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First time buyers looking for mortgage advise

  • 18-10-2016 12:52pm
    #1
    Velvet Vocals
    Registered Users, Registered Users 2 Posts: 1,345 ✭✭✭


    Hey,

    I'm just wondering if anyone has any advise on this. Myself and my husband are looking to get a mortgage. We're both permanently employed and between us earn around €78K a year.
    We both used to work for ourselves though, I have been full time permanent employment for 18 months now and my husband has been for 9 months. So because of that we only have about 10K saved.
    We've no outstanding debt or loans or anything, but we've no real deposit to speak of. I've been looking at the Help to Buy details and it seems that it's a rebate after you buy, so you'd have to have the deposit and mortgage approval first.
    So my real question is, do you think we could get a credit union loan for our deposit and then use the tax rebate to pay it back?
    Would a bank just tell us to feck off if we tried that?
    It's getting to the stage where I feel we may never be able to buy. I'm 38 and my husband is 41 so it's kinda now or never really....
    Tagged:


Comments

  • #2
    dennyk
    Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭dennyk


    It's unlikely that your credit union would loan you such a large amount, since the loan would be unsecured, and they almost certainly wouldn't if they know you're intending to use the money as a deposit. Even if they did, the bank handling your mortgage will know about it and would factor the outstanding debt in when deciding how much to lend (or whether to lend at all).

    If you can save 10k a year, you could have a proper 10% deposit (plus enough to cover other expenses) saved up in two or three years at most. That's not so very long, really.

    Also, keep in mind that the Help to Buy rebate is only for new builds, which tend to be a fair bit more expensive than older houses. Depending on the market in your area, you might do better buying an older home, even without the rebate.


  • #3
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    Velvet Vocals wrote: »
    So my real question is, do you think we could get a credit union loan for our deposit and then use the tax rebate to pay it back?
    Would a bank just tell us to feck off if we tried that?
    It's getting to the stage where I feel we may never be able to buy. I'm 38 and my husband is 41 so it's kinda now or never really....

    no chance a bank would take a loan as a deposit, just save like mad for a couple more years.


  • #4
    schofferhofer
    Registered Users, Registered Users 2 Posts: 48 ✭schofferhofer


    I think it also depends on how much you are borrowing i.e. what multiple of your annual salary. I got mortgage approved earlier in the year fairly quickly but it was for reasonably small amount~100K for an apartment and I put in a hefty deposit from my savings of last 10 years.
    I am on a contract job but still the mortgage was approved. So there are a number of factors that will determine approval.....


  • #5
    dennyk
    Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭dennyk


    schofferhofer wrote: »
    I think it also depends on how much you are borrowing i.e. what multiple of your annual salary.

    The OP was talking about taking out a personal loan to cover the deposit. It's very unlikely the bank would be cool with that, regardless of their income or the price of the property.


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