100% Mortgage & the use of Credit union loans

B

Bruze

Guest
Hi All,

New member. seen some interesting, relevant posts and wanted to ask your advice.

basically im looking to avail of 100% mortgage. now goin on my current finanical situation, they are only willing to lend me about €200k. i am on a good salary but just never really watched my money and have only recently been serious about getting mortgage. The reason Bank will only give me €200k is due to car loan repayments (12k) aswell as other little things such as mobile bill (€80/month) & credit card (about 2k) and its all eating in to my disposable income. im hoping to get approval for about €300k.

i was considering taking out a credit union loan to "hide" debt (about 14k in total) as my local one is not ICB listed. stayin away from the morals of this, i would like to get people's opinions.

i was thinking of gettin loan over 7 years with CU so as not to be in too much financial difficulty once mortgage repayments kicksin.

i would also be telling CU Loan purpose is for remainder of deposit.

i would like to hear people's opinions on repurcusions, advantages/disadvantages

cheers
 
oK Morals out of way, Credit union is a good idea I know many people who have loans with credit union and the banks are none the wiser ie pay credit union by cash and not throught the bank, Alot of banks only look for last 3 months bank statments, so you could be seeing saving say 300e aweek into your saving account do this for 3 months and it will look very good, this could be money you have borrowed in the first case along with your wages going into your account, Then if you get approval you could pay it all off along with buying a house, remember you will have to pay back what you have borrowed so make sure you can (afford it,) If you do the math and that is the case then I think you have to do what you have to do to get approval, you will get some goody 2 shoes but I tend to igore them,People have been doing it for years , nobody just gets 4 1/2 times their wages and buy a house well very few, There are other ways to make it look like you have more cash than they think you have, best of luck NB Make sure you can pay back what you borrow

Bruze said:
Hi All,

New member. seen some interesting, relevant posts and wanted to ask your advice.

basically im looking to avail of 100% mortgage. now goin on my current finanical situation, they are only willing to lend me about €200k. i am on a good salary but just never really watched my money and have only recently been serious about getting mortgage. The reason Bank will only give me €200k is due to car loan repayments (12k) aswell as other little things such as mobile bill (€80/month) & credit card (about 2k) and its all eating in to my disposable income. im hoping to get approval for about €300k.

i was considering taking out a credit union loan to "hide" debt (about 14k in total) as my local one is not ICB listed. stayin away from the morals of this, i would like to get people's opinions.

i was thinking of gettin loan over 7 years with CU so as not to be in too much financial difficulty once mortgage repayments kicksin.

i would also be telling CU Loan purpose is for remainder of deposit.

i would like to hear people's opinions on repurcusions, advantages/disadvantages

cheers
Click to expand...
 
The absolutely key issue for you to consider is whether you can comfortably afford to repay mortgage and/or loans, and maintain whatever lifestyle you aspire to. If you can, great.........................

My suggestion would be to test it for a few months, i.e. save a similar amount that you will have to repay and see if you can live on the balance (without having to become a hermit). Finally, whatever you decide to do, don't borrow on your credit card, use for convenience/security, but pay off each month.

Best of luck...........
 
Thanks for your comments. have actually been savin last 4 months about €450/month bank & €250 SSIA. transferred the €450/month (€2250 total) to CU as collateral when i do go to ask for loan.
Not sure how sticky they will b on the 5 times loan thing but reckon il get loan.

unfortunately i cant show my SSIA savings to bank without also disclosing CU loan coz both are on same statement but reckon il keep saving the €450 back in my usual bank account and then can use that for furniture or something if/when get a place.

i've worked it out and reckon if i can get CU loan over 7 years then i should b alrite with repayments and it shouldnt affect me too much.

il wait and see i suppose



oulu said:
oK Morals out of way, Credit union is a good idea I know many people who have loans with credit union and the banks are none the wiser ie pay credit union by cash and not throught the bank, Alot of banks only look for last 3 months bank statments, so you could be seeing saving say 300e aweek into your saving account do this for 3 months and it will look very good, this could be money you have borrowed in the first case along with your wages going into your account, Then if you get approval you could pay it all off along with buying a house, remember you will have to pay back what you have borrowed so make sure you can (afford it,) If you do the math and that is the case then I think you have to do what you have to do to get approval, you will get some goody 2 shoes but I tend to igore them,People have been doing it for years , nobody just gets 4 1/2 times their wages and buy a house well very few, There are other ways to make it look like you have more cash than they think you have, best of luck NB Make sure you can pay back what you borrow
Click to expand...
 
Have you built in possible increases in interest rates, or possible periods of unemployment into your calculations?
 
All lenders will want to see bank statements which, I presume, will show the payment into the Credit Union. This will automatically lead them to requesting a statement from the CU. Lenders aren't stupid - it is almost impossible to 'hide' debt and the fact that this will show that you lied on the application form will most probably mean the mortgage will be declined.

Sarah

www.rea.ie
 
rainny day eh??? how apt.

i do not foresee any period of unemployment as my jobs in my sector are very accesssible at the moment. il be bearing the brunt of the mortgage myself for first year and a half. my girlfriend will be finishing her phd around that time and then our financial situation should imporve considerably pending her employment. 1% rise wud b ok, 2% not great. reckon between our parents though we wud never be in risk of losing the place so do have a slight cushion.
havent decided whether we'l apply solely or jointly for mortgage but regardless we'l b living together and wont affect our financial situation greatly in this initial period.



RainyDay said:
Have you built in possible increases in interest rates, or possible periods of unemployment into your calculations?
Click to expand...
 
will b depositing cash into CU, have done constantly for last 3 & a half years with SSIA. dont foresee this as a problem, will simply add loan repayment to SSIA amount.


Sarah W said:
All lenders will want to see bank statements which, I presume, will show the payment into the Credit Union. This will automatically lead them to requesting a statement from the CU. Lenders aren't stupid - it is almost impossible to 'hide' debt and the fact that this will show that you lied on the application form will most probably mean the mortgage will be declined.

Sarah

www.rea.ie
Click to expand...
 
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