Should that realistically extend to my deposit/savings though? Only concern of the lender should surely be my ability to repay loan and id have thought a larger deposit would be a much lower risk situ in any case.Avant have a reputation for being more risk averse than the mainstream banks. Possible the broker has experienced this several times now and is just making sure the application meets their requirements.
But that was two years ago?Basically I was told same thing. Avant waste of time unless your a civil servant with simple finances. I earn 150k but have around 70k of business loan and a business mortgage of 125k and I only qualify for something like 200k despite BOI clearing me for 410 2 years ago.
Do you have personal guarantees on those loans?Basically I was told same thing. Avant waste of time unless your a civil servant with simple finances. I earn 150k but have around 70k of business loan and a business mortgage of 125k and I only qualify for something like 200k despite BOI clearing me for 410 2 years ago.
So you have €195,000 in personal debt already. Of course they are going to take that into account.Sure, Im a sole trader so of course Im on the hook. I took out a covid loan and stuck it in the US stock market (not down alot luckily as Euro gone down the toilet vs dollar . So the 70k would still be there in a different form. Avant wont take that into consideration. They think that you should be straight laced and proper like a Civil Servant would or should be.
Not sure what the digs at Civil Servants are contributing to your question to be honest, or the references to Lehman Bros, or your analysis of Avant’s viability as a business,Sure, Im a sole trader so of course Im on the hook. I took out a covid loan and stuck it in the US stock market (not down alot luckily as Euro gone down the toilet vs dollar . So the 70k would still be there in a different form. Avant wont take that into consideration. They think that you should be straight laced and proper like a Civil Servant would or should be.
Anyway its all academic. With long term Euro swaps today at 1.9% Avant is economically unviable as the minimum cost to service loans is 1.5% above market. So their rates will soon be at 3.4 and mainline banks at likely 4.5-5. I believe the 1% extra is needed to run the labour intensive main street banking system and absorb higher losses on bad loans. In the States in the last few months rates went from 3-5.5 on 30 year fixed for example. Average credit applicants are paying over 6%. There are some solutions like 5 year fixed and 15 year fixed around 5% though. But 5% is a killer imo. I paid 6.5 back in 2006 on a business mortgage(1.5 above euribor, thank god this adjusted down to the current 1.5 with only 125 k left) and my god the interest was staggering. Im still paying for it today as I had to be interest only for several years with a decreasing term so forced to repay capital and interest in a shorter period. Thank god the interest adjusted to under 2% when euribor rates collapsed.
Basically Alan Greenspan triggered the last housing crash when he lifted the fed funds rate from 1.13 in 2003 to 5.5% by 2007. Lehman Bros went bust and the system almost collapsed.
Is it?At the end of the day lending in Ireland is with recourse
Borrowing to invest would be considered a high risk activity.I took out a covid loan and stuck it in the US stock market (not down alot luckily as Euro gone down the toilet vs dollar . So the 70k would still be there in a different form. Avant wont take that into consideration.
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