Mortgage with no savings??

sharonp

Hi all,

I am going to be applying for a mortgage in the next few weeks. I (me & bf) are building a house, we got the site from my boyfriends parents. Our joint income is €60,000 and we only have one loan for the car €70 per week. Our problem is we have no real savings, between us we have only €3,500. The online calculators on the banks websites say we're approved in principal for anything between €160k up to €320k. Will they still give us a mortgage when we have no savings. The LTV is approx 65%. Does the fact that we dont have to pay for the site go in our favour with the bank? Will they lend 100% of construction costs? Anyone have any similar experience?

Thanks in advance.

Sharonp

lady_kate_

We went seeking a mortgage a few weeks ago and the lady said that most lending firms are no longer giving 100% mortgages unless they are builds and it definitely goes in your favour if the site is gifted.
We were told it wouldn't be a problem getting 100%, even though we've no savings but like you the site is gifted from my parents. We were just told to try and clear the car loan so we'd get more money.
I tried the online calculators and found that they are very unrealistic compared to what we were offered when we went to a broker.

Hope this has been a little help

sharonp

Thanks Lady Kate,

I was almost afraid and embarrassed to go into the bank looking for a mortgage with no savings. You have given me hope. I may just go in, the worst they can say is no!

Thanks again!

MrLNB

Savings are also a way to show the bank that you are able to save/pay into a savings acc on a regular basis.

in the future this monthly/weekly savings payment will be paying the mortgage.

Just live the next few months as if you had a €1,300pm mortgage to pay, you will know in about 3-4 months how easy it will be.

if all is well, you can apply, plus you will have about 4-6K by then.

When banks ask for savings/give 90%, asking you or i for the balance in my opinion is a good thing. If you havent saved that, whats the hope of saving a mortgage. 200k in 20/25 yrs.

I know some people right now with a 100% loan, and they are telling me "just one more hike in the Int Rates and they will be in trouble".

The place to start is "see how much you can save on a monthly basis", its the only way to determine the total Mortgage you should be happy paying back.

Im am currently in the same position of building, only at planning, but i have been told I could get a modest 6 figure mortgage, way way above what i want or could nicely pay back, I don't want to be paying a massive monthly figure for 20/30 yrs.


Hope this helps. . . .

LNB

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