Mortgage with Yes Finance?

Peewee_lane

Im a single person looking to apply for a mortgage on a new home, perhaps even affordable. I have outstanding credit card bills amounting to €8000 on 2 seperate cards. I have a college loan for my degree which is 11,000.

Have always met payments, but am afraid because I have so much debt I will not be approved through banks, etc. Am in very good permanment job with good salary.

Is this crowd okay? http://www.yes.ie/home/ Its sounds too good to be true.

Is it possible for these people to incorporate your outstanding loans into your mortgage as one payment?

irlrobins

That firm is a sub-prime lender. Basically they lend to people who would normally be turned down by the banks for a mortgage. Because such a borrower would be viewed as a higher risk, they charge much higher interest rates. So in the long term you'd pay a lot more for the mortgage than you would from a bank.

My advice would be, since you say you have a good job and salary, to pay off all your loans. You might look into getting a consolidated loan that will be quicker to pay.

Once you have your loans paid off, you'll be looked on much more favourable by the banks.

Plastic Bari

Peewee_lane wrote: »

Im a single person looking to apply for a mortgage on a new home, perhaps even affordable. I have outstanding credit card bills amounting to €8000 on 2 seperate cards. I have a college loan for my degree which is 11,000.

Have always met payments, but am afraid because I have so much debt I will not be approved through banks, etc. Am in very good permanment job with good salary.

Is this crowd okay? http://www.yes.ie/home/ Its sounds too good to be true.

Is it possible for these people to incorporate your outstanding loans into your mortgage as one payment?

What type of Mortgage are you trying to get 100%?

Peewee_lane

irlrobins wrote: »

That firm is a sub-prime lender. Basically they lend to people who would normally be turned down by the banks for a mortgage. Because such a borrower would be viewed as a higher risk, they charge much higher interest rates. So in the long term you'd pay a lot more for the mortgage than you would from a bank.

My advice would be, since you say you have a good job and salary, to pay off all your loans. You might look into getting a consolidated loan that will be quicker to pay.

Once you have your loans paid off, you'll be looked on much more favourable by the banks.

Thanks for the reply, thats the answer I was looking for.

Peewee_lane

Plastic Bari wrote: »

What type of Mortgage are you trying to get 100%?

Yes.. I know it may sound silly, but Ive only started looking into it.

irlrobins

If you need a 100% mortgage, then you're not ready to buy. Even sub prime lenders will look for some level of a deposit. Until you can prove that you can save an amount every month that is equal to a monthly mortgage repayment, you're not ready.

Jo King

What is your hurry to buy a house? Prices are falling. You have nothing to gain by buying at this time. The sensible thing to do in your position would be to clear your existing loans and accumulate as much of a deposit as you can before the market picks up again. From what you describe of your current financial position, you would be straight into negative equity on your new house. Such a situation could become very unpleasant if your financial position changed. Ther could be rises in interest rates, rises in taxes, you could have a structural problem with the new house necessitating expensive litigation, you could have health problems. Why go there?

Mugatu

irlrobins wrote: »

That firm is a sub-prime lender. Basically they lend to people who would normally be turned down by the banks for a mortgage. Because such a borrower would be viewed as a higher risk, they charge much higher interest rates. So in the long term you'd pay a lot more for the mortgage than you would from a bank.

My advice would be, since you say you have a good job and salary, to pay off all your loans. You might look into getting a consolidated loan that will be quicker to pay.

Once you have your loans paid off, you'll be looked on much more favourable by the banks.

Spot on advice. Clear your loans first mate.

johnnyskeleton

irlrobins wrote: »

That firm is a sub-prime lender. Basically they lend to people who would normally be turned down by the banks for a mortgage. Because such a borrower would be viewed as a higher risk, they charge much higher interest rates. So in the long term you'd pay a lot more for the mortgage than you would from a bank.

Well, it's a brokerage for subprime loans, not that it makes too much difference. It's owned by http://www.mortgagebrokers.ie/ which is a reasonable mortgage brokerage. They have some good articles on that site, such as this one which shows that you are better off renting for a few more years before buying.

OP perhaps you should go to the parent site first to see if you qualify for a prime mortgage before looking for a subprime mortgage. Prime rates are around 2.5-4% at present, subprime are usually in the 6-10%, and they are remorseless in bringing repossession proceedings if you are in default.

Firetrap

Where's the fire? You would be far better off clearing off all that debt of yours (€19,000 is an shocking amount of money to be owing if you're looking for any sort of mortgage) before you do anything about a mortgage. If your job is so good, then clearing off that debt as soon as you possibly can should be easy to do in a relatively short period of time.

Why do you have a burning urge to buy a house now? Prices are falling all over the place and the general consensus is that they're not going to rise any time soon (crucial factors: unemployment, a glut of empty stock, people getting pay cuts, negative market sentiment, banks not lending money the way they were). Surely your world won't end if you rent for another year or two and build up a deposit?

ntlbell

try and move those cards to someone offering 0% and get as much off them as you can.

try and overpay the student loan.

once that's done start looking at getting up a 10%-20% deposit of the type of home you want.

There's really no point at looking at getting a mortgage until the above is done.

otwb

Clear the credit cards - you are probably paying over 15% on the outstanding balances. Either move the balances on a 0% balance transfer and pay them off within 6 months (you should be able to clear at least one card if you were thinking of paying a mortgage on top of the cards) or take out a single loan to clear the balances and pay this off over time (still paying ~8-10%).

Then look for a mortgage once you have your finances in order.