home improvement loan

EqualFit

Myself and my wife are looking for a loan of about €100,000 to improve property.

I was discussing this with a financial adviser and they were doubtful that we could get a mortgage on the property as my mother is on the deeds and this complicates the matter.

Would it be possible just to get a loan (not mortgage) of the above amount? Or get several smaller loans?

Jim2007

So you are basically looking for someone to give you an unsecured loan or loands of up to 100K to do up someone else's property…. That is not going to fly because the lender would have no leverage at all to ensure you pay it down.

You need to find some way to put skin in the game - do you have another property you could offer as security? On top of that you'd you need some kind protection for yourself in such a situation.

gibgodsman

https://www.boards.ie/discussion/2058345721/home-improvement-loan

Only place I have found willing to loan this amount without too many questions is the credit union, would be 10 years and repayments just north of €1,100 a month, they would want quotes for 80% of the loan value for works on the house too

coylemj

https://www.boards.ie/discussion/comment/121993324#Comment_121993324

Most credit unions are drowning in deposits which they are keen to lend. So I'm sure this one would love some more business.

Would you care to name the credit union which is prepared to give an unsecured loan for €100,000? Especially 'without too many questions'.

Jim2007

https://www.boards.ie/discussion/comment/121993324#Comment_121993324

A 100K unsecured loan to do renovations on a property the borrower does not own….. I'd be very surprised anyone would sign off on that.

AndrewJRenko

https://www.boards.ie/discussion/comment/121993612#Comment_121993612

Not sure about the 'too many questions', but here's one doing unsecured home improvement loans up to €100k

https://capitalcu.ie/loan/home-improvement-loan/

phormium

I'd be surprised at 100k unsecured by any CU, I think the fact that it is a home improvement loan presumes you own a home and I'd imagine they would be taking a second charge on the property.

Would your mother go jointly on the loan with you? Her security your income as such.

coylemj

https://www.boards.ie/discussion/comment/121993896#Comment_121993896

It's called a 'home improvement loan' because it will effectively be a second mortgage.

Nobody is going to lend you 100,000 at 8.2% without security.

AndrewJRenko

https://www.boards.ie/discussion/comment/121994020#Comment_121994020

https://www.boards.ie/discussion/comment/121995347#Comment_121995347

The 'small print' has no indication that they'll secure the loan.

Representative example: €15,000 loan repayable over 5 years. Rate of interest 7.9% per annum variable. *APR (Annual Percentage Rate) 8.2%. 60 monthly repayments of €303.43 per month. Total amount payable is €18,205.71. Loans are subject to approval. Terms and conditions apply. 

Capital Credit Union is regulated by the Central Bank of Ireland.

Warning: If you do not meet repayments on your loan, your account will go into arrears.

This may affect your credit rating, which may limit your ability to access credit in the future.

Variable rates are correct as of 01/10/23 and are subject to change.

whomitconcerns

Big difference between a 15k loan and a 100k loan though.

But I notice it's the the initial t&C's you posted for any loan of this type so.. Your right it initially appears no security required...but........ Doubt that

EqualFit

https://www.boards.ie/discussion/comment/121993877#Comment_121993877

The issue is that myself, my sister, uncle and mother are currently on the deeds.

Myself and my wife are currently in the process of taking my sister and uncle off the deeds.

The end goal is having me, my wife and my mother on the deeds.

phormium

https://www.boards.ie/discussion/comment/121995476#Comment_121995476

I still don't think you'd get 100k unsecured, smaller alright but unless massive repayment capacity and some other very good reasons I don't see that sort of unsecured loan being given.

They wouldn't want it for 10k for example so why write it into small print, the larger amounts could easily be turned down on underwriting criteria, security being provided might overturn that underwriting decision.

Either way anyway OP can only but try but let us know how you get on out of curiosity.

AndrewJRenko

https://www.boards.ie/discussion/comment/121995347#Comment_121995347

Quite a few CUs are offering home improvement loans of €100k and even more (INTO €150k, Carlow €110k). While they don't explicitly say 'unsecured', they do say 'no fees or charges', which would strongly suggest that the legal costs of a mortgage don't apply here.
https://www.communitycu.ie/loans/home-improvement-loan/
https://bicu.ie/loans/extended-home-improvement-loan
https://www.hsscu.ie/loans/large-home-improvement-loan-2/
https://comharlinnintocu.ie/loans/home-improvement-loan
https://heritagecu.ie/loans/home-improvement-loan
https://carlowcreditunion.ie/loans/home-improvement

Jim2007

https://www.boards.ie/discussion/comment/121996187#Comment_121996187

MOD: This has run it's course. Per the OPs statement he does not have clear title to the property he intends to upgrade and posting a bunch of advertising links to products targeted at home owners with out any detailed analysis of the actual terms and conditions does not move us any further down the line.

So we will wait and see what the OP comes back with.

EqualFit

Myself and my wife went to the local credit union today.

Myself and my wife are eligible for €100,000 together.

We will probably take a personal loan of €50,000 each to make up the €100,000.

phormium

https://www.boards.ie/discussion/comment/122031880#Comment_122031880

I assume with no security? That surprises me, I was wrong obviously but glad you are getting what you want. Make sure you protect your investment here, you're ploughing 100k into something you don't own, family stuff can get messy especially if others involved, siblings etc.

EqualFit

https://www.boards.ie/discussion/comment/122034989#Comment_122034989

To clarify, it will just be me and my wife on the deeds. We are finishing the process of taking the other members of family off (with their agreement)