Personal Loan

Westwood

Hi Folks

Looking for some advise. I have a large deposit saved for a house which I was going to use as a deposit towards a mortgage in Dublin, however a great house has come-up in the country and I am tempted to buy, I possibly wouldn't get a mortgage on this (well im really sure I wouldn't) as its in an unfinished state and a considerable distance from my current job. I reckon id need under 50k to purchase (go sale agreed) adding to my current savings and maybe get some internal works finished also. I'm looking for advise on getting a personal loan from a bank or credit union, Am I right in thinking they wont lend if they know it will be used to fund the purchase of a house or lands
When the solicitors asked where funds have came from to purchase, obviously this is all traceable. Anyone have any experience with this and can advise where i can come up with shortfall to purchase a property.

Many thanks in advance

LirW

We were in a somewhat similar situation. I can just recommend you talk to a good broker who can advise you any options you have. One told us banks don't like small mortgages because they cost them a lot of money. The problem with loans are the high interest rates, these loans are very expensive, which was one of the reasons why we decided against it.
Can you afford repayments in general? Did you talk to your bank about this particular house? Banks also lend for building a house, I don't see a reason why they wouldn't lend once you have a good plan on how to finance the finishing.

In the end we decided to buy in cash, we were also a bit lucky to find something we both liked.


On a personal note with anything unfinished: Get a detailed structural report to unveil any flaws with it. Maybe there was a reason why it's unfinished.
Good luck!

Bandana boy

the cost of a mortgage will always be substantially less than those for an unsecured personal loan.
First step should always be to try and get the loan as a mortgage.

Victor

Bandana boy wrote: »

the cost of a mortgage will always be substantially less than those for an unsecured personal loan.
First step should always be to try and get the loan as a mortgage.

A €50,000 mortgage has much the same overhead as a €250,000 mortgage, but much less income. Hence banks are slow to offer small mortgages.

ELM327

I have found that 75k is the minimum offered in most of the main banks here.

MentalMario

ELM327 wrote: »

I have found that 75k is the minimum offered in most of the main banks here.

45, 000 seems to be the minimum I've seen.