Mortgage question?

newhouse2016

Hi,

I have recently been approved for a 10k car loan and wondered if it is possible to use this 10k for a mortgage deposit on a house instead? I only have 50% of the mortgage deposit as the moment so this is why I'm asking. Will this be a red flag during a credit check when it comes to apply for the mortgage?

Thanks. :-)

sozbox

They'll ask where the money came from. If you say it's a loan then it will impact your repayment ability and hence a decision.

NinjaTruncs

sozbox wrote: »

They'll ask where the money came from. If you say it's a loan then it will impact your repayment ability and hence a decision.

Regardless of what the loan is used for having an outstanding loan is going to impact the size of mortgage you will get.

4ensic15

The banks are all members of the Irish Credit Bureau. They will know about the loan and will know where the money came from. They will also reduce the size of the amount they are willing to lend based on the outgoings to pay off the loan not being available to pay the mortgage. better not to have a car at all.

womandriver

newhouse2016 wrote: »

Hi,

I have recently been approved for a 10k car loan and wondered if it is possible to use this 10k for a mortgage deposit on a house instead? I only have 50% of the mortgage deposit as the moment so this is why I'm asking. Will this be a red flag during a credit check when it comes to apply for the mortgage?

Thanks. :-)

It's very worrying that people are asking these kind of questions. Thank god for the Central Bank rules.

CollyFlower

You're not going to get around it, your PRSI No: will tell all!

handlemaster

The boom is back with this kind of carry on.

Sound Bite

Are you serious?

You cannot have what you cannot afford.

Either wait until you can afford it or cut your cloth accordingly.

Please read up on the mortgage crisis, arrears levels etc as you seem very detached from reality.

newhouse2016

Ok, cheers. I'm buyiing a car anyway so won't be using it towards a mortgage just wanted to ask the question.

NewApproach

If you're trying to save for a deposit, is buying a car with borrowed money wise?

Quorom

If you get the car loan, depending on your earnings, it will impact negatively, the max mortgage amount that you can borrow.

Ri_Nollaig

newhouse2016 wrote: »

Hi,

I have recently been approved for a 10k car loan and wondered if it is possible to use this 10k for a mortgage deposit on a house instead? I only have 50% of the mortgage deposit as the moment so this is why I'm asking. Will this be a red flag during a credit check when it comes to apply for the mortgage?

Thanks. :-)

If you are planning on buying a house in 2016, you really shouldn't be taking out a car loan. Either keep your current car/get a much cheaper one and save the money for your house deposit.

It was common back in the day for people to borrow money from a credit union to use as their 'deposit'. Those loop holes are closed I'm afraid and the banks can now check or will ask for a signed letter confirming its a gift if you received it from a parent/etc.