Personal loan to supplement savings to buy house

Myself any my wife had approval in principal from a number of banks in July to get a mortgage to buy a house. We have a healthy deposit (200K) built up and had no problem getting multiple offers. I work in IT and was working on a fixed term contract which was not renewed (not uncommon in the IT industry). I immediately got another position on the same salary but the banks would no longer provide a mortgage as my new position has a probationary period attached. This in effect locks us out of the market for another 7 months.

Now forced to sit on the side lines as prices continue to rise we were looking at the possibility of buying a smaller property with our cash savings but we are about 50K short of what would be needed to buy something smaller. Given we can not obtain mortgage approval for another 7 months (even for a lesser amount than originally approved for) is there any mechanism (personal loans etc) where we could borrow in the region of 50K for 6 months to bridge this gap until we can again apply for a mortgage?

I think it would be very difficult. I've never had a car loan, but maybe you could get one and then use the money as you wish? I dunno.

Even during the boom times sole traders and temps sometimes found it difficult to get mortgage approval. I think your best approach would be to ditch the temping and get a full time job.
I entered my IT career relatively late, at the age of 30. As a result of my age I swerved the whole temping thing. It does have advantages, but also disadvantages, as you're currently experiencing.
I think that if you're young and carefree then temping is probably great. But if you are settled, and intending to settle, then it's time to get a full time job. You can't have your cake and eat it.

I once worked with a lady in Australia that was in her 40ies and that current job was her first time with a full time job. Up 'til then she'd always temped. Her intention was to get a house and a mortgage, and once she'd those she was quitting immediately to return to temping.

Do you have a credit union account? They might be more receptive to a deal like that as a secured loan on the property. It's too big an amount to get unsecured I would imagine.

Was your original mortgage approval for 50K? It's such a low amount, how much is your wife earning, can she not get 50K based on just her salary.

How about trying a mortgage broker.

Otherwise how about waiting 7 months. Even if property prices continue to rise, how much will a 250K house have gone up in worst case scenario?

Hi Monbretia – thanks for the idea on Credit Unions, its worth a try although I believe they will seek to keep a certain amount of savings to offset any loan and as we would be emptying our savings in order to make a purchase price in the current environment they may issues.
Bronte – the original loan approval was for a much higher amount and based on joint income, we have another property in NE that we cannot offload just now so it impacts ability to take on mortgage on just one income.
Its frightening on the ground how fast prices are rising, last week we were in the running for a small 3 bed cottage in need of renovation in North County Dublin that went sale agreed 40% over the asking price . We may end up having to wait out the probation period time before entering the market again but that gap will cost us a lot of money if prices continue the way they have been for the past 6 months.

Dublin12 said:

the original loan approval was for a much higher amount and based on joint income, we have another property in NE that we cannot offload just now so it impacts ability to take on mortgage on just one income.
Its frightening on the ground how fast prices are rising, last week we were in the running for a small 3 bed cottage in need of renovation in North County Dublin that went sale agreed 40% over the asking price . We may end up having to wait out the probation period time before entering the market again but that gap will cost us a lot of money if prices continue the way they have been for the past 6 months.

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Don't you think it was kind of important to point out the situation with the NE property?

Why is the original loan approvale much higher than the amount you are seeking now.

I really think you need to post up all the fianancial details. For example, with 200K in savings, paying off some of the investment property might be a good idea, and getting a larger mortgage on your PPR (principal private residence).

Credit Union unlikely to want to keep savings as security as they would be taking the security of the property.

As Bronte says, you should provide the full information, so that you can get a meaningful answer.

Whose name is the other property in?
Was it your home once?

The fact that you have another home, means that you have a stake in the property market, so price rises are not universally negative for you, but without a property Fact Find, no one can offer meaningful advice.

Our PPR is in NE so we will hold onto it as opposed to selling and paying off NE out of our savings. No issue for the banks with original approval in principal based on 2 incomes. However stress testing this debt and the debt we wish to take on will not be supported by one income therefore banks will not loan the smaller amount of 50K.

Absolutely without question that what we could afford to buy in July will be out of our range next year unless we have another property crash. On any property we bid on to date we have been out bid by tens of thousands all over the asking price.

So idea of seeking smaller amount non mortgage debt now was to buy something smaller in area we wish to live as opposed to waiting another 7 months and then having to pay 30/40K more for even this type of property next year.

Dublin12 said:

So idea of seeking smaller amount non mortgage debt now was to buy something smaller in area we wish to live as opposed to waiting another 7 months and then having to pay 30/40K more for even this type of property next year.

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I think you need to slow down, you're already in NE with one property and there is no need to get in a panic about house prices.

Can you give us some basic financial details, incomes, mortgage, savings, debt, rent achievable.

Also why are you moving.

If you are planning to have have children, 'something smaller' doesn't sound ideal.

Have you thought of leaving your current home, renting in the area you want to live in for 6 months or a year and seeing if being a landlord suits you and ditto for the area you wish to live in.