Mortgage for house on sale at €70k

[Gooner84]

Hi All,

I hope somebody can answer this question for me please.

Is there a minimum value for a property that you can get a mortgage for?
Reason being there is a house for sale at 70k which needs some work but it is structuraly sound and is habitable.

If it is possible to get a mortgage on a property of that value, would banks still offer a 90% mortgage or would their LTV ratio be higher?

Thanks

 

[Guest105]

Frankly speaking, i have recently seen houses selling for less than 60 grand. For that price I would go for a personal loan rather than a mortgage and pay it off over 5 years. It sure is a buyers market out there. ,

 

[horusd]

Frankly speaking, i have recently seen houses selling for less than 60 grand. For that price I would go for a personal loan rather than a mortgage and pay it off over 5 years. It sure is a buyers market out there. ,

Getting a personal loan of that size might prove difficult without security. In any event it may be more tax efficient to get a mortgage. The APR or a personal loan would likely be far higher too, and a mortgage generally can be overpaid or negotiated at a reduced term, if the OP wants to do this.

Having said all that, I think getting a mortgage or a personal loan of that size now will be difficult. Regarding the house itself, I assume the lender would insist on a engineer's report. The OP might be better checking the loan possibilities with lenders and brokers first.

 

[Brendan Burgess]

Is this not a bit like buying a site. You may end up borrowing a lot more than €70k. The bank may require you to show that you have the cash available to do it up.

While it's hard to get a mortgage, is it harder to get a smaller one than a larger one?

 

[Gooner84]

The house is livable as it is, we could move straight in but over the next year or two there would need to be some modernisation done to the property.

Would the bank still need to see that we had the extra money to hand if this was the case?

My parents have offered to help to modernise the home if we can buy it. The deposit is ours and and any money my parents give us will be a gift.

Would this make a difference?

 

[boaber]

My parents have offered to help to modernise the home if we can buy it. The deposit is ours and and any money my parents give us will be a gift.

On a side issue, make sure your parents give you this gift (and not your spouse/partner), as the CAT thresholds differ significantly.

http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

 

[horusd]

The house is livable as it is, we could move straight in but over the next year or two there would need to be some modernisation done to the property.

Would the bank still need to see that we had the extra money to hand if this was the case?

My parents have offered to help to modernise the home if we can buy it. The deposit is ours and and any money my parents give us will be a gift.

Would this make a difference?

OP, your best bet would be to make enquiries with various lenders & brokers. That's the only way your going to find out what loans & what terms and conditons are on offer. The lending scene has changed hugely, we can only speculate here on likely scenarios. I assume you would meet normal lending criteria, and you have a 10 % deposit, given that, the next step is to make proposals and see what comes of it.