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Private investor mortgage?

  • 30-05-2012 6:23pm
    #1
    fro9etb8j5qsl2
    Closed Accounts Posts: 2,391 ✭✭✭


    Has anyone heard of these? Apparently, they're big in the uk and USA but I can't find anything online about them in Ireland. Basically, a third party with money buys the house and their names go on the deeds til the mortgage is paid off. Although I don't know how many people have enough cash to spare for an extra house these days :D


Comments

  • #2
    Dan133269
    Registered Users, Registered Users 2 Posts: 1,229 ✭✭✭Dan133269


    Chance Tasty Wrestler wrote: »
    Has anyone heard of these? Apparently, they're big in the uk and USA but I can't find anything online about them in Ireland. Basically, a third party with money buys the house and their names go on the deeds til the mortgage is paid off. Although I don't know how many people have enough cash to spare for an extra house these days :D

    You mean the same way that every mortgage is?
    Are you saying that at the end of this period you buy the house from the investor?


  • #3
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    If someone can put up around 25% of the purchase price of a property (plus legal fees, Stamp Duty etc.) and can qualify on income criteria, they can get a mortgage of around 75% of the purchase price of a property to buy it as an investment. Are you talking about something different?


  • #4
    fro9etb8j5qsl2
    Closed Accounts Posts: 2,391 ✭✭✭fro9etb8j5qsl2


    No, basically somebody else buys the house and you make the repayments back to them (I'm presuming at an agreed interest rate) Cutting out the banks altogether. AFAIK it's done all above board through solicitors.


  • #5
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    Chance Tasty Wrestler wrote: »
    No, basically somebody else buys the house and you make the repayments back to them (I'm presuming at an agreed interest rate) Cutting out the banks altogether. AFAIK it's done all above board through solicitors.

    Ah I see. Not something I've heard over here to be honest. If you're both living in and eventually owning the house, presumably the monthly repayment incorporates capital, interest and rent. Which then begs the question - what's the advantage to either side?


  • #6
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    The nearest model here would be the rent to buy schemes in some developments. However you only rent for a short period, up to 3 years I think, before taking out a conventional mortgage and buying minus the rent already paid.

    In your model I can't see the advantage for the mortgagee.


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