10% deposit in the bank ??

[tall chapy]

Hi Guys,
A friend of mine is selling her apartment and buying a house.
I have heard second hand that she must have 10% in the bank before she can get a mortgage, even though she has the apartment as collateral. Is this correct and if so are there any ways around it. It will cost here nearly €300 a month I believe to borrow the €30000 short term.

TIA

 

[Unregistered]

No in my experience this was not so .We had the 5k deposit but that was it.As it was our second home we had a subsantial amout of equity built up so the bank gave us a short term or bridging loan for the balance of the 10% the condition was that we had a buyer for our home .It was straightforwad and painless.I needed their loan for about a month and paid a similiar amount to what you quoted.

Best of Luck

 

[tonka]

The 10% is in the apt already and not the bank but is a kinda temp mortgage for people like her called a Bridging Loan . She could get approval on a 100k one and not draw it all down ..she pays interest only on whats drawn down just like a mortgage ...although I hear some lenders can be scabby so be careful.

No tax relief but rated as a sort of Mortgage Interest not Personal Loan Interest.