hey all, quick question we're applying for a mortgage at the moment and i have a car loan im hoping that it doesnt happen but i'm expecting that they ask me to clear the loan first. anyone have any ideas how as i was trying to get my parents to cover it and then i would continue paying it so as it would be out of my name, but this fell through and i'm stuck any ideas. is it normal that they ask you to clear the loan first?
Car Loan
- Thread starter Tony
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Virginiaman
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borrow from the credit union to clear the loan, Most Credir Unions are not registered with the ICB
It depends; lenders criteria states that your total commitments (mortgage - stressed a 2% over current rates - loans, maintenance payments, etc) must not exceed anything between 35%-50% of your net disposable income. If your loan takes you over the lenders limit you have a few options;
1. Sell the car and repay the loan
2. Renegotiate the car repayments over a longer period to reduce them
3. Use any savings to repay the loan and apply for a larger % mortgage
4. Rob a bank (not advisable
).
Sarah
www.rea.ie
1. Sell the car and repay the loan
2. Renegotiate the car repayments over a longer period to reduce them
3. Use any savings to repay the loan and apply for a larger % mortgage
4. Rob a bank (not advisable
).Sarah
www.rea.ie
Virginiaman - the application form asks for all loans to be declared, whether they are registered with the ICB is immaterial. Besides as soon as the borrowers payslips or bank statements show any deductions/payments to a Credit Union they will automatically request a statement showing both savings and loans.
Sarah
www.rea.ie
Sarah
www.rea.ie
Virginiaman
Registered User
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- 63
Sarah - I am aware of that, however it was what my bank recommended I do in order to qualify for the mortgage, also CU loans are often paid back by cash therefore lender will not find out.
D
dpcak
Guest
hi, just a pointer for you. we have been approved for a mortgage with Ulster Bank and they did not have any problem with car finance. maybe its worth having a chat with them.