Poor credit rating

emma_10 · 08-06-2026 06:03PM #1

Without going into the details of how we got into financial troubles during the last recession, our current situation is that

Our residential home is valued at 420K with 290k outstanding mortgage

Approx 220k equity

Our investment property is valued at 330k with 230 k mortgage balance; so approx 100k equity.

Our adult child needs to move..only started working full time from this month (.after finishing college).

We were hoping they could move into the investment property.... the issue is our mortgage term is coming to end next year, as it was interest only, the balance of 230k is still there. We dont have the cash to finish off the balance and as our kid only started the job now, they won't get the mortgage .to the value we need to pay off.

We have a savings of 50k approx, so roughly 180k is required.

What are our options??

Any help, advise where to get the loan with bad credit history? Thankfully we are doing OK now after several years of job losses, but bad debt means we won't get any loans from main stream banks at this stage. We are 55 years of age but working full time in good jobs ( approx 150k household income.

THe plan would be to work with our kid and they have agreed to help out with whatever loan we take - hoping to take 180k loan for between 5-10 years to pay off.

Also, due to reasons I cant disclose, our child needs to move out and the location of the investment property is where they would be looking to rent out anyway... paying around 2200 to rent!! ( we would need to help out for first couple of years) thats even more the reason, we want them to stay in that house.

SupaCat95 · 08-06-2026 08:30PM

You really have a dilemma going on there with not much moveability room. My advice would be go get proper professional advice from a Financial Advisor. There are way too many assets on the table that are over leveraged and time running out for ye'er retirement. If you are not willing to discuss it out in the open there is obviously a lot more to it. I hope it is an unexpected pregnancy rather than substance abuse or other addiction problems.

Boards.ie Accommodation is place for trivial problems like problems with neighbours troublesome tenant or where to find a solicitor for conveyance on short notice.

I think the housing market is way, way to high (earnings to house prices) but everyone seems to be cash strapped with cost of living which is different from last recession.

emma_10 · 08-06-2026 09:21PM

Thankfully; no addiction issues!!

So, I understand i cannot expect professional help here. But it is hard to find someone reasonable to discuss our current financial situation.

The way I was thinking that if I had 24 months left on the mortgage, then we would be fine as my adult child will be in permanent job for or nearly 2yeaes by tgen so more likely to get a mortgage in their own name.

However, as our mortgage ( on investment property) is expiring in less than 12months, it would be for them to get the mortgage.

What my question here is; can we convince our current lender to extend the mortgage by another 12 moths? How do we do that or else

Are there any private lenders ( not loan sharks) who could possibly provide us ( wiyh poor credit rating) a loan at a reasonable interest rate to pay off 180K.

ted1 · 10-06-2026 06:32PM

how many bedrooms in the investment property ? Is he ok for renting out the other rooms ?

Geuze · 10-06-2026 06:37PM

All along, how did you plan to repay the interest-only mortgage of €230k in 2027?

By selling the rental property?

emma_10 · 10-06-2026 07:05PM

Yes... with a hope our financial situation will improve plus our child was going to be living outside ireland. Circumstances changed....abd here we are !

emma_10 · 10-06-2026 07:07PM

3 bedrooms... I would hope that he/we can rent out atleast 1 room.

If it was our primary residence we would qualify for 14k rent per annum tax free but as it is not, we will have to calculate tax amount on any rental income.

Water John · 10-06-2026 07:13PM

Your local Credit Union would be the best place to make your case. Outlining what you have set down above, to them. I think, given the earning capacity of the household, they will be able to structure something for you. The 'rental property' could become the child's primary residence.

Jim2007 · 10-06-2026 07:17PM

https://www.boards.ie/discussion/comment/124535024#Comment_124535024

You need a very large dose of reality! You have debts of over 500k, assets of may be 200k and less than 10 years to turn it around. Interest only mortgages work on the assumption that you are accumulating wealth elsewhere to meet the mortgage when it falls due and that has not happened. You are over extended in a very high risk asset class and most likely from what you write on the credit register to the point that no credible financial institution is going to offer you favourable terms. Seek professional advice and above all keep your young kid out of your financial affairs.

There is absolutely no reason for your child to have their financial freedom restricted by your bad financial decisions as they begin their adult life. Rent is a small price to pay in order for them to avoid your financial mess.

emma_10 · 10-06-2026 11:59PM

Thanks, you are probably right!

Will have another think ...possibly better to sell the investment property... for approx 340k and after paying off the remaining mortgage and CGT...we should get 30-50k in our hand. This is probably the better option.!!

spaceHopper · 12-06-2026 12:08PM

Get professional advice, including pension and tax advice. You have other options, set up a pension with the rental in it. You could take cash out of your existing pension. The thing is, being a LL is getting riskier and riskier so in the end you might be better off selling it.

ted1 · 12-06-2026 03:54PM

https://www.boards.ie/discussion/comment/124540719#Comment_124540719

Your son can claim the rent a room relief.

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