cash purchase?

I've been a regular saver for many years, and have a fair bit of savings now.
My missus and I are interested in making a cash purchase for a house but we are short around 10-20k.

Is it realistic to approach a lending institution (bank or credit union) to loan us the rest?

At this point I would rather they didn't put it into a mortage as I wouldn't want the extra hassles of bank surveyor, waiting time, life insurance etc..
But would a bank do a personal loan for a cash purchase of a house?

I currently have my savings scattered around 4 different instutions, 2 retail banks, 1 non-retail investment bank and the Credit union. Could this present a difficulty in getting one or the other to approve a loan?

Looking for other opinions on this.

A loan of that size should be well within the cerdit union's remit. No costs or surveys. You would have to leave at least 25% with them in savings.

You should probably do the sums though- a personal loan for that amount over 5 years could cost you a bit in interest. Whereas if you took out a mortgage the interest rate should be considerably less, and you could always overpay into it if you were on a variable rate.

I think the credit union is a good suggestion for this sort of lending too.

Yes a mortgage would be at a cheaper rate but you will also have to factor in the cost of legal fees for setting it up which you won't have with a straightforward personal loan.

wbbs said:

I think the credit union is a good suggestion for this sort of lending too.

Yes a mortgage would be at a cheaper rate but you will also have to factor in the cost of legal fees for setting it up which you won't have with a straightforward personal loan.

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If you're buying anyway most solicitors just do the mortgage as part of the overall and don't charge an extra fee. There would be a land registry charge though ( 125 presently but due to rise to 175 in December).

I don't believe you will get a mortgage for an amount of that size. A personal loan would cover it - can't offer any specifics of how banks would view it in relation to house purchases though.

bugler said:

I don't believe you will get a mortgage for an amount of that size. A personal loan would cover it - can't offer any specifics of how banks would view it in relation to house purchases though.

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Yes exactly.
I do think the CU is the way to go, but I wonder will they also have issues about what the loan is for.

Several years ago, just before the boom i rang my local bank branch to ask about a personal loan for a Site with a stone ruin on it (the view was to take my time and restore the ruin), but because it was a "house", they automatically just wanted to push me into a mortage.
I declined.

Could you attempt to bargain the seller down by 20k? Or maybe keep saving until you make up the difference? The price may have dropped by that time anyway!

a personal loan for that amount over 5 years could cost you a bit in interest. Whereas if you took out a mortgage the interest rate should be considerably less,

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from this point of view I think the banks may not give a mortgage for such a small sum because it wouldnt be worth their while in terms of the cost of admining it versus what they get back from you.

Please follow up on the thread to let us know if they do give the loan, out of interest(pardon the pun).

If you have a good relationship with one of the banks they might give you a loan and take the deeds as security without the formality of a mortgage.

Ask them.

Brendan

Brendan Burgess said:

If you have a good relationship with one of the banks they might give you a loan and take the deeds as security without the formality of a mortgage.

Ask them.

Brendan

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Banks don't do this anymore ( equitable deposit of title deeds) as the vast majority of properties in Ireland no longer have title deeds in the way they did in the past. A couple of years ago the Property Registration Authority made original Land Certificates defunct and now you simply apply for a copy of title anytime you want from them. The only security a bank would have would be registering a charge over the title.

Although if you have a good relationship with a local bank you might be able to negotiate a good rate on a personal loan. And I have certainly seen mortgages for 10 and 20k.