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InDisguise Posts: 11
I'm a regular user here but would like to go anon for this as it will contain some very personal details. I'm a council tenant and have been offered the chance to buy privately with the Affordable Housing Scheme. The 3 bedroom house they have offered is valued above €200,000 but we have been offered it for €130,000. This is an amazing opportunity for us but the trouble is that the timing is awfull. We will have to borrow for the wedding as it is but at the moment we owe about €24,000 between different banks and credit unions. We would only actually be entitled to a mortgage of about €90,000 from a bank based on annual income. However we have never been late paying our loans or rent which total €940 a month. We could prove that we would be more than capable of repaying a mortgage if these debts were cleared as the mortgage would be considerably less than that monthly. To buy the house and clear these debts we would need approximately €155,000. Given that the house is valued above €200,000 does anyone know would any broker be capable of getting us this despite our annual income or are we going to have to pass up this amazing offer. (which the thought of makes me feel sick to my stomach) Please, if anyone can offer some sound genuine help it would be very much appreciated.
noddy1 Posts: 619
go to the askaboutmoney.com website - there are more folks clued into money and property buying etc i reckon than a wedding forum. Igot a lot of advice when i was buying myself there. Good Luck
ed* Posts: 402
Congrats on the offer ! TBH, I think you need to sit down with a financial advisor with all your figures and see what they come up with. It sounds a bit more 'technical' considering you are buying the house for less than the 'sale value' Best of luck
The Bride Posts: 686
In Northern Ireland, for housing executive sales there are various "dodgy" lenders who will lend based on the value of the house rather than what you are actually paying for it. I don't know if these companies lend in the Republic but to give you a few names, Preferred Mortgages, Platform Home Loans, and Advantage Home Loans. Be careful when dealing with brokers, a lot of them will rip you off in fees while getting commission from the lender on top of it.
mb Posts: 207
Hi, I'm in my affordable house nearly a year now and its the best move I ever made. Have the council sat down and explained the repayments to you yet? Maybe different councils work in different ways but when I bought mine, they looked into my income, and any loans or savings I had. One of the conditions was that the mortgage had to be from the council, so I didn't have to bother with any shopping around. Also I never rented but I would say the mortgage from the council could work out around the same or less as your rent. I don't know what stage you're at in the process but feel free to PM me if you want a second opinion on anything. Good luck. :D
InDisguise Posts: 11
Thanks girls, I'm climbing the walls here. I have tried to check out every connection I have been given here but cant get hold of anyone and none of them have called me back yet and I just NEED to know either way before I get carried away with myself! It didn't say anything in the letter about us having to get the mortgage from the council but I did ring them and all they'll offer (if approved) is the price of the house but we cant afford to pay a mortgage if we dont clear the loans first. My head is spinning. I realise mortgages are based on your annual income but the ridiculous part is that we can prove we could pay it if they gave us enough to clear our loans as we could give them prove that we make those payments.
Miss X Posts: 1415
InDisguise are you living in Dublin? I've used a brilliant mortgage advisor I can pass on her details if you want, she's extremely down to earth and will probably be able to answer your question over the phone. Let me know if you want her details.
InDisguise Posts: 11
Thanks Miss X. I'm not based in Dublin but I am in Leinster. Do you have to deal with brokers based in your own are? If not, could you please send me her details, thanks.
lindeen Posts: 213
hi we bought our house 2 years ago its not council but it was in need of total renovation so we needed extra money to do it up but a bank will only give you the purchase price as a mortgage ie house costs 130,000 you cannot borrow 150,000 on your mortgage you need a term loan on the remainder. so we got our mortgage and then we asked for a term loan and they could not give us the money quick enough once you have a mortgage its so much easier to get loans ironic i know, but if you dont pay then they get your house so its security. it may be an idea to postpone your wedding if the plans are not too advanced as it would be foolish to let that stop you buying a house at that price. best of luck hope it works out for you.
Miss X Posts: 1415
I've just pm'ed you, don't be worrying about multiples of your earnings, our mortgages were well above the standard multiples. The very best of luck with it.