Urgent Advice Needed: Mortgage Refused because I have bad credit
- Thread starter bmg
- Start date
- Status
G
Guest107
Guest
Refused!
and your thoughts on the start analysis bmg , is it really worth it or are you better repairing and saving for a while ????
<sharp intake of breath >
and your thoughts on the start analysis bmg , is it really worth it or are you better repairing and saving for a while ????
<sharp intake of breath >
Re: Refused!
2Pack, I don't think Start will be an option for us.
Your analysis was A1 - you couldn't be anymore correct on the matter.
I know this now, I knew it from the beginning but I so wanted to buy this house, somewhere to call our own, a lovely place for our 2yr old to grow up - Money wise it doesn't make sense to go down that road - 6.25% - crazy figures!
We've one more option available to us and that is for my partner and his Dad to buy the house. Really don't know how I feel about this...
Very confused and down today
2Pack said:
2Pack, I don't think Start will be an option for us.
Your analysis was A1 - you couldn't be anymore correct on the matter.
I know this now, I knew it from the beginning but I so wanted to buy this house, somewhere to call our own, a lovely place for our 2yr old to grow up - Money wise it doesn't make sense to go down that road - 6.25% - crazy figures!
We've one more option available to us and that is for my partner and his Dad to buy the house. Really don't know how I feel about this...
Very confused and down today
sun_sparks
Registered User
- Messages
- 416
bmg - have you tried approaching other lenders yourself? Explaining the situation and seeing what they can offer? I wouldn't be accepting just the BOI and broker recommendations if I was you. I know it's unlikely that you would get a different answer, but at least you'll have tried...
G
Guest107
Guest
Re: Refused!
Your father in law type person does not want to be landed with the liability long term but will muck in for 3 years and with a clean ICB record its prime lender territory. But you will pay his 'share' in the interim.
Therefore you draw up a contract with him and buy an option from him for the cost of €1 .
The option that you buy today for €1 broadly states as follows.
1. If you pay your share of the mortgage in full for a period not exceeding 5 years (when you are in the clear)
then
2. You have an option to then buy half the property off your father in law person ...heretoafter referred to as the FILP at todays cost .
3. After 3 years he can MAKE you buy him out at todays prices and thats that.
Therefore you then buy the house at todays prices and have a contract which obliges him to sell at todays prices as long as you perform your side of the bargain.
The specific performance required from you should be written down in the option contract . You cannot really tie him to anything except the exit conditions.
The only real downsides are
1. that your partner will get the TRS and you will have to sort that .
2. The Life assurance for the 3-5 year period will cost you more because you are insuring the FILP and not you , a healthy young wan. A new mortgage will then be required and with new and cheaper life assurance that reflects your ages .
Nevertheless the deal is clear and is enforceable as a contract . Were you MARRIED the enforcement issue is moot because of the Family Home Protection Act 1976 . But you are not and will have no formal stake in the house for 3 years will you?? The specific performance clause should also account for treatments of rises and falls in the value of the property during that time and should also detail what happens if you break up and account for a rise or fall .
You may buy/fixup/offload and pocket a profit just as your ICB clears. Detail that arrangement too and the division of profits because you are not nominally entitled to any .
At this point I would advise you to consult Partner and FILP and if they agree the outline then get advice together first .
A bone of contention here is that I strongly advise you to THEN use YOUR solicitor and not theirs, even if only to review the agreement and watertighten it.
Its pretty fair and keeps your crap record out of it and covers the eventualities ........and you buy your future back for €1 today .
Excellent option. Lets examine the situation .bmg said:We've one more option available to us and that is for my partner and his Dad to buy the house. Really don't know how I feel about this...
Very confused and down today
Your father in law type person does not want to be landed with the liability long term but will muck in for 3 years and with a clean ICB record its prime lender territory. But you will pay his 'share' in the interim.
Therefore you draw up a contract with him and buy an option from him for the cost of €1 .
The option that you buy today for €1 broadly states as follows.
1. If you pay your share of the mortgage in full for a period not exceeding 5 years (when you are in the clear)
then
2. You have an option to then buy half the property off your father in law person ...heretoafter referred to as the FILP at todays cost .
3. After 3 years he can MAKE you buy him out at todays prices and thats that.
Therefore you then buy the house at todays prices and have a contract which obliges him to sell at todays prices as long as you perform your side of the bargain.
The specific performance required from you should be written down in the option contract . You cannot really tie him to anything except the exit conditions.
The only real downsides are
1. that your partner will get the TRS and you will have to sort that .
2. The Life assurance for the 3-5 year period will cost you more because you are insuring the FILP and not you , a healthy young wan. A new mortgage will then be required and with new and cheaper life assurance that reflects your ages .
Nevertheless the deal is clear and is enforceable as a contract . Were you MARRIED the enforcement issue is moot because of the Family Home Protection Act 1976 . But you are not and will have no formal stake in the house for 3 years will you?? The specific performance clause should also account for treatments of rises and falls in the value of the property during that time and should also detail what happens if you break up and account for a rise or fall .
You may buy/fixup/offload and pocket a profit just as your ICB clears. Detail that arrangement too and the division of profits because you are not nominally entitled to any .
At this point I would advise you to consult Partner and FILP and if they agree the outline then get advice together first .
A bone of contention here is that I strongly advise you to THEN use YOUR solicitor and not theirs, even if only to review the agreement and watertighten it.
Its pretty fair and keeps your crap record out of it and covers the eventualities ........and you buy your future back for €1 today .
Re: Refused!
Hi BMG
Have been following this post but have not posted anything until now.
With your partner and his dad buying the house could be a good option. If you can draw up a contract between the three of you outlining that its your house in which you will be paying half the mortgage etc.
Maybe this could work out for you.
So Sorry for your troubles and just remember everything happens for a reason
bmg said:2Pack, I don't think Start will be an option for us.
Your analysis was A1 - you couldn't be anymore correct on the matter.
I know this now, I knew it from the beginning but I so wanted to buy this house, somewhere to call our own, a lovely place for our 2yr old to grow up - Money wise it doesn't make sense to go down that road - 6.25% - crazy figures!
We've one more option available to us and that is for my partner and his Dad to buy the house. Really don't know how I feel about this...
Very confused and down today
Hi BMG
Have been following this post but have not posted anything until now.
With your partner and his dad buying the house could be a good option. If you can draw up a contract between the three of you outlining that its your house in which you will be paying half the mortgage etc.
Maybe this could work out for you.
So Sorry for your troubles and just remember everything happens for a reason
Re: Refused!
Thank you!
momomo said:Hi BMG
Have been following this post but have not posted anything until now.
With your partner and his dad buying the house could be a good option. If you can draw up a contract between the three of you outlining that its your house in which you will be paying half the mortgage etc.
Maybe this could work out for you.
So Sorry for your troubles and just remember everything happens for a reason
Thank you!
G
Guest107
Guest
both must be FTB, I assume the FILP is not.
the TRS is irrelevant really 20% of €1000 a year for 3 years , its the stamp duty implication that is complex . 0% OR 4% . Thats either nothing or €10k , see.
http://www.revenue.ie/
The alternative view is
Start charge €400 a month premium . That 10K stamp duty, if payable, is the same as the start premium over a normal mortgage for 2 years and you are looking at 3 years + an exit charge from them and a 'whats she doing with that shower anyway query' .
Therefore EVEN if you now have to pay stamp duty its cheaper than start .
HTH
the TRS is irrelevant really 20% of €1000 a year for 3 years , its the stamp duty implication that is complex . 0% OR 4% . Thats either nothing or €10k , see.
http://www.revenue.ie/
The alternative view is
Start charge €400 a month premium . That 10K stamp duty, if payable, is the same as the start premium over a normal mortgage for 2 years and you are looking at 3 years + an exit charge from them and a 'whats she doing with that shower anyway query' .
Therefore EVEN if you now have to pay stamp duty its cheaper than start .
HTH
FIRP is not first time buyer.
He's got a number of properties (don't know all the "ins and outs")
So 100% mortgage won't apply - this leaves us having to source the balance elsewhere!
It's a vicious circle!
nb: I'm not knocking your suggestions or being negative by the way incase it appears so!
He's got a number of properties (don't know all the "ins and outs")
So 100% mortgage won't apply - this leaves us having to source the balance elsewhere!
It's a vicious circle!
nb: I'm not knocking your suggestions or being negative by the way incase it appears so!
G
Guest107
Guest
Assume the worst, 90% mortgage is €25k deposit and €10k stamp duty . The €25k is 'yours' but the €10k is dead money to your local TD a Mr Cowan . Could your parents persuade the BoI to lend you €10k with a guarantee on it ....as a car loan perhaps. That would be a start because then the bank that originally ICB'd you gave you a loan anyway .....if not a mortgage ???
Not to labour the point but:
Step back a minute and think what you could rent in the midlands for even a little more than you are paying at the moment
http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c6&limit=8&search_type=rental&id=383270
Brand new 4-bed, 3-bath in offaly for 700/month
http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c6&s[a_id]=2284&s[mnp]=&s[mxp]=&s[bd_no]=&limit=8&search_type=rental&id=396152
Refurbished 4-bed in Tullamore with mature, enclosed gardens for 850/month
http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c5&limit=8&search_type=rental&id=390937
4-bed new build in Longford for 700/month
You speak about wanting someplace where you could bring up your kid - all these properties are fantastic with big gardens and will cost half what it would to buy.
In a few years then, when everything else is sorted out you can buy at your leisure without any of this stress.
Sorry to harp on
Step back a minute and think what you could rent in the midlands for even a little more than you are paying at the moment
http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c6&limit=8&search_type=rental&id=383270
Brand new 4-bed, 3-bath in offaly for 700/month
http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c6&s[a_id]=2284&s[mnp]=&s[mxp]=&s[bd_no]=&limit=8&search_type=rental&id=396152
Refurbished 4-bed in Tullamore with mature, enclosed gardens for 850/month
http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c5&limit=8&search_type=rental&id=390937
4-bed new build in Longford for 700/month
You speak about wanting someplace where you could bring up your kid - all these properties are fantastic with big gardens and will cost half what it would to buy.
In a few years then, when everything else is sorted out you can buy at your leisure without any of this stress.
Sorry to harp on
Gearoid, you are not harping on.
The place we are currently renting has a garden and nice to bring up a child. What I meant by "having somewhere nice for our 2yr old" was, somewhere we could settle, enrole him in the nearby school etc - a more permanent thing!
Thanks for your input.
2Pack, maybe I'm wrong here but I thought (not sure why) that there was no stamp duty on a purchase below €250 - or again does this just apply to FTB?
The place we are currently renting has a garden and nice to bring up a child. What I meant by "having somewhere nice for our 2yr old" was, somewhere we could settle, enrole him in the nearby school etc - a more permanent thing!
Thanks for your input.
2Pack, maybe I'm wrong here but I thought (not sure why) that there was no stamp duty on a purchase below €250 - or again does this just apply to FTB?
G
Guest107
Guest
Read what I said . Its different for new houses but you are not buying one.bmg said:
Re: Urgent Advice Needed: Mortgage Refused because I have bad credit - UPDATE!
Hi.
I have thought long and hard about updating this thread.
This post will probably be a long and rambling one so I apologise in advance to anyone who reads it.
Truth is I'm embarrassed & ashamed of where things have gone since I first posted to where they are today. I suppose 'I told you so' is something I don't want to hear (even if you're right)!
My partner and I did go ahead and purchase the house with Start as our lender. It seems there was more to the ICB than I thought but not with me. My partner had finance on a car which turns out was a disaster. Didn't pay for months and then would make a lump sum to clear the arrears and this would repeat every few months, it came near to the car been taken etc etc. This was a major factor along with me having missed a few payment with a bank loan during maternity leave.
The situation went from Bad to Worse....I wanted out at the time, was told it had gone too far as at this stage we had borrowed €43000 from my partners father and put that towards the house. Solicitor said we were at a risk of loosing that €43000 & the original €5000 deposit if we changed our minds....anyway, we purchased and agreed to put the heads down for a few years and remortgage with a prime lender.
That was all fine until my partner walked out (not even a year after buying). Left me with the mortgage to pay on my own and look after our son. There was another woman involved.
So my financial situation has gotten dramatically worse over the past 2yrs.
I am still paying Start - €1275 every month on my own (this is based on an amount of €207000. I have 2 other small loans with the BOI which in total come to about €3800 & €2500 with the Credit Union. These are all being paid and haven't been missed thank God. I've missed one payment with start and am currently trying to catch up on that. That is the only payment I've missed with them and talked to them about it and they have assured me it won't affect my ICB rating.
I am so stuck in a rut at the moment I don't know where to turn. I suppose this week I've been feeling the pressures greatly and have found myself a bit depressed and maybe for that reason I have come back to post and once again look for the advice so kindly given by you guys back then.
X partner contributes each week towards the child minding and his son but he doesn't pay the mortgage. He is now renting an apartment for himself.
I don't know where to turn, where to start or what to do from here. I would love to be able to stay on in the house if possible and keep it for me and my son. He is going to School in September up the road from the house.
What do I do, where do I go from here??
Would I be able to approach the council for shared ownership or something??
Im taking home €2000 a month. I cannot afford to stay in the house and continue paying Start.
Can someone point me in the right direction?
Hi.
I have thought long and hard about updating this thread.
This post will probably be a long and rambling one so I apologise in advance to anyone who reads it.
Truth is I'm embarrassed & ashamed of where things have gone since I first posted to where they are today. I suppose 'I told you so' is something I don't want to hear (even if you're right)!
My partner and I did go ahead and purchase the house with Start as our lender. It seems there was more to the ICB than I thought but not with me. My partner had finance on a car which turns out was a disaster. Didn't pay for months and then would make a lump sum to clear the arrears and this would repeat every few months, it came near to the car been taken etc etc. This was a major factor along with me having missed a few payment with a bank loan during maternity leave.
The situation went from Bad to Worse....I wanted out at the time, was told it had gone too far as at this stage we had borrowed €43000 from my partners father and put that towards the house. Solicitor said we were at a risk of loosing that €43000 & the original €5000 deposit if we changed our minds....anyway, we purchased and agreed to put the heads down for a few years and remortgage with a prime lender.
That was all fine until my partner walked out (not even a year after buying). Left me with the mortgage to pay on my own and look after our son. There was another woman involved.
So my financial situation has gotten dramatically worse over the past 2yrs.
I am still paying Start - €1275 every month on my own (this is based on an amount of €207000. I have 2 other small loans with the BOI which in total come to about €3800 & €2500 with the Credit Union. These are all being paid and haven't been missed thank God. I've missed one payment with start and am currently trying to catch up on that. That is the only payment I've missed with them and talked to them about it and they have assured me it won't affect my ICB rating.
I am so stuck in a rut at the moment I don't know where to turn. I suppose this week I've been feeling the pressures greatly and have found myself a bit depressed and maybe for that reason I have come back to post and once again look for the advice so kindly given by you guys back then.
X partner contributes each week towards the child minding and his son but he doesn't pay the mortgage. He is now renting an apartment for himself.
I don't know where to turn, where to start or what to do from here. I would love to be able to stay on in the house if possible and keep it for me and my son. He is going to School in September up the road from the house.
What do I do, where do I go from here??
Would I be able to approach the council for shared ownership or something??
Im taking home €2000 a month. I cannot afford to stay in the house and continue paying Start.
Can someone point me in the right direction?
stephen1381
Registered User
- Messages
- 162
BMG
Very sorry to hear about your troubles. As Clubman said MABS seems like a good start.
Hope everything turns out ok
Very sorry to hear about your troubles. As Clubman said MABS seems like a good start.
Hope everything turns out ok
B
babog
Guest
bmg,
I am in a very similiar situation to you. Contact the Community Welfare Officer in your local health centre for information on mortgage interest supplement.
Here is a link to tell you what it is about:
http://www.citizensinformation.ie/c...-welfare-schemes/mortgage_interest_supplement
I hope this is of some help
Babog
I am in a very similiar situation to you. Contact the Community Welfare Officer in your local health centre for information on mortgage interest supplement.
Here is a link to tell you what it is about:
http://www.citizensinformation.ie/c...-welfare-schemes/mortgage_interest_supplement
I hope this is of some help
Babog
- Status