Trouble getting a mortgage

D

dv8

Registered User
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50
Hi all,

Look to buy house for 340k but am only earning 31k myself.

My father is earning over 80k, based on last P60.

The mortgage on his home is 180k but it is valued at 520k.

Banks are saying that his income will have to be enough to cover both mortgages & that they will only do 90% in guarantor/joint app' cases if other applicant is a parent.

They also said that they aren't too keen if the balance of funds comes as a gift from my uncle who said that he would help me out.

Does anyone know of another way of structuring this deal that would help me get the mortgage?

At my wits end at this stage!
 
Talk to a broker. From what you said, it should be a runner (although its not a straightforward case!)
 
Try another bank or a broker as suggested above. I can't see a problem if your uncle is willing to gift you the money. The bank may suspect that you are borrowing it from him making monthly repayments on loans even higher. Some banks might suggest your loan is guaranteed by your parents house. This is a non runner. Definitely see a broker, I don't think you should have any problem in the end. Good Luck.
 
MortgageMate said:
Hi,
I work for a Mortgage Broker and would be more than willing to offer my advice.
Ok, depending on your credit history what your circumstances are as regards outstanding loans,etc. it would be likely that we could help you get a mortgage of anything up to €270,000 or even more.
The remainding €70k required for the purchase of the property could be achieved by your father releasing equity in his home. Depending on which lender you approach, this could be done on an Interest only basis, whereby you would save money in long run by repaying the equity your father has released, by using the capital appreciation that you should have on the property you purchase after a year or two.

We have dealt with cases exactly like this and have never experienced much difficulty.

Does that help you anywhat? I'd be delighted to assist you more, and provide the leverage you need if you are really interested in getting your hands on that house.

Cheers
Click to expand...

How do you know that his property is going to appreciate by that much in a couple of years? Is that not a bit of a gamble in the current climate?
 
MortgageMate said:
Don't get me wrong, I'm not saying that is the only choice. He wouldn't have to do that even. He could remortgage or they could just continue to repay the equity release. There are a number of options in that regard, all of which would be suitable in any given climate.
Click to expand...

Im just not sure your suggestion is a wise one and should be treated with caution. If his father releases equity for 70K and gives it to him then i dont think he should rely on capital appreciation to pay him back! The days of 70K capital appreciation in 2 years are over.
 
Mortgagemate,

Just to get this right in my head, you would be able to get him 270k on his own bat? Or is that with his dad going as a joint applicant/guarantor? Not sure which you are suggesting!

Salmon
 
cant see where the €270K is coming from....ran a few calculators, and best i can see is about €220K ish... where are you pulling these numbers from Mortgagemate?
 
Well, that's about €90,000 more than Dv8 qualifies for under the most generous criteria. Which lender would you be recommending MortgageMate?

Sarah

www.rea.ie
 
Morgagemate,

I am in a similar sitation earning around the €33k mark and the most I can get is €210k through a broker dealing with first active. Send me on your details if you think you can help me secure a mortgage of circa €240k on a self build on a gifted site which is valued at €120k. Oh yeah, the final house when built is valued at €450k if that helps.!
 
It looks to me like you both are trying to get a mortgage for a house you cannot afford.

If a site is worth 120k and the cost to build the house on it is 240k, where does the magic 90k come from to make it worth 450k when it's built?
 
hmmm,

Good point. The valuation of the final house was €450k. The site will be given to me by my parents, so that wont cost me anything. The only answer I can give for the 90K is that I will be hoping to build by direct labour for €70 ft2 while a the typical cost of a ready built house in the area is in excess of this. e.g. its a 3000 ft2 house so I estimate itll cost 70*3000 to build (210000). If i got a builder to do it im talking €100-150 per ft2 say €125. That would mean that the finished house would be worth €125*3000= (€375000 without the site). I'm not sure how the valuers have arrived at the valuation but I plan to add some value to the final house by building direct labour. Also I dont intend to sell the house so the valuation is purely for mortgage purposes as far as i am concerned. Am I right in my calculations above? Have I missed something?
 
Had trouble getting a mortgage myself. Was waiting 8 weeks on a broker to get back to me. They ended up offering 280 K but wanted 15K in a lean deposit account for 12 Months.
I walked into a local branch of Irish Nationwide after they were recommended by a friend and got 280 K within 2 days. No hassle.
 
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