Low LTV mortgage but no income evidence

S

sal_79

Registered User
Messages
16
We are looking at properties valued approx. 500,000 and would like to borrow approx. 100,000. We are therefore looking to borrow approx. 20 / 25% of the value, as we have savings for the balance.

Would anybody have a view on how to get a 100,000 mortgage with little income to show? We were hoping to get a mortgage at the end of last year, but I lost my job. Subsequently I had health problems. Hope to get back to working in new year, but will be self employed and nothing to show in way of accounts.

Any ideas if €100,000 is a possibility, and if so, which type of lender, we should approach?
 
Impossible to get a mortgage if your income is not strong enough to make the repayments. If you are self employed you will need to have at least 2 years audited accounts.

Your only chance would be to get somebody else to go as guarantor for the mortgage, even with a guarantor it will be very difficult.


www.moneybackmortgages.ie
 
Agree with Norfbank. I was in a similar position (although I did want a larger mortgage, but the LTV was very low). Had to get a guarantor and yes, even then it took a lot of persuading. I did have some history of sole trading at the time, but not much, so the bank was concerned about future income levels.
 
Have you got 400k saved?
If so, then the interest on your savings is paying your rent.

If at all possible, try and keep a large chunk of savings.
If you sink every penny into a house purchase, you'll have to borrow in the future for things like holidays, new car, furniture, etc etc.
 
Hope to get be working as self employed sole trader from March, & to purchase around September. Is there anything I should be doing to improve my chances of securing a mortgage?
 
Would Credit Unions be a possibility?
Are they prepared to advance up to say, 50,000 ?
 
Other people in this thread already answered you, but here's my tuppence worth ;)

I think you're nuts to get yourself into €100,000 of debt. Live rent/mortgage-free.

Maybe this is good advice: Make *loads* of "derisory" offers, mentioning that you could write a cheque tomorrow if they were prepared to work fast.
 
I totally agree with tecchi-fan, it would be more beneficial to live mortgage free and then save the rent you would have paid so you can build up some savings. People get mortgages because they are not in a position to buy a house with cash. To answer your question on credit union, they all vary, but if you lost your job and can't work for health reasons they would not lend. In those circumstances I would not get into debt.
 
€400k is PLENTY to buy a house - even before house prices took a tumble. What I wouldn't give to be mortgage-free.......IMHO start looking at houses closer to the €400k mark!
 
There's a lot to be said for renting and letting the interest pay your rent. Also, have you considered if the money could be better used in your new business venture?

But, if you really want to buy you could stay looking at houses at the €500K mark and offer the €400K CASH.
CH-CHING!!!! Make sure every estate agent you deal with knows its a cash sale.
 
I appreciate all your wise advice.
I think we will take our time over the next twelve months, and try to find the right house, using the bargaining tool of cash, our non-mortgage status and being able to move and complete quickly.
Thanks again.
sal
 
You must log in or register to reply here.
Back
Top