Collateral on a home

Hi All,

Looking for some advice please, do the banks still look on collateral as a good thing when assessing a loan/mortgage application. Myself and my other half have been told that we will be getting his family home signed over to us by his Dad in the next few months. There is a good amount of work required to be done to it. Our plan would be to get a loan/mortgage for approx €150,000 to bring the house up to spec and we would look to use the house which is worth about €325,000 as collateral for the application.

We only have a small amount of savings which would be nowhere near enough to use when applying for a loan etc.

Any advice on the above would be great. Cheers

If this is in the wrong thread I apologise and please feel free to move to correct thread

Hi Left field, not taking from your query but if your partner's father is signing over his family home, does he have another home to go to?

No problem Moneybox, he will live with us. He is into his late 80's now and wants us to have the house so he suggested signing it over to us as we have lived with him for last while.

OK. It's just in the past I have seen a couple of elderly people signing over their homes and it did not work out very well.

Ah there is no way that would happen, none of us would let it.

I know of similar stories that have happened to people I know

Once the house is transferred into your name it will become your PDH and you will ne in a position to apply for a mortgage on the property which is the only method of borrowing the funds you require. You will also need to address the issue of CAT on the transfer given the value associated with the property. Your solicitor will be in a better position to advise you on this issue.