CU want guarantor for house deposit loan - any way around this?

T

THE LATCH

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Hi all,

I have got loan approvel from my credit union for a loan for a house deposit. However they will only give it to me on conditition i find a guarantor, because i have no collateral. However, when i purchase the premises i will then have collateral. Do you think then that the c/c might let me exchange my house ownership for the guarantor (as collateral i mean) or are there any other options open to me instead of a guarantor???? don't like the idea of asking people to be a guarentor.
 
Re: guarantor....uuuhhhhh!

I doubt it.

From their point of view, you need the money from them first to buy the house, so you will need a guarentor to get the money for the deposit. Am quite surprised that the cu approved you for a loan for a house deposit at all. It's not something that they usually do.

Am not a great supporter of 100% mortgages, but in your case they might be worth checking out as if you do get a loan from cu for deposit, the interest on that + mortgage intrest rate will be much higher compared to a standard mortgage interest rate on the total cost of the house.
 
Re: guarantor....uuuhhhhh!

if the Credit Union are funding the deposit, who is funding the rest of the purchase??? if its a mortgage from a lender then they will have first security, therefore you cannot also offer it to the Credit union as collateral/security

Are you as first time buyer, if so why not 100% mortgage as you do not have the deposit?
 
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i have heard of a few people getting a loan from the credit union for the deposit for the house a friend of mine just got one from them with no problems although they had to get a guarantor like yourself and credit unions dont take collateral into account.
 
For people who are borrowing from the CU in this way how much (as a % of the loan amount) is the CU insisting that they keep on deposit or in shares while borrowing?
 
I think it depends from one credit union to the next... A friend of mine got a loan of €40000 as a deposit without a guarantor requirement and he didnt have any shares with CU, however it was St Rapheals CU which is the Garda CU.
 
€40K with no shares, guarantor, security! Wow. I hope that CU know what they're doing in terms of prudential lending! What rate was that at out of curiosity?
 
dont know the rate to be honest....!!! but he was paying a hefty amount each month.he recently remortgaged said property to repay CU....!!!

I thought he was crazy at the time, he used €18,000 as a deposit, and €15,000 to renovate and his property increased in value by €45,000 in 12 months after renovations...but he seriously struggled to stay on top of all repaments until he was in a position to remortgage.
 
Are you as first time buyer, if so why not 100% mortgage as you do not have the deposit
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Not to many going around at the moment unless there are a large amount in the pipeline.

See this article from the Indo today
 
ClubMan said:
For people who are borrowing from the CU in this way [how much (as a % of the loan amount) is the CU insisting that they keep on deposit or in shares while borrowing?]
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DID NOT INSIST ON ANY AMOUNT. ONLY HAVE €1,000, IN SHARES!!
 
Re: guarantor....uuuhhhhh!

Molly said:
if the Credit Union are funding the deposit, who is funding the rest of the purchase??? if its a mortgage from a lender then they will have first security, therefore you cannot also offer it to the Credit union as collateral/security

[Are you as first time buyer, if so why not 100% mortgage as you do not have the deposit?]
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NOT SURE ABOUT THAT. YOU STILL HAVE TO BE ABLE TO PAY THE DEPOSIT YOURSELF, BUT YOU GET IT BACK WHEN YOU DRAW DOWN THE %100 LOAN
 
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