help with a mortgage

ferncourt

Hi guys myself and partner are in a predicament, were desperately trying to buy a house after renting for the last number of years, we have friends who have used off the Rader mortgage brokers and they had success basically getting a 100%mortgage by getting the house overvalued , our situation now is both have strong incomes but it will never be possible to make up the deposit based on today's regulation, we need a 3 bed as we have 2 children average cost where we live is €275000 some have told us that if we can get the house for 20%below the asking price tell the bank that were paying full (the advertised price) say you have the balance but will be a gift from relative's that they'd never know ,is this possible or should we follow friends and hire a broker ,realistically we'll never be able to save that money with rents , creche for 2 kids basically the whole cost of living ,were open to any suggestions but have tried the council route and there's nothing available ie affordable housing etc ,

Thanks In advance !

Avatar MIA

What are you trying to do?

Tell the bank that you are paying €120k for a house you will only be paying €100k for which you hope to get from the bank in full?

Would you also know a dodgy solicitor that will facilitate this for you and who will also join in on the scam when acting for the bank? Why would they?

Stheno

Avatar MIA wrote: »

What are you trying to do?

Tell the bank that you are paying €120k for a house you will only be paying €100k for which you hope to get from the bank in full?

Would you also know a dodgy solicitor that will facilitate this for you and who will also join in on the scam when acting for the bank? Why would they?

Exactly.

For a 275k house, you'd need a deposit of 55k, and a joint income of 63k per year between you at the least.

Given you've two children, you may need more income than that, as the cost of children will be factored in.

Now the banks have leeway on one of the criteria but not both.

pablo128

ferncourt wrote: »

Hi guys myself and partner are in a predicament, were desperately trying to buy a house after renting for the last number of years, we have friends who have used off the Rader mortgage brokers and they had success basically getting a 100%mortgage by getting the house overvalued , our situation now is both have strong incomes but it will never be possible to make up the deposit based on today's regulation, we need a 3 bed as we have 2 children average cost where we live is €275000 some have told us that if we can get the house for 20%below the asking price tell the bank that were paying full (the advertised price) say you have the balance but will be a gift from relative's that they'd never know ,is this possible or should we follow friends and hire a broker ,realistically we'll never be able to save that money with rents , creche for 2 kids basically the whole cost of living ,were open to any suggestions but have tried the council route and there's nothing available ie affordable housing etc ,

Thanks In advance !

Your best option (legally) is to ask someone who trusts you, and has money spare to 'give' you the deposit. This will be accepted by the bank but they will require that person to sign something saying they hold no interest in the house or some legal jargon.

When all is done and dusted you take a credit union loan out and pay them back.
It does require a large element of trust on their side though.

L1011

What you are attempting to do is massively fraudulent and there are multiple people who would be interested in finding out.

Gifts towards deposits are allowed but they will always require *some* of the deposit to be your own savings. This makes perfect sense.

newacc2015

pablo128 wrote: »

Your best option (legally) is to ask someone who trusts you, and has money spare to 'give' you the deposit. This will be accepted by the bank but they will require that person to sign something saying they hold no interest in the house or some legal jargon.

When all is done and dusted you take a credit union loan out and pay them back.
It does require a large element of trust on their side though.

So OP goes to their local CU and gets a massive unsecured loan at around 12% to pay back their friend/family? No CU in their right mind will give out a massive unsecured loan. Plus the interest on the loan will be massive

OP the bank will get you to pay for an independent valuation to see the actually value of the house. They will see the 20% difference in value and not give you a mortgage. You have no choice but to save for the mortgage

pablo128

newacc2015 wrote: »

So OP goes to their local CU and gets a massive unsecured loan at around 12% to pay back their friend/family? No CU in their right mind will give out a massive unsecured loan. Plus the interest on the loan will be massive

OP the bank will get you to pay for an independent valuation to see the actually value of the house. They will see the 20% difference in value and not give you a mortgage. You have no choice but to save for the mortgage

How will it be unsecured? They will have a property by then.

Obviously it can't be done overnight. You would have to build up a rating with the CU first by taking out smaller loans. The person loaning the money might have to wait a while. A parent or close family member would be the usual people to ask.

Avatar MIA

pablo128 wrote: »

How will it be unsecured? They will have a property by then.

He means the suggested CU loan element. That cannot be secured on the house.

pablo128

Avatar MIA wrote: »

He means the suggested CU loan element. That cannot be secured on the house.

In fairness I assumed the op would have some sort of savings so I further assumed they wouldn't be borrowing 50k from the CU. So unless they have no or limited savings, my idea is still a runner.

Wheety

Stheno wrote: »

Exactly.

For a 275k house, you'd need a deposit of 55k, and a joint income of 63k per year between you at the least.

Given you've two children, you may need more income than that, as the cost of children will be factored in.

Now the banks have leeway on one of the criteria but not both.

Wouldn't it be €33,000 deposit? 10% of first 220k and 20% of 55k.

That would leave €242,000 mortgage and would require an income of just short of €70,000.

Stheno

Wheety wrote: »

Wouldn't it be €33,000 deposit? 10% of first 220k and 20% of 55k.

That would leave €242,000 mortgage and would require an income of just short of €70,000.

Does it not go straight to 20% after you hit the 225 limit?

either way it's still a fair whack if you've no savings at the minute. €1000 a month for three years to hit 36k

ferncourt

We're fortunate enough to have the income to borrow that amount but with our overheads ie rents and that it's an impossible task to say save the money ,we don't live an extravagant lifestyle we literally pay our bills save a small amount and possibly get a movie once a month , we wouldn't have anyone to receive a gift from , but in my circumstances what other options are there other than fraudulent routes? I've been paying someone else's mortgage for long enough and renting has 0 security the risk could be worth the reward, open to any reasonable suggestion??q

Pawwed Rig

ferncourt wrote: »

in my circumstances what other options are there other than fraudulent routes?

Move somewhere you can afford maybe? You know like everyone else does.

Stheno

ferncourt wrote: »

We're fortunate enough to have the income to borrow that amount but with our overheads ie rents and that it's an impossible task to say save the money ,we don't live an extravagant lifestyle we literally pay our bills save a small amount and possibly get a movie once a month , we wouldn't have anyone to receive a gift from , but in my circumstances what other options are there other than fraudulent routes? I've been paying someone else's mortgage for long enough and renting has 0 security the risk could be worth the reward, open to any reasonable suggestion??q

Keep on saving?

Move to an area that requires a lesser deposit?

See how you can further back on your current spending? E.g. go from two cars to one etc?

Wheety

There are no 'life hacks' for getting a mortgage. Just have to adjust your expectations. Buy somewhere cheaper and try and clear the mortgage as soon as possible. At least that way you're paying equity into something. Then you can move again when it's more feasible.

Do you have any deposit at the moment?

ferncourt

We'd have a bit saved but a far cry fro 37k moving to a cheaper area isn't as easy as you'd think when kids are about to start school, family and work commitments .

Pawwed Rig

No different to anyone else's prpblems but if you can't afford to live there I don't see what options you have.
Do you not realise lots of people would like to live somewhere nicer than they do?

BuffyBot

No discussion of dishonest dealings as per the forum charter