loan for deposit

xb_deai

Registered User
Messages
94
I am getting a mortgage and have been provisionally approved I have to pay 20000 of a deposit but dont have it all but will by the time the house is completed by december (i know that it will probably be after december) is it possible to get a loan now to pay the deposit now without it affecting my ability to get a mortgage. I have a lump sum due later in the year which I could pay off the loan with. or would the timing affect my ability to get a mortgage?
 

groom

Registered User
Messages
104
This doesn't bode well
I fear you will be posting again next January asking how do you get out of your contract because
a) bank won't give you a mortgage at that time because property is nolonger worth what you agreed or they have further tightened their criteria
b) developers are messing you around and your property shows no signs of being built
or
c) you aren't happy with the gap between what you agreed for your peoperty and what similar properties are selling for.

This forum is littered with people 6 months ahead of you who have bought off plan and are going through tremendious pain.
http://www.askaboutmoney.com/showthread.php?t=81784
http://www.askaboutmoney.com/showthread.php?t=81904
 
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Camry

Guest
The best advice you will get here is to wait until you get your deposit, then go shopping. And avoid "off plans".
 

Whiskey

Registered User
Messages
105
I am getting a mortgage and have been provisionally approved I have to pay 20000 of a deposit but dont have it all but will by the time the house is completed by december (i know that it will probably be after december) is it possible to get a loan now to pay the deposit now without it affecting my ability to get a mortgage. I have a lump sum due later in the year which I could pay off the loan with. or would the timing affect my ability to get a mortgage?

As regards mortages, banks care about 2 things mainly

1. That you can afford the monthly repayments for the lifetime of the mortgage (they can make a judgement based on you income and outgoings about this, but of course nobody can guarantee that they can pay their mortgage in the future

2. That they can easily get their money back if you can't pay the mortgage by reposessing the house, and selling it to someone else. Asking for a deposit helps the banks in this regard, if you put up 20% deposit, the bank is protected, they know that no matter what happens, they will probably get their money back (unless theres a massive housing crash etc)


Will getting the loan for the deposit affect your provisional mortgage offer
==============

No it won't because you can prove there is lump sum coming to pay back the loan, so in effect it's just bridgeing finance.

However, if there were no lump sum coming, and if the banks knew you were taking out the loan for the deposit, they may consider that your ability to pay the mortgage would be effected by having to pay back the other loan too. It would lessen the chance of them giving you the mortgage if they knew about the other loan.
 

LadyJane

Registered User
Messages
139
If you are a member of a credit union, you can get the loan from them. Credit unions work on a different system from banks and therefore any loan from the Credit union will not show up on any credit report. If you are making repayments to a credit union, it may be best to do it in cash at the branch as banks may see a direct debit and deduce that the money is going towards a loan.

If you are not a member of a credit union, you can join and after showing a borrowing pattern and after approx 6 months you can apply for a loan of about twice, depending on the credit union, of what you have in your account.
 

Satanta

Registered User
Messages
1,574
Credit unions work on a different system from banks and therefore any loan from the Credit union will not show up on any credit report.
Some of the CUs have now signed up with the ICB so this isn't true of ALL Credit Unions. Search AAM for lots more detail on this.
 
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Camry

Guest
This is absurd. You are going yo enter into a loan agreement that will take decades to pay off. You will be spend many multiples of your annual gross income.

For feck wait a few measly months until you can afford to go ahead.

i will be sure to bookmark this thread for the time when posters here start complaining about the reckless lending practices of banks.
 

whizzbang

Registered User
Messages
115
If you are a member of a credit union, you can get the loan from them. Credit unions work on a different system from banks and therefore any loan from the Credit union will not show up on any credit report. If you are making repayments to a credit union, it may be best to do it in cash at the branch as banks may see a direct debit and deduce that the money is going towards a loan.

If you are not a member of a credit union, you can join and after showing a borrowing pattern and after approx 6 months you can apply for a loan of about twice, depending on the credit union, of what you have in your account.

so it looks like "lie to buy" is alive and well!

Take the advise here, wait until you get your lump sum and then go shopping. The developer will still be sitting on those apartments and will be more willing to negotiate on price as his creditors come sniffing around for their money. Also you will get to see the final build quality of the place before putting your money down.
 

Jonathan.OB

Registered User
Messages
164
This is absurd. You are going yo enter into a loan agreement that will take decades to pay off. You will be spend many multiples of your annual gross income. For feck wait a few measly months until you can afford to go ahead. i will be sure to bookmark this thread for the time when posters here start complaining about the reckless lending practices of banks - exactly.
 

xb_deai

Registered User
Messages
94
Have been waiting 2 years for affordable housing now with salary increase and drop in housing prices I can finally afford a place. I currently live with parents who are selling up family home and I can no longer be a burden on them. I have a child and I am a single parent. This house is the last two bed available in a development and is the one within my area at this level ie under 300,000.
The money is a gift from parents once they downsize and each of my siblings are getting same.
 

groom

Registered User
Messages
104
Have been waiting 2 years for affordable housing now with salary increase and drop in housing prices I can finally afford a place. I currently live with parents who are selling up family home and I can no longer be a burden on them. I have a child and I am a single parent. This house is the last two bed available in a development and is the one within my area at this level ie under 300,000.
The money is a gift from parents once they downsize and each of my siblings are getting same.

If your concern is to get out of home, why not just rent. Its way cheaper than paying dead interest money to the bank and has the upside of avoiding Negative Equity and you also get to retain your FTB status. Not to mention you can up and leave easily to somewhere else if you out grow it.

Are there any rentals in this development? Is the rent near approx €1200 a month you'll be paying in interest alone.

Good luck with your decision. Hope it works out well for you.
 
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rmelly

Guest
If you are not a member of a credit union, you can join and after showing a borrowing pattern and after approx 6 months you can apply for a loan of about twice, depending on the credit union, of what you have in your account.

Can the OP wait 6 months?
 
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