additional funding on top of mortgage

G

gongey

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If a house/apartment costs in excess of the mortgage amount loaned, would other banks be willing to lend the balance, or are there conditions in place not to have any other loans. My example is this:

House price 320,000, mortgage approved 260,000, savings 25,000, shortfall 35,000. is there any way of getting this additonal 35,000 through another financial institution say by personal loan. i know it would be very expensive over the short term, but is it possible?

thanks fo any advice/recommendations
 
Is there a reason that you are only being given a c. 80% mortgage? Maybe your earnings are capping what you can borrow even if lenders will, subject to income and repayment capacity, advance up to 92%? Or do you have other debts already? Have you shopped around to see what other lenders are willing to offer? Perhaps if you offer to avail of the lenders will consider that potential income and advance more? Have you tried a broker to see if s/he can get a higher loan to value ratio advanced? If you are going to borrow then ideally do so at mortgage rates if at all possible. Would any family members be able/willing to help you out (personally I don't agree with this approach having been stung myself before by family members but am just mentioning it as a possibility). Don't lose sight of the fact that there may come a point at which the level of debt required to do what you want is not sustainable.
 
You can actually borrow more for a house on a personal loan. However it is very expensive. Think of it this way if ineterest rates were to rise chould you afford the repayment for the mortgage and a short term loan? Depending on your income and your loan to debit ratio you could be better shopping around for a better mortgage deal. A good Advice based broker is what you need.
 
the mortgage amount is the max amount based on my salary alone with the rent a room scheme amount allowed. given that it is the maximum, would lenders in your opinion be pre-disposed to offer 92% of the purchase price based on the above example or am I clutching at straws. would they look at potential future earning?
 
Some lenders will advance more than others even though they are all supposed to work to similar Central Bank/IFSRA specified lending rules. If you could get 92% could you (a) afford the repayments (now and if rates increased by a few percent and including related payments such as mortgage protection life assurance and house insurance) and (b) would you also be able to make up the 8% shortfall (plus any initial moving in and general living expenses). Did you shop around either independently or via a broker and is 80% the best that you were offered? If you are stretching yourself significantly for this purchase in terms of getting credit and/or affording the ongoing repayments and other expenses then you need to consider if it is viable/prudent to proceed. I personally would be loath to recommend it in general but another option might be something like a mortgage that charges interest only repayments for the first few years. [broken link removed] and other lenders may have something similar. However paying interest only for a few years and then switching to normal annuity (interest and capital) repayments thereafter means that the overall interest costs will be significantly higher than a normal annuity loan from the start.
 
i went through a broker who shopped around and this was the best they could do. i'm averse to the interest only option as I'd like to be provided with equity in 5/10 years time, if needed. honestly i can afford the higher mortgage given that i have been paying rent of nearly a grand.

look like a move out of the capital
 
If you borrow money elsewhere this will reduce your borrowing capacity on the mortgage. Are there any cheaper properties in the development?

Sarah

www.rea.ie
 
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