Deposit

leotaku

Hi All,

I'm currently struggling to save while renting in Dublin (paying more than €700) per month and I have a credit card with a €15,000 limit.

As I saw a 1-bed apt in Co Laois that is going for €70,000 (and so are others) if I can withdraw from the credit card at an ATM and then transfer the funds (€7k) into my c/c. and use it as a deposit.

Based on the central bank rules I'm able to apply up to €190k for a mortgage so I don't think a 7k on my credit card will be an issue.

What do you think?

TheChizler

You'll need to provide the source of funds and the bank would immediately spot what you're doing, I don't think it's a runner. For several other reasons too.

You'd need roughly €7k again for all the fees as well.

brownbinman

this is madness. Yes it will be a major issue applying for mortgage

Samuel T. Cogley

The 7K would be taken off your allowed mortgage. Doing something so transparent would also have other issues I imagine.

Why on earth would yopu want to live in Laois if you're working in Dublin, or is the plan to move?

leotaku

Samuel T. Cogley wrote: »

The 7K would be taken off your allowed mortgage. Doing something so transparent would also have other issues I imagine.

Why on earth would yopu want to live in Laois if you're working in Dublin, or is the plan to move?

Because it's on the laois/kildare boarder and i work out of the m50 in dublin, so about a 50 mins drive

Amirani

You won't be permitted to use this. Realistically, you'll have to just try harder to save and at the same time work on increasing your future income.

Alternatively, you could get a family member to "gift" you enough money for a deposit that you could later return to them.

limnam

Paying for a house deposit with a credit card?


Recovery complete

Samuel T. Cogley

limnam wrote: »

Paying for a house deposit with a credit card?


Recovery complete

It's Laois, a few years back he could have bought the whole apartment on it :pac:

cruizer101

Based on mortgage of €190k at 3.5 limit that means you are on ~€55k which after tax is €3250 monthly take home.
Based on that the 700 rent isn't that much unless you have other significant outgoings.
Do you have any savings of your own to put towards deposit.
Banks don't just look for deposit amount they want regular savings.

If you do have significant outgoings elsewhere the bank will take that into account when offering mortgage (you should still be ok for 70k mind).
Also I think some bank won't give 90% on 1 bed apartments as they view them as more likely to lose value so want higher deposit to cover themselves.

leotaku

cruizer101 wrote: »

Based on mortgage of €190k at 3.5 limit that means you are on ~€55k which after tax is €3250 monthly take home.
Based on that the 700 rent isn't that much unless you have other significant outgoings.
Do you have any savings of your own to put towards deposit.
Banks don't just look for deposit amount they want regular savings.

If you do have significant outgoings elsewhere the bank will take that into account when offering mortgage (you should still be ok for 70k mind).
Also I think some bank won't give 90% on 1 bed apartments as they view them as more likely to lose value so want higher deposit to cover themselves.

yes ive a few outgoings payment towards separation costs, childcare, etc. but i put all of them in the mortgage calculator and still got the go ahead on the 70k as my mortgage repayments would be in the range of €340 per month so well within my income even considering the separation costs.

leotaku

OSI wrote: »

Credit Card with a 15k limit on a 55k salary. Jesus.

I know it’s kinda crazy xD
Maybe because I’ve always been a good repayer of loans etc.
Anyway, I barely use the credit card nowdays.

djan

A more elegant and feasible way would be to get a person close to you, ideally relative take out a persona loan. Then gift you the amount and you set out a repayments structure. This would be fine withing the bank rules and would work out cheaper than having CC interest rates.

leotaku

djan wrote: »

A more elegant and feasible way would be to get a person close to you, ideally relative take out a persona loan. Then gift you the amount and you set out a repayments structure. This would be fine withing the bank rules and would work out cheaper than having CC interest rates.

I thought of it and I will do it as last resort.