second half of 20% Mortgage deposit 2015

Hi
I will have ten per cent saved for mortgage by June but I have a property (apartment) I bought in 2006 already and I will need 20% deposit. I have asked the credit union about getting a loan of second part of 10% to make up the 20% and they have confirm it would be fine as I have been a regular customer for 10plus years etc. The told me they don't register with the ICB and was wondering if the bank could see if I had a loan out with the credit union. I have meet with broker and he has confirmed that the bank will look at my case(on a tracker but -140k in equity). I think I only has one shot at this and was looking for confirmation that the bank cant view my credit union. I don't pay DD in to my credit union. Every thing I do with them is in cash payments and they informed me my info will not be disclosed to the ICB.Can the bank see my loan?

Do you really think it is wise to keep piling up debts like this and deliberately trying to mislead your lenders?

Sometimes I wonder have people learnt nothing at all from the last six years...

In reply to your question the answer is No. The only way the bank could know that a CU loan exists is if repayments are coming from your bank account as they will require copy statements.

Surely the bank would query the source of a material sum like 10% of the purchase of a property?

Yes of course they will, but in a lot of cases people will lie and state that it was a gift from a relative. I agree that it's likely to lead to problems in many cases but this has always happened and will continue to occur. The bank will not demand to see the details of the relatives account because they are not entitled to this information and it would lead to problems under Consumer Law as the relations are not a party to the transaction. The most they can get is a written confirmation from the relation that the funding was gifted!

Understood Brendan. I still think it is depressing that people view this as an appropriate way to transact business.

Perhaps it's an Irish mentality Sarenco. Where there are rules we will always find a way around them. This seems to apply universally to banks and borrowers!

Sarenco said:

Understood Brendan. I still think it is depressing that people view this as an appropriate way to transact business.

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I think it's more depressing that academics in ivory towers can scupper people's dreams of home ownership by seeking to restrict credit when there is neither credit nor supply available.

Gordon Gekko said:

I think it's more depressing that academics in ivory towers can scupper people's dreams of home ownership by seeking to restrict credit when there is neither credit nor supply available.

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Who are these evil academics that are so intent on crushing peoples' dreams?

If you are talking about the Central Bank's recently introduced mortgage restrictions, the intent is clearly to avoid another credit spiral, like we had in the 10 years leading up to the crash in 2007. We are all paying for that crash, whether or not we borrowed recklessly during the bubble.

I find it depressing that an individual that is already in massive negative equity is proposing to get even further into debt and is apparently comfortable deliberately misleading his lenders in order to do so.

Sidb - are you still living in the apartment now? Could you ask for a negative equity mortgage to move to another property if the apartment is no longer suitable for your needs?

That could be better than holding an apartment deep in negative equity & fudging a new 20% deposit on another property. Do you have the means to look after two mortgages & a credit union loan?

We had the apartment rented out and were living in rented house. But have been informed by landlord the are selling so we had a look around at houses and rent is 1350 a month for our area and ok(ish) inside of house. We had apartment rented for 1200 a month. My view is if we stay in apartment and wait for it to come up to value it will be 10 years in which we sell and break even. Then we would need 20% for the house which would be lets say 500k at this stage. Also we would only get a term 20 years if which would be high monthly repayments over the shorter time frame. What I want to do is keep apartment(makes no sense to sell) and get a second mortgage of 240k which monthly repayments are 1200 a month and the apartment would cover its self. The past year we had rented out apartment and payed rent of 1200 for a house while saving 1500 a month. So in my eyes we could afford once apartment was rented out, could cover short fall, rental potential is excellent. Credit union loan would only last 3 years. The negative equity move would have us paying back one huge loan and the house we would require we would find it hard paying back. With the two places its like the same loan split in two. I pay one half while tenants pay other half. Im not in to money making (landlord thing) but its my only option financially I think? What you think. Hope its explain clear.

Sidb I can completely see what you are at. Can you please run the numbers again. It's not clear your do savings amount and your rent. What amount are your savings.

Also can you post the rental, mortgage amount, bank, interest rate, costs, tax.

10% deposit and no less would be reasonable.

I do see where you are going with your plans.

What do you hope to spend on the new property? If by June you'll have 10% deposit saved, and you are saving around €1500 a month now, how long to save the full 20% deposit yourselves?

Have you considered buying the rented house you are in now? You could approach the landlord & discuss this.

Renting another house & continuing to save for another year wouldn't be unworkable either would it?

One other consideration is the fact that your tax-bill on the apartment will increase each year as your interest payments decrease. Make sure you factor that into your calculations.

mortgage 1000 a month
rental income 1200 (+200)a month will cover maintenance costs
i owe 290k on this with a tracker of 1.5% PTSB
Great rental area.
29 years left.

Proposal for new mortgage

rough figures

240k loan with 60k deposit
0ver 30 years equals 1200 a month
credit union loan 300 month
Total 1500 a month

If i was to rent a house now it would cost 1350 a month and would never be mine.


We pay out 1000 and save between 1000 and 1500 a month so we are putting aside up to 2500 a month for mortgage/new mortgage while it would cost me 1500 roughly if i had second house and could save 500 a month for any "non rental" or what ever may be the cause to service either mortgage. After credit union loan is cleared we are then in a better position again so the main cost would be the first 3-4 years and then would get easier as years go on.

Your figures seem very rough. I think you are (somehow) underestimating the expenses and risk associated with owning rather than renting.

How much of a discount will the original lender offer you to settle that tracker? This mortgage is almost as much of a liability to them as it is to you (maybe more?).