Permanent TSB launches 100% mortgage

Is what you are saying this:

I need 400K for a house costing 400K

I get a mortgage loan of 364K and another loan of 36K for the 'deposit'. Then I have to repay the both loans at the same time. One loan being 360K at 3% over 25 yrs and the other being 36K at 8% over 10yrs. If so, surely this doesn't compare with the other 100% loans on offer? In addition, for the loans where only 1 buyer is FTB then stamp duty will be payable.
 
No. You need 400K to buy the house so you get mortgage approval for 400K. But you need 40K deposit NOW to sign contracts. So you borrow the deposit loan 40K for the moment. When you're ready to close the mortgage you get your 400K mortgage cheque, and from this the 40K deposit loan is repaid, leaving you with only the 400K mortgage going forward.

Liam D Ferguson
www.yourfirstcastle.com
 
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