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Loan after getting a mortgage

  • 07-10-2016 4:23pm
    #1
    Smiley012
    Registered Users, Registered Users 2 Posts: 304 ✭✭


    Hi there,

    Hoping someone can help me. We have have drawn down on a mortgage (with BOI) in the last month. Our repayment for our mortgage is 950 per month, and the house we bought needs some work. We have 35k in savings to do the work, and need another 25k to complete it all.

    We have been saving 2.5k into our house deposit for the last year, so technically, after our mortgage payment, we still have excess income. Especially considering we will no longer be paying rent (which we were previously while saving) - technically we have around 3.5k to pay mortgage and loan per month (taking out insurances, food, electricty etc).

    We applied for a loan with KBC (as we do our current banking with them) who declined based on the fact that we have recently drawn down on a mortgage - not that our ability to repay was any issue, but just that we had too recently drawn down.

    Is this going to be the case with most banks? We are starting the bulk of work next week - and my original discussion with BoI when I drew down was that this shouldn't affect us in applying for a home improvement loan.

    I was hoping someone can offer advice - who maybe has had to do the same thing? I guess the last step is to loan from familiy until we have shown solid repayments on our mortgage for a few months, get a loan, and pay family back in a lump sum.


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,858 Mod ✭✭✭✭Henry Ford III


    Don't over borrow.

    I'd spend on the essential repairs now, and also save hard.

    If your lender wouldn't have lent you the extra €25k maybe there was a good reason for it?


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