45k house credit union advice?

Paddyclk

Hi all,
Went for mortgage meeting with bank but was told I needed more hours in work to acquire a mortgage, work 28hr week but not sufficient in their eyes for a mortgage on a house for 45k. Me and my partner both have savings in credit union since we were young not much around 1k each but accounts have been active for well over 8yrs. In total my savings in my current acc along with credit union would amount to 10-13k, same applies to my partner. Simply all I want to know could we transfer funds into credit union accounts and in turn take out loans each to cover cost of the house? My partner is also in work with same hrs and are jobs are assured as permanent. It would be our first credit union loans, obviously needing 22.5k each would they give it out knowing both are going towards the one purchase?

Kristopherus

Don't see why not. Only thig that might block you is the rules of the C.U. I'm not a member, so cannot advise further. However if you and your partner have accounts of any kind in the bank that refused you the mortgage, I would strongly advise you to close those accounts and transfer them to a bank with low or no charges. Thats the only way banks will learn to treat customers with respect.

johnnyskeleton

Paddyclk wrote: »

Hi all,
Went for mortgage meeting with bank but was told I needed more hours in work to acquire a mortgage, work 28hr week but not sufficient in their eyes for a mortgage on a house for 45k. Me and my partner both have savings in credit union since we were young not much around 1k each but accounts have been active for well over 8yrs. In total my savings in my current acc along with credit union would amount to 10-13k, same applies to my partner. Simply all I want to know could we transfer funds into credit union accounts and in turn take out loans each to cover cost of the house? My partner is also in work with same hrs and are jobs are assured as permanent. It would be our first credit union loans, obviously needing 22.5k each would they give it out knowing both are going towards the one purchase?

It can't hurt to ask.

If you have 20-26k and want to buy a house for 45k you would be borrowing roughly 25-30k (allowing a few grand for stamp duty, solicitor's fees, moving costs etc). If the house is habitable and you can beg/steal/borrow some furniture and it is where you want to live, it sounds like a great place.

One issue though is that I don't think Credit Unions offer mortgages (maybe some do, but I know a few that got into property lending got burned badly and have turned away from it), and banks/building societies usually only give mortgages over 50k.

Paddyclk

I am going to be calling into them today to suss out the situation and see what feedback I get.

djimi

Two issues that you might have:

1) Some (possibly most or all) CUs assess loan applications in the same way as banks do nowadays (ie its got nothing to do with savings; just your ability to repay), so if this is the case and you have already been refused from a bank then you might not get any joy from the CU.

2) Some CUs (again possibly all of them) will freeze any savings while you have a loan outstanding, so if you were to transfer €10k into a CU account then you might not be able to access it while the loan is outstanding.

As others have said, it cant hurt to sit down and talk to them. My experience of the CU is that they are very friendly and very helpful, and seem to actively want to assist where possibly. Even if they cant give you all the money that you need, they may well be able to advise some options.

expatin africa

Hi, it can be done got a 40t loan to finish my house, but it was difficult to get, like another poster they wanted 8,000 to freeze then they asked for a garanture but this i did not do but put up the deeds instead as had already spent quiet a bit, so if you could get someone to back you you should be ok, best of luck

yankinlk

Just out of curiosity. Are you planning to borrow the money and pay it back over 20 years like a mortgage? Will the interest on the loan be low like a normal mortgage or will it be higher like a shorterterm loan for a car or for house renovations? Could be a very expensive route take....

sawdoubters

make sure they don't get your pants pulled down in there

Mrs OBumble

yankinlk wrote: »

Just out of curiosity. Are you planning to borrow the money and pay it back over 20 years like a mortgage? Will the interest on the loan be low like a normal mortgage or will it be higher like a shorterterm loan for a car or for house renovations? Could be a very expensive route take....

On the other hand, there would be no early repayment penalties if the OP happaned to come into some money to repay it with sooner.

flutered

or if they had to miss the odd week they would not have the fone ringing or threatning letters coming in under the door.

MouseTail

Mrs OBumble wrote: »

On the other hand, there would be no early repayment penalties if the OP happaned to come into some money to repay it with sooner.

and as soon as oustanding debt = savings, they can switch to lower securitised rate or pay savings off debt.

phormium

Credit Unions differ obviously but local one will give loans for houses, not called a mortgage as such but a secured loan, secured on the property you are buying. The rate is 5.5% approx on the secured loans, higher than a bank mortgage but if you can't get a bank one....

The max term is 15 yrs, again this differs depending on your CU. While they do assess in a similar fashion as banks they take a better view of the whole deal in my opinion, they know their customers and the locations of the properties, it's not all being decided miles away in Head Office.

I think CU's will be the small mortgage lender of the future, ideal for good ordinary incomes wanting to buy reasonable houses.

chris85

Mrs OBumble wrote: »

On the other hand, there would be no early repayment penalties if the OP happaned to come into some money to repay it with sooner.

Unless a mortgage is fixed rate then there are no penalties for early repayments/overpayments on the balance.

glic83

If you can't get a bank loan and ye are first time buyers , you cold apply to the council for a mortgage up to the value of 200,000