Bad credit but large deposit, do i have a hope?

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Buddythedog

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Brief background:
I stupidly got into trouble with my mortgage in the past due to going self employed and making a mess of it and running into mortgage difficulties. Mortgage ended up being sold by AIB last year to Mars capital. Arrears were in the region of 10 grand but have now been capitalised.

What I want to do now:
My fiance also owns her house, albeit with very little equity. My house is worth 350k with mortgage outstanding of 170k so I have 180k. We have the option of buying her fathers house as he is moving back to his home county in West of Ireland to retire. Mother unfortunately passed many years ago.

House value approx 500k but the 500k would be split between her father, herself and her 3 sibling at 100k each. My fiancé's 100k would likely take the form of a 100k reduction in purchase price and the father would get 400k, 300k of which he would give as an early inheritance to his children.

The 3 siblings are on board with this so I don't foresee any family problems. Where problems lie may be in my appaling credit history.

We would be looking for mortgage of approx 200k on joint salaries of 125k for the 500k house. LTV would be 40% and LTI would be less than 2 times.

Would any bank touch me at this level? I'm earning 75k and she is earning 50k. Good credit, this is a slam dunk but what about now? And also if we were to marry is her credit rating linked to mine? Could she apply for 3.5 times income in her own name?

Thanks in advance for anyone that can help
 
Own equity: €180k
Fiancée’s equity : 0

Father wants to sell his house for €500k
Daughter x €100k
Father: €100k
3 siblings €300k

Needed: €400k
Less equity: Mortgage required: €200k



Buddythedog said:
Could she apply for 3.5 times income in her own name?
Click to expand...

That seems the best approach. That she buys the house on her own but it's not enough.

If you are married, I doubt you will get a mortgage.

But she won't get a mortgage of the €400k needed.

Is there any hurry? Does the father require the €100k up front or can he "lend" it to her?

It's messy, but could she owe her siblings the €300k?

She should set it up as full legal mortgage.

You pay the net proceeds of your house against the loans when you sell your home, and then make repayments after that.

Brendan
 
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Finance Ireland does sub-prime loans

Mortgage Rates - Finance Ireland

www.financeireland.ie www.financeireland.ie

Qualifying Criteria​



The Progress Plus mortgage allows for a little more flexibility around things like previous credit issues, self-employed income assessment, refinancing and buying a buy-to-let property for example.

The Details:
  • Borrow up to 90% loan to value for first time buyers, up to 80% for movers or refinance and up to 70% for buy-to-let properties.
  • Up to 35 year term available, with a minimum term of 5 years.
  • Borrow up to €1,250,000 in Dublin city and county and up to €750,000 elsewhere.
  • 5 years interest only option available.
  • Self-employed applicants will need to provide a minimum of 2 years supporting income documentation (we can consider just one year’s documentation for the newly self-employed – talk to your broker for more details).
  • Previous arrears on unsecured loans must be more than two years ago and on secured loans more than 4 years ago.
  • A fee of €500 will apply to buy-to-let mortgages.
 
Brendan Burgess said:
Own equity: €180k
Fiancée’s equity : 0

Father wants to sell his house for €500k
Daughter x €100k
Father: €100k
3 siblings €300k

Needed: €400k
Less equity: Mortgage required: €200k





That seems the best approach. That she buys the house on her own but it's not enough.

If you are married, I doubt you will get a mortgage.

But she won't get a mortgage of the €400k needed.

Is there any hurry? Does the father require the €100k up front or can he "lend" it to her?

It's messy, but could she owe her siblings the €300k?

She should set it up as full legal mortgage.

You pay the net proceeds of your house against the loans when you sell your home, and then make repayments after that.

Brendan
Click to expand...
Thanks Brendan. If the mortgage required can be secured by her (after my equity and both our savings) would a bank lend her the money knowing I'm funding half or more of it in cash?

Yes I'd say we can work something out whereby we pay it in a less traditional way if we need to. We are not in the worst situation to be honest, owning 2 x 3 bed houses
 
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