mortgage options

A

AIDAN MORONE

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hi,

i have got a mortgage from a lender,due to bad credit history i have aggreed to take a loan with a high interest rate.the mortgage will be quite high and i was wondering if i had any options when deciding what type of mortgage to take,or do i have any options.bearing in mind that i will never live in this house,the house is in mayo and i bought it so as i could start on the property ladder,i will continue to live in dublin and hopefully be able to rent the house out to help pay for the mortgage,and after that see what way things pan out,

any advice would be great,

am
 
When you say type of mortgage what exactly do you mean?

The interest rate seems to have already been established. You say your repayments will be high so its unlikely you're looking to shorten the term? If you are looking to extend the term you will need to negotiate directly with your lender.

You won't be using the property as your pdh so it is an investment property. You can't negotiate on this.
 
not really sure about the options i had from the off,can i go back and tell them that i wont be living in the house,or will they maybe cut the amount of the loan offer.i am not really sure what i should be doing,just looking for some info
 
I wouldn't advise buying an investment property at all at the moment and certainly not on a higher rate mortgage. If you can actually afford it, pay the difference into a savings account with one of the main banks, wait a year, build up some sort of history with them and see what happens in the housing market.
 
Different criteria apply for assessing a pdh v an investment. You also will lose your FTB status if you buy again and if you sell it you may be liable for tax.

I'd recommend meeting with an independent broker to talk through all your options before proceeding as you seem unsure about what you are doing.
 
Stifster said:
I wouldn't advise buying an investment property at all at the moment and certainly not on a higher rate mortgage. If you can actually afford it, pay the difference into a savings account with one of the main banks, wait a year, build up some sort of history with them and see what happens in the housing market.
Click to expand...

I would agree with Stifster. With house prices levelling off, and even starting to fall in some areas, now wouldn't be a good time to invest. Especially when you factor in that you will probably paying at least an extra 2% higher interest rate, and that's not taking into account future possible ECB rate increases.

Save the money you would be paying each month in mortgage repayments, keep any loans that you may have in order and hold onto your FTB status. That way you will be in a much better position to purchase in a couple of years.

Also, it appears that you haven't actually advised your lender that intend purchasing an investment property as opposed to a property for your private residence - this may limit the amount you can borrow eg 80% LTV and possibly subject you to an even higher investment rate.
 
Yes I'm definitely with Stifster on this one. I would save the cash you would be spending on the mortgage for now.
 
Your best option is to to build a good Credit History and get out of the bad boys camp as soon as possible...

You can request your Credit History Report and see what the negative points are against you and deal with same....a silly little outstanding balance can crucify you for years..

Best of luck!
 
hi alan,

i requested two copies of same,they both came back and i was none the wiser as to my credit rating and had paid icb twelve euro,the second report asked me for proof of my address,why do they not ask this when you are applying online.i had filled in all the details they asked for and three previous address's
 
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