Raising deposit for mortgage query

J

jamjam090

Guest
Hey Folks
Thinking of using loans from a number of friends and family to raise a deposit for a house, may borrow up to €7k.
What it the best way to handle this with the bank?
1. Be honest (would rather, but current climate suggests this may result in refusal)
2. Say full amount is gift from my parents (if so, will they require bank details for my folks?)
3. Say I sold things, car, laptop etc...(will they look for proof?, i'm selling laptop anyway)
4.Say I won it gambling!
Thanks in advance
Jamjam
 
I'd say in the current climate the best way to handle it is not to do it at all.

Is there any possibility that you could save that 7,000 over the next year or so and not have to resort to borrowing the deposit? It was that sort of stuff that helped get us in the position we're currently in.
 
Yes I will be able to save over the year, but circumstances mean it would be much efficient for me to buy in the next few months.
Lucky to be in secure well paid employment, saving €900 a month.
 
they aren't great options are they! regarding number 4, if you were a bank would you give 100,000 plus to a compulsive gambler?

i would go with selling things, but not your car because this can be easily traced. there are lots of things you could sell worth a grand or 2 that couldn't be traced.
1. your surfboard from when you used to ride the waves but now you are more responsible and aware of risk so don't do that anymore.
2. your mountain bike from when......
3. your old paintings you had in the attic that were suprisingly valuable
4. your old furniture
5. your plasma tv
6. your stereo system
 
I spoke to bank, they will accept gift from my parents provided they write a letter stating its a gift.
 
Have you thought about any downside of asking your parents to lie?

Also, have you agreed a repayment schedule with the people who will actually be stumping up the 7k? If you can save 900/month, how much will that be when you have a mortgage? When you hit the inevitable unexpected expenses, do they know that they will be the last in the queue for repayment.

Just asking because I have been on both the giving and receiving ends of such arrangements, and my experience is that people rarely go into them with their eyes open. I'm not trying to be negative.
 
I'm sorry but I don't understand your dilemma. The bank aren't the Revenue Commissioners...they're not all that interested in where your deposit is coming from. Why not just say you saved it? That way you look like you manage your finances responsibly and don't have other debts.
 

won't the bank know by looking at previous 6 months bank statements that OP has indeed not saved the 7k?

the bank have to be seen to be interested in where the deposit is coming from even if they aren't really
 
As an off-side - i've decided (in the last two weeks) to start saving for a deposit and my question is: are banks still looking for 10% or are they looking at more? I just tried to figure out if the 7k deposit mentioned above is for a mortgage - sorry in advance if i'm not quite getting "it" - it's pretty much day one of research!
 
I take it from your name that you're a lawyer? If that's the case, then there may be banks that will offer a 100% mortgage. EBS, BOI and AIB would be worth trying.
 
Bank looking for 8% deposit.
I have worked out cashflows for next 18 months etc...plus i will be renting a room to pay back loan. Could even rent parking space if money was tight and park in work.
 
From what i've been hearing more and more are only giving 80%.

as always, open to correction!
 
Havana said:
From what i've been hearing more and more are only giving 80%.

as always, open to correction!
Click to expand...

depends how much of a discount the purchaser got off the house i think.....they will give 92% if purchase price is below banks valuation and 80% if it's in line with the banks valuation.....just anecdotal evidence
 
Jamjam having just gone through a similar situation (kinda) I would be inclined to tell the truth (if you are in a secure well paid job then 7k shouldn't make that much difference to the loan you get). Besides, if as you say you manage to save 900/month then you should have a nice float by the time you draw down mortgage.
Lying/omitting info isn't worth the stress, believe me. They are going through applications with a fine tooth comb (as they should always have done), and being upfront with them might be better...
 
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