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Deposit required with equity?

  • 09-11-2018 11:20am
    #1
    RainAlc
    Registered Users, Registered Users 2 Posts: 2 ✭


    I have inherited the family home together with my three siblings. I want to buy them out so I will need to come up with 3/4 of the asking price for the house. I am planning on getting a mortgage for this and I was wondering about the deposit needed.
    Do I need the full 10% (I'm a first time buyer) deposit or can I use my current equity as the deposit?


Comments

  • #2
    davo2001
    Registered Users, Registered Users 2 Posts: 3,323 ✭✭✭davo2001


    RainAlc wrote: »
    I have inherited the family home together with my three siblings. I want to buy them out so I will need to come up with 3/4 of the asking price for the house. I am planning on getting a mortgage for this and I was wondering about the deposit needed.
    Do I need the full 10% (I'm a first time buyer) deposit or can I use my current equity as the deposit?

    You still need the 10% deposit for the mortgage.


  • #3
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭3DataModem


    davo2001 wrote: »
    You still need the 10% deposit for the mortgage.

    No you don't.

    OP: you need to have an LTV of less than 90%. If you borrow the full amount of the buyout, your loan will be 75% of the value of the property, so you are within the rules.

    This of course assumes you are buying it as your principal dwelling. If not, the limit is 70%, so you are close.


  • #4
    RainAlc
    Registered Users, Registered Users 2 Posts: 2 ✭RainAlc


    3DataModem wrote: »
    No you don't.

    OP: you need to have an LTV of less than 90%. If you borrow the full amount of the buyout, your loan will be 75% of the value of the property, so you are within the rules.

    This of course assumes you are buying it as your principal dwelling. If not, the limit is 70%, so you are close.

    Yes it will be for my home. Hopefully this is the case as we are keen to get moving on the sale and purchase. I will speak to a mortgage broker maybe for best advice as to where to go from here. Thank you.


  • #5
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You won't need a deposit as you have your share in equity however you will have to demonstrate affordability by showing that you have either saved and or paid rent equivalent to the stressed monthly repayment on the mortgage over the last 6 months.


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