Personal loan for small mortgage

jaffa20

Hi all,

Just wondering if banks consider personal loans for small mortgages for eg 40-60k.

What is the criteria for assessing how much you can borrow. I know its based on your ability to repay but if you are showing that you pay a certain rent each month and the repayments on a small loan over 5 years are the same as your monthly rent, is it likely you could get a personal loan approval on that basis.

Would collateral help in this case. eg a small plot of land which the person owns.

Thanks in advance

johnnyskeleton

Would collateral help in this case. eg a small plot of land which the person owns.

That sounds like a mortgage. A personal loan is unsecured so you would pay a higher interest rate.

But yes, if you earn enough they would in principle give you a personal loan for any amount

Victor

Note that you could be paying 10% on a personal loan.

I understand the banks tend not to give mortgages on amounts under €50,000.

So look at the numbers carefully.

chris85

I guess wondering why you want a loan over a mortgage? Rates could be 3 times for a loan than a mortgage. Get a variable rate mortgage and can pay off as quickly as you want with no penalties.