Can you secure a house you don't own, against a mortgage?

Hi folks,

I appreciate this may seem a silly question on the face of it! However, a friend is in the position and we were talking about it, and I genuinely couldn't come up with an answer.

For the sake of ease, I'm gonna write this in first-person-perspective (i already had it half wrote talking about a friend, and it was getting tough to explain/read).

I'm renting long term. Rent is €800 p/m. A house has come up for sale, and it's in an area close to my mam. I haven't particularly been looking to buy a house, so this isn't something I was specifically working towards. As a result, I've no deposit saved. The house is 165k and I make on average 37k.

In other words, assuming an exception was granted, the house fits within 4.5 time salary requirement.

The real issue is I have outgoings for a car loan and it swallows up 650 per month, and will do for another 18 months. Looking at online calculators, this is the real issue for me.

My mam would like to help me out, but is single and retired. However, she does have her own fully-paid-off house. Can this situation be manipulated, in such a way that the house can be used as security on the new mortgage?

In the next 3 months, I could either pay off the car loan and have no outgoings (but this leaves me with no deposit at all) or I could save a 10% deposit, but still have the outgoings that disqualify me (with a 650p/m car loan, an online calculator says it'll only give me 60k).


Again, it's not my specific situation, but I find it very interesting and I don't know the answer. I do know in the boom times, people secured houses against houses, and that eventually ended in tears. But at the same time, my friend is pretty close to meeting the criteria (assuming an exception is allowed) otherwise.

She's also had many loans in her lifetime, and none have ever went unpaid. She did a credit score check and her score is good.

Would a bank entertain her?

Are you not simply asking if your mother can act as guarantor

harr

[Deleted User] wrote: »

Hi folks,

I appreciate this may seem a silly question on the face of it! However, a friend is in the position and we were talking about it, and I genuinely couldn't come up with an answer.

For the sake of ease, I'm gonna write this in first-person-perspective (i already had it half wrote talking about a friend, and it was getting tough to explain/read).

I'm renting long term. Rent is €800 p/m. A house has come up for sale, and it's in an area close to my mam. I haven't particularly been looking to buy a house, so this isn't something I was specifically working towards. As a result, I've no deposit saved. The house is 165k and I make on average 37k.

In other words, assuming an exception was granted, the house fits within 4.5 time salary requirement.

The real issue is I have outgoings for a car loan and it swallows up 650 per month, and will do for another 18 months. Looking at online calculators, this is the real issue for me.

My mam would like to help me out, but is single and retired. However, she does have her own fully-paid-off house. Can this situation be manipulated, in such a way that the house can be used as security on the new mortgage?

In the next 3 months, I could either pay off the car loan and have no outgoings (but this leaves me with no deposit at all) or I could save a 10% deposit, but still have the outgoings that disqualify me (with a 650p/m car loan, an online calculator says it'll only give me 60k).


Again, it's not my specific situation, but I find it very interesting and I don't know the answer. I do know in the boom times, people secured houses against houses, and that eventually ended in tears. But at the same time, my friend is pretty close to meeting the criteria (assuming an exception is allowed) otherwise.

She's also had many loans in her lifetime, and none have ever went unpaid. She did a credit score check and her score is good.

Would a bank entertain her?

I know things have changed a lot since I got my mortgage over 20 years ago but my parents went
guarantor On my mortgage and as they owed their house outright that was taken into account.
It a big risk to ask anyone to guarantee a mortgage because at end of the day they will be left with the debt if you fall into arrears.
Maybe speak to a good Financial advisor on your options.

The boarder

[Deleted User] wrote: »

Hi folks,

I appreciate this may seem a silly question on the face of it! However, a friend is in the position and we were talking about it, and I genuinely couldn't come up with an answer.

For the sake of ease, I'm gonna write this in first-person-perspective (i already had it half wrote talking about a friend, and it was getting tough to explain/read).

I'm renting long term. Rent is €800 p/m. A house has come up for sale, and it's in an area close to my mam. I haven't particularly been looking to buy a house, so this isn't something I was specifically working towards. As a result, I've no deposit saved. The house is 165k and I make on average 37k.

In other words, assuming an exception was granted, the house fits within 4.5 time salary requirement.

The real issue is I have outgoings for a car loan and it swallows up 650 per month, and will do for another 18 months. Looking at online calculators, this is the real issue for me.

My mam would like to help me out, but is single and retired. However, she does have her own fully-paid-off house. Can this situation be manipulated, in such a way that the house can be used as security on the new mortgage?

In the next 3 months, I could either pay off the car loan and have no outgoings (but this leaves me with no deposit at all) or I could save a 10% deposit, but still have the outgoings that disqualify me (with a 650p/m car loan, an online calculator says it'll only give me 60k).


Again, it's not my specific situation, but I find it very interesting and I don't know the answer. I do know in the boom times, people secured houses against houses, and that eventually ended in tears. But at the same time, my friend is pretty close to meeting the criteria (assuming an exception is allowed) otherwise.

She's also had many loans in her lifetime, and none have ever went unpaid. She did a credit score check and her score is good.

Would a bank entertain her?

Would your friend not leave the rental and move in with their mam for saving a deposit?

imfml

Great opportunity. Worth selling that expensive car and replacing with a banger for a couple years in my opinion.

Deleted User

Deleted User wrote: »

Are you not simply asking if your mother can act as guarantor

That's the gist of it alright, but I genuinely don't know the answer to the question. Years ago, in my local credit union, being a guarantor was an everyday thing.

Haven't heard of it in years, though.

imfml

imfml wrote: »

Great opportunity. Worth selling that expensive car and replacing with a banger for a couple years in my opinion.

She'd still need a car, and selling it wouldn't wipe out the debt for it, so although it'd reduce the amount of time she'd owe on the car, there's only 18months on it left anyway as far as I understand, so it's not likely to make a massive difference.

(besides, i think shifting cars is a bit tricky at the moment?)

dotsman

Ultimately, the car loan is what is killing her.

The best way the mother could help is lend her the money to pay off the car loan and leave enough for a deposit.

However, that would assume that the mother has the funds and trusts the daughter and and will pay her back in full and on time.

P.S. A car loan of 650pm is ridiculous for someone on a salary of 37K. They really should have bought a much cheaper car!

P.P.S. It's not a good thing that someone has had "many" loans in their lifetime. It shows that they are bad with managing their finances and poor at saving.

dubrov

I'm pretty sure it's a dead duck. Banks used to allow guarantors but I believe they struggled to call in any of the guarantees in the last recession.

Your only chance is if your mother remortgages her house and gifts you a link sum for the deposit

Darc19

You won't get exception to 4.5 on a 37k salary.

You possibly won't get 3.5.

These are maximum multiples and banks will look at what expenditure you will have.

Motor expenses, utilities, day to day living expenses, social life etc
Generally these can be the same for someone earning 37k and someone earning 57k, so the 57k person has a lot more spare cash and is a better bet for 4.5 times.

Worth a try, but be prepared for a refusal

Buddy Bubs

Get rid of car, you don't qualify for mortgage with it. Assuming you have equity in the car if you only have 18 months left too....Will help with deposit.
Buy something for a grand until mortgage is done and dusted, buy expensive car again then if you like.

dotsman

dotsman wrote: »

Ultimately, the car loan is what is killing her.

The best way the mother could help is lend her the money to pay off the car loan and leave enough for a deposit.

However, that would assume that the mother has the funds and trusts the daughter and and will pay her back in full and on time.

P.S. A car loan of 650pm is ridiculous for someone on a salary of 37K. They really should have bought a much cheaper car!

P.P.S. It's not a good thing that someone has had "many" loans in their lifetime. It shows that they are bad with managing their finances and poor at saving.

Unfortunately to clear the car loan and have enough for a deposit to get the house "properly" would mean the mother would have to loan her about 30k. Which isn't really plausible.


I kinda feel bad for her. She's not someone that would really have ever been looking at buying, but its very rare that a house on her mams street would come up for sale. Its not a particularly sought after area, but its just unusual to see the houses for sale there. If shed known 6 months ago it was likely to be for sale, its possible she'd have prepared for it but its very much coming out of the blue.

Bigfatmichael

Have a look at rebuilding Ireland home loan. It's your only chance.

I was stupid and had 14K of debt with car loan and other things and wanted a mortgage and had 27K saved. I paid off the debt and sold the car and it brought me up to 21K. I wanted a mortgage as well on on same money as you.

I'll never spend more than 5K on a car ever again.

Bigfatmichael

Bigfatmichael wrote: »

Have a look at rebuilding Ireland home loan. It's your only chance.

I was stupid and had 14K of debt with car loan and other things and wanted a mortgage and had 27K saved. I paid off the debt and sold the car and it brought me up to 21K. I wanted a mortgage as well on on same money as you.

I'll never spend more than 5K on a car ever again.

Does that not take a long time to go through though? I presume this house will be sold by the time that happened.

dubrov

Even with the deposit, your friend will need to demonstrate about 6 mouths of savings.

It just isn't going to happen

billo516

what make of car is it ?

sentient_6

I'm completely baffled by the 650 a month car loan. That is insane for anybody, never mind someone on 37K.

Soilse

Has she any savings at all? Enough to cover the solicitors fees, survey, mortgage insurance? Not sure a bank would look kindly on someone unable to show any history of saving and managing their money. Houses cost and need annual msinenraince to maintain not much but if you don't do maintenance then it will cost in the end. Has she any clothes, shoes that she can sell. 650x18 equals 11, 700 paid off I'd be asking myself just how much do I want yo buy this house because priotising this means sacrificing everything else at least for a few months. Are you sure she can't bus, bike, walk, car share get her mam to drive her for a few months.

jlm29

I’ve a friend whose parents went guarantor when she bought her first house. It’s probably circa 10years ago. Her parents would have been late 50s at the time I’d say, and at least one of them still working, and the other probably due to retire with a decent public sector pension. I assume, though I don’t know, that they owned their house outright at that time. She had to put her mortgage over 10 years so that it wouldn’t go too far beyond her parents retirement age. And I’d say she had a fairly decent deposit too, and was borrowing within her means. And Had no big loans etc.
So, I’d say it won’t happen in your scenario- mother has no income. Nobody has any cash, exemption too large.

Also, I really don’t think any bank will take a house that’s a family home as security for someone else’s house in this day and age. It’s that kind of carry on that got lots of people in lots of bother a few years ago

smellyoldboot

What kinda car have you got that you pay €650 a month for? The bank will rightly laugh at you if you ask them for a mortgage with that. I'm on similar money and my car payments are under €200 a month. You've half your salary tied up every month before you buy a can of beans and that's without a mortgage.

listermint

It's not happening tbh. As above she won't be in the bracket for 4.5 times salary excemption. Not at all.

Also as per everyone elses advice. She should use this event and the feeling of not being able to jump at the opportunity as a push to sort out her flagrant finances.

Ditch the car asap. She can get a run around for a grand or two that will do for her needs . She then needs to stick that 650 or more into savings account and work at it properly. She will then be in a proper position to jump at an opportunity as it arises and feel really good about it.

dubrov

dubrov wrote: »

Even with the deposit, your friend will need to demonstrate about 6 mouths of savings.

It just isn't going to happen

Well as far as my own personal experience with Bank of Ireland, repaying a loan, or paying rent, is used as a demonstrator of ability to repay your mortgage. So that would work in her favour, surely? The mortgage would (if my online calculators are correct) be only €60 p/m higher than her rent.

Soilse wrote: »

Has she any savings at all

I think she does, but it's about 1k. Nothing worth getting excited about or that makes a material difference to her situation.

sentient_6 wrote: »

I'm completely baffled by the 650 a month car loan. That is insane for anybody, never mind someone on 37K.

billo516 wrote: »

what make of car is it ?

I appreciate €650 sounds expensive (although if I'm honest, I wasn't as startled by it as many of ye seem to be - I make around the same as her and my car loan is about 330p/m, albeit mine is 6 years old). It was a new Clio that she got, and I think her payments are so high because her term is short.

I think it's a 191, so a quick google online would tell me she paid about 20-21k for it, and seen as she only has 18months left, that would tally up with a 3 year repayment plan.


I wonder could she ring and renegotiate the loan over a longer period to reduce the monthly repayments? Or would renegotiating a loan give her a black mark that would result in the bank frowning upon her anyway?

GingerLily

She won't qualify for an exemption above 3.5 even if she clears the loan and gathers enough the deposit and solicitor fees/stamp duty.

She's not in a position to buy a house currently

What's the story with qualifying for exemptions, out of curiousity? What informs a bank's opinion on whether they'd grant one or not?

I was reading yer man Eoin McGee's book recently (how to be good with money) and he reckons the banks are more likely to give exemptions to those who aren't spending as much, as exemptions can only be a % of the amount of money they lend out (ie; because her house is half the price of your average new build, she'd be more likely to get one as she takes up less, as a percentage of their total loan base)?

mickdw

Forget about the house for now.
I would do something about the car loan.
Its just too much to be paying for what is a cheap car.
The sad thing is that even after paying it off at such a quick rate, she is barely keeping up with the depreciation on the car - bad deal full stop.

Lia_lia

€650 a month car loan...and it’s a Clio. Christ! Sorry I’ve no advice but wow.

Wesser

How on earth would she service a car loan of 650 a month plus repayments on 4.5 times value of a house on a salary of 37k??!!

This is a recipe for financial disaster

lll i can say is
..


I understand now how the celtic tiger happened and am grateful for more prudent lending laws now to stop things like this happening

mickdw

mickdw wrote: »

Its just too much to be paying for what is a cheap car.

It's a €20,000 car. No matter whether she pays €1,000 a month, or €100 a month, the car is still a €20,000 car. Paying less per month doesn't make it any cheaper (the opposite, if anything).

JPup

As far as I know parental guarantees are totally out now. That’s what I was told when I asked fairly recently anyway.

Could your friend move in with her mother for a while to build a deposit? Ideally get the car loan down to a more reasonable level and then build up a consistent record of two years savings. By 2023 your friend will be in a good position to buy.

The only real way I can think of to speed things up would be inheritance or a partner who can add a second income.

runawaybishop

[Deleted User] wrote: »

It's a €20,000 car. No matter whether she pays €1,000 a month, or €100 a month, the car is still a €20,000 car. Paying less per month doesn't make it any cheaper (the opposite, if anything).

She's your mate, you want to defend her. That's all fine. A new car with a loan that costs 650 a month on 37k is nuts. It's a massive cost and severely impacts her ability to borrow. Everyone is saying the same thing, sell the car.

mickdw

[Deleted User] wrote: »

It's a €20,000 car. No matter whether she pays €1,000 a month, or €100 a month, the car is still a €20,000 car. Paying less per month doesn't make it any cheaper (the opposite, if anything).

Hold on there now. There are more angles that just stating thst a 20k car is a 20k car.
A 20k vw as an example would likely be worth more than half its value after 3 years. This clio going by donedeal appears to have lost half its value in 18 months - its just eating money and paying it off slower in this case would only be putting off the inevitable debt that it was building up. A different car costing 20k could be reasonably serviced payments wise at about half that monthly while still keeping up with its depreciation. A bad deal the clio.
A slightly used clio could also have been got and financed at about half that monthly also.
It just screams - bad with money anyone who would agree to pay 650 per month for a clio.

mickdw

mickdw wrote: »

Hold on there now. There are more angles that just stating thst a 20k car is a 20k car.

Not when you're buying a car, there aren't. A 20k car, will cost you 20k. Doesn't matter what badge, engine, shape or colour it is, you're not paying any less than 20k (+ interest). If you like a certain car, then that's personal preference, as she's not planning to sell it anyway.

JPup wrote: »

As far as I know parental guarantees are totally out now. That’s what I was told when I asked fairly recently anyway.

Could your friend move in with her mother for a while to build a deposit? Ideally get the car loan down to a more reasonable level and then build up a consistent record of two years savings. By 2023 your friend will be in a good position to buy.

The only real way I can think of to speed things up would be inheritance or a partner who can add a second income.

I think the real issue she's facing is the general rush/panic, as she's interested in a specific house, rather than just house-hunting in general. She's never really talked about mortgages in great detail before, or anything like that. But as I say, a house for sale on her mam's street is very rare.

runawaybishop wrote: »

She's your mate, you want to defend her. That's all fine. A new car with a loan that costs 650 a month on 37k is nuts. It's a massive cost and severely impacts her ability to borrow. Everyone is saying the same thing, sell the car.

Oh, I've no interest in defending her. Finances are finances, it's fairly black and white. Looking to buy a house now, in a panic, means a €650 car payment is not a good thing, and will not help her out at all. However, assuming this house didn't appear for sale, then a €650 car payment to get the car paid off quite swiftly and have the peace of mind on it, obviously made sense to her. Equally if the house appeared for sale just before she got the loan, or just after the car was paid for, she'd be laughing.



I do agree that just the car and rent are taking up nearly half her income, which seems a bit hefty, but she obviously can afford it and it hasn't fussed her at all since she took out the car loan. She's paid it on time and still has it 'legal' (insurance / tax) and still gets her weekly shopping in, etc. etc.


She's not the worst with money, from my brief overview, but she's not exactly Ms. long-term-thinker either (in fairness, she's 29). It was just the question mark of whether her mam could do anything to help with going guarantor, to get the mortgage over the line, that was what I was wondering about. It's a pity that she can't pull a rabbit out of the hat.

Wesser

The clio lost about 10 k off of its value the moment you drive it off the forecourt.
Better to buy a one or two year old clio where that loss has already happened on someone elses purse.

Car would still be in very good condition after only 1 or 2 years.
That means a year of repayments for you that youll never recoup when a one or two year old car is just as nice but costs 10k less

So 10k towards a deposit!

Bigfatmichael

So basically she has no savings history, no 10% deposit saved and another 5k for solicitor, stamp duty fees etc, has a 650 euro a month car loan and she wants to to get a mortgage and wants a 4.5 times mortgage? Yea good luck with that.

Will the parents pay her 10% deposit and solicitor/stamp duty fees? She hasn't a hope of getting a mortgage.

Her best bet would be to get the car loan paid off, save the 10% deposit and get a rebuilding Ireland home loan.

Diemos

Deleted User wrote: »

She'd still need a car, and selling it wouldn't wipe out the debt for it, so although it'd reduce the amount of time she'd owe on the car, there's only 18 months on it left anyway as far as I understand, so it's not likely to make a massive difference.

(besides, i think shifting cars is a bit tricky at the moment?)

The car is MADNESS, regardless of if this property falls through or not, she needs to sell the car. There are cars that get you from a to b for under 2k, a Yaris or Corolla would hold a decent resale value and is unlikely to through any huge gremlins while cash is tight.

Once that €650 per month is gone, she could build up almost €8,000 in 12 months just by paying it into her savings account rather than the finance company. If she had done that instead of buying the car she would have her deposit already.

As others have pointed out, the lending limit is to 3.5 not 4.5.

Also again as pointed out, banks don't care that you've paid previous loans, they care is you haven't repaid a loan, but after that you get no brownie points. Regular repaying of small loans just shows that the borrower is poor at budgeting and impulsive. With €1k savings, it's not much of a rainy day fund and monthly out goings of €1,450 before she puts food on the table. This is financial Russian roulette.


I just feel sick for anyone stuck on a car loan to income ratio that high, I mean if she got this place, the mortgage repayments would be less than that on a 30 year. How do the people who sell this crap sleep at night.

Diemos

Bigfatmichael wrote: »

So basically she has no savings history, no 10% deposit and another 5k for solicitor, stamp duty fees etc, has a 650 euro a month car loan and she wants to to get a mortgage and wants a 4.5 times mortgage? Yea good luck with that.

it's not such a daft question, 15 years ago she would have go that in a heartbeat.

Rightly or wrongly.....but my point stands, the question is not without merrit.

SEPT 23 1989

Is it a Clio Williams?

runawaybishop

[Deleted User] wrote: »

.Oh, I've no interest in defending her. Finances are finances, it's fairly black and white. Looking to buy a house now, in a panic, means a €650 car payment is not a good thing, and will not help her out at all. However, assuming this house didn't appear for sale, then a €650 car payment to get the car paid off quite swiftly and have the peace of mind on it, obviously made sense to her. Equally if the house appeared for sale just before she got the loan, or just after the car was paid for, she'd be laughing.



I do agree that just the car and rent are taking up nearly half her income, which seems a bit hefty, but she obviously can afford it and it hasn't fussed her at all since she took out the car loan. She's paid it on time and still has it 'legal' (insurance / tax) and still gets her weekly shopping in, etc. etc.


She's not the worst with money, from my brief overview, but she's not exactly Ms. long-term-thinker either (in fairness, she's 29). It was just the question mark of whether her mam could do anything to help with going guarantor, to get the mortgage over the line, that was what I was wondering about. It's a pity that she can't pull a rabbit out of the hat.

Fair enough, I don't begrudge anyone spending their money how they choose and while a clio isnt for me if she likes it then that's that.

Nonetheless that car loan is huge, 37k is what, 2100 net a month? She needs to ditch it asap, house or not. I pay less than her car loan a month on my mortgage

Diemos

runawaybishop wrote: »

I pay less than her car loan a month on my mortgage

So would she if she got the house!

Bigfatmichael

runawaybishop wrote: »

Fair enough, I don't begrudge anyone spending their money how they choose and while a clio isnt for me if she likes it then that's that.

Nonetheless that car loan is huge, 37k is what, 2100 net a month? She needs to ditch it asap, house or not. I pay less than her car loan a month on my mortgage

37K is more like 2530 a month net. You start paying a ton of tax then if your salary goes up more.

runawaybishop

Bigfatmichael wrote: »

37K is more like 2530 a month net. You start paying a ton of tax then if your salary goes up more.

Thanks, I wasn't sure exactly. I used to take that home when I was on that but I also had contracting work on the side. Nonetheless it's a massive chunk of your take home for a car when you don't have a mortgage.

Imo drop the car, get the mortgage then if she really wants get a new car loan.

poker--addict

[Deleted User] wrote: »

What's the story with qualifying for exemptions, out of curiousity? What informs a bank's opinion on whether they'd grant one or not?

I was reading yer man Eoin McGee's book recently (how to be good with money) and he reckons the banks are more likely to give exemptions to those who aren't spending as much, as exemptions can only be a % of the amount of money they lend out (ie; because her house is half the price of your average new build, she'd be more likely to get one as she takes up less, as a percentage of their total loan base)?

I’d imagine in simple terms exemptions will go to those regarded as low risk, plenty of disposable income after stress testing, and probably in jobs income is secure and likely to increase, ie safe bets?

You need a small mortgage for car insurance for younger drivers in this country, but I struggle to understand the amount of people in debt for a car in this country. So many threads about mortgages have a big fat car repayment causing a big negative in them. You don’t need to drive a 1000 quid banger either as gets suggested in these threads, but skip the 20k car for a few years.

Iodine1

Quote: "The car is MADNESS, regardless of if this property falls through or not, she needs to sell the car. There are cars that get you from a to b for under 2k, a Yaris or Corolla would hold a decent resale value and is unlikely to through any huge gremlins while cash is tight"

All cars regardless of brand lose a load of money the day you take it out. No car costing 2k has any resale value only what you get for it and at 2k is risky, it could be great or a rusty unreliable money pit. That's why people buy new or fresh secondhand. Saying that it looks like op had little or no deposit or trade in either when buying a brand new car so repayment is nonsense for someone in that position.

Yes, extend the loan or get rid of the car to clear the debt, but the real problem is no savings whatsoever and the history of loans really says "living beyond your means" and that's what the bank will see. Sorry for the pessimistic outlook.

billo516

She is not sensible with money. No chance of a mortgage for the next few years until she gets her house in order i.e. savings history must be good. she has to plan ahead. It will take time.

Diemos

Iodine1 wrote: »

All cars regardless of brand lose a load of money the day you take it out. No car costing 2k has any resale value only what you get for it and at 2k is risky, it could be great or a rusty unreliable money pit. That's why people buy new or fresh secondhand. Saying that it looks like op had little or no deposit or trade in either when buying a brand new car so repayment is nonsense for someone in that position.

My meaning when I talk about resale value on a runaround is, if you drive it for 2 or 3 years and take care of it, you could pretty much get your cash back.

People need to change their mindset that just because they can make the payments fools them into thinking they can afford the car. There's a lot of people who look like they are doing great in this country but are living paycheck to paycheck. And won't be told any other way of living is possible.

Bigfatmichael

650 euro a month on a clio yikes.

I wouldn't spend 65 euro a month on one.

Meeoow

She might as well keep the car. She will lose a fortune selling it. And at least she knows its history.
I think the 800 rent is more of a problem. She should move in with her mother and save like mad.
Her mothers house couldn't be used as collateral, as a bank would find it hard to take a house off a widowed pensioner if she defaults.

Iodine1

Diemos wrote: »

My meaning when I talk about resale value on a runaround is, if you drive it for 2 or 3 years and take care of it, you could pretty much get your cash back.

People need to change their mindset that just because they can make the payments fools them into thinking they can afford the car. There's a lot of people who look like they are doing great in this country but are living paycheck to paycheck. And won't be told any other way of living is possible.

Agree broadly with your post, but posters were claiming other makes would have held the value. only a well minded used car might hold its value. My main point was any new car regardless of make would take a big hit in the first few years. Op's car is a 191. I agree too that many are struggling to make payments on a new car and as soon as they are free, dive back in again!

Cash_Q

Sounds like this house coming up has been a wake up call for your friend. There are people with years and years of savings, good salaries and AIP who can't secure a house purchase because the market is tough right now. How on earth she thinks she has a hope in hell of getting this house is beyond me.

At this rate I think she should just get serious about saving, and that will involve one major sacrifice, either move home to save money on rent, or change the car. She's only 29, setting herself a goal of a few years to save will still see her with plenty of time for a 30 year mortgage.

Soilse

Costs nothing to ring her bank and arrange a meeting to discuss a financial review can ask them they will tell her exactly what they want at least then she knows what's needed

FromADistance

I'm afraid there's no scenario where a bank will take unencumbered property, in the name of another person, as security against a PDH mortgage in lieu of cash to bring down the LTV / circumvent current Central Bank lending rules.

The only mortgage that could be raised for a person retired would be a 'lifetime' loan e.g. https://www.spryfinance.ie/ but I would strongly advise that they do not consider a lifetime loan. Lots of people have got stung with this sort of lending in the past.