Mortgage availability?

[OH1]

Hi,
My husband and I recently sold our house, as we wanted to trade down and reduce our mortgage significantly. We are holding off buying just yet and are currently renting as property prices still seem to be going down. We might buy next year and feel that we would need to borrow approx. 50k. My husband works and his salary is around 65k, I'm at home. We talked to one of the main banks about borrowing this sum and were given to understand that a loan of this amount would not be a problem. We would not be paying more thatn 200k for a property. Do you think that we will have any problems borrowing this amount (over 10yrs) and which bank offers the best rate. I'm worried that the banks are being overly cautious re; lending for mortgages etc.,

 

[ryaner]

BOI don't do the LOA or AIP anymore but require you do a full application then change the address later on.

As for the amount, on that salary it shouldn't be a problem provided there is no other borrowings and you can show some savings over and above rent. The biggest issue may actually be that the minimum loan amount is 50k for a mortgage.

 

[OH1]

Ask them for a Letter of Offer for that amount. That will offer some reassurance but it's still no guarantee. I got one while I was renting and waiting to purchase. They have to be renewed every 6 months, but that usually just takes a phone call to the lending institution.

Thanks, I'll get in contact with them and see who can do this.

 

[OH1]

BOI don't do the LOA or AIP anymore but require you do a full application then change the address later on.

As for the amount, on that salary it shouldn't be a problem provided there is no other borrowings and you can show some savings over and above rent. The biggest issue may actually be that the minimum loan amount is 50k for a mortgage.

Yes we should be able to save 500 a months over the year but I wasn't aware that the min. loan amount is 50k. What if we only want to borrow 40k? What could we do then?

 

[SarahMc]

Use less savings and get a €50k mortgage. The alternative is a personal loan.

 

[millieforbes]

Use less savings and get a €50k mortgage. The alternative is a personal loan.

And then pay down the balance after drawdown with the extra savings

 

[OH1]

Couldn't I just borrow the 50k and when I draw it down, pay back 10k more or less immediately?

Post writing the above, I checked with AIB and their minimum mortgage loan rate is 20k and they said they would not have a problem lending me 50k over 10years provided a matched all their criteria etc.,

I've also checked elsewhere on other forums and the other banks will generally have a minimum between 20 and 30k. Has anyone found that when they applied that this wasn't the case? Appreciate any information. Thanks.

ps. AIB still do LOA

 

[ryaner]

Couldn't I just borrow the 50k and when I draw it down, pay back 10k more or less immediately?

Once you don't go for a fixed rate, then yes.

 

[OH1]

Thanks for all the advise. Is there any point in going for a fixed rate, they are over 4% while a variable is 2.8%. Can't see variable rates rising soon? Anyway, I've always found this website to be really helpful.