savings built up so in theory they should have no problem getting mortgage or loan approval

they are meeting with one bank next week to discuss their options
 
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