same_da
2020-08-08 18:33:41
- #1
We want to finance a terraced house north of Berlin in Brandenburg. We initially had an approval from the bank (with a written offer) based on which we also reserved the house. Now this is wavering, and we are naturally uncertain whether it will still work out.
Here are the data, somewhat summarized:
We are both 38 years old; not married
He: permanently employed; full-time
I: self-employed, part-time
Children: 2 (5 and 3 years old)
We can actually only count on the man’s income: 2900 net and child benefits: 405. So a total of €3300. His creditworthiness is excellent. No old or current loans. Not even student loans received during his studies... everything was earned independently.
We have no equity because due to our children we both worked part-time and could not build any savings.
We therefore need 110% financing of at least €316,000... that would be the absolute minimum for the purchase. Naturally, we would prefer somewhat extended financing of up to €350,000, so that we can design the interior finishing according to our wishes, e.g. underfloor heating, multi-split air conditioning (facing south)... fittings that would be more complicated and expensive to install later.
There is a parental home that can be pledged as additional security.
Additional income: my self-employment €350-500 (only a secondary activity) plus permanent part-time employment from November €900; family support €200. So we actually still have (conservatively estimated) €1200 additional income, which apparently cannot be taken into account. I do not want to be included as a co-borrower because of the pledge on the parental home and the risk due to my self-employment.
We were thinking of an annuity loan with about 35 years term, 2% repayment rate, with 5% special repayment, which we can actually afford in the next few years due to salary increases. The goal is not to completely pay off the house eventually, but rather that after about 20 years a manageable residual debt remains, which can be redeemed by sale and possibly an apartment can be purchased.
So, now the question... are these realistic conditions or am I building castles in the air?
I could now break down our expenses, but banks always oppose their flat rates anyway. So it is pointless. However, we have no consumer loans, only one car (and that will remain due to regional train connection).
Best regards
Here are the data, somewhat summarized:
We are both 38 years old; not married
He: permanently employed; full-time
I: self-employed, part-time
Children: 2 (5 and 3 years old)
We can actually only count on the man’s income: 2900 net and child benefits: 405. So a total of €3300. His creditworthiness is excellent. No old or current loans. Not even student loans received during his studies... everything was earned independently.
We have no equity because due to our children we both worked part-time and could not build any savings.
We therefore need 110% financing of at least €316,000... that would be the absolute minimum for the purchase. Naturally, we would prefer somewhat extended financing of up to €350,000, so that we can design the interior finishing according to our wishes, e.g. underfloor heating, multi-split air conditioning (facing south)... fittings that would be more complicated and expensive to install later.
There is a parental home that can be pledged as additional security.
Additional income: my self-employment €350-500 (only a secondary activity) plus permanent part-time employment from November €900; family support €200. So we actually still have (conservatively estimated) €1200 additional income, which apparently cannot be taken into account. I do not want to be included as a co-borrower because of the pledge on the parental home and the risk due to my self-employment.
We were thinking of an annuity loan with about 35 years term, 2% repayment rate, with 5% special repayment, which we can actually afford in the next few years due to salary increases. The goal is not to completely pay off the house eventually, but rather that after about 20 years a manageable residual debt remains, which can be redeemed by sale and possibly an apartment can be purchased.
So, now the question... are these realistic conditions or am I building castles in the air?
I could now break down our expenses, but banks always oppose their flat rates anyway. So it is pointless. However, we have no consumer loans, only one car (and that will remain due to regional train connection).
Best regards