question on mortgage

carrigy

HI, I have 24k in cash savings, and another 25k in an investment that doesn't mature till march 2016( the return on it will be between 28k 29k).
My mum earns about 20k take home per year.
I am unemployed.

I was wondering would anyone know if a bank would approve us of a joint mortgage of around 25 - 30k for about 10 years.
I've seen a few house in the range of 40k -50k asking price.

I know I probably cant get a mortgage on my own because i am unemployed so a joint mortgage is the only thing i can think of to be ale to buy a house.
Also if we did get approval for the mortgage and when my investment matures and i paid off the remainder of the mortgage from that, how would i go about getting my mums name off the title of the house leaving it in my name only.

I've read about something called a quit claim deed or something like that, would that work?

killers1

carrigy wrote: »

HI, I have 24k in cash savings, and another 25k in an investment that doesn't mature till march 2016( the return on it will be between 28k 29k).
My mum earns about 20k take home per year.
I am unemployed.

I was wondering would anyone know if a bank would approve us of a joint mortgage of around 25 - 30k for about 10 years.
I've seen a few house in the range of 40k -50k asking price.

I know I probably cant get a mortgage on my own because i am unemployed so a joint mortgage is the only thing i can think of to be ale to buy a house.
Also if we did get approval for the mortgage and when my investment matures and i paid off the remainder of the mortgage from that, how would i go about getting my mums name off the title of the house leaving it in my name only.

I've read about something called a quit claim deed or something like that, would that work?

It's quite likely that you could get a mortgage in joint names for that amount provided your mother doesn't have any mortgage/loans in her name and between you you can prove the repayments are affordable by way of monthly contribution to savings. Once the mortgage is repaid you can get a solicitor to take your mother's name off the title deeds. If there is still a residual mortgage o/s after you pay off a lump sum you won't be able to get a mortgage in your sole unless you have secured a permanent job in the meantime so your mother would need to remain on title until the mortgage has been cleared in full. I think the main difficulty you might have is a bank taking on a mortgage of such a small amount as some have a minimum loan amount requirement.

carrigy

yeah the minimum amount was also bothering me, i never heard of anyone getting a mortgage for that low of an amount, I did see somewhere online that tsb offered 20k as a minimum amount for mortgages. They also have a 5 year fixed @ 3.7% at the moment for LTV50% or less.

So Ideally I'd like to get the house for 41K, pay 21K for deposit, get the 3.7% fixed for the 5 years, then pay off the remainder when that's up or before depending on what the breakage fees are. That way I'd have the security of knowing the payment wont go up. Im not sure if this is how the payments work but

20,000/10 years = 2k per year
3.7% of 20,000 = 740 per year
so 2740 per year or 228 per month or 52 a week.
I have no idea what home insurance or life cover would cost but i was just assuming 100 per month more. ( that figure came from nowhere, its just a real guess)

killers1

carrigy wrote: »

yeah the minimum amount was also bothering me, i never heard of anyone getting a mortgage for that low of an amount, I did see somewhere online that tsb offered 20k as a minimum amount for mortgages. They also have a 5 year fixed @ 3.7% at the moment for LTV50% or less.

So Ideally I'd like to get the house for 41K, pay 21K for deposit, get the 3.7% fixed for the 5 years, then pay off the remainder when that's up or before depending on what the breakage fees are. That way I'd have the security of knowing the payment wont go up. Im not sure if this is how the payments work but

20,000/10 years = 2k per year
3.7% of 20,000 = 740 per year
so 2740 per year or 228 per month or 52 a week.
I have no idea what home insurance or life cover would cost but i was just assuming 100 per month more. ( that figure came from nowhere, its just a real guess)

AIB also state they have no minimum mortgage amount but may not want to get involved with a 20k mortgage. Loan repayments on €20k @ 3.7% are €199.65pm. Life cover may work out at approx €100pm, it'll be your mother's premium that is likely to be the more expensive one if you are both healthy without previous medical issues. AIB have a variable rate of 3.34% for LTV's < 50% so you wouldn't have to worry about breakage fees for coming out of a fixed rate early..

carrigy

100pm just for life insurance.
I put in some details into irishlife mortgage protection calculator online just now(says it pays the mortgage after someone dies, so im assume thats life cover) anyway it said,

50,000(lowest it would go online) for 10 years
male 26 smoker(me)
female 52 smoker(mum)
would be 24.22 per month

killers1

carrigy wrote: »

100pm just for life insurance.
I put in some details into irishlife mortgage protection calculator online just now(says it pays the mortgage after someone dies, so im assume thats life cover) anyway it said,

50,000(lowest it would go online) for 10 years
male 26 smoker(me)
female 52 smoker(mum)
would be 24.22 per month

That sounds right based on ages & smoker status

carrigy

thanks for all your replies, I haven't gone to talk to anyone yet so this is just me having an idea and running with it.

It looks very affordable so far.
still have to get approved for the mortgage, make an offer, get accepted, find out the reinstatement costs and all the insurance prices, but on the whole it does seem affordable if everything pans out the way I hope it does.

I'll know more in a few weeks.
thanks again for your help

carrigy

My mother just went in to have a meeting with someone in TSB and she rang me a few minutes ago. I'm not entirely sure what happened or what was said but she was turned down. She said she was told she needed to earn 3000 per month net income to qualify for any mortgage.

Seems like alot if we were only going to be borrowing 20k - 30k.
I'll tell her to go to BOI or AIB and see what they say.

Dubh Geannain

Some banks have a minimum mortgage value. I've seen 50k being mentioned in some places but I'm sure it depends on the bank.

Have you considered getting a standard loan and not a mortgage. The repayments might be more severe but the term will be shorter.

carrigy

i did think about getting a personal loan of 20k, but i think you can only get loans for a maximum of 5 years and the interest is fairly high compared to a mortgage interest. So as i'll be the one paying it back, and i'm unemployed, I doubt id be able to afford the repayments.

Dubh Geannain

I know the credit unions aren't in the best of health at the moment but they must be still doing some loans. They should offer a more flexible repayment period. As for the size of the loan you'd be eligible for I think it'll depend on the credit union office you go to.

roro2

carrigy wrote: »

I'll tell her to go to BOI or AIB and see what they say.

Agree with this. Seems like a strange response from PTSB, but they are not in a position to do as much new lending as BOI/AIB.

carrigy

TSB also said the max they are lending now is 70k to anyone, and they base all mortgages on that no matter how much you need, I guess thats why they want you to take home 3k a month.

That might not be completely accurate though, its just the way my mother mother understood it. I'll go with her to AIB /BOI next time.