what to do with gift

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sillyaboutmo

Registered User
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Hi all
I am married with 2 kids
My hubby is on 32k not including overtime
we have a credit union car loan of 5k, 2266 left to pay
we have shares of 1120 in same
my mother is giving me €16,000 for deposit for mortgage.
Im hoping to get home carers tax credit as i stopped pt work in april last year and am under the income limits and we are getting tax back on med expenses for last year. all of the above should clear our loan and leave us debt free. we are currently renting at 130/wk and the loan is our only debt. we have no credit cards
we are in a good position apart from crap savings.
any advise on the following
what should i do with the 16000, should i fess up that it a gift or deposit it in smaller amounts as we search for a house.
do you think we are in a good position for approval.
when we pay of our loan we plan on saving the money and another 30 from FIS so we should make 2100 in 6months savings
thanks in advance
 
Do you have any other savings?
if you have no history of savings (regular monthly savings over a year or so) then I'd think it is unlikely you will get mortgage approval, even if you are debt free.
If the money from you mother is not a gift (meaning, if you have to pay it back), it will not improve your situation as such.
 
First things first...

we have a credit union car loan of 5k, 2266 left to pay

we have shares of 1120 in same
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If you are paying 6% on the €2226 and getting 1% on the 1120, you are paying total net interest of €122 on a net loan of €1100 which is around 11% interest. So pay off the net credit union loan first of all.

On a salary of €32,000 it's unlikely that you will get a mortgage. If you do, I suspect it will be for around €100,000. Is €116,000 is enough to buy a house and furnish it?

You may well be better off renting long term.

Brendan
 
jeez really Brendan?
we are interested in a property at 120k and we'll need 20-25k to finish it. the property was on the market 2yrs ago at 209k!! so we'll need a mortgage of 127k approx. i though you could get 5times your salary? Am i wrong or is it the current market
 
The salary might qualify you for €127,000 but you'd need to show an ability to repay €600 - €700 per month, by showing that your rent + regular savings have totalled this over the past year or so.

Maximum loan will be 92% of purchase price so if purchase price = €120,000, maximum loan = €110,000.
 
sillyaboutmo said:
we have a credit union car loan of 5k, 2266 left to pay
we have shares of 1120 in same
Click to expand...
Have you asked your CU to offset your shares against your loan balance leaving €1146 outstanding and a short term or lower ongoing repayments?

http://www.askaboutmoney.com/showthread.php?t=155464
what should i do with the 16000, should i fess up that it a gift or deposit it in smaller amounts as we search for a house.
Click to expand...
What do you mean? "Fess up" about what and to whom?
 
Have you asked your CU to offset your shares against your loan balance leaving €1146 outstanding and a short term or lower ongoing repayments?
Click to expand...


no i havent but i intend to clear this loan as i said with tax back i'm owed and shares

What do you mean? "Fess up" about what and to whom?
Click to expand...

fess up to the lender that it is a gift. maybe say we made it ourselves over the time it takes to find a property. but i know thats its not possible to save 1/2 or income. will the believe that it is a gift and how will they ask us to prove it. maybe deposit 8k and the rest over the next 6months/year. what do you think.
 
LDFerguson said:
The salary might qualify you for €127,000 but you'd need to show an ability to repay €600 - €700 per month, by showing that your rent + regular savings have totalled this over the past year or so.

We are already paying out €780 a month between loan and rent but if we pay of this loan now and still save this money for the next 6months/year it should show we are capable, no?

Maximum loan will be 92% of purchase price so if purchase price = €120,000, maximum loan = €110,000.
Click to expand...

no we will be looking for a loan of 127k, (120k purchase price + 25k to finish) = 145k - (deposit of 18k gift) = 127k
the rest we will save for legal fees etc
 
sillyaboutmo said:
no we will be looking for a loan of 127k, (120k purchase price + 25k to finish) = 145k - (deposit of 18k gift) = 127k
the rest we will save for legal fees etc
Click to expand...
As LDF says...
LDFerguson said:
Maximum loan will be 92% of purchase price so if purchase price = €120,000, maximum loan = €110,000.
Click to expand...
So if necessary (and possible/affordable) you will probably need to look elsewhere for the rest of the money.
 
Or look for a house that is finished!!!

do yous think we'd be better of going to a broker to help us.
What would a broker get out of it at the end? do we pay them?

sorry but any advise is welcome.
 
sillyaboutmo said:
do yous think we'd be better of going to a broker to help us.
Click to expand...
Well almost certainly they won't be able to arrange for a €127K on a property that you buy for €110K if that's what you mean.
What would a broker get out of it at the end? do we pay them?
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Depends on the broker's business model/charging structure. Ask them first. Some take a fee, some take commission, some may take both.
 
no i didnt mean help us get a 127k loan, i meant to help us with a good deal on any mortgage.
what in opinion is the max amount of loan we would get, forgetting all about the 120k unfinished house
 
sillyaboutmo said:
no i didnt mean help us get a 127k loan, i meant to help us with a good deal on any mortgage.
what in opinion is the max amount of loan we would get, forgetting all about the 120k unfinished house
Click to expand...

Shouldn't the question be, what is the max amount you can afford?

Last time I ran the figures with a bank, the amount you can borrows drops very rapidly based on borrowings. Even a small load of just over 1k was reducing the amount that could be borrowed by almost 4% in my case.
 
really?
No I plan on clearing that loan asap and changing the dd to savings. should have 2k in 6months on top of 16k gift.
I believe we can comfortably afford 700 month repayments.
 
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